E-commerce is set to account for half the growth in global retail by 2025, expanding by an additional $1.4 trillion between now and the mid part of the decade, according to Euromonitor International.
The findings were revealed in a webinar, Retail in Transition: Capitalising on Future E-Commerce Opportunities, which examines how the e-commerce market has been 'transformed' due to the coronavirus crisis, areas for future tech investment, and an analysis of markets with an as-yet unmet e-commerce potential.
“One of the most pronounced impacts from the global pandemic is the expanding influence of tech. Retailers and brands are prioritising tech investments, which range from optimising supply chain operations to improving user experience," commented Michelle Evans, senior head of the digital consumer research, at Euromonitor International.
"Companies in Latin America, for example, have been making bigger digital investments, and the region is forecast to reach the highest growth of retail value of all regions by 2025."
A Growing Market
According to Euromonitor International, 16% of goods were bought online last year, double the ratio of 2015.
Between 2020 and 2025, the US, China and Mexico are forecast to achieve the highest absolute value growth in online, of $386 billion, $361 billion and $77 billion respectively.
“However, the rapid digital transformation has brought challenges towards traditional business models and physical stores into greater focus, and it is vital to re-evaluate strategy for businesses to stay competitive in the ever-growing digital sphere,” added Evans.
A separate recent study by McKinsey and EuroCommerce also identified online as one of the key growth areas in retail over the coming years.
The Euromonitor International webinar, Retail in Transition: Capitalising on Future E-Commerce Opportunities, is available to view online here.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.