1. Comment
January 22, 2021

UK consumers are receptive to drone delivery

By GlobalData Retail

There is potential demand for drone delivery in the UK; according to a recent GlobalData survey, more than one-third (36.0%) of consumers would consider receiving online orders of small goods such as grocery and health & beauty items by drone. Covid-19 is driving interest in drone delivery – 41.2% of those that would consider the service believe that it is more hygienic than receiving delivery from a person. Anxiety over hygiene will likely persist post-pandemic, and this will maintain consumer demand for delivery methods with less contact.

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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
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However, receptiveness to drone delivery is conditional; almost two-thirds (63.5%) of those that would consider the fulfilment method expect it to be free. This will be particularly true for Amazon’s drone venture ‘Prime Air’ which it is currently developing in the UK, as Prime has elevated consumer expectations for free delivery. To garner further interest and boost consumer willingness to pay for drone delivery, retailers and carriers must promote the environmental advantages of the service. More than half (51.9%) of those that would consider drone delivery cited ‘it is more sustainable than fuel-powered vehicles’ as a reason for consideration.

While drone delivery is still in its infancy in the UK, trials are paving the way for future expansion. In October 2020, Tesco launched a drone delivery service in County Galway, Ireland, and in December 2020, Royal Mail announced plans to deliver parcels via drone to residents on the Isle of Mull, Scotland.

The above chart shows the drivers of considering drone delivery, among those who would consider receiving online orders of small goods via drone. All consumer data taken from GlobalData’s monthly survey of 2,000 nationally representative respondents, conducted between 1-11 December 2020.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.