Asia will be the next major growth market for online sales in the FMCG market, a new report by Kantar Worldpanel reveals.
The report, which is based on in-depth analysis of the purchasing habits of 100,000 shoppers in ten of the biggest online FMCG markets, forecasts that e-commerce will account for 5.2 percent of global FMCG sales (USD53 billion) by 2016, up from 3.7 percent (USD36 billion) at present.
In Asia, South Korea is expected to continue its lead position with online accounting for 13.8 percent of FMCG sales by 2016. Today, 55 percent of Korean shoppers buy online, an exceptionally high figure that is not matched by any other country in the world.
Online FMCG market share will also likely continue to grow rapidly in Taiwan and China to achieve 4.5 percent and 3.3 percent share of the total FMCG market, respectively.
“Although online only makes up a small share of FMCG sales at the moment, all countries are witnessing considerable growth. The future belongs to retailers and brands that see the bigger picture and leverage the opportunities provided to broaden their target markets," said Stéphane Roger, Global Shopper and Retail Director at Kantar Worldpanel.
Roger added that an online offer helps retailers to secure additional revenue rather than cannibalize existing spend in brick and mortar stores.
Retailers and brands are deploying strategies to win market share in very different local retail environments, which include tapping into impulse purchases, making online retail more fun and the latest techniques in convenience shopping.