E-commerce is now the main retail driver, and brands must adapt quickly to e-commerce demands or lose out on the market growth it will represent over the next few years, a study by Edge by Ascential states.
According to the Future of the Digital Shelf study, 40% of global chain retail sales will take place online by 2026. Global Chain Retail Sales added in the E-commerce channel will be $239 billion, trailing only Supermarkets and Neighborhood Stores at $268 billion and ahead of Hyper-Stores at $151 billion and Discount stores at $147 billion.
The consulting and market research firm noted that retailers are investing in their online platforms to differentiate and compete, so it’s likely that the market will experience constant innovation, including the establishment of new standards for online shopping experiences and customer convenience. As such, brands need new capabilities to succeed. Online retail growth is driven by algorithms that determine how and where a product shows up to customers, and the skills to manage those operations will be critical. To win on the digital shelf requires new capabilities, new teams and sometimes new organizational structures. Clear, engaging and differentiated online content is key to capturing attention and sales, Edge by Ascential asserts.
The development of online efforts is likely to focus on experiences that add value, such as livestream shopping and online-to-offline activations. It also will emphasize increasingly frictionless interactions made easier through convenient solutions and services such as bundling and flexible fulfillment options; creating unique social media spaces for interaction with consumers who might want to squad shop or transact in a gaming format; and curation that makes shopping easier and promotes discovery through offers specifically tailored for the individual.
