Slowdown in International Retail Activity Anticipated
05 December 2019 - 16:37 by Graham Miller
A study by the Economist Intelligence Unit has shown that the state of the retail market on a global level will be more subdued next year, with the trade tussle between China and the US cited as the main reason for this.
While growth is still anticipated in terms of the sheer amount of money being spent, the actual volume of goods being sold worldwide will be down by 2.2 per cent, according to Internet Retailing.
Another aspect covered by the report is the way that the rise of safe shopping online will play out globally, with experts anticipating that there will be even greater competition amongst companies hoping to win over consumers. This will lead to even further discounting, which will no doubt hit profits while making things more affordable for customers.
On a region by region basis, Asia will be the biggest provider of growth in this sector, with 45 per cent of all sales set to take place there. While China’s market is not expected to expand as rapidly as in the past, other areas will be far more buoyant over the course of 2020.
Report spokesperson Shveta Sharma said that the outlook for retail over the next 12 months was mixed, with opportunities in some places and challenges in others. As well as the ongoing wrangling between the world’s two biggest superpowers, perhaps the most significant thing weighing on the industry at the moment is Brexit, the ramifications of which are hard to predict and difficult to understand at this time.
Outside of this, the influence of social media platforms will be one of the most prevalent in terms of directing online shopping, with advertisers flocking to image-sharing platforms in particular in order to engage with as many consumers as possible.