Source: Euromonitor's Voice of the Consumer: Lifestyles SurveyĪs consumers become increasingly price-sensitive, the model has gained more traction across emerging markets in Southeast Asia and Latin America, leading to platforms like Facily emerging in Brazil. 26% of Spanish shoppers report that finding the best price is the primary motivation to shop online Initially becoming popular across second- and third-tier cities along China’s eastern seaboard, online community group buying spread to both first-tier cities and rural areas of the Chinese hinterland during the pandemic thanks to platforms like Pinduoduo, which successfully developed a discount-led community group buying model. This model leverages bulk buying, predictable demand, and direct purchases from manufacturers to achieve economies of scale, reduce transportation costs, and pass on savings to customers. Online community group buying offers significant discounts on products purchased in large quantities by consumers. Strengthening consumer power with online community group buying As a result, pure online players and legacy retailers with omnichannel operations have been reconsidering their approach to e-commerce order fulfilment by embracing strategies such as community group buying, rethinking the quick commerce model, and adopting more flexible return policies. For operators, the situation has been exacerbated by increasing labour and transportation costs which further squeezed their profit margins. This shift has been particularly noticeable across developed markets such as those in Western Europe, a region which recorded a substantial decline in retail e-commerce sales in 2022. The exponential growth of e-commerce experienced during the pandemic has given way to another reality as consumers return to physical stores and rising inflation puts pressure on disposable incomes.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |