COVID-19 did not boost homeshopping sales in Norway, with an even faster current value decline felt in 2020 and 2021 than pre-pandemic. Customers have been reoriented towards e-commerce as this offers greater convenience as well as the possibility for consumers to explore products at their own pace.
The stronger restrictions during Q1 of 2021 did not boost homeshopping sales as most physical stores adapted to the pandemic measures with call-and-collect options that allowed payment upon collection with the money transfer app Vipps. Thus, there was no transfer from other channels towards homeshopping.
The number of players operating in homeshopping continues to fall in 2021. Even though the pandemic could have created a push towards phone ordering (though safe and social distanced human interaction), most consumers saw e-commerce as a better option.
Homeshopping is set to continue declining in the forecast period with it feeling a little bit like a dying retail channel that does not give any special benefit to customers. For example, pay later facilities (like Klarna) have become available for online ordering and are becoming increasingly appealing to consumers.
Changing import duties will likely continue facilitating the shift to e-commerce in the forecast period. In January 2020, all cross-border orders were made taxable from the first NOK, and this had the perverse effect of not limiting customers to order less than NOK350 (the previous VAT-free limit).
New entrants are very unlikely in what is possibly a disappearing retail channel. Therefore, the reduction of players will continue in the forecast period.
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Homeshopping is the sale of consumer goods to the general public via mail order catalogues, TV shopping and direct mail. Consumers purchase goods in direct response to an advertisement or promotion through a mail item, printed catalogue, TV shopping programme, or Internet catalogue whereby the order is placed and payment is made by phone, by post or through other media such as digital TV. Excludes sales on returned products/unpaid invoices. Excludes sales ordered and paid online which are instead included within Internet retailing. Example brands include Otto, Neckermann, QVC.See All of Our Definitions
This report originates from Passport, our Homeshopping research and analysis database.
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