Online retail sales will surpass $1 trillion in 2021 for the first time, growing four times faster than offline sales.
The global online retail market grow 4.8 per cent to a whopping $6.7 billion (£5.15 billion) this year according to new research from Kantar’s Retail IQ service, which tracks the performance of over 1500 of the worlds largest retailers.
Meanwhile global online retail sales will jump 15.7 per cent to reach $861 billion (£661.8 billion) in 2020, accounting for 13.4 per cent of all retail sales, compared to just 6.8 per cent in 2015.
By region, North America is expected to see its online retail market grow 3.9 per cent to $2.9 trillion (£2.23 trillion), while Europe and APAC region are expected to grow by 3.8 per cent and 8.6 per cent to $2.1 trillion (£1.61 trillion) and $1.4 trillion (£1.08 trillion) respectively.
By company, Kantar forecasts that by 2025 Walmart will remain the world’s largest retailer, but Amazon will significantly close the gap coming a close second.
China’s JD.com will remain the world’s fastest growing retailer and will be the world’s third largest in five years’ time.
German discounter Aldi will climb from ninth in the global ranking to number six, while the apparel market will be dominated by Uniqlo, Zara, TJX, H&M and Old Navy, accounting for half of the growth of the entire sector.
“As we progress into this new decade omnichannel will fast become mainstream, with emerging markets setting the pace of change,” Retail IQ’s vice president Malcolm Pinkerton said.
“Designing for missions and occasions, not channels and touchpoints, will define the winners. Recognising ‘everywhere’ is now a sales and marketing opportunity and that being accessible at each one, will be essential to unlocking growth”.
Retail IQ’s principle analyst Derya Guvenc added: “While efficiency and profitability are high on the agenda, enhancing sustainability credentials must be a near-term priority for brands if they’re to remain on consumers’ preference list”.