Over the last few years, e-commerce has become one of the biggest buzzwords in the business world, competing with artificial intelligence and ESG. In 2022, e-commerce was responsible for almost 19% of retail sales worldwide, and this figure is expected to grow to close to a quarter of total global retail sales by 2027 if current trends persist.
The grocery and food industries have notably profited from the e-commerce boom, amongst others, with many consumers opting to use grocery services for food deliveries rather than shop in-store. The beauty industry has also benefited, a sector that previously relied on the brick-and-mortar experience of consumers trying products in-store and receiving free makeovers, such as those offered by beauty and makeup retailers like Sephora. However, reports suggest that global online retail sales for the beauty and health industries will reach nearly $450 billion by 2027.
What’s Behind The Online Retail Boom?
With recent technological developments, the growth of online retail was inevitable. Consumers today want more options and the ability to control and navigate their shopping experience based on their needs. Online retail enables this and allows consumers to focus on the other necessities in their lives because they don’t have to take the time out of their day to go in-store to find the products they need.
in the past many people preferred to play at a land-based casino, however, certain providers, due to the trends in the market, have taken this opportunity and opened platforms online/mobile where players can play online.
🏆
The 2024 Creative Retail Awards are open for entries.
The Creative Retail Awards are much more than a mere accolade; they represent the pinnacle of achievement in the retail industry. Garnering a nomination or winning one of these awards is a testament to innovation, excellence, and leadership.
www.creativeretailawards.com
The increased demand for services and products typically provided in physical venues is a key factor propelling many online industries. For example, it was often the case that many people preferred to play in land-based casinos previously. However, as technology has improved, certain providers have jumped on this market trend and have taken the opportunity to really improve their digitalised services, allowing people to play online. On the other hand, retailers like Debenhams, purchased by Boohoo in 2021, now operate exclusively online – something that is becoming more and more common. By undergoing a digital transformation, many businesses can boost their accessibility and scope for development.
The online retail industry revolution isn’t exclusive to the UK either, but the world, and it’s in part because consumers want to adopt more active roles in their shopping experience rather than passive ones where they listen to store clerks or base their purchase decisions on in-store sales and promotions. When consumers shop online, they have more options and can seek advice from third-party reviews to aid their decision.
Weighing The Pros And Cons
With specific industries like the beauty industry, however, online retail has its faults. Beauty products are often subjective, such as with foundation or powder, and that’s why going in-store to find the correct shade can be more beneficial than ordering online and hoping the product is suitable for the individual. Still, the luxury of choice and the ease that online retail provides consumers have outweighed any issues in the beauty industry, like potentially ordering the wrong product.
Too much choice has also split the market in some industries. The most obvious example is the streaming market, where consumers sign up and pay for subscription services like Netflix, Hulu, or Amazon Prime. While they are able to access media more easily, with rising prices of these services, such as Peacock, or more recently with Sony’s PlayStation Plus, which increased its monthly fee earlier this year, consumers are becoming wary about subscribing to more than two streaming platforms.
This flexibility of choice has benefited many online industries, including the beauty and iGaming sectors – however, we are seeing some faults with online retail, such as the potential to order the wrong product. This choice of abundance has also split the market in some sectors, such as the streaming industry, where consumers can’t keep up with rising prices and, therefore, aren’t subscribing to multiple streaming platforms. Regardless, the online retail market is a billion-dollar industry, and despite its faults, it will continue growing over the coming years.
