Internet vs Store-based Shopping:The Global

Move Towards

Omnichannel Retailing

EXECUTIVE SUMMARY

Growth drivers

Internet retailing trends

CHART 1 Global Internet Sales by Category 2013

Behaviour and characteristics of online shoppers

Retailer strategies

Outlook

SUMMARY 1 Opportunities and Threats to Retailers

INTRODUCTION

A new way of shopping

Definitions

KEY GROWTH DRIVERS

Expansion of the internet

Global user base expands

China and India drive growth

Improving access in remote areas

TABLE 1 Internet Users as % Population by Country 2008/2013

Technological progress

Growth in mobile internet subscriptions

CHART 2 Global Mobile Internet Subscriptions 2008-2013

The US and China almost neck and neck

CHART 3 Mobile Internet Subscriptions in Key Markets 2013

Higher network speeds

Expanding access to Wi-Fi

Online payment and security issues

Personal data at risk

Alternative payment systems

Mobile wallets

Regulatory issues

Consumer rights

US e-commerce tax on hold

Some states already impose internet sales taxes

Russia abandons plans to tax e-commerce imports

The search for value

Economic prospects remain uncertain

CHART 4 Global GDP Growth 2008-2013

Thrift embedded in consumer mindset

Getting the best prices

Group buying websites

Flash sales websites – the survival of the fittest

Price comparison websites

One-off sales events

INTERNET RETAILING SALES

Internet versus total retail sales

Internet retailing share doubles over the review period

CHART 5 Global Internet Sales Versus Total Sales 2008-2013

TABLE 2 Global Retail Sales and Internet Retailing 2008/2013

China makes up for lost time

CHART 6 Internet Sales in Leading Countries 2008/2013

CHART 7 Per Household Internet Sales In Leading Countries 2013

CHART 8 Internet Sales Versus Total Sales In Leading Countries 2013

Broad sector trends

Internet sales still minor

Online grocery driven by convenience factor

CHART 9 Global Internet Sales as a % Total Sales by Category 2008/2013

Apparel and footwear accounts for a fifth of online sales

Consumers turn to online health and beauty for repeat purchases

Home care benefits from subscription services

Internet growth affects specialist retailers

TABLE 3 Global Internet Sales by Category 2008/2013

Distribution trends in apparel and footwear

Specialist retailers and mail order lose share to online sales

CHART 10 Apparel and Footwear: Global Retail Sales by Channel 2008/2013

US most developed market

Pure-play e-tailer strategies

Physical retailer strategies

Clothing retailers target mobile market

CHART 11 Specialist Retailer Versus Online Sales of Apparel and Footwear, Global 2008-2013

Distribution trends in the electronics and appliances market

Specialist retailers still favoured

CHART 12 Consumer Electronics: Global Retail Sales by Channel 2008/2013

CHART 13 Consumer Appliances: Global Retail Sales by Channel 2008/2013

Online sales enjoy triple-digit growth

CHART 14 Specialist Retailer Versus Online Sales of Electronics/Appliances, Global 2008-2013

Distribution trends in food and drink

Internet sales still undeveloped

CHART 15 Packaged Food and Drink: Global Retail Sales by Channel 2008/2013

Online food and drink forms part of multi-channel strategy

UK leads the way

CHART 16 Grocery Retailer Versus Online Sales of Food and Drink, Global 2008-2013

Distribution trends in health and beauty

Grocery retailers claim largest share of sales

CHART 17 Beauty and Personal Care: Global Retail Sales by Channel 2008/2013

CHART 18 Consumer Health: Global Retail Sales by Channel 2008/2013

China drives online growth

E-tailers become innovative

Online OTC regulations relaxed in some markets

Physical retailers fight back

CHART 19 Specialist Retailer Versus Online Sales of Health and Beauty Products, Global 2008-2013

Distribution trends in media products

The struggle against digital content

Video streaming benefits from faster network speeds

Free-to-play mobile games become more sophisticated

The success of e-books

Media stores focus on experience

CHART 20 Physical Versus Online Sales of Media Products, Global 2008-2013

Distribution trends in traditional toys and games

Toy stores face tough competition

Toys “R” Us gets creative

CHART 21 Physical Versus Online Sales of Traditional Toys and Games, Global 2008-2013

Home and garden products

Specialists remain the preferred channel

CHART 22 Home and Garden Products: Global Retail Sales by Channel 2008/2013

Augmented reality addresses visualisation issues

Providing expert advice

CHART 23 Specialist Retailer Versus Online Sales of Home and Garden Products, Global 2008-2013

Mobile internet retailing

The shift towards m-commerce

Augmented reality

QR codes

M-commerce remains niche

CHART 24 Mobile as a % Total Internet Sales by Country 2011/2012/2013

ONLINE SHOPPER BEHAVIOUR AND CHARACTERISTICS

In-store versus online shopping preferences

Online shoppers are still in the minority

Internet offers variety

Delivery most appealing to older shoppers

CHART 25 In-store Versus Online Shopping for Non-essentials, by Country 2012

Motivations for internet shopping

TABLE 4 Online Shopping Motivations by Country 2012

Use of mobile phones in stores

Technology plays a greater role in shopping

Apps replace salespeople

The influence of reviews

CHART 26 Frequency of Mobile Phone Activity in Stores 2012

Characteristics of online shoppers

Downloadable items still the most common online purchases

Young people most likely to buy online

CHART 27 Online Purchases by Age Group 2013

CHART 28 Online Purchases by Gender 2013

Online purchases by country

CHART 29 Frequency of Online Purchases by Type and by Country 2013

Mobile shoppers

CHART 30 Frequency of Using Mobile Phone for Purchases, by Country 2011/2013

CHART 31 Global Use of Mobile Phone for Purchases, by Age 2013

KEY MARKET TRENDS

Brazil

Shoppers prefer to pay in instalments

Online clothing overcomes barriers

M-commerce is emerging

TABLE 5 Brazil: Internet Shopping in Leading Categories 2008/2013

Competitive environment

CHART 32 Brazil: Internet Retailing – Top 10 Brands by Value Share 2013

China

A burgeoning market

Apparel and footwear becomes largest category

Mobile purchases gaining pace

TABLE 6 China: Internet Shopping in Leading Categories 2008/2013

Alibaba dominates online

Bricks-and-clicks retailers make progress

Amazon slow to adapt

CHART 33 China: Internet Retailing – Top 10 Brands by Value Share 2013

France

Number of e-tailers continues to grow

Clothing retailers have more flexibility online

Electronics retailers struggle to compete with online players

Free’s cheap mobile plan fuels the m-commerce market

TABLE 7 France: Internet Shopping in Leading Categories 2008/2013

Competitive environment

CHART 34 France: Internet Retailing – Top 10 Brands by Value Share 2013

Germany

Price and convenience are key

Apparel and footwear is the largest category

Grocery retailing remains underdeveloped

Consumers remain wary of mobile payment

TABLE 8 Germany: Internet Shopping in Leading Categories 2008/2013

Competitive environment

CHART 35 Germany: Internet Retailing – Top 10 Brands by Value Share 2013

Japan

Japan leads in m-commerce

Growth of mobile fashion

Launch of Net Super fuels online grocery sales

Showrooming common in electronics sector

TABLE 9 Japan: Internet Shopping in Leading Categories 2008/2013

Competitive environment

CHART 36 Japan: Internet Retailing – Top 10 Brands by Value Share 2013

Russia

Market held back by logistics and online payment issues

CyberMonday provides a boost to sales

Online grocery still embryonic

TABLE 10 Russia: Internet Shopping in Leading Categories 2008/2013

Competitive environment

International players have only a small presence

CHART 37 Russia: Internet Retailing – Top 10 Brands by Value Share 2013

A highly developed market

Online clothing makes strides

UK has the most sophisticated online grocery market

Media downloads affect specialist retailers

Rise of m-commerce

TABLE 11 UK: Internet Shopping in Leading Categories 2008/2013

Competitive environment

Asos makes great strides

CHART 38 UK: Internet Retailing – Top 10 Brands by Value Share 2013

Leading global e-commerce sales

Consumer appliances makes the most progress

Online grocery slow to take off

Home Depot promotes click-and-collect concept

The move to m-commerce

TABLE 12 US: Internet Shopping in Leading Categories 2008/2013

Competitive environment

CHART 39 US: Internet Retailing – Top 10 Brands by Value Share 2013

RETAILER STRATEGY

Consolidation and globalisation

Amazon rules the roost

Tmall dominates Chinese market

eBay maintains third position

Apple focuses on digital channels

Ongoing consolidation

TABLE 13 Internet Retailing – Top 10 Global Brands by Value Share 2008/2013

Adopting multi-channel strategies

SUMMARY 2 Recent Acquisitions of Online Retailers by Store-based Retailers

Omnichannel retailing

Digitalising physical stores

Mobile technology

The growth of shopping apps

Geolocation

Couponing

Virtual shopping shelves

The move to digital channels

Amazon at the forefront of-book delivery

Improving the user experience

Providing more information

Improving website design

Simplifying the checkout process

The offer of return shipping

Virtual reality tools

Improving delivery options

Speeding up the shipping process

Subscription delivery services

Building fulfilment centres

Collaboration with courier services

Store-based click-and-collect

Click-and-collect locker services

Combating the showrooming trend

Bringing customers back to stores

Price matching

Retailtainment

Online to offline

Subscription based services

Creating excitement

Beauty boxes take off in Asia

Appealing to new parents

FUTURE OUTLOOK

Trends to watch

Internet to play an ever greater role in the shopping experience

The continuing shift towards mobile

Shopping apps will become more sophisticated

The future is hands free

In-store technology will enhance the shopper experience

Shopping malls to become major entertainment hubs

A wider range of delivery solutions

The industry will become more tightly regulated

Globalisation and internationalisation will be ongoing

Chinese market holds potential for Western players

Recommendations to marketers

Offer an omnichannel experience

Work on improving delivery options

Improving website functionality

Keep customers coming to stores

Include mobile in the equation

Forecasts by sector

Apparel and footwear, appliances and grocery offer most potential

E-tailers will continue to facilitate media content delivery

Online beauty: Consumers need convincing

TABLE 14 Forecast Global Internet Sales 2013/2018

Growth markets

China to see dramatic growth, but average sales will remain low

E-commerce to expand to the regions in Russia

CHART 40 Forecast Internet Sales In Leading Countries 2013/2018

CHART 41 Forecast Internet Share of Total Retail Sales In Leading Countries 2013/2018

I was thinking of a simple way to introduce my global business opportunity. My business partner is God and all my inspirations come from Him.

At this time in the morning I am usually at my garden but now I am blogging to you about the 10 Cs of life and a great global business opportunity that will help millions of people worldwide to live a better and happy life.

How to support this worldwide mission: To help all people live a better and happy life, help make this world a better place and help make world peace a reality.

In this business you can choose to do it in 1 year, 2 years or 3 years, to achieve your dream, it is all up to you! In my 22 successful years in network marketing I have seen it happen many times and now with internet marketing, it is much easier to do.

Can you send a replicated website to a friend? If you can do this, you can build this global business. For more information, either you email me at lesoong@gmail.com or give me a call at +65 9733 0932.

Please share the 10 Cs of Life with as many people as possible to help them live a better and happy life. This is copyrighted material, you can share it but do not change a word of it. Thank you.

The 10 Cs of Life Everyone Must Know To Live A Better And Happy Life!(By Bruce Seah, inspired by God.)

1.Clarity – Clarity is power. You must be crystal clear on what you really want in life. If you don’t know where you want to go, any road will take you there! You must know where you are now before you can get to the place you want to go.

Ask yourself these important questions, “If you have all the time and money in the world, what would you be doing?”,

“If you knew you could not fail, what will you achieve?”

and

“Why work hard when you can work smart?”

For clarity on what you want in life and how to achieve your dreams, I highly recommend daily meditation of 20 minutes in the morning when you wake up and 20 minutes before you sleep.

2.Commitment – When you are committed and your intention is good, all the good forces in the world will come and help you ; people, events and things will show up at the right place and at the right time.

If you are looking for a great opportunity, you are now at the right place and at the right time, now with the Internet you can easily reach the world and build a global business, the world is your market.

But before anything can happen, you must have clarity on what you want and be willing to commit the money, time and effort to make it happen.

“If a man practices doing things for other people until it becomes so much a habit that he is unconscious of it, all the good forces of the universe line up behind him and whatever he undertakes to do.” – Bruce Barton, 1927.

3.Choices – Yes you live and die with the choices you make in your life. Every morning you can choose to be rich or choose to be poor by your thoughts.

“You are what you think.” – Buddha.

You choose the thoughts you want.

Positive thinking will lead to positive results and negative thinking will lead to negative results. You are where you are today, it is because of your thoughts, words and actions. If you want to live a better life, you must think better, speak better and do better!

Whether you like it or not, you are working with the Law of Cause and Effect all the time – what you sow you shall reap – what goes around comes around in your business and your life.

4.Courage – You must have the courage to achieve your dream. Here is my million dollar success formula that has helped me to make my first million in network marketing, “If not now, when? If not you, who? It is not how to? It is always why do??”.

Your courage will come from your “why?”, your compelling purpose and burning desire. There is a popular Chinese saying, “I rather live one day as a tiger than hundred years as a sheep.” Fortune favors those who are wise, bold and fast.”

5.Change – Yes for things to change, first you must change your Self I-Dentity. The first thing you must change is your thinking. I repeat again the profound wise words of the Buddha, “You are what you think.”

You must change your thoughts and beliefs. You must believe to achieve. You must believe that if others can do it, you can do it too. You must be willing to change your thoughts, words and actions.

Every morning when you wake up and before you sleep, look into the mirror and ask this important question, “Mirror, mirror on the wall, who is the cause of it all?” Answer :(you name).

6.Communication – How well you communicate with yourself and others, will determine who well you life. You must master the art of communication and communicate clearly and effectively.

If people are not clear on your message, they will not do what you want them to do. All master salesmen are great communicators, they understand how people think and why they do the things they are doing.

To be a great communicator, you must understand how people think and feel and what makes them tick, what inspire and motivate them.

7.Co-operation – We live in an interdependent world and we must co-operate and that is why world peace is very important, it is about co-operating and thinking win-win.

We must think One World, One People and One Dream – a better and happy life for all people. One of the habits of highly effective people, is to think win-win at all times.

You must always have the best interest of people at all time. God has made it very clear in the Bible in Matthew 7:12.

“So in everything, do to others what you would have them do to you, for this sums up the Law and the Prophets.”

8.Consistency – You must be consistent in what you do and that is why good habits are very important. Are you consistently late or consistently punctual in your appointments.

You must be consistent in your efforts if you want to achieve your dream. You must work with the Law of Averages which ensures that you will get what you want in life when you do enough!

Many people are not consistent, they did not dig their well well. They stop halfway when digging their well and never get to taste the water.

9.Connections – “Your network is your net worth.” – Robert Kiyosaki. I have a powerful network of friends and business associates in many countries and that is why I love to travel, when I visit my friends, they take good care of me, and, of course, when they visit me, I take good care of them.

You must build relationship, trust and goodwill. When you are well connected it is easy to get things done and you will have the resources you need because you are only six persons away from someone who can help you or make a positive difference to your life.

10.Cleanliness – There is a popular saying, “Cleanliness is next to Godliness”. People are attracted to people who are clean and neat. Always keep yourself clean and check your breath every day! Because bad breath has caused millions of people to lose their dates and fortune!

Don’t you think you have reduced the chances of your date going out with you again after having a close encounter with your bad breath?

Don’t you think you have reduced the probability of closing a good deal when you have bad breath and your potential business partner cannot concentrate on what you are saying to them?

Sometimes people forget that a simple little thing like having clean and fresh breath can make a world of difference!

Your external reflect your internal, when you are clean outside, it reflects clean and straight thinking, and perception is reality. You never get a second chance to make the first impression!

I am very sure you will benefit greatly when you apply these 10 Cs in your life and you will live a better and happy life.

You Can Share this article with as many people as you know because when you do it, you also supporting this worldwide mission: To help all people live a better and happy life, help make this world a better place and help make world peace a reality.

Love, Learn, Leverage and Live Your Dream!

With Love and Wisdom,

Soong See Choo

Home-Based Business Coach and Entrepreneur
+65 9733 0932 (Singapore)
lesoong@gmail.com

P.S. Here is your opportunity to join the right company
at the right time, email me or call me.

Advices

Tuesday, November 29, 2016