E-commerce grows “seven times faster” than global average
E-commerce businesses have grown “seven times faster” than the global retail average, according to a new study.
OC&C Strategy Consultants, which published the figures, found that the biggest online international retailers averaged 30 per cent growth last year.
This is compared to their physical retail counterparts, which managed just 4.3 per cent growth.
Not surprisingly, Amazon tops the growth table chart, increasing its revenue by some £23.5 billion year-on-year.
In terms of percentage growth, meal kit provider Blue Apron grew by 134 per cent in 2016, followed by fashion platform Farfetch (70 per cent), and British e-commerce retailer The Hut Group (50 per cent).
Meanwhile, the food sector as a whole grew just three per cent, while the fashion sector grew just two per cent.
Anita Balchandani, partner at OC&C Strategy Consultants, said: “In the UK, the growth outliers have defied pessimistic forecasts by either clarifying their market positioning into value or luxury very clearly or by single-mindedly pursuing online growth.
“There does not appear to be a growth premium for multi-channel retailers, but rather it’s the online pure-players or the store-led value formats that are finding the biggest growth.
“To find market-beating growth, brands must have a deep understanding of multiple factors, including how to compete with the rising e-commerce ecosystems, how to capitalise on the growth in digital channels and where M&A could confer a strategic advantage.”