2Copyright2018 The Nielsen Company (US), LLC. Condential and proprietary. Do not distribute.
TABLE OF CONTENTS
SUMMARY
KEY MESSAGES
FMCG E-COMMERCE GLOBAL LANDSCAPE
10 KEY DRIVERS OF E-COMMERCE MARKET SUCCESS
FMCG E-COMMERCE FIVE YEAR FORECAST
FORECASTS FOR SELECT EIGHT MARKETS
COLOMBIA
NEW ZEALAND
NORWAY
POLAND
PORTUGAL
TAIWAN
THAILAND
UNITED ARAB EMIRATES
E-COMMERCE ADVICE FOR RETAILERS AND MANUFACTURERS6823
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3Copyright2018 The Nielsen Company (US), LLC. Condential and proprietary. Do not distribute.
SUMMARY
E-commerce is reshaping the global retail market. Since the turn of the century,
online shopping has boomed as internet access has reached all corners of the
world and smartphones have quickly become an intrinsic part in the lives of
billions of people. While global behemoths like Amazon and Alibaba are well
known around the world, the rise of e-commerce is providing exciting growth
opportunities for hundreds of thousands of companies in all shapes and sizes,
from major bricks-and-mortar players through to tiny cottage industries.
E-commerce has opened up a whole new shopping world, providing hundreds
of millions of consumers with access to much greater assortment and value
opportunities, and helping to satisfy their increasing demand for convenience.
Today, e-commerce across multiple categories like Fashion, Electronics, FMCG and
others account for about US$2.8 trilliona, some 10% of the global retail market.
Growing at an estimated 20% a year, e-commerce shows no signs of slowing, and
by 2020 it is likely to be worth in excess of US$4 trillionb.
To date, the e-commerce boom has so far favoured the travel sector, as well
as apparel and electronics retailers. And despite the global buzz, e-commerce
currently contributes less than 7% of the global fast-moving consumer
goods (FMCG) market, which is US$4 trillion valuea. One key reason for the
slower uptake of online FMCG has been the logistical challenges associated with
ensuring fresh and perishable products arrive to the consumer in top condition.
Additionally, in advanced markets, especially those with dense populations such
as Germany, many FMCG products are readily available in close proximity to
consumers at brick-and-mortar stores. However, with increasing consumer
demand for convenience, and better technology and other enabling conditions,
online FMCG growth is accelerating across the globe: Nielsen’s Future
Opportunities in FMCG E-commerce study estimates four times faster than
oine sales. Compared with other global markets, South Korea and China
demonstrate the highest uptake of online FMCG, where e-commerce has already
reached 18% and 16% market share of their respective FMCG markets. By 2022,
FMCG e-commerce will be in excess of US$400 billion and comprise 10%-12% of
all FMCG sales globally.
4Copyright2018 The Nielsen Company (US), LLC. Condential and proprietary. Do not distribute.
Although a highly unlikely scenario, if the current global growth rates for online
and oine FMCG remain constant, online sales will exceed those from bricks-and-
mortar stores by 2037a. There is a greater likelihood of convergence between
oine and online commerce with concepts such as click and collect and
alternative delivery solutions introduced by businesses. E-commerce growth
varies around the world. In some countries, it’s taking o, while it’s stagnating in
others. Emerging technologies, macroeconomic conditions, cultural dierences
and many other factors are inuencing the evolution of e-commerce at the
market level. Understanding which factors are driving or holding back e-
commerce growth, and how these factors interrelate at a market level, gives us
great insights into where current and emerging opportunities lie. And what is
becoming increasingly clear, for most FMCG brands, future success will be
signicantly determined by how successful they are online.
This paper examines the current drivers of FMCG e-commerce and what the
e-commerce market will look like by 2022. The objectives of this paper are two-
fold. One is to stimulate conversations between FMCG players, governments and
regulatory bodies on how to create a more enabling environment for e-
commerce. The second is to help clients prioritise markets and make more
informed decisions about their e-commerce investments.To achieve these
objectives, this study analysed the current state of FMCG e-commerce in 34
markets and identied 10 key drivers, that most correlate to online success.
4Copyright2018 The Nielsen Company (US), LLC. Condential and proprietary. Do not distribute.。