.IE Tipping Point Report 2020

Section 2  |  The consumer response to Covid-19 [continued] Other factors have played an important role. Online Irish businesses are seen as faster and more reliable than international businesses (48% vs 24%), and more trustworthy (41% vs 12%). On the internet, credit card scams, identity theft, and cybersecurity breaches are frequent. Without face-to-face, physical interaction at the checkout, online stores need to prove to consumers that they can be trusted to carry out a transaction in good faith. Many Irish businesses use secure .ie domains for that reason. All .ie domain registrations are manually reviewed to ensure that the website owners have a valid, certifiable connection to Ireland. Where international businesses do convincingly win out are on affordability (71% vs 11%) and range of products (69% vs 13%). More consumers said they preferred international businesses’ websites and online storefronts (34% vs 11%). This finding is a red flag. While Covid-19 may have encouraged Irish shoppers to turn their present attention to Irish businesses, once the virus is controlled and the economy returns to normal, they may no longer feel obliged to support businesses at home when a better online experience is available elsewhere. Covid experiences Nearly every consumer we surveyed (95%) said it has been important to them to support their local small businesses during the Covid-19 crisis. 68% had purchased from their local business’s physical shop, where possible; 43% had referred the business to a friend; and 41% had purchased from their local business’s online store. There are signs that some of the Covid-19-inspired e-commerce changes are permanent. In many industries, the percentage of consumers who say they will shop online with Irish retailers over international retailers after the Covid-19 crisis is higher. For example, 29% say they will buy electronics and appliances from Irish businesses vs 26% from international. In a particularly interesting shift, 34% of consumers say they will purchase clothing and shoes from Irish SMEs in the future. While the figure is the same for international retailers, it is a noteworthy gain by Irish SMEs in a sector dominated by large brands. Why consumers have chosen to shop online primarily with Irish or international businesses during the Covid-19 crisis (Base: Consumers who had chosen to shop primarily with Irish (437) and international (340) businesses) Irish International Want to support them during the crisis 67% N/A Cheaper 11% 71% Better range of products 13% 69% Better online services/storefronts 11% 34% More trustworthy 41% 12% More reliable 48% 24% Better delivery service 30% 25% 68% 43% 41% 28% 13% PURCHASED FROM THEM IN-STORE, WHERE POSSIBLE TOLD FRIENDS AND FAMILY ABOUT THEM PURCHASED PRODUCTS FROM THEM ONLINE SHARED SOCIAL MEDIA POSTS OR LINKS PURCHASED VOUCHERS FOR LATER USE How consumers have helped their local small business during the Covid-19 crisis (Base: 950 consumers who said supporting their local business was important) 7