COVID-19 pandemic forced retailers towards developing new ways to accelerate their growth. According to Digital News Asia, 70% of companies are prioritizing online sales & marketplace listings to stay relevant and thrive.
Travel restrictions and movement control caused by the epidemic lead to a crisis in a variety of sectors. In order to adapt to new market challenges, retailers had to move away from their traditional sales models.
“In a recent EY live poll conducted during a webinar for the retail sector, 70% of the close to 100 respondents shared that they are prioritizing online sales and marketplace listings to improve their topline results in the immediate term. The survey respondents recognize that there is a need to reinvent themselves, with digital strategies (55%) and business restructuring (31%) identified as key strategic options in the next 12 months, ahead of alternatives such as divesting non-core assets and mergers and acquisitions (M&As)” - states DNA.
Retailers are expected to move away from large store formats within the next five years.
A large increase in online retail sales (with an estimated market size of US$90 billion – US$120 billion) is driven by shifts in consumer buying habits. Social distancing and a new hygiene regimen lead to the development of new business models, suitable for a changing lifestyle.
Online retailers and other platform related businesses are expected to start getting their fair share of the profit pool and ASEAN e-commerce players are likely to become profitable soon.