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Retailers who invested in e-commerce during pandemic reap benefits

By our News Team | 2022

Online shopping’s share of the total retail pie will continue to rise and should comprise a quarter of all retail sales by 2027, says study.

The value of global e-commerce sales will rise to US$5.4-trillion this year, with China and the US alone making up 52% of the figure. This is the prediction of international media agency GroupM.

It adds that nearly 61% of the total ($3.3-trillion) can be attributed to just seven markets: the US, China, Japan, Germany, the U.K., Canada and Australia. By 2027 GroupM estimates e-commerce sales will reach $9.1-trillion in value.

Retail Outlook

Photo by Mentatdgt from Pexels

The researchers says e-commerce will comprise 19% of global retail sales this year, and make up 25% of global retail sales by 2027. 

These and other forecasts are contained in a new study by GroupM entitled ‘E-Commerce and Retail Media Forecast’, which was published last week.

Major e-commerce companies have a near-monopoly

Worryingly for free marketeers, GroupM notes that just 20 major e-commerce companies accounted for more than two-thirds (67%) of global e-commerce sales in 2021. However, the report does predict that over the next one to three years, retail media will likely see greater competition.

According to the research team, retailers who invested in e-commerce capabilities during the pandemic are continuing to target ever greater ratios of e-commerce sales. But retail trends are not solely about e-commerce as, in many markets, physical shopping has made a return.

Analysing the report, the industry website Marketing Dive notes that: “Retail media continues to grow and is now forecast by GroupM to make up more than a tenth of total global advertising spend this year — a piece of the pie that will only increase as it sees a growth rate that exceeds that of all digital advertising. 

“The surging spend is commensurate with the frenzied development of retail media networks as brands look to tie their advertising closer to the troves of first-party shopper data that retailers command.”

Read more about the ‘E-Commerce and Retail Media Forecast’ report here.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.