The UK-based market research company Euromonitor International estimates eCommerce to account for more than half of the overall growth in the global retail market over the next five years, amounting to $1.4 trillion.
According to the market research firm, nearly 16 percent of products were purchased online last year, nearly double the pace in 2015, and growth is expected to accelerate further to touch $386 billion between 2021 and 2025. The US ($386 billion), China ($361 billion), and Mexico ($77 billion) are expected to see the most eCommerce value growth during the time.
Ms. Michelle Evans, Senior Head of Digital Consumer Research at Euromonitor stated that “One of the most pronounced impacts from the global pandemic is the expanding influence of tech. Retailers and brands are prioritizing tech investments, which range from optimizing supply chain operations to improving user experience”.
During the COVID-19 pandemic, eCommerce grew in popularity across all product categories, expanding the pool of consumers and boosting last-mile delivery platforms as more customers switched to digital networks, Euromonitor pointed out.
The research company said that companies in Latin America, for example, have increased their digital investments as a result of COVID-19. They’re putting money into improving website experiences, expanding direct-to-consumer operations, and forming partnerships with delivery services. By 2025, the country is expected to have the highest eCommerce growth rate of all regions, at more than 21 percent. It will be followed by Eastern Europe (12 percent) and the Middle East and Africa (11 percent).
The COVID-19 pandemic accelerated the digital transformation of more than 70 percent of retail professionals around the world by one to two years. More than 20 percent of respondents said that it sped up procedures by three to five years.
Ms. Evans remarked that traditional business models and physical stores, on the other hand, are facing greater challenges as a result of the rapid digital transition. “It is vital to re-evaluate strategy for businesses to stay competitive in the ever-growing digital sphere.”
According to United Nations Conference on Trade and Development, the pandemic has accelerated the transition to a more digital environment. For example, during the pandemic, 7.3 million Brazilians shopped online for the first time. In Argentina, the number of first-time online shoppers accounted for 30 percent of the total online shopping base in 2019.