Though this has been a prevailing trend for the past decade, advancements in technology and more recently, the COVID-19 pandemic, have catapulted this leap with e-commerce widening its lead on traditional retail. During the pandemic, online shopping became the norm out of necessity. Global e-commerce rose from 15% of total retail sales in 2019 to 21% in 2021. It now sits at an estimated 22% of sales. This solidified ecommerce’s status, and its growth represents a permanent change in how people shop.
Especially in regions like Southeast Asia with earlier-stage markets, e-commerce is poised to grow significantly with some estimates citing 17% over the next five years. While mature markets like China and the United States have incumbent giants like Alibaba and Amazon, younger markets across Asia and Southeast Asia are seeing aggressive competition as players big and small wrestle for market share.
It is undeniable that e-commerce has revolutionised the global retail industry, and advances in all related functions – like social marketing and marketplace integration – have opened the door to new possibilities for brands.
However, this advancement has also created so much new complexity that many brands now struggle to fully leverage this technology, and many risk being left behind by competitors. How did technology-driven complexity out-pace capability?
