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Thursday, December 17, 2020

Online Sales Expected To See Continued Growth



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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