Euromonitor International recently published the latest edition of Passport: Retailing industry data, and below are three key trends shaping the performance of the global retailing industry.
The digital revolution continues
Internet retailing is expected to be the fastest growing channel in the world through 2022. Even more important is that mobile internet retailing will be growing faster. It’s likely to reach a tipping point, accounting for 50% of internet retail sales, in 2019.
Two markets, China and the US, account for 60% of the growth in internet retailing through 2022, although China will continue to grow at a faster pace. This growth is reflected in the new global company leaders. In 2017, JD.com cracked the top five, making it the third internet retailer in the top five. Amazon is the second largest retailer in the world followed by Alibaba.
Discounters is the grocery channel to watch in select countries
The discounter business model is not a global model. In 2017, discounters only accounted for 5.8% of global grocery retailing, but that percentage is expected to climb to 6.5% in 2022-becoming a larger channel than convenience stores.
65% of growth in discounters is concentrated in five countries: USA, Turkey, Germany, UK and Poland. With a focus on low prices and quality, discounters are expected to outperform other grocery channels in these countries and change market norms.
Home and Garden specialists is the growth driver for non-grocery specialists
The home and garden industry is the third largest globally with US$970 billion in sales – 70% of which go through the two specialist channels of homewares and home furnishings specialists and home improvement and garden specialists. Store-based retail remains popular as consumers still prefer to physically experience these types of products in person prior to making a purchase.
Developed markets are expected to deliver mature growth rates while emerging markets outperform. Emerging markets, with consumers experiencing leaps in purchasing power and greater appreciation of international brands, are opening up opportunities for brands to cater to a burgeoning middle-class that is looking to upgrade their living standards.
Passport: Retailing is the premier tool for assessing the current state and expected path of the global retailing industry. The system’s in-depth global coverage of over 30 different retail channels and over 7,800 companies and their brands provides a foundation for understanding this rapidly evolving industry.