2023-03-07-尼尔森-智胜未来电商新格局_37页_3mb

E-commerce Success in 2023 and Beyond Summary

Core Content

E-commerce has experienced significant growth since the onset of the pandemic, becoming the dominant channel for FMCG (Fast-Moving Consumer Goods) sales in many regions. This growth has continued into 2023, with various regions showing different rates of expansion. The key drivers of e-commerce growth include convenience, technological advancements, and changing consumer behavior. The future of e-commerce is expected to be shaped by emerging trends such as quick commerce, direct-to-consumer (DTC) models, and the integration of social and content-based platforms.

Main Points

• E-commerce Growth During the Pandemic:
  E-commerce emerged as the top-performing channel during the pandemic. In countries like South Korea, China, and the US, the share of online sales increased significantly. South Korea, in particular, saw a strong rise in online FMCG sales, with its e-commerce trend typically 10 years ahead of the rest of the world.

• Continued Growth Post-Pandemic:
  Despite some slowdowns in the first half of 2022, e-commerce continued to grow in the second half. The global trend suggests that the rest of the world will follow South Korea's growth trajectory, especially with the increasing reliance on online shopping due to convenience and technological adoption.

• Omni-channel Strategy:
  The distinction between online and offline is becoming less relevant. Brands must adopt an omni-channel approach to meet consumers where they are, whether through online platforms or in-store experiences. This includes leveraging technologies like quick commerce, which offers ultra-fast delivery, and social commerce, which is gaining traction in regions like China and India.

• Consumer Behavior Shifts:

  • The oldest and youngest generations (Gen Z and the Silver) have shown the strongest increase in online spending.
  • Key shopping moments vary by region, with Monday and Friday being the most popular in several European countries.
  • Quick commerce is expected to grow, especially in categories such as baby food, health care, and groceries.
  • Direct-to-consumer (DTC) models are becoming more prevalent, with brands like Coca-Cola Icecek and JD.com leading in this space.

• Regional Growth Insights:

  • North America: 6.9% value growth in e-commerce.
  • West Europe: -0.2% value growth in e-commerce.
  • East Europe: 11.6% value growth in e-commerce.
  • Latin America: 14.1% value growth in e-commerce.
  • Africa Middle East: 20.7% value growth in e-commerce.
  • Asia Pacific and China: 1.6% value growth in e-commerce.

• Online Festivals and Promotions:
  Online festivals such as Singles' Day and other promotional events have a significant impact on e-commerce sales, contributing up to 40% of annual sales. These events are driving higher engagement and spending, especially among younger consumers who are deal-oriented and value promotions.

• Consumer Demand for Value and Innovation:
  Consumers are increasingly looking for value for money and innovation. The rise of livestreaming and social commerce is helping brands connect with consumers in real-time and offer personalized experiences. Health and wellness are also becoming more important, with consumers willing to pay a premium for products that align with these values.

• Future Outlook:
  E-commerce is expected to continue its growth trajectory, with a focus on omni-channel integration, personalization, and data-driven strategies. Brands that invest in e-commerce now and remain flexible to changing market dynamics will be best positioned for success.

Key Information

• E-commerce Value Share:

  • South Korea: 31.6% in 2020, 34.8% in 2021
  • China: 31.1% in 2020, 31.6% in 2021
  • USA: 9.0% in 2020, 15.0% in 2021
  • UK: 11.5% in 2020, 13.4% in 2021

• Top Growing Brands in E-commerce (2022):

  • South Korea: Les Petits Culottes, Ultra Premium Direct, Typology, Pampers, Royal Canin
  • China: Pro Plan, Coca Cola, Hills, Le Gaulois, Barilla
  • India: Plastimea, Almo Nature, Equilibra, Natures Variety, Royal Canin
  • Western Europe: Pepsi, Walkers, Andrex, Felix, Gillette
  • Turkey: Dogfy, Hills, Dodot, Eukanuba, Felix

• Emerging Trends:

  • Quick commerce: Fast delivery, especially in urban areas.
  • Social commerce: Platforms like TikTok, Kuaishou, and WeChat Mini Programs are driving new consumption patterns.
  • DTC models: Brands are increasingly selling directly to consumers, especially in categories like coffee, cosmetics, and personal care.

• Consumer Insights:

  • Gen Z and Silver generations are the most active online shoppers.
  • Consumers prefer value for money products and are influenced by promotions and livestreaming.
  • There is a growing interest in health and wellness products, with Chinese consumers showing high levels of interest in nutrition and weight management.

Conclusion

E-commerce is not just a trend but a fundamental shift in consumer behavior. With the right strategies and investments, brands can capitalize on the continued growth of online sales and the rise of new consumption models. The future belongs to those who embrace omni-channel, leverage data, and innovate to meet the evolving needs of consumers.