Orders decrease during off-season, but demand for fashion and grocery categories increases

According to AfterPay's forecast, although the off-season has caused a decline in online transaction volume in the European market, the three categories of fashion, food and groceries will still grow!

After the peak season, online transaction volume in January dropped significantly. Data shows that four countries have seen a decline: the Netherlands from 5.2 to 4.4 (-15%), Germany from 5.6 to 5.1 (-7%), Norway from 4.1 to 3.2 (-22%), and the UK from 7 to 5.9 (-16%).

Based on the current situation in the first quarter , online transaction volume is expected to decline further. AfterPay said this is normal after the peak season. However, during the first quarter of 2022, demand for fashion , food and groceries will increase .

The data shows that the fashion product category will continue to be the " engine " of online shopping in the Netherlands, Germany and Norway . In these three countries, fashion is the main online category. The UK has a " twin engine " of fashion and food and groceries. But in terms of monthly online purchases, food and groceries are almost as large as fashion.

As for the Netherlands, fashion was the largest and only growing online category in February. Data from January showed that 28% of Dutch online shoppers made at least one online purchase in the fashion category. From a category size perspective, there are quite a few categories that rank second. Electronics/telecom, health/nutraceuticals, beauty/cosmetics, hobbies, food , groceries and takeaway all have around 10% of online shoppers.

Fashion was the top purchase for German and Norwegian consumers in February , followed by media , electronics and health and food products . This is especially true when online purchases are isolated (combined with overall online and offline). Fashion is the category expected to grow or at least maintain volume, as overall online purchases are expected to decline.

In the UK market, food and groceries will continue to pull the train of online shopping , or at least the purchase method will shift from physical stores to online purchases. In addition to food and groceries, fashion has always maintained a high share in online shopping.

If we include offline purchases, the Media /Entertainment category stands out, with consumers indicating they will increase their overall purchases in February. But the growth in the Media /Entertainment category is expected to be primarily in physical stores.

Europe

Off-season

Rising demand for categories