Online sales for FMCG did not stem from increased spending by existing online buyers but from the rising numbers of households buying online and from increased frequency in buying and spend. According to NielsenIQ, a global measurement company, this signals the end of the beginning of e-commerce in Asia.
In its latest thought leadership, NielsenIQ, warns retailers that as e-commerce transitions to the next phase, there are five challenges that retailers need to face: greater fragmentation in retail, redefining of the role of physical stores, divergent realities, increased fight for consumer attention, and the race to last mile fulfillment.
While e-commerce has been viewed to transform retail, Covid-19 accelerated its trajectory to its readiness to transition to the next phase.
NielsenIQ reports not only an uptick in the number of households that are buying online but as well as an increase in frequency and amount in spend. Please see infographics.
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The growth in Hong Kong is among the most dramatic with a 46% increase in households shopping online in 2020. Frequency of shopping increased significantly than penetration with consumers purchasing online 75% more frequently in 2020. Consumers in Hong Kong spent on average 2.5 times more per trip online than offline, with the value per buyer showing an increase of 52% from 2019 to 2020.