🌐 Digital Exclusion Still Affecting Many In The UK

📰 Industry News

• Dairy giant Müller has served a 12-month notice period to 26 small UK milk farmers, being warned that they must increase milk volumes or face being dropped. (Farmers Weekly)

• Passionfruit, a UK start-up that connects freelance workers with job opportunities at companies like HSBC and PepsiCo, has secured £7m in a funding round led by prominent venture capitalists. (Sky News)

• BT has been fined £17.5m for a "catastrophic failure" of its emergency call handling service, resulting in 14,000 emergency 999 calls not being connected. (BBC)

• Nadhim Zahawi, the former Conservative chancellor, is assembling a £600m bid for The Daily Telegraph, potentially upending the auction of one of Britain’s most influential media assets. (Sky News)

• Tesla stock fell 11% after the second-quarter earnings report missed expectations. Tesla remains the top seller of electric vehicles but is losing market share to a growing number of rivals. (CNBC)

🌐 The Cost of Digital Exclusion: Impact on UK Families and Start-ups

Digital access is essential for financial management, social connections, work, and education in 2024. Yet, digital exclusion remains a pressing issue in the UK, affecting millions. Let’s look at the numbers:

1. Broad Impact of Digital Exclusion:

   • Over 2 million UK households lack internet access, limiting their ability to pay bills, access education, and find employment.

   • One in five children cannot access suitable devices or connectivity for learning.

   • People without internet access face 50% higher food costs and struggle with NHS services. Additionally, older individuals miss out on annual savings of £900 by not accessing the best online deals.

2. Regional Inequalities and Connectivity Issues:

   • 800,000 people in deprived rural areas could benefit from the rollout of 5G. However, 46% of these areas lack 5G coverage compared to just 2.7% of urban deprived areas.

   • Nearly half of SMEs in rural areas face connectivity difficulties, missing out on a potential £8.6 billion in productivity savings annually through 5G-enabled technology.

3. Support and Solutions:

   • Vodafone has provided free connectivity, devices, and digital training to 2.6 million people and businesses. This includes donating 1.3 million free SIM cards through the National Databank and other charities.

Despite these efforts, 28% of households still struggle to afford communication services, underlining the ongoing need for support.

Digital exclusion in 2024 presents staggering statistics for something many take for granted. It affects people of all ages, including children and rural SMEs, and hinders entrepreneurship and the growth of digital businesses. Addressing digital exclusion is crucial for fostering an inclusive and thriving digital economy in the UK. Bridging this gap will lead to significant economic and social improvements that should not be overlooked.

📱 The Latest Social Media Stats

Sprout Social has published its latest Consumer Pulse survey, focussing on our usage of social media platforms…. and the results are pretty interesting!

Sprout surveyed over a thousand U.S. and U.K. consumers from various age groups. Here’s what you need to know:

1. Platform Popularity:

Instagram now holds the top spot, surpassing Facebook. But it’s still not winning over Gen X or the Baby Boomers. This is the social platform each generation prefers:

• Gen Z: Instagram leads, followed by TikTok, Snapchat, and Facebook.

• Millennials: Instagram is top, with Facebook, TikTok, and YouTube trailing.

• Gen X: Facebook remains the favourite, with Instagram, YouTube, and TikTok next.

• Baby Boomers: Facebook dominates, followed by YouTube, Instagram, and X.

2. User Habits

• 45% of respondents have taken a 'social media detox' in the past six months, and 51% plan to do so in the next six months.

3. Content Preferences:

• 65.5% prefer 'edutainment' - educational yet entertaining content.

• 40% enjoy memes.

• 38% favour serialised content.

• 38% like one-off video skits.

• 34% appreciate interactive content like polls and stickers.

4. Views on AI-generated Content:

• 46% are less likely to buy from brands posting AI-generated content.

• 31% are indifferent.

Instagram is the preferred platform for many, but Facebook still holds sway among older age groups. Consumers value authenticity and engaging content, highlighting the importance of balancing technology with a human touch.

(All the stats mentioned in this piece are available from a gated release on Sprout Social’s report)

🤝 Tapi Acquires Carpetright, But 1,000+ Jobs Lost

Carpetright’s biggest rival, Tapi, has taken over the brand and a significant portion of its stores. While this move saves much of the struggling Carpetright business, it also results in substantial job losses. Here’s what you need to know:

1. Acquisition Details: 

   • Tapi has acquired Carpetright’s intellectual property, two warehouses, and 54 stores, saving 308 jobs. This acquisition will see Tapi expand into new areas where it previously didn’t operate.

   • Despite some jobs being saved, 1,018 people will be made redundant at Carpetright’s head office in Purfleet and its 218 UK stores. PwC administrators will keep some head office staff for a short time to help wind down the business.

2. Business Viability and Challenges: 

   • Tapi's managing director, Jeevan Karir, stated that saving Carpetright business was unviable due to its significant debt and material losses over the years. External factors like consumer spending reductions and a debilitating cyberattack which left the store unable to trade online or in-store for over a week contributed to Carpetright’s struggles.

Although Tapi has rescued 54 stores, it says it will not fulfil outstanding customer orders at stores which have shut, leaving some customers venting their anger to the media, and rightly so.

This acquisition is another harsh reminder of the reality facing the retail sector, especially for those dealing with large ticket items amid economic pressures.

While Tapi’s strategic acquisition allows for the continuation of the Carpetright brand and saves some jobs, the significant layoffs reflect the challenging market conditions.

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