Thursday, February 27, 2014

Global e-Commerce 2020: $130 billion

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According to a new study of OC&C Strategy Consultants in collaboration with Google cross-border online trade for six of the biggest e-commerce markets will grow five fold to $130 billion in 2020.

UK emerges as the world's leading exporter of goods purchased online with a trade surplus of over USD 1 billion in 2013. US and Germany are the nearest challengers with USD 180m and USD 35m trade surpluses respectively.

Whilst Amazon and eBay are the pioneers of online retail, a number of specialist retailers have shown that they can internationalise successfully through digital commerce - in some cases, by establishing a combination of a digital and a physical presence. These include online 'pureplays' such as ASOS, iHerb and Zalando; multichannel retailers such as Sephora and Pandora; and luxury and sport brands such as Burberry, Hugo Boss, Adidas and Lacoste.

According to Anita Balchandani, Partner at OC&C, online retail will become even more international over the next decade. This represents a great opportunity for retailers by providing a new, capital-light approach to grow rapidly. At the same time, internationalisation poses many challenges and will require retailers to master new capabilities and complexities.