The RICS claims that the rise of e-commerce could be positive for the property market.
The institution says that while internet shopping will provide real competition for high street and out-of-town retailers, it could also be the catalyst for encouraging new entrants into the retail market. Initially keen to exploit the significantly reduced cost-base, they may also need to establish credibility in a traditional way on the high street.
Top-selling products are currently books, computer software, holidays and financial services. The sale of clothes on-line is relatively slow, accounting for just 1% of all e-trade while supermarket food sales is one area expected to flourish on the net.
The increasing popularity of shopping over the net will mean existing “bricks and mortar” retailers will have to compete with their cyberspace counterparts by updating their stores, offering new services – such as internet access in-store – and enhancing the shopping experience for consumers.
In addition, e-commerce retailers will need to develop sophisticated distribution networks throughout the country if products are to be delivered promptly to cyber-shoppers. This could lead to an increase in demand for distribution and warehouse space across the country.
Citing research from the UK and US, the RICS says 48% more people have access to the internet this year than last with 39% of the UK population now having access to a PC, up from 32% last year.
The RICS has a special report on e-commerce in the October edition of its UK Economic Brief.
EGi News 18/10/99
