• Global online sales reached $ 620 billion in 2012 while it was $ 2.3 billion in the Czech Rep.
• Online retailing globally has been growing at an average of 18% per year over the last three years – while online sales grew by approximately 16.5% p.a. in the Czech Republic in the same period*
• UK ahead of US as most developed nation for online retail but US is largest online market overall and accounts for almost a third of global online sales
The UK is the world’s most developed online retail market, according to a recent research report published by the world’s largest privately-owned real estate services firm, Cushman & Wakefield.
The UK places on the top primarily due to its high volume of online sales per capita, significant online market share (as a percentage of total retail sales), total retail sales and openness to new online business and social media.
In one of the most comprehensive analyses of global online retailing carried out to date, the inaugural Global Perspective on Retail report examines online retailing and looks at the technological infrastructure, regulatory environment and size of the retail and online market in more than 100 countries to compile a weighted index developed from 13 separate indicators (see Ranking indicators for definition).
“The Czech Republic scored as the 33rd most developed on-line market in the world which reflects the online retail market size and infrastructure. Internet sales are growing quickly in spite of the current economic downturn, therefore their share on overall retail spend is increasing. However, unlike in Western Europe, where modern brick & mortar retail formats such as shopping centres are competing with the internet, in the Czech Republic modern retail and internet retail are growing together and gaining market share at the expense of independent market,“ says Michal Soták, Head of Research Cushman & Wakefield Czech Republic and Slovakia.
“The Czech internet operators had started to run also concepts in the brick&mortar units over the past two years. They vary from small pick-up points in the city centres or at the transport hubs up to the proper stores with drive-in service on the edge of town,” says Jiri Kristek, Head of Retail Warehouse at Cushman & Wakefield.
“Operators are still looking for the most effective way how to combine online business with the brick&mortar one. That is why the concepts are not final yet and are subject to current situation on the market as well as the shopping behaviour of the customers. Some of the customers learned to buy the goods on the internet but strongly prefers to pick up the products personally to be sure that they get what they ordered,” says Jiri Kristek.
Countries with scope to become leading online markets in the future have also been identified by the report. China is by far the largest potential market. In Europe, Russia (26th) is recognised by the report as having the potential to establish itself as a key player in the future online market. But a preference for cash over credit – as well as long product delivery times due to rail reliance – will limit early growth to its major cities.
The online retail market size comprises six indicators: total retail sales, internet retail sales, internet sales per capita, annual internet sales growth over five years, internet sales market share and internet market share increase.
The infrastructure ranking consists of seven indicators: logistics performance, networked readiness, internet subscriptions per capita, mobile and subscriptions per capita, energy infrastructure, cyber security perception and financial cards per capita.