The global e-commerce market continues to grow – especially in Asia. Around 2.3 billion people will shop online in 2021, according to Statista’s Digital Outlook. On Black Friday alone (25 November 2016), online stores in the USA generated nearly 2 billion USD in revenue.
This proves there is still enormous potential for growth in the e-commerce market. And saturation is nowhere in sight. This year, global B2C sales are set to reach around EUR 1.227 billion and are expected to grow by 11.5% year on year to hit EUR 1.899 billion by 2021.
A look at specific countries, however, reveals the markets are growing at different rates. While commodity sales are expected to increase by more than 8% per year in North America and Europe alone, emerging markets such as Asia, Latin America, Africa and the Middle East are growing faster than the global average. The annual growth rate for Latin America, Africa and the Middle East is expected to exceed 12% by 2021.
«Today, high-street retailers enjoy greater strategic flexibility on account of the possibilities offered by the internet.»
Dr. Markus Braun | CEO Wirecard AG
Growth is especially strong in Asia, where sales are expected to grow by 14.7% year on year until 2021, to reach a figure of EUR 962 billion. The fastest growing markets are India (22.6% annually) and Malaysia (23.2% annually), while China is forecast to have an annual growth rate of 15.6%.
Fashion is the highest revenue segment in e-commerce: this year, clothes and accessories are expected to generate around EUR 352 billion, while in 2021 they’re expected to account for around EUR 570 billion. Electronics and media are equally popular with online customers. Sales of these items are expected to increase from around EUR 295 billion in 2017 to EUR 425 billion in 2021.
Source: all from Statista
Connected commerce: high-street retailers are using the advantages of the internet
Innovative payment solutions from Wirecard are setting the trends for the future of payment. To show retailers what is possible, Wirecard has produced a virtual reality showcase. At trade shows this year, retailers will be able to experience what the future of buying and paying will be like and what it will feel like for customers.
The customer puts on a VR headset and is suddenly in a sporting goods store. They use their hands to reach for appealing objects, just as they would do in real life. The objects feel real, although they are not. The customer can take a sip from a drink bottle, or look at a bike helmet from every angle. They receive additional product information through a head-up display. Their purchase history shows that they are particularly interested in cycling products, and they receive a push notification that the helmet is on sale. The discounted price encourages them to purchase. The customer pays with their smartphone and the cost of helmet is settled through a payment app. By connecting the worlds of online and physical retail, Wirecard provides a taste of the future, when long queues at the point-of-sale will be a thing of the past thanks to digital payments.
With a virtual reality headset, customers feel like they’re in a store.
Customers receive additional product information through a head-up display.
The VR headset connects physical retailers with online services through interfaces.
Physical retailers can now enjoy all the advantages that, until recently, were only available to online retailers. They can capture consumers’ buying behaviour across all channels in real time and increase their sales significantly as a result.