(1) Retail stores will become the “product show room”.
• 16% of the digital products are sold online, compared to only 1% 5 years ago.
• 30% of consumers use the retail store product show room, seeing the product in the store and checking it online through their mobile devices,
• 16% will purchase in the store.
• 29% will buy from the retailers’ online shops
• 45% will buy from other online shops.
• A fiscal store is not a only a channel for sales but also a product show room.
(2) Return and exchange offline is important for O2O services.
• 71% of online shoppers already are using O2O services, 97% of them said they will continue to use O2O services and even use it more regularly.
• Nearly one third of the none-O2O users claimed they are willing to try O2O in the next 6 months.
(3) Rural area is a massive market for e-Commerce
online shopper non-online shopper internet coverage
Although Internet coverage is much lower in rural areas, online shoppers in rural areas are as active as urban online shoppers.
One of the main reasons given is that those who live in rural areas have limited access to products compared to big cities. Moreover, some prices will be relatively higher due to lack of competition and higher transportation costs. However, online shopping over rid the geographic restrictions and provided more competitive priced products to rural users.
(4) Food is the most frequently shopped item online
(Data source: McKinsey)
- Although clothing, for on line customers is the most popular and widely purchased, packaged foods are the most frequent products people purchase online. In addition, the online fresh food market is booming in China. The market size reached £560million in 2013. The main reason being is the increasing concern on pollution and food security in China.