Press release
Online Retail Market | Amazon Inc., Alibaba Group, eBay Inc., Otto GmbH & Co KG, JD.com Inc.
Online Retail Market
Asia Pacific stands to be the largest market for online retail and is also projected to be the fastest growing market. Countries such as China, India and the ASEAN bloc is playing a key factor driving demand for online sales in the region. In addition to this, rising middle class population with growing purchasing power is further boosting market growth in the region. According to Chinese government sources, the middle class in China is expected to expand from 430 million in 2017 to 780 million by 2025. This segment is among the largest contributors towards online sales, and thus, rapid growth of this segment is projected to fuel growth of the online retail market.
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Detailed Segmentation:
Global Online retail Market, By Product Type:
Fashion
Media & Entertainment
Beauty & Personal Care
Furniture
Food & Beverages
Sports & Recreation
Electronics
Toys
Others
Among product type, the fashion segment held a dominant position in the online retail market in 2016. The segment was valued at US$ 347.50 billion in 2016 and is expected to exhibit a CAGR of 13.43% over the forecast period. Fashion specific online marketplaces have gained popularity in owing to the high demand. Zalando S.E. is a Germany-based company operates an online marketplace for fashion products.
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The food & beverages segment is a major opportunity area for market players. So far, growth of online retail of food & beverages has been slack due to concerns over quality and freshness of products. Amazon Fresh is a service from Amazon Inc. which offers same day delivery of grocery items. Similar services have emerged in countries such as India, China and U.K. albeit by local players such as iFresh, Grofers and Sainsbury. All these services offered by these players at discounted offerings and free delivery services have the potential to boost the food & beverages segment. The electronics segment is one of the key segments that has been driving the growth of the online retail market. Electronics industry players have tied up with online retailers for the marketing and sale of their products. For example, in China, Alibaba Group picked up a 20% stake in electronics retailer Suning Group. The synergy achieved by the stake acquisition will drive up electronic sales of the company.
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