Bangkok--30 Dec--SPARK COMMUNICATIONS
Retailers under pressure to expand and enhance offerings as global competition intensifies
As growth in mobile commerce continues to fuel overall spend online, e-commerce sales are estimated to rise by 20.1 per cent by the end of 2014, exceeding $1.5 trillion for the first time globally. In Asia Pacific, the overall B2C e-commerce market has almost doubled from $300 to $525 billion in the last 2 years, while e-commerce revenues in Thailand are expected to hit $1 billion in 2014.
Even with the rate of growth set to slow slightly in 2015 globally, retailers are expected to see e-commerce sales rise by 17.7% to $1.77 trillion as the market matures. Asia Pacific is expected to contribute the lion’s share at $680 billion, with revenues for Thailand predicted to grow to $6 billion between 2020 and 2025. As savvy retailers broaden their horizons to further drive growth, next year will provide rich pickings for retailers that make the right moves and embrace new and targeted strategies to win the hearts of consumers.
As the New Year approaches, Pawoot Pongvitayapanu, Founder and Managing Director of Rakuten Tarad.com, outlines his predictions for how the global retail industry will develop over the next 12 months.
Online Promotions Get Serious
As more and more e-commerce merchants look to establish themselves in the market and build a loyal customer base, there will be greater attempts to lure customers through discounts and giveaways. While this is great for consumers, it rarely brings brand loyalty as most people follow the best deals. To stand out from the crowd, e-commerce merchants need to create memorable “1st purchase” impressions for new customers and make that extra effort of providing great, personal service for existing clientele. Leveraging social media networks to connect with new and existing customers is also an option.
Personalized Promotions & Marketing
Technology has developed in a way that brings measurable benefits to merchants. We now have terrific insights into consumer behaviour at our fingertips, allowing us to know much more about who buys what and when they shop. Merchants can use this great marketing intelligence to create targeted and personalized promotions that customers want and can make a significant impact on sales and customer retention.
Niche Markets Blossom
Attracted by a lucrative $680 billion regional e-commerce market, competition is expected to be relentless in 2015. Besides the local players, regional and global e-commerce players are rushing to have a share of the pie, either by establishing a local presence or investing in the local market. As a result, it is imperative for existing online merchants to up their game, using technologies such as data analytics to gain invaluable insights. Armed with consumer behaviours and market trends, businesses can differentiate their offerings and develop effective strategies. Specialty online stores, from plus-size clothing to DIY tools that have a unique offering will also continue to attract a loyal following of shoppers willing to spend on quality products. Focusing on specific market groups with the aim of excelling in their chosen vertical will help SMEs stand out – as long as they have high enough market demand to sustain sales.
The Glory of Mobile Commerce
We live in the mobile age, where people of all ages and from all walks of life use their smartphone as their preferred way to access the internet. Internet accessibility has exploded in Thailand with over 77% of people accessing the web through their smartphone. From an e-commerce perspective more consumers are making the shift from desktop-based shopping to discovering products and making purchases via mobile devices. Retailers can no longer afford to ignore changing consumer behaviour. As these trends gather pace, Rakuten is expecting more retailers to invest in mobile friendly sites next year in a bid to capitalise on the fast-growing m-commerce segment. This will, in turn, drive greater adoption of omni-channel commerce, as businesses seek to deliver a seamless experience across multiple platforms.