New research released by the IE Domain Registry (IEDR) today reveals that only 14% of Irish SMEs have online initiatives planned for the festive season.
This is despite the fact that Irish shoppers are expected to spend €100 million (or €4 million an hour) on Black Friday.
Only 35% of Irish SMEs with a website can process payments online and only 42% can take sales orders online.
IEDR's “IE Digital Health Index”, compiled in three waves of research in May 2014, December 2014 and September 2015, measures the health of Irish SMEs’ digital presence by analysing the number of digital assets (like websites, apps and social media accounts) owned by them, and their perceived quality. Its findings highlight an alarming number of SMEs lagging behind in the digital space.
As many as 1 in 4 Irish SMEs still do not have a website, or any online presence whatsoever, to list products or conduct e-commerce transactions with their customers.
Three in four of these respondents said they did not intend to build a website, with a majority saying that there is “no need” within their industry.
Furthermore, almost half of SMEs surveyed (46%) don't advertise their services at all. Of those that do, 1 in 4 use traditional advertising media, while 1 in 6 use digital advertising. The latter figure is expected to grow, with 1 in 4 saying that they are spending more on digital advertising now than in the past.
Chief Executive of IEDR, David Curtin said, "In 2014, Irish consumers spent almost €6 billion in e-commerce transactions. At the moment, only a tiny amount of this is spent in Ireland, with most consumers purchasing products from stores in the UK and Europe where digital marketplaces are more commonplace and accessible.
"By 2020, the value of Ireland’s digital economy is expected to more than double to 10% of GDP, or €21 billion. Our own SMEs risk being left out of this commercial revolution if investment in their online capabilities remains low."
He added, "Solving this digital crisis in the long term requires a combined effort from the Government, industry organisations and Local Enterprise Offices (LEOs) and business leaders.
"There is a dire need for SMEs to receive support for web design and e-commerce education initiatives, mentoring services, enterprise funds and improvement of Ireland’s broadband infrastructure."
Source: www.businessworld.ie
