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Over recent years traditional high street retail has rapidly changed under the influence of online from single channel retail to multi-channel and omni channel, which seamlessly brings together all purchasing options which enhances the customer and brand experience and is more consumer focused than ever before. 

  • By the end of 2014, total global retail sales are set to reach around USD 20 trillion, just under 50% of total global consumer spending
  • Online retail sales (excluding services such as online travel, event and transport tickets and downloads) are forecast to increase between 15% to 20% per annum in the forthcoming years pushed by the fast growing markets in Asia and Latin America
  • The total number of people having access to the Internet will reach 2.6 billion by the end of 2014 year and is forecast to reach four billion early the next decade
  • There are over two billion active social network users in the world. At the moment, Facebook counts over 1,3 billion users, followed by the chat app QQ (816mn) and Chinese Qzone (632mn) users. Whatsapp ranks fourth (400mn)
  • The on-going penetration of mobile devices, in particular smartphones and tablets will boost sales of online goods and services as well as retail sales
  • There are over 6.8 billion mobile subscribers worldwide. Regions with higher than 100% penetration are: Central and Eastern Europe with 151%, Western Europe 129%, South America 124%, Middle East 112%, South-East Asia 109%
  • Absolute world champion at the moment is Japan with a market share of mobile e-sales of over 30%, closely followed by the UK with over 25%
  •  In Europe the UK is closely followed:

- by the mature markets of the USA, Scandinavia and the Netherlands with a mobile share of 15% – 20%
- by Germany, Switzerland, Austria, and the emerging markets of Spain, Italy, Poland
- France is developing very well in total e-sales (up 13.5% last year) but lagging a bit behind in mobile
- Russia, Turkey and Ukraine are promising online markets with high growth percentages of 40% to 50% and an increasing penetration of mobile sales

  • Outside Europe the share of mobile is rapidly increasing in:

- Asia-Pacific, with China, where mobile penetration is reaching 100% and mobile sales are reaching close to 20%)

  • Apart from the mature markets of Japan, South Korea, Australia and New Zealand, awakening giant India and other (smaller) emerging markets like Indonesia, Thailand, Vietnam, Singapore, Malaysia and the Philippines are interesting markets to follow

- Latin America led by Brazil (close to 60% of the Latin American market), Mexico; Argentine, Chile, and Venezuela

- Middle East with UAE leading followed by KSA, Qatar, Oman and the other GCC countries

  • Africa is still in the very early stages, but both the proliferation of mobile phones and the rollout of faster internet networks have helped the (further) expansion of online retail and e-commerce activities in countries such as Nigeria, South Africa and Kenya
  • Major trends contributing to omni retail are “click-and-collect” (order online, pick-up in store) and “free shipping”

All this bodes well and confirms the further integration of all traditional and online retail channels, which is what omni-retailing is all about.

The customer is always connected, the retailer is always there.

Source: IORMA research and estimates
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