IORMA International Newsletter
Online retail sales in Southeast Asia are expected to hit $70 billion by 2020
Online retail sales in Southeast Asia are expected to hit $70 billion by 2020, but retailers will have to make investments and find the right partners to be able to take advantage of the growth opportunity in the region. According to the Bain and Google report titled “Can Southeast Asia Live Up to Its E-Commerce Potential,” online sales in Southeast Asia representing around four per cent of the region’s total retail market, could grow to $70 billion by 2020. The report is based on a survey of more than 6,000 consumers in the Philippines, Singapore, Thailand, Malaysia, Indonesia and Vietnam. Read the article here or mail us to get your copy of the report.
Global Online Gambling: A Fast Growing Market
Between now and 2020, the global online gambling market is expected to see a compound annual growth rate of nearly 11 per cent, according to analysis released late last year from research group Technavio.
The global online gambling market is currently worth around $37 billion a year, as about 85 nations across the world have chosen to legalise Internet gambling, according to the American Gaming Association. The United States is a bit different than the rest of the group because only a few jurisdictions there—Nevada, New Jersey and Delaware—have legalised and regulated online casino gambling so far. Read more here.
Travel: Trust in Online Travel Agents Falling, Use of Mobile Apps Rising
New research from digital hotel marketing firm Fuel reveals consumer’s trust with Online Travel Agents is waning leading to more people booking direct and the benefits to hoteliers of a mobile app.
The findings of the recent Fuel report show that distrust in OTAs has risen 50% in the past year. This was ascertained by asking consumers to rate the believability of online review sources. Instead, a hotel’s own website was ranked the most believable (95%), followed by TripAdvisor.com. This finding suggests that hotels should focus on curating and presenting their own verified reviews on their own websites. Read more here.
Luxury: Personal Luxury Goods Market Boosted by Currency Fluctuations and Globetrotters but Real Growth Slows
The14th edition of the Bain Luxury Study, published by Fondazione Altagamma, the trade association of Italian luxury-goods manufacturers, found that, aided by global currency fluctuations and continued purchases by “borderless consumers,” the personal luxury goods market—the “core of the core” of luxury and the focus of the Bain Luxury Study—ballooned to more than €250 billion in 2015. That represents 13% growth over 2014 at current exchange rates, while real growth (at constant exchange rates) has eased to only 1% to 2%. The slowdown confirms a shift to a “new normal” of lower sales growth in the personal luxury goods market. The challenge for luxury brands in this environment is to successfully navigate market volatility driven by currency swings and fluctuating tourist flows. Read the article here or mail us to get a copy of the report.
The High-Tech Retail Store of The Future
Retail stores are having an identity crisis. With foot traffic falling and customers flocking to online outlets like Amazon, many brick-and-mortar stores are looking for new ways to keep the physical shopping experience relevant. “Physical stores find themselves at a crossroads,” says Doug Stephens, retail industry futurist and author of The Retail Revival. “The value they used to provide, to assemble in one place a selection of products easily shopped and taken home, that value isn’t what it used to be 30 or 40 years ago.”
If storefronts want to compete with their more convenient (and usually cheaper) online alternatives, they will have to offer unique and personalised experiences worth getting off the couch for. Read more here and here
Global Economic Outlook and Forecast for the next years
According to leading research company A.T. Kearney, the global economy is finally entering into a period of more stable growth. In the period until 2020, Kearney anticipates a return to annual global growth of approximately 3 to 4 per cent. However, identifying specific opportunities will be more difficult than in the previous decade. Through 2020, neither subset of economies—advanced nor emerging—will be as monolithic as in the recent past. The economic outlook for the USA is, according to Kearney, rather healthy and stronger than it has been in years, bolstered by financial sector stability, private sector growth, and rising demand. Unemployment will continue at around 5%. There isn’t too much inflation or deflation. Read the full article.
USA: Retail Sales are forecasted to grow 3.1 per cent in 2016
The National Retail Federation released its 2016 economic forecast today, projecting retail industry sales (which exclude automobiles, gas stations and restaurants) will grow 3.1 per cent, higher than the 10-year average of 2.7 per cent. NRF also announced today it expects non-store sales in 2016 to grow between 6 and 9 per cent. “The consumer is in the driver’s seat and steering our economic recovery. The best thing the government can do is stay out of the way. Wage stagnation is easing, jobs are being created and consumer confidence remains steady, so despite the headwinds our economy faces from international developments — particularly in China — we think 2016 will be favourable for growth in the retail industry,” said NRF President Matthew Shay. “ Read more here.
Vietnam: B2c e-Commerce Sales Boosting in 2015 – Retail Doing Well
B2C e-commerce sales in Viet Nam reached US$4.07 billion last year, increasing 37 per cent compared to 2014. In 2012 total B2C e-commerce sales were only US$ 700 million!
B2C e-commerce sales accounted for about 2.8 per cent of total retail sales and consumption services revenue nationwide, according to the 2015 Vietnam E-commerce Report published by the E-commerce and Information Technology Agency (Vecita) under the Ministry of Industry and Trade.
The report shows that the country’s e-commerce had entered a strong growth phase. According to the report, the purchasing amount per e-shopper in 2015 was around US$ 160. Read more here.
White Paper by Tocata: the State of m-Commerce 2016
For the purpose of this white paper, m-commerce is defined as e-commerce transactions completed on a mobile device, either a smartphone or a tablet. M-commerce currently accounts for just a fraction of overall e-commerce sales – about 11% – but that figure is expected to reach 15% by the end of this year, according to eMarketer. When looking at the entire world, the potential for m-commerce is even more staggering. In countries such as China, India, and Mexico, a large percentage e-commerce purchases is already made on mobile devices, and European consumers are also more apt than Americans to use their mobile devices over their laptops to make purchases. Send us an email to get a copy of the White Paper.