Growth slowing in purchases through direct mail

by Daniel Farey-Jones, Brand Republic 08-Nov-05, 07:00

LONDON - The Direct Mail Information Service has reported that consumers spent £27.1bn on goods promoted via direct mail in the 12 months to September 2005, an increase of 0.9% on the previous year's £26.9bn figure.

The increase is less than the 2.5% increase in annual consumer price index inflation to September reported by the Office for National Statistics.

It is also lower than the 2.3% increase in direct mail purchases the DMIS registered between September 2003 and September 2004.

Comparison between this year's and last year's results reveals big geographical and demographic shifts in spend.

Last year, the North had a 73% share of spend against the South's 27%, but this year it evened up to 57% for the North and 43% for the South.

Last year, ABC1 consumers had a 49% share of spend against C2DE consumers' 51%, while this year was less balanced with ABC1s taking only a 38% share against C2DE consumers' 62%.

Clothes were the most popular product, accounting for £13.6bn of expenditure this year, up from £11bn last year. Electrical goods accounted for £2.4bn, up from £1.8bn.

Books dropped to £2bn from £2.8bn, and travel dropped to £0.9bn from £3.3bn. The DMIS clarified that last year's travel figure had been inflated way above normal levels by a very successful cruise promotion.

DMIS managing director Jo Howard-Brown said: "This research once again shows just how much of an integral part direct mail plays in people's lives -- even if they sometimes don't realise it."

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