UNITED KINGDOM | The UK is the world’s most developed online retail market, according to a recent research report published by the world’s largest privately-owned real estate services firm, Cushman & Wakefield.
High Online Spend per Capita
The UK places on the top primarily due to its high volume of online sales per capita, significant online market share (as a percentage of total retail sales), total retail sales and openness to new online business and social media.
Global Perspective on Retail Report
In one of the most comprehensive analyses of global online retailing carried out to date, the inaugural Global Perspective on Retail report examines online retailing and looks at the technological infrastructure, regulatory environment and size of the retail and online market in more than 100 countries to compile a weighted index developed from 13 separate indicators.
Differences between Eastern and Western Europe
“The Slovak Republic scored as the 38th most developed on-line market in the world which reflects the online retail market size and infrastructure. Internet sales are growing quickly in spite of the current economic downturn, therefore their share on overall retail spend is increasing. However, unlike in Western Europe, where modern brick & mortar retail formats such as shopping centres are competing with the internet, in the Czech and Slovak Republic modern retail and internet retail are growing together and gaining market share at the expense of independent market,“ says Michal Soták, Head of Research Cushman & Wakefield Czech Republic and Slovakia.
Eastern Markets take multi-channel approach
“The Slovak internet operators have started to run concepts in “bricks&mortar” units over the past two years. They vary from small pick-up points in either city centres or transport hubs up to the proper stores with drive-in services on the edge of town. Traditional bricks and mortar stores are also trying to expand their sales opportunities through internet. One example are supermarket chains that, despite having well-established network of stores, have introduced options to purchase food through the internet,” says Matúš Furman, Head of Retail Department at Cushman & Wakefield.
China: Largest Online Retail Market potential
Countries with scope to become leading online markets in the future have also been identified by the report. China is by far the largest potential market. In Europe, Russia (26th) is recognised by the report as having the potential to establish itself as a key player in the future online market. But a preference for cash over credit – as well as long product delivery times due to rail reliance – will limit early growth to its major cities.
The online retail market size comprises six indicators: total retail sales, internet retail sales, internet sales per capita, annual internet sales growth over five years, internet sales market share and internet market share increase.
The infrastructure ranking consists of seven indicators: logistics performance, networked readiness, internet subscriptions per capita, mobile and subscriptions per capita, energy infrastructure, cyber security perception and financial cards per capita.
Article sourced from Property-Magazine, September 11th, 2013.