Global e-commerce sales of goods will hit $53 billion by 2016 to take 5.2% of total turnover.
By Indian Retailer Bureau
Global e-commerce sales of goods will hit $53 billion by 2016 to take 5.2% of total turnover, up from 3.7% now, as consumers increasingly tend to go online to buy items, a recent study showed.
Worldpanel's study represents an increase of $17 billion (47%) on the current $36 billion in global FMCG e-commerce sphere.
The report is is based on analysis of purchasing habits of 100,000 shoppers in ten of the biggest online FMCG markets.
It predicts that Asia will be the next major growth market. South Korea will continue its lead position with online accounting for 13.8% of FMCG sales by 2016.
As of now, 55% of Korean shoppers buy online, an exceptionally high figure that is not matched by any other country in the world.
Online FMCG market share will continue to grow rapidly in Taiwan and China to achieve 4.5% and 3.3% share of the total FMCG market respectively.
British online shoppers buy on the internet once a month and their carts are five times bigger than offline (in most countries online shopping carts are twice as large as their offline equivalents).
However, the impressive growth of the click and collect offer in France, referred to as “Drive”, will see France overtake the UK by 2016 with 6.1% vs. 5.5% of market share respectively.
The growth of online FMCG sales presents a prime opportunity for retailers and brands.
Current online shoppers, typically middle and upper class, tend to favour branded products over own-label making it an ideal platform for brands.
In France, 55% of online consumers re-use the same list for each trip making its essential for brands to secure a place on shopping lists if they are to benefit from this forecasted growth.
“Although online only makes up a small share of FMCG sales at the moment, all countries are witnessing considerable growth. The future belongs to retailers and brands that see the bigger picture and leverage the opportunities provided to broaden their target markets. Being a slow adopter has the potential to significantly damage sales and erode market share,” explains Stephane Roger, Retail Director at Kantar Worldpanel.
The report further reveals the barriers which prevent retailers and brands from engaging with the online channel.
It shows the majority of these are perceived rather than based on how consumers actually behave.
They include a fear that having an online presence will mean sales in physical stores are cannibalised and that consumers will become less loyal if they shop online – the research shows that the opposite is true for both of these scenarios.
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