Online retail sales are expected to reach new heights in 2020, as the global coronavirus pandemic has forced many homebound consumers to shop online, reports The Wall Street Journal.
E-commerce spending is expected to grow by low-double-digit percentages through the next six years even after the end of social distancing measures forced by the pandemic, according to a new forecast from media-buying giant GroupM, part of WPP PLC.
Global retail e-commerce will amount to $3.9 trillion in 2020, or 17% of global retail sales, according to GroupM’s report. The figures exclude food and delivery services to ensure consistency across markets, GroupM said.
GroupM anticipates that sum will rise to $7 trillion by 2024, or 25% of retail sales, and reach $10 trillion globally by 2027.
Brands selling more products online are spending a greater portion of their budgets on digital marketing and placing more emphasis on advertising that directly drives sales, said Christian Juhl, global chief executive of GroupM. The shift toward e-commerce will also change the way ad agencies operate, he said.
Online shopping habits are expected to stick.
“After a year of sitting at home, a lot of our behaviors are going to be permanently oriented toward these direct- and digital-commerce behaviors,” said Jay Pattisall, a principal analyst at research company Forrester Research Inc., referring to an uptick in traditional e-commerce and consumer offerings like curbside pickup.
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