Report: E-Commerce Left with Plenty of Room for Growth Globally
July 11, 2013
While the rate of e-commerce growth is slowing slightly, it is still outpacing growth in traditional retail sales by a factor of four, according to a new report from “boutique merchant bank” Siemer and Associates. The Santa Monica, Calif.-based bank said it expects worldwide e-commerce sales to reach $963 billion in 2013 after growing 20.6 percent to more than $820 billion in 2012. The company predicted growth to slow to 15 percent per year through 2016, with the industry passing $1 trillion in sales next year.
Siemer and Associates also noted that there is plenty of room for sustained double-digit growth as e-commerce reached only 6.5 percent of total global sales in 2012, which it expects to grow to 9.3 percent by 2016. E-commerce growth will be led by emerging economies like Russia, which sat at 1.9 percent penetration in 2012, expected to grow to 5.1 percent in 2016. E-commerce as a share of total retail sales in the U.S. was 10.1 percent in 2012. Siemer and Associates predicts that number will hit 13.3 percent three years from now.
Asia-Pacific companies will eventually overshadow dominant entities in North America and Europe,” the report said, “as developing countries experience increased Internet penetration, a burgeoning middle class that relies on online shopping, government-driven campaigns to promote consumerism and improved infrastructure.”