The global retail
e-commerce market is expected to witness high growth during the
forecast period, favored by growing digital dependency and convenient online
shopping channels. E-commerce evolved amid a busy lifestyle and a plethora of
options available to shop from the comfort of home. Convenience is the major
factor driving the overall online shopping market growth. Moreover, lower
prices compared to brick-and-mortar retail stores further attracted
price-conscious customers to browse online. Customers can find their interested
products by visiting the website and gain additional insights on various
products.
Shopping over the eCommerce website has
multiple benefits, including multiple payments and goods options, home
delivery, and easy return, among others. The simplified and user-friendly
website allows easier navigation of various product categories with the help of
the search system, thereby increasing the indulgence of the consumer. Moreover,
eCommerce websites aided in reducing rush at stores, increasing the reach of
retailers, and allowing "shop from anywhere" to the consumer with a
hectic work schedule. Additionally, the door-step delivery further eradicated
transportation or traveling trouble while websites remain active 24*7 for
shopping.
Online retail has made products more
accessible to the consumer across the countries, which is proving vital in the
2020 global crisis due to Coronavirus pandemic. The severity of pandemic has
affected the daily life of people across North America, Europe, Asia Pacific,
Latin America, and the Middle East and Africa (MEA). Social distancing has been
used as the most effective tool to across the country to stop the third stage
of infection called "community spread'. Hence, governments have been
imposing lockdown or curfew to restrict the movement of people on the street.
However, the curfew situation has created panic among people regarding the
fulfillment of their basic necessities, which led to overstocking of food and
grocery items. Although the government has been allowing grocery and medical
stores to operate for a stipulated time, the pandemic is restricting people from
visiting crowded supermarkets.
During the lockdown and self-quarantine
period, the internet has played a crucial role in keeping people connected. The
internet is being leveraged not only by the company to allow "Work From
Home' (WFH) but also gives freedom to order online without venturing out of
their home. The shopping on an eCommerce website is allowed by the government
provided workers in warehouse's and delivery workers are taking care of the
hygiene factor in the process of shopping.
According to Quantum Metric, a predictive
retail analytics company, the quarantine and limited movement imposed by the
U.S. government during COVID-19 outbreak had led to a surge in online shopping
across the numerous states of the U.S. While some of the retail category such
as grocery, vegetable, and cleaning supplies among other may add to the growth
of retail e-commerce market, other products such as sports, home service,
clothing, and home décor among other would witness a major setback
in the overall earning. For instance, a WSM business, Williams-Sonoma, Inc.,
had been benefitting from strong eCommerce growth and West ELM. However, its
growth is being grappled by the growing case of Coronavirus, as the closing of
the store is expected to weigh its margin.
Some manufacturers are launching their
products only through the online retail medium during this pandemic. For
instance, Redmi canceled its launch event scheduled on March 12 and opted for
an online-only launch to avoid gathering of people. Such strategies are probing
the customers to buy products over the internet on account of the physical
retail market absence. Furthermore, the spread of Coronavirus has affected the
supply chain and operations of major mobile brands, including Apple, Oppo,
Xiaomi, Huawei, and Samsung, among others.
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The retail e-commerce industry has been
witnessing fraud through counterfeit goods delivery. Besides, online monetary
transactions have allowed hackers to break into the website and get consumer
information. The fraudulent activity and scams on the retail eCommerce website
have further increased during the COVID-19 outbreak. Amazon called out over 1
million products with a fraudulent claim related to the cure of the virus.
According to The Wall Street Journal report from cybersecurity firm Proofpoint, the emails containing
mention of Coronavirus in a single mail has spiked since the outbreak across
the world. Additionally, there are new websites scamming consumers in paying
for the low-quality masks, personal protective equipment, and sanitizers, among
others, or there is no delivery post online payment.
The Indian market offers excellent
opportunities for overall retail e-commerce market growth. Despite the large
Indian population, only people residing in the metro or other main cities buy
products through online sale channel. However, an increase in the mobile phone
and internet banking use is expected to provide bright prospects to overall
industry growth over the forecast period and during the COVID-19 crisis period.
Furthermore, urbanization and smart city development have contributed to the
westernized lifestyle, which is further changing the shopping pattern from
traditional to online. India, along with other major countries spread across
the Asia Pacific and Europe, is fighting the Coronavirus by practicing social
distancing, as the country is under lockdown from March 25 to April 14. This is
expected to increase online shopping for groceries and other necessities.
Ecommerce companies have started catering life
essential and niche products to consumers for the period until the countries
recover from Coronavirus pandemic. Companies such as Amazon, eBay, Instacart,
and Walmart WMT are witnessing decent growth as a consumer are hoarding on food
and daily supplies. Other online grocery companies such as Grofers, and
BigBasket's are witnessing humungous growth as their revenue double in the
first two weeks of March. The eCommerce companies would be focusing on
sustainable distribution while leveraging the opportunity to grow and gain an
edge over competitors during the pandemic. The other eCommerce vendors would be
waiting for the economy to revive so that the consumers can indulge in
purchasing luxury & comfort items apart from just buying the products for
survival.
About Grand View Research
Grand View Research, Inc. is a U.S. based market
research and consulting company, registered in the State of California and
headquartered in San Francisco. The company provides syndicated research
reports, customized research reports, and consulting services. To help clients
make informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
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