Research by Cushman and Wakefield (internationally notable real-estate services firm) investigates the growth and related patterns of the online retail industry, in order for its clients to capitalize on the findings.
The inaugural Global Perspective on Retail report looks at more than 100 countries and evaluates them against several indicators relating to the retail and online market.
The data that was produced has generated some compelling findings:
UK is number one owing to high volume of online sales per capita, large market share, retail market size and openness to social media and new business
US is number two even though it is the biggest online retail market with about $187 billion-worth of retail goods sold online in 2012
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Next are other well ranked, established European markets.
Interestingly, markets who are winning the race in M-Commerce (mobile commerce) such as Asia and North America are thought to dominate in future results.
Markets with the greatest potential are China and Malaysia (a possible online leader to-be) as well as Russia (whose potential may be dampened by slow delivery times and a preference for cash over credit. And both Brazil (21st place) and Mexico (35th place) present great promise.
According to James Hawkey, Cushman & Wakefield’s managing director for retail in Asia Pacific: “Online trading has the potential to change the way global retail works. Brands who want to enter Asia now have the option of exploring the market with an online presence before opening stores. Asian countries with very young populations are often early adopters of new technology and potential for online retail is significant across the board.”
Matt Winn, Cushman & Wakefield’s retail services leader in the Americas, commented on retail as being a partner to e-tail (online retail) saying that, “ the economic, cultural, regulatory and infrastructure issues affecting physical retailing also impact upon the virtual world. Taking these factors into consideration, online retailing must at least in part be viewed through a local lens – the physical store footprint and e-commerce strategy are therefore linked for omni-channel retailers.”
And thus in concluding its evaluation of the market, the property market stands to lose out with e-tail rising and spreading but in large regional areas the report finds potential for growth of shopping centers and suggests that malls could become an important part of the e-tail revolution with delivery and other such services that would complement and enhance online shopping.