HONG KONG, March 17, 2021 /PRNewswire/ -- Online sales for FMCG did not stem from increased spending by existing online buyers but from the rising numbers of households buying online and from increased frequency in buying and spend. According to NielsenIQ, a global measurement company, this signals the end of the beginning of e-commerce in Asia.
In its latest thought leadership, NielsenIQ, warns retailers that as e-commerce transitions to the next phase, there are five challenges that retailers need to face: greater fragmentation in retail, redefining of the role of physical stores, divergent realities, increased fight for consumer attention, and the race to last mile fulfillment. See infographic 1.
"We have entered the end of the beginning of e-commerce in Asia and those who rest now will sleep through the most formative time of growth for e-commerce," states Vaughan Ryan, Nielsen IQ's Consumer Intelligence managing director in Asia. "The technological advancements and creativity of the last decade have made the retail world more advanced—leading to an environment where trust is solidified, where it is more than logistics but more about pushing the envelope on personalized discovery and curation, where there is exploration of new categories, and seamless omnichannel integration."
While e-commerce has been viewed to transform retail, COVID-19 accelerated its trajectory to its readiness to transition to the next phase.
NielsenIQ reports not only an uptick in the number of households that are buying online but as well as an increase in frequency and amount in spend. Please see infographics.
The growth in Hong Kong is among the most dramatic with a 46% increase in households shopping online in 2020. Frequency of shopping increased significantly than penetration with consumers purchasing online 75% more frequently in 2020. Consumers in Hong Kong spent on average 2.5 times more per trip online than offline, with the value per buyer showing an increase of 52% from 2019 to 2020. See infographic 2.
"Online growth mostly comes from local consumers adding online to their shopping repertoire meaning that consumers don't stop purchasing offline but, instead, are looking for more omni-channel opportunities," says Alix Van Langendonck, Consumer Intelligence head in Hong Kong. "The future of retail in Hong Kong will be driven by online in general but even more by hybrid channels offering solutions both offline and online."
About NielsenIQ
NielsenIQ is the leader in providing the most complete, unbiased view of consumer behavior, globally. Powered by a ground-breaking consumer data platform and fueled by rich analytic capabilities, NielsenIQ enables bold, confident decision-making for the world's leading consumer goods companies and retailers.
Using comprehensive data sets and measuring all transactions equally, NielsenIQ gives clients a forward-looking view into consumer behavior in order to optimize performance across all retail platforms. Our open philosophy on data integration enables the most influential consumer data sets on the planet. NielsenIQ delivers the complete truth.
NielsenIQ, an Advent International portfolio company, has operations in nearly 100 markets, covering more than 90% of the world's population. For more information, visit www.nielseniq.com.
