ChannelAdvisor have announced the results from a new survey of over 300 chief marketing officers working at UK brands. Among the results includes what channels CMO’s are prioritising and commentary on confidence levels. Not surprisingly, it was revealed that among the very top concerns for UK CMOs over the next twelve months is the effects that the cost of living crisis will have, with nearly a quarter (23%) citing this as their biggest concern.
The survey of 305 UK brand CMOs, repeated from last year, also found that:
- 67% of UK brand CMO’s are positive about their revenue growth over the next 12 months
- Over half (51%) reported that they were optimistic about their sales growth over the next five years
- Over a third (36%) expect their brand will increase international sales
Despite the current domestic challenges facing UK brands it’s not all doom and gloom for CMO’s. Buoyed by the continued rise in ecommerce and the opportunities to sell into new markets over two thirds of UK brand CMO’s reported optimism around their sales revenue for the next 12 months.
This is in part due to the UK being the fourth largest ecommerce market in Europe and has continued to see promising growth over the past 18 months, increasing by 12% to a total value of £148Bn. The growth seen over the past two years was heavily influenced by the pandemic but those trends look set to stay. Capitalising on this unprecedented growth has become a crucial part of UK brands ecommerce strategy as they look to solidify operations and maintain growth over the coming years.
This optimism is also influenced by the growth seen across Europe and international markets like the US, the global value of e-commerce has grown to over $13 trillion sparking a genuine sense of optimism amongst leading UK marketers. When it comes to international sales, UK CMOs are feeling very confident, just 4% expect their brand will significantly decrease sales outside of the UK, and over a third (36%) expect their brand will increase sales abroad.
It also appears that the long term outlook of UK brand CMO’s is even more positive, signalling the current challenges facing the market are hopefully temporary. Over halfreported that they were optimistic about their brands future sales growth over the next five years.
As pressure on household budgets continues to intensify consumers may look to tighten their wallets and re-focus on essential spending. At the same time brands are trying to navigate through these tricky times and are under pressure to remain competitive among some of the most difficult trading conditions in recent years. Despite this there does remain a real sense of optimism amongst UK brand CMO’s as growth in the ecommerce market continues to beat expectations.
Loyalty will play a key role in the short term as customers are more willing to shop around to grab the best deals for products. Brands and retailers need to consider a number of approaches in order to ensure that they are the most attractive proposition amongst the competition, delivering consistently on value and quality both domestically and internationally.– Vladi Shlesman, Managing Director, EMEA at ChannelAdvisor