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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.
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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