How consumers will shop in 2011

UK consumers will spend this year 20% more in technology, communications, clothing and adornment than they did in 2010. Shopping Nights Out and Luxury Vending Machines will become rising stars in the upcoming 12 months.

UK consumers are set to increase the expenditure on technology and communications products by 20 per cent in current price terms over the next five years.That is the view of market research company Mintel, which indicates that the technology sector has been one of only two retail areas to experience significant sales growth in the last 12 months.

According to the study, clothing and adornment is the other industry sector where consumers have not compromised despite widespread concerns over money and employment.

Mintel suggests that UK consumers spent £46.2 billion on clothing and £50.5 billion on technology and communications products and services during the course of last year.

However, it predicts that people in the UK will be looking to focus their spending on essential items in the months ahead.These findings make up part of the British Lifestyles report, which gauged the public’s views on their spending patterns and the economy, as well as assessing overall consumer sentiment.

Richard Perks, Research Director at Mintel, said: “With two thirds of adults emphasising saving in the coming year, the prospects for a rapid rise in consumer spending is not looking good.

“In a climate of uncertainty concerning future tax rates, benefit levels and public sector job prospects, many adults are hunkering down and focusing on putting money behind them, just in case it is needed”. “Moreover, despite the economic recovery, they are expecting higher unemployment and there is little optimism regarding the growth prospects of the UK economy. It is hardly any wonder in these circumstances that they should be looking at focusing their spending on core essential items, “ concluded Perks.

Also SCB Partners, a leading UK trend based marketing insights consultancy advising American Express, Topshop, Coca-Cola, Estee Lauder, Ford and Net-A-Porter, has identified 15 lifestyle trends for 2011. Regardind the latest ways to shop, here are the things you’ll be talking about in the year ahead:

Luxury Vending Machines: Vending machines will increase to crop up in luxury environments, offering self service luxury to upmarket travellers. The Saint Martin’s Lane Hotel introduced a vending machine curated by stylist Katie Grand this autumn and The Standard and The Hudson in New York now have vending machines with items such as Paul Smith toothbrushes and limited edition books.

Click and Collect: 2010 saw more retailers offer the click and collect service, where shoppers buy online and pick-up in store. In 2011 this trend will be developed enabling people to collect where it suits them. You will be able to buy from John Lewis but pick up in Waitrose, or purchase a surfboard online and pick it up in Devon.

Shopping Nights Out: With pop-ups and collaborations now ‘done’ the next big shopping phenomenon that found its way into stores and will truly take hold in 2010 is the shopping night out. Following in the footsteps of Vogue’s ‘Fashion’s Night Out’, shoppers are being coaxed by unlimited free drinks and live entertainment included; such as Liberty’s KeyNoir private events and Boy George DJing for guests at Selfridges.