Homeshopping in Finland

2020 IMPACT

Homeshopping value sales supported by shielding elderly Finnish consumers

During the COVID-19 pandemic in 2020, the Finnish authorities recommended that elderly citizens avoid contact with others as much as possible to prevent COVID-19 infection which is more dangerous for elderly people. This supported retail current value sales through home shopping as elderly people are more likely to use homeshopping than consumers in other age groups and these consumers avoided visiting retail outlets in person, especially during the Spring of 2020 when the first wave of COVID-19 hit Finland.

Long-term decline of homeshopping continues as consumers seek a wider range of products and more convenient shopping methods

Despite the potentially beneficial conditions for homeshopping under COVID-19, however, the long-term factors continued to work against the channel in 2020. In the review period, homeshopping was the second worst performing retail channel in Finland, trailing only the troubled department stores channel, due to an identity crisis and a major bankruptcy.

Both generalists and specialists feature in this fragmented channel

In 2020 VitaeLab and Norvital, which are best-known for their dietary supplements, led the channel in terms of value shares. These players focused on a limited product assortment, unlike Hobby Hall and Ellos, which offer a range of products, such as apparel, homewares and consumer electronics and appliances.

RECOVERY AND OPPORTUNITIES

The decline of homeshopping will be inevitable

There will be little to prevent or slow the decline of homeshopping over the forecast period in Finland, due to the declining interest from Finnish consumers who prefer more modern retailing options. The growth of e-commerce will have a particularly negative impact on homeshopping in the coming years as computer literacy in Finland continues to rise over the forecast period.

Homeshopping companies branch out into e-commerce to meet consumer demand

Most of the companies that are still involved in homeshopping are now also present in e-commerce. Over the forecast period there will be little incentive for these companies to focus on the development of their homeshopping business whilst e-commerce continues to grow and homeshopping becomes more marginalised in Finland.

Individual successes are the exception, but remain possible

Despite the anticipated bleak future of homeshopping, it is possible that individual concepts will be successful. One concept with further potential is the domestic brand Menumat, which specialises in food delivery for senior citizens.