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KEY TO THE GROWTH IN VIRTUAL WORLD
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KEY TO THE GROWTH IN VIRTUAL WORLD

What is the next trend of e-commerce? Does e-commerce still have room for growth in the competitive market? What products/ categories are going to drive the growth of e-commerce? Questions above are very important to both retailers and manufacturers. With door-to-door deliveries, full-refund policies and even 24H delivery services, the expansion of e-commerce recently has gone wild.

With continuously double-digit rising of sales, it’s hard to predict when will be the end of up-trends for e-commerce; but surely it won’t be stopped anytime soon. For example, according to Nielsen Global E-commerce Survey, although China E-commerce has been booming for years, the usage penetration compared to developed EC countries, such as USA, still contains a lot more room for growth. Should the penetration rate of China reach the level of USA, the number may exceed 100 million when converting said rate into population.

On the other hand, the development of E-commerce and virtual channels in Taiwan began earlier than that in China, which is provided with 15% of consistent annual growth. According to reports from the Department of Statistics of Ministry of Economic Affairs, sales increases of tracked FMCG is approximately 5 times higher than brick and mortar retailers when it comes to online sales. However, the shares of sales over FMCG categories still only accounts for 4%-6% of total FMCG sales in Taiwanese markets.

From the index and figures published by APAC governments, both the birth rate and population growth are both flattened in recent years. In this circumstance, which customer segment could the fast growing E-retailers target and reach to?

In fact, Nielsen Global E-commerce Survey reveals that in China, over 50% of E-commerce shoppers compare offers both online and offline, while the percentage in Taiwan is even higher. This means a large proportion of the growth of E-commerce and E-retailer sales shall be deprived of the share from brick and mortar stores. Moreover, according to Taiwanese Online Shopper Report, the penetration rate of personal care products is the highest for consumers in brick and mortar stores who adopt virtual channels at the same time. These shoppers are the first skirmish battle field for E-retailers and B&M retailers.

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KEY TO THE GROWTH IN VIRTUAL WORLD

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