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Homeshopping Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Homeshopping Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • February 2021
  • 137 pages
  • ID: 6028494
  • Format: PDF
  • Mordor Intelligence LLP


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The global homeshopping market was valued at USD 3,011.64 Billion in 2020 and is projected to grow at a CAGR of 16.92% during the forecast period (2021 - 2026).

- The global market has seen major advances in e-commerce since COVID-19 started as a safer and more time-efficient shopping choice. The pandemic forced businesses and countries, in general, to develop online shopping platforms as a way to maintain their business.
- The outbreak led to a shift in online consumer behavior in several countries across the world. For example, e-commerce stores in Denmark increased their sales due to the COVID-19 crisis as of April 2020. In fact, around 45% of the webshops, which engaged entirely in e-commerce, reported a sales increase of at least 10%. The pandemic has accelerated digital adoption and left consumers craving convenience to return, which is expected to be a long-term impact of COVID-19.
- On the long term rapid digitalization and high adoption of online shopping through e-commerce sites, such as Amazon.com Inc. and Walmart Inc. are the key factors driving the market.
- Moreover, technology advancement, improved logistics, and safe payment system, coupled with increasing internet and mobile access and consumer demand for convenience, have increased the purchase of household goods.

Key Market Trends
Growth Of Internet Users, Improved Internet Connections, Advances In Security, and Encryption

The internet is increasingly becoming a key tool for merchants trying to expand their services in the virtual market, driven by the rapid growth of internet users, improved internet connections, and advances in security and encryption. This has largely increased consumer confidence and dependence on home-shopping, and in-turn, inflated the growth of the market. Globally, the internet user base stood at 3.5 billion in 2017, which reached 4 billion in 2019, as per the International Telecommunication Union (ITU). As of 2017, internet penetration in Europe stood at 79.24%, which increased dramatically to 82.49% in 2019. Additionally, the increased affordability of the internet and increased mobile-phone ownership has also driven the sales of the homeshopping market. In India, about 77% of urban users and 92% of rural users consider mobile as the primary device for accessing the internet, largely driven by the availability and affordability of smartphones. Thus, the growth potential for e-commerce in a market is directly correlated with its internet and smartphone penetration as mobile apps have emerged as a major gateway for customer purchases.

Asia-Pacific Dominates the Market

The global home-shopping market is highly dominated by Asia-Pacific, North America, and Europe. The Asia-Pacific region was the most dominant region for sales of homeshopping, with China being the most prominent country in the world. Other countries, including South Korea, Singapore, Japan, and India, have accelerated the growth of the market. Asia-Pacific is a rapidly-growing region with an increasing inclination of consumers toward homeshopping and a large number of imports from various countries. In 2017, the average imports of Asian consumers were 21% though it varied significantly by country. Asian countries, such as Indonesia, Japan, and India, recorded a significant import value in 2017. China accounts for more than one-fourth of imports from other countries (excluding Asian countries). The home-shopping market in the United States is dominated by accessories, books, and music. Whereas Asia-Pacific holds the largest share in the global homeshopping market in the personal care and cosmetics segments. Players, such as Taobao, Alibaba, and Amazon, hold the majority share in China and India in the Asia-Pacific region.

Competitive Landscape
The global homeshopping market is highly competitive with a strong presence of regional and global players in the market, where the demand is mostly driven by efficient delivery, brand preferences, and consumer awareness. Some of the major players in the homeshopping market, globally include Alibaba Group, Amazon.com, JD.com Inc., and Walmart Inc, among others. In the market studied, established players that have invested heavily in marketing and expansion, have gained traction over the years. Across the study period, market players were also involved in mergers and acquisitions and partnerships with a focus on expanding their presence in the market. In order to achieve deeper market penetration, potential players are partnering with retailers, branded sports distributors, manufacturers, and ski event organizers. For instance, in 2018, Walmart announced its acquisition of 77% stake in India’s largest e-commerce store, Flipkart. The investment may help accelerate Flipkart’s customer-focused mission to transform commerce in India through technology.

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