The UK is the world’s most developed online retail market, according to a global research report published today by the world’s largest privately-owned real estate services firm, Cushman & Wakefield.
Cushman & Wakefield is at the centre of global retail and monitors and analyses the evolution of the industry and global retail trends to ensure its clients are best positioned to capitalise on future developments in the sector.
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 (see Ranking indicators for definition).
The UK places just ahead of the US in the list 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. Its large overall retail market size also contributed notably to its ranking, along with the fact the country’s retail market share between 2007 and 2012 increased more than any other nation analysed during this period.
However, the US is the largest online retail market by some margin, with approximately $187 billion-worth of retail goods sold online in 2012 (according to data provider Euromonitor) – this represents almost one third of all global sales.
Although other highly-ranked positions in the index are dominated by mature markets from Europe, Asia and North America, the rise of mobile commerce (m-commerce) could significantly shift the balance of future retail power in favour of emerging markets, particularly those in Asian markets where mobile penetration is higher, the report concludes.
Cushman & Wakefield’s global head of retail, John Strachan, said: “The internet has changed the global retail landscape beyond recognition and is now transforming and impacting significantly upon the way we work, play and shop. Retailers and owners who can adapt quickly to this new world will not only grow sales across all channels but will continue to enhance the role of their ‘bricks and mortar’ alongside successful digital platforms.”
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 but the publication also predicts that Malaysia (currently ranked 34th) could become a “future online star” thanks to the quality of its infrastructure as well as consumer potential. 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. Elsewhere, Brazil’s (21st) consumer lead over Mexico (35th) is reinforced by greater internet penetration and credit card usage.