Internet the fastest growing.
Three key trends are shaping the performance of global retailing: the internet, discounters and home, according to new industry data from Euromonitor International.
It is no surprise that the digital revolution continues to thrive with internet retailing expected to be the fastest growing channel in the world through 2022, with mobile internet retailing growing faster and likely to reach a tipping point, accounting for 50 per cent of internet retail sales in 2019.
Two markets, China and the US, will account for 60 per cent of this through 2022, although China will continue to grow at a faster pace. This growth is reflected in the new global company leaders, with Amazon the second largest retailer in the world followed by Alibaba.
Discounters are the grocery channel to watch in selected countries with the discounter business model expected to climb in 2022, becoming a larger channel than convenience stores. With a focus on low prices and quality, discounters are expected to outperform other grocery channels and change market norms.
The home and garden industry is the third largest globally with US$970 billion in sales, 70 per cent which go through the two specialist 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.