Retail eyes global e-com strategies for growth, survival

24 Jul '20

3 min read

Pic: Global E

Global e-commerce has surged during the COVID-19 pandemic, with cross-border e-commerce retail sales rising 101 per cent year on year (YoY) from January 1 till mid-June, according to a report released recently by cross-border e-commerce solutions provider Global-e, why a diversified e-commerce approach is critical amid economic uncertainty.

The latest COVID-19 Cross-border E-commerce Trading Implications report analysed cross-border retail sales of apparel, accessory, cosmetics and footwear items worldwide from 300 of Global-e’s retail customers from January to June 2020.

At the height of the COVID-19 lockdowns, US consumers flocked to international retailers for online purchases, with April witnessing a 7 per cent YoY growth and May experiencing a 42 per cent YoY growth respectively, bringing total US cross-border e-commerce growth to 10.2 per cent from January to mid-June, the company said in a press release.

Meanwhile, luxury goods, which have been the most affected by the pandemic as international travel and high-touch in-store experiences have all but disappeared, have relied most heavily on global cross-border e-commerce strategies to boost sales, with a 39 per cent YoY growth in both April and May respectively.

E-commerce purchases steadily rise each month. Cross-border online purchases worldwide have increased by 21 per cent YoY (like for like, year-to-date until June 14). Despite slowdowns across some of the markets when the pandemic reached its peak, sales have quickly bounced back across most of the markets, with the second quarter sales alone soaring by over 53 per cent YoY. May sales rose by 42 per cent YoY, with June showing the same positive growth trend, the report said.

E-commerce in Western Europe has significantly rebounded since April. During the height of the pandemic, cross-border ecommerce sales dropped in February and March by 2 per cent YoY and 11 per cent YoY respectively, but in April and May the region saw a whopping 23 per cent YoY and 30 per cent YoY growth, resulting in an overall 9.5 per cent YoY increase as of mid-June.

The Gulf region has experienced skyrocketing growth. While most of the world experienced a dip or flattening of their cross-border e-commerce growth in March, the Gulf region’s (including United Arab Emirates, Saudi Arabia, Qatar and Kuwait) growth skyrocketed throughout 2020. Ahead of Ramadan in April, YoY growth jumped from 48 per cent in January to 115 per cent in March, then surged to 575 per cent YoY in April.

All regions have witnessed steady e-commerce growth since April. Global-e’s data shows similar trends across all markets, with sales rebounding and even exceeding pre-pandemic figures within six to eight weeks from initial lockdowns.

Fibre2Fashion News Desk (DS)

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