SMEs can no longer afford to ignore e-commerce, as online spending has grown at its fastest rate for 16 months powered by the ‘experience economy.’ Consumers are valuing experiences above material goods and are increasingly spending money on holidays and days out rather than clothes and merchandise.
Research from Visa’s Consumer Spending Index for April shows that total consumer spending increases by +2.5% year-on-year in April. E-commerce growth rate is around +8.4% year-on-year but face-to-face expenditure is broadly flat (+0.2% year-on-year).
Visa Europe UK and Ireland MD Kevin Jenkins said: “Growth in consumables remains evident, but consumer spending is increasingly focused on the experience economy. Eating out, booking holidays and discovering new experiences are all driving spending growth at a time when the lower cost of living is creating higher disposable incomes. In a month of mostly growth, the only sector to disappoint was clothing and footwear, again highlighting this shift.”