Partner Article

Will the UK high street be virtually replaced?

54% of UK SMEs believe the high street will transform by 2020, replaced by a virtual high street. Zurich Insurance’s Director of SME, Richard Coleman, had his say on the matter.

“High streets up and down the UK are currently undergoing a profound change. The evolution of technology, particularly advances in online and mobile, coupled with continuing uncertainty about the current economic climate, is impacting more and more UK businesses.

“It’s important to recognise, however, that change also brings significant opportunities. SMEs are already embracing change on a daily basis; our own research shows that over half (54%) of UK SMEs believe the high street as we currently know it will transform by 2020, being replaced by a ‘virtual high street’, hybrid business models and new potential types of high-street businesses.

“In addition, 70% believe traditional high street SMEs must radically change their customer experience to compete with online purchasing by 2020. Other opportunities include the opening up of overseas trade and the ability to reach new customers. But as SMEs embrace this evolution, there are unavoidable risks that must be considered, such as the ability to speedily adopt these new technologies.

“We also asked SMEs recently what they believe their more immediate concerns and opportunities are. Around a quarter stated that ‘new areas of business innovation’ and ‘web-trading and online marketing’ were their top opportunities (23% and 25% respectively). In addition, a third (34%) have actively had to diversify their business model in the last financial quarter take advantage of the changing market place.”

This was posted in Bdaily's Members' News section by Zurich Insurance .