London, UK, 23 August 2022: New data projections from Edge by Ascential, whose technology-driven products power brands to win in digital commerce, point to ecommerce as the number one driver of retail growth in the consumer electronics category in the UK, US, and Germany over the next five years.
Despite the current cost of living crisis, Edge by Ascential forecasts high double-digit percentage growth rates in the consumer electronics category between 2022 and 2027. This growth will be led by Amazon, and ecommerce will grow much faster than store-based retail from retailers such as Sainsbury’s and Tesco in the UK, Walmart in the US, and sector-specific operators like Dixons Carphone.
Edge by Ascential projects a continued shift to ecommerce for the consumer electronics category. The current UK’s consumer electronics share of sales is 69% online (vs 31% in store). Edge by Ascential projects this share of sales will grow to 75% online (vs 25% in store) by 2027.
Edge by Ascential also projects that the UK’s total consumer electronics chain retail sales will grow by 44% between now and 2027, compared to 36% growth in Germany and 29% growth in the US over the same time period.
The forecasts emphasise the growth opportunity for brands that invest in their ecommerce channels and understand the metrics and capabilities needed to win online and through Amazon.
Xian Wang, VP, Edge Retail Insight, Edge by Ascential, said:
“Already a mature ecommerce category, consumer electronics shoppers are increasingly browsing and purchasing online. For brands, this means really focusing on the capabilities needed to take advantage of Amazon’s increasing influence in this space. Other retailers are innovating fast to catch up with Amazon’s sophisticated ecommerce functionality, so the Amazon way will soon become the new way of doing retail across the board.”
Edge by Ascential projects that by 2027, Amazon will still very much be the UK’s leading consumer electronics retailer (ranked by total net sales) - with growth far outpacing its rivals. Chinese manufacturer Xiaomi will be one to watch, replacing eBay as the UK’s fourth-biggest consumer electronics retailer by 2027, with projected growth of 50% over the next five years.
Interview Xian Wang, VP, Edge Retail Insight, Edge by Ascential on ecommerce growth and future retail disruption
Contact Kaizo PR at Edge@kaizo.co.uk or 0203 176 4700
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About the data in this press release
- Data comes from Edge by Ascential’s data, analytics and curated content platform Edge Retail Insight.
- The data forecasts are projections from Edge by Ascential’s proprietary analytics software, Retail Market Monitor (RMM), which can give five-year projections by sector, geography, channel and chain retailer and so identifies the growth opportunities for retailers and brands.
- Retail sales for third-party marketplaces referenced are calculated using Gross Merchandise Value (GMV), a standard used to measure the size of a third-party marketplace. It is calculated by multiplying the number of products sold by the price at which each product was sold over a given time period.
- Retail sales data includes online and offline operations and only includes chain retailers, of which Edge Retail Insight covers almost 2,500 worldwide.
- Forecasts change week by week because of the fast-moving developments in the retail environment and uncertain economic conditions so the data in this media alert was accurate as of 27 July 2022.
About Edge by Ascential
Edge by Ascential helps global and local brands to win in digital commerce in a new and complex era of omnichannel retail. Our unique combination of industry-leading data, analytics, market research and expert consulting solutions inform the ecommerce-driven go-to-market strategy, optimization and performance measurement of the world’s largest brands. A subsidiary of Ascential plc, we support our clients to always make the right investment decisions, drive margin growth and achieve the necessary edge to grow. More than 400 global brands depend upon our weekly, daily and real-time data-driven insights. Edge by Ascential has Verified Partner status on Amazon Ads.
About Ascential
Ascential delivers specialist information, analytics and ecommerce optimization platforms to the world's leading consumer brands and their ecosystems. Our world-class businesses improve performance and solve problems for our customers by delivering immediately actionable information combined with visionary longer-term thinking across Digital Commerce, Product Design and Marketing. We also serve customers across Retail and Financial Services.
With more than 3,000 employees across five continents, we combine local expertise with a global footprint for clients in over 120 countries. Ascential is listed on the London Stock Exchange.
For more information, visit www.ascentialedge.com
Contacts
Kaizo PR for Edge by Ascential
Edge@kaizo.co.uk
0203 176 4700