Global Online Retailing, 2013-2018 - SP.pdf · Global Online Retailing, 2013-2018 ... Asia-Pacific...

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Global Online Retailing, 2013-2018 Market Dynamics, Online Trends and Competitive Landscape

Report Code: RT0177IS

Published: July 2014

Report Price: US$4,950 (Single Copy) for full report and US$1950 for individual regions and global summary


The electrical and electronics category group is the most popular category group sold online. It is largely driven by the

deals and discounts offered by online retailers, and the “showrooming” trend

M-commerce is gaining popularity, with a rise in smartphone and tablet penetration. By 2018, M-commerce will account

for a nearly half of B2C E-commerce spending.

Online retailers are adopting an omni-channel strategy to provide the essential seamless shopping experience to the

customer

Social commerce is growing, driven by the greater integration of social media and e-commerce platforms.

After cards, E-wallets is the fastest growing mode of payments across the world.

The “Global Online Retailing, 2013-2018” report, published by Conlumino, provides an analysis of current and forecast

market data of retail sales in different category groups in online retail channel across the globe. In addition, it covers

information on key technology trends, online trends in major countries and payment preferences of consumers. Also

focuses major retailers across the regions, with an emphasis on innovative retailers in the online retail space.

Summary

July 2014 RT0177IS

Key findings

www.conlumino.com 3 www.conlumino.com 3 July 2014 RT0177IS

Reasons to buy

The report provides an essential overview of the global online retail market, highlighting the largest and fastest growing

online markets across the globe.

Provides analysis of the latest trends, market dynamics (covering 9 category groups) and key innovations in the online

retail space in major countries across the four regions, Americas, Europe, Asia-Pacific and Middle East and Africa.

Identify the largest and fastest growing categories in major countries across the four regions.

Benefit from a detailed analysis of key global technology trends influencing the online retail market.

Monitor the competitive landscape with the analysis of key international players across the four regions.

Analyze the growth of Amazon and Alibaba in the online retail industry, through the specific case analysis.

www.conlumino.com 4 July 2014 RT0177IS

CONTENTS

Asia-Pacific Highlights online retail

market size in 2013 and its

forecast till 2018

Biggest and fastest growing

online retail markets

Fastest growing online retail

markets for major category

groups

Online retail trends

Major online retailers in the

region

Innovative online retailers

Americas

Highlights online retail


forecast till 2018





groups



region


Europe Highlights online retail


forecast till 2018





groups



region


Middle East and

Africa Highlights online retail


forecast till 2018





groups



region


Global analysis of Online

retailing

Introduces global online retail landscape, includes current market size and

forecast, highlights world’s fastest growing markets and category groups. Also

provides key technology trends, payment preferences, delivery services and

major hurdles in growth of online retailing


E-commerce

Online pure-play

Includes online retail

sales of products

through inventory

based or market place

business model

Examples:

Amazon.com

Ebay.com

Online –

traditional

retailers

Includes online retail

sales of products by the

traditional retailers

Examples:

Walmart.com

Target.com

Costco.com

Online ticketing

Includes ticketing for

air, rail, bus, cruise

travel, hotels, movies

and events

Examples:

Orbitz.com,

Fandango.com

Gotobus.com

Online Deals

Includes online deals

such as restaurants

and beauty services

coupons

Examples:

Groupon.com,

Retailmenot.com,

wow-coupons.com

Online Portals

Includes online sites for

second hand sales of

products , property

portals and many more

Examples:

Cars.com,

Realtor.com

Online retail

(included in this report)

Online commerce

(not included in this report)

Overview of Conlumino Coverage Conlumino Global Online Retailing, 2013-2018


America's

Europe

Asia-Pacific

Middle East and Africa

Global

Regional Online % Share of Total Retail Sales vs. Global* Average

2018 2013 2008* “Global Average” refers to an average of 50 leading international

retail markets covered by Conlumino Source: Conlumino

• Americas’ and Europe will continue

to have higher penetrations of online

compared with other regions.

However, no region will have more

than an average of 10% share of

total online retail

• Physical retail will still dominate and

be integral in 2018 and beyond

• Online penetration is highest in more

mature markets wherein the

consumers are tech-savvy and are

more comfortable in making a

purchase online

• In developing markets, penetration

of online channel is low as

consumers are still skeptical about

the safety of online transactions.

However, huge growth is expected

from these developing markets with

the rising popularity of cash on

delivery options and E-wallet

Asia-Pacific and MEA lag behind in share of online sales Conlumino Global Online Retailing, 2013-2018


Alibaba – Global Leader in E-commerce Conlumino Global Online Retailing, 2013-2018

Alibaba - Services

Alibaba group aims to provide a better platform to the merchants. The company does so by offering a range of

services which includes:

Alibaba has two marketplaces :

• Global marketplace for global buyers and sellers

• Chinese marketplace for buyers and sellers in China

B2B E-commerce for international sellers and buyers

C2C E-commerce B2C E-commerce

B2C E-commerce platform for global consumers

Online payment platform

Cloud Computing and data management

Product search and price comparison site

B2B E-commerce for domestic sellers and buyers


US

CANADA

MEXICO

COLOMBIA

VENEZUELA

BRAZIL PERU

CUBA

ARGENTINA

CHILE

Source: Conlumino

Online retail sales online 2013 (US$ bn) and CAGR% growth 2013-2018

Top 3 online markets by value 2013

Fastest growing markets, CAGR 2013-2018

The US is the biggest online market in the Americas Conlumino Global Online Retailing, 2013-2018

US

Bra

zil

Can

ada

Bra

zil

Mex

ico

Ch

ile


Apparel, accessories,

luggage and leather

goods-46.48%

Electrical and

electronics-42.51%

Furniture and floor

coverings-41.41%

Books, news and

stationery-40.91%

Electrical and electronics-40.9%

Apparel, accessories, luggage and leather goods-32.6%

Books, news and stationery-15.7%

Furniture and floor coverings-1.1%

Sports and leisure equipment-0.9%

Music, video and entertainment software-0.7%

Top 3

Cate

gory

gro

up

Botto

m 3

cate

gory g

roup

Fastest growing category group

Category group-CAGR 2013-2018

China

Category group-% of total online retail

Cosmetics and

toiletries-16.68%

Food and grocery-

13.59%


luggage and leather

goods-12.83%

Home and garden

products-12%



Food and grocery-14.7%

Cosmetics and toiletries-5.2%

Sports and leisure equipment-5%

Home and garden products-1.7%

Top 3

Cate

gory

gro

up

Botto

m 3

cate

gory g

roup



Japan


Music, video and

entertainment

software-14.52%


luggage and leather

goods-12.4%

Home and garden

products-10.55%

Food and grocery-

8.92%



Food and grocery-12%

Sports and leisure equipment-5.3%

Music, video and entertainment software-3.9%

Home and garden products-1.6%

Top 3

Cate

gory

gro

up

Botto

m 3

cate

gory g

roup



South Korea


Source: Conlumino

Top 3 Biggest and Fastest Growing Category Group Conlumino Global Online Retailing, 2013-2018


Adidas has deployed an interactive window shop at the Neo store in

Nuremburg, which allows shoppers to browse and purchase Adidas products

using their smartphones.

To make purchases, the shoppers have to select an URL and enter a onetime

pin code. After completing this process, the shoppers mobile will be linked

with the shopping cart of the interactive window store.

The window has a large touch screen which enables shoppers to browse,

select and drag the product to the shopping cart. The products in the

shopping cart will automatically reflect in the smartphone linked to the

interactive window.

The shopper can then complete the transaction on the Adidas Neo mobile

website. The shopper can also change product details, share products on

social media, and save the product for a later purchase. The concept was

developed in collaboration by Adidas and TBWA/Helsinki.

Adidas, Germany

Deployed an Interactive Window Shop

In 2012, the shoe retailer installed several virtual pop-up stores, the purpose

of which was to minimize the gap between the physical and digital worlds,

and to attract street consumers.

These virtual stores are installed in crowded places, such as stations and

shopping malls, across Germany. The store uses 3X Microsoft Kinect and a

large screen, which allows consumer to see how the shoe will look in a 3D

view.

This augmented reality shoe store also allowed customers to try on a range of

collections and different sizes, which are available in the online store.

Shoppers can try different brands, colors and styles, and can also upload the

pictures to their Facebook accounts. Once selected, they are able to

purchase the shoes through their mobile devices by scanning the QR codes.

Goertz, Germany

Installed a Virtual “Pop Up” Shoe Store

Innovative Retailers in Europe Conlumino Global Online Retailing, 2013-2018


Online retail sales in Middle East and Africa is growing. The penetration of internet users in Middle East and Africa increased from, 21.7% in

2008 to 60.5% in 2013. Men are more likely than women to shop online in the Middle East, with 46% of males compared to 32% of females

shopping online.

South Africa’s logistical infrastructure is very poor, and currently lacks the capacity for high volume online retailing. The country’s weak logistical infrastructure has a greater impact upon small retailers, compared to larger retailers; for example, free shipping eats into profit margins, incurring additional costs. Online retailers, who already work on paper thin margins, are amongst the most affected. Logistical constraints have stopped Shoprite, one of the largest retailers in South Africa, from growing its online grocery business. However, the situation will change in the future as a number of international 3PL (Third Party Logistics) companies are now investing aggressively in the South African market. The South African government has attempted to quicken the pace of investment in this sector, with a planned investment of ZAR260 billion for a national transport and logistics project. The leading retailer, Woolworths, has also invested in improving its supply chain, through strengthening pick, pack, and distribution services. Pick n Pay is also working on expanding its domestic distribution system, and has invested ZAR500 million in an SAP ERP system. This has helped the company in tackling the supply chain issues it has faced in the past, with regards to category management and stock shortages.

A weak Logistical Infrastructure remains a challenge for online retailing

in South Africa

The South African

Government plans

to invest R260

billion in improving

transport and

logistics

Retailers investing in improving their supply chain capabilities

Online Retail Trends in Middle East and Africa Conlumino Global Online Retailing, 2013-2018


Table of contents

July 2014 RT0177IS

Executive summary Global* online sales set to reach US$1,161 billion by 2018

The UK has the highest share of online sales in total retail

Regional Online % Share of Total Retail Sales vs. Global Average

Top 10 largest online retail markets, 2018

Top 10 fastest growing online retail markets, 2013-2018

Biggest category groups, global, 2018

Fastest growing category groups, global, 2013-2018

Covers the 50 largest retail markets . All data is in US$


Table of contents contd 1…..

July 2014 RT0177IS

Global analysis Overview of Conlumino Coverage

Top 10 largest online retail markets, 2013 & 2018

Online share of retail sales for top 10 countries, 2013 &

2018

Online retail sales of category groups in top 10 biggest

countries, 2013 & 2018

Online retail sales of categories in each category group in

top 10 countries, 2013 & 2018

Online share of retail sales by category group in top 10

countries, 2013 & 2018

Top 10 fastest growing online retail markets, 2013-2018

Top 5 fastest growing countries in each category group,

2013-2018

Global Online retail trends Rise in smartphone penetration augments M-Commerce

Social media meets e-retailing

Retailers adopting omni-channel strategies

Free and faster delivery services are now key differentiator

Cards continue to be most preferred payment mode

Key Hurdles in Online Retailing

Amazon – Case study

Alibaba – Case study


Americas - Online Retail Market Online retail sales 2013 (US$ bn) and CAGR% growth

2013-2018

Top 3 Biggest and Fastest Growing Category Groups in

each country

Top 5 Fastest Growing countries in each Category Group

Snippets of online retail trends in Americas

Unmanned aerial vehicles to replace the delivery trucks in

the US

Brazilian Social Commerce boom

Young, digital savvy consumers drive online retail markets

in Mexico

Payment preferences in Americas

Major online retailers in Americas

Innovative Retailers in Americas

Europe - Online Retail Market Online retail sales 2013 (US$ bn) and CAGR% growth

2013-2018


each country


Snippets of online retail trends in Europe

Growth of online food and grocery sales surpasses offline

channels in the UK

Russian consumers’ prefer international retailers

Online shopping entices value conscious Spaniards

Payment preferences in Europe

Major online retailers in Europe

Innovative Retailers in Europe



Asia-Pacific - Online Retail Market Online retail sales 2013 (US$ bn) and CAGR% growth

2013-2018


each country


Snippets of online retail trends in Asia-Pacific

Online shoppers prefer overseas retailers over domestic

retailers in Australia

Online singles day sales in China overtakes Cyber Monday

and Black Friday sales

Payment preferences in Asia-Pacific

Major online retailers in Asia-Pacific

Innovative Retailers in the Asia-Pacific

Middle East and Africa (MEA) –

Online Retail Market Online retail sales 2013 (US$ bn) and CAGR% growth

2013-2018


each country


Snippets of online retail trends in MEA

Cash on delivery most preferred mode of payment in

Middle East

A weak Logistical Infrastructure remains a challenge for

online retailing in South Africa

Payment preferences in MEA

Major online retailers in MEA

Innovative Retailers in the MEA



Asia-Pacific Europe Europe Americas

Australia Belgium Austria Argentina

China Denmark Bulgaria Brazil

Hong Kong Finland Czech Republic Chile

India France Hungary Colombia

Indonesia Germany Poland Mexico

Japan Greece Romania Peru

Malaysia Ireland Russia Venezuela

New Zealand Italy Slovakia Middle East and Africa

Philippines Netherlands Turkey Egypt

Singapore Norway Ukraine Israel

South Korea Portugal Americas Saudi Arabia

Thailand Spain Canada South Africa

Sweden United States UAE

UK

Countries covered


About Conlumino

July 2014 RT0177IS

Conlumino Global Retail offers a comprehensive 360° view of the retail landscape. A team of analysts, with more than 200

years of combined experience, help you identify and understand the most current retail trends.

Hundreds of retail businesses across the globe used our research to make critical business decisions.

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,

electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Conlumino.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the

findings, conclusions, and recommendations that Conlumino delivers will be based on information gathered in good faith

from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such,

Conlumino can accept no liability whatsoever for actions taken based on any information that may subsequently prove to

be incorrect.

Disclaimer

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