Impact of Online Sales For Retail
Posted by admin on August 21st, 2011Analysts pay a lot of attention to the US online sales industry when analyzing trends. The Asian market however, is the market that will most contribute to the growth of this industry in the next few years. More and more Asians, especially in China and India are coming online each day. The Chinese consumer has been very receptive to online shopping and they think nothing of spending money in online stores. It seems to be second nature to them and the city of Shanghai is watched closely as that’s where the Chinese trend will take place. The Asian numbers are very impressive as they see similar growth patterns that we see here in the US, but the population potential offers a much larger customer base and the potential spending by these customers will far outpace total dollar spending in the US. Throw in the numbers from Western Europe and you have an industry with unlimited potential for sales.
We have gotten very used to just going online and typing something into the browser and having what we want in seconds. When you think about this it’s really pretty amazing and quite different from getting in the car and spending hours in the malls. Consumers are more informed these days and that is partially if not mostly due to the information at their fingertips via the internet. Price and side by comparisons are now second nature. You can even do them on your I-phone with the right application installed. The days of the uninformed consumer are practically over. Quality improves when that happens because competition breed s many thing including better quality for more affordable prices.
The technology that drives all this changes rapidly and the online retail industry is fast to respond and adapt. You can find anything you want by typing it into your browser. Mitsubishi Parts or Hyundai Parts can found instantly. Handbags from India or Sudan can be found immediately and so on. With technology anyone can become the next eBay or the next Facebook. The internet has made it so easy. As the sales numbers rise for the online industry the sales numbers for the traditional brick and mortar retail industry go down. At first glance you may jump at it and say wow the stores are in trouble. On the contrary, they have all adjusted to the market demands and are now in the virtual mall on the internet with a smaller version of the brick and mortar store still intact.
So the overall impact on the retail industry is good, not bad like some people think. Retail click and brick companies have benefited in many ways and some have been saved by the online retail store they opened. Macy’s was able to grow during a down economy because of its Macy’s and Bloomindale’s online presence. So as the market adjusts the consumer benefits as well. The consumer gets better deals and in the process becomes a more informed buyer that only brings on ore benefits.