Comparison Sites Lose Market Shares Despite Recession
According to research revealed by the Mintel Internet Quarterly Report, consumer use of comparison sites has dropped in the last year, despite expectations of a rise in use as consumers search for lower prices due to the recession. The research firm attributed this decrease to the proliferation of voucher code sites, which have taken market share from comparison sites.
Jim Clark, senior technology analyst at Mintel and author of the report, also said, "Competition from established retailers, the proliferation of niche sites, the postal strike and fears about online security are all reasons why price comparison sites haven't grown as they should have during a recession."
The report found comparison sites saw a 2% fall in activity over the past year, with only 40% of the 1,399 consumers surveyed using a comparison site in the three months to October 2009.
Bruce Fair, MD of Kelkoo, said financial product comparators had suffered during the recession. "With the financial market as it is and with credit not as easy to get, financial comparison sites have seen a drop-off," he said. "For us, both shopping and travel have increased between 8% and 9% in the past year."
