E-Commerce Briefing: online groceries, Chinese imports and more
This is our first edition of the e-commerce briefing. In this new format, we’ll try to curate the best news and articles of the week.
Online grocery shopping: the U.K., France, Germany, and Spain spearhead the growth in Europe
Grocery is a category that is traditionally not performing well online. That is set to change, according to IGD. Between now and 2023, the ten leading online grocery markets will grow at an annual rate of 20%. The total growth will amount to $227 billion.
China is growing fastest with a 31% compound annual growth rate. It will reach an online grocery channel share of 11.2% in 2023; only South Korea (14.2%) will still be ahead then. 4 European countries will seat at the Top 10 table in 2023: U.K., France, Germany, and Spain.
Galaxus is launching in Germany
The Swiss online retailer Galaxus has decided to tackle the biggest market in Europe: Germany. The leader in Switzerland e-commerce will initially focus on consumer electronics before expanding to a broader range of items.
Galaxus is making it clear that it has broad European ambitions. The company, which claims to have invested a lot in creating the best possible online store, says it would not make sense to limit itself to its rather small domestic market.
Chinese e-commerce giants pledge to import $250 billions of goods
During the China Import Expo in Shanghai, the top Chinese e-commerce sites (Alibaba, JD, Suning.com…) committed to importing a combined value of $250 billion of foreign goods over the next 5 years. Although this was a group announcement, the respective commitments of each site differ widely: Alibaba has pledged $200 billion by itself.
This follows a push by Beijing to increase the nation’s imports. It illustrates the exceptional growth and good health of China’s economy, as well as the increasing demand for imported goods by the middle-to-upper class Chinese population.
E-Commerce changes the way we build warehouses
Warehouses used to be about shipping rather large quantities of identical items to brick and mortar stores. With the ascent of e-commerce, they now need to ship single items to the end-consumer, fast. This has had a tremendous impact on the size, location and internal organization of warehouses.
One example is the increased robotization of warehouses, led by companies like Amazon. For instance, new facilities typically feature larger aisles to allow for these new types of equipment to navigate the premises with ease.