A new Tech Boost for the Irish Economy?

The Irish economy is on the up. After several years of turmoil, 2015 saw a number of positive reports from finance minister Michael Noonan that things were starting to look better.

Indeed, as the end of the year approached, Noonan predicted an annual growth rate of 6%. This is a figure which has seen the European Commission forecast the Irish economy as the fastest growing in the European Union as of the beginning of February 2016.

While austerity measures have certainly helped to turn things around, one of the main reasons Ireland has recovered is because of the willingness to go shopping. According to a report by the Irish Times, there was hope among the Irish retailers at the start of 2015 thanks a buoyant festive period.

Retail Fuelling the Irish Recovery

Outlets such as Tesco saw growth of 1.1% in 2014, while stores such as SuperValu took control of 24.5% of the Irish market over the course of the year. That growth in 2014 not only gave retailers something to smile about, but contributed to the upturn in fortunes noted by Noonan towards the end of the year and now there could be more hope on the horizon courtesy of Google.

The buzz among tech experts in early 2015 was the introduction of Google’s buy button which basically allows consumers to make purchases directly from the search page.

Could this be a good thing for Irish retail? Well, if the online retail sector embraces Google’s buy button and it allows people to purchase items with fewer obstacles in their way, then it is a positive thing according to experts at the Greenlight Digital agency.

In fact, as well as making it easier to purchase items (because it removes the number of steps a consumer has to complete to get their product), the new buy button could, according to Pouros, “help smaller retailers to better compete with larger operations”.

We Love to Shop Online

Now, for most shoppers the process of finding an item online and completing the purchase isn’t an issue. A 2014 study by the analytics experts at Formisimo found that six out of ten Irish consumers followed through with their purchases after adding an item to their basket.

This fact not only ranked Ireland ahead of the rest of the world when it comes to being fervent shoppers, but it means that we’re always ready to make a purchase online if we spot a deal. Of course, with many retailers located offshore, there’s always a concern that online purchases won’t contribute to the economy.

Indeed, in an article outlining the ten things we love and hate about online shopping, journalist Conor Pope asked the question: “If you buy from big international retailers, where does the money go?” Fortunately, the advent of Google’s buy button could help negate the problem of Irish money going overseas if it allows local retailers to compete with the big boys.

Tech Could Help Boost the Irish Economy

Indeed, if it is the case that smaller retailers can better compete with larger companies (i.e. because people will make purchases from the search page and not be swayed by fancy websites), then more of Ireland’s independents can tap into the country’s love for shopping. Naturally, that would then keep more of our retail Euros within Ireland’s shores and, therefore, give an extra boost to the economy.

Online retail may have caused the demise of many small businesses over the years, however, if smaller retailers are able to adapt and embrace features such as Google’s buy button, then technology could have the opposite effect in the coming years.