UNDERSTANDING TODAY’S POST-PANDEMIC E-COMMERCE LANDSCAPE TO GAIN THE EDGE

In APAC, e-commerce is now forecast to account for 46% of retail absolute value growth by 2027 compared to 2022. Within fast-moving consumer goods (FMCG), the shift to e-commerce accelerated during the pandemic, and now the majority of FMCG categories have elevated levels of e-commerce sales. Euromonitor dives into how grocery market in Asia Pacific has been performed in the early of this year and discuss the significance of how these daily grocery products can serve as a broader understanding of market dynamics, by analysing the online performance via Euromonitor E-Commerce.

By Jared Conway, Head of Research, Euromonitor International

Australia: Wine sales are heavily over-indexed in e-commerce than other alcoholic drinks

Euromonitor International’s E-commerce solution analyses how wine is performing online in the country, identifying consumer trends and growth opportunities for businesses. Sales of wine in Australia now accounts for over 37% of alcoholic drinks sales online, while just 23% of sales are made through traditional bricks-and-mortar retail channels.

Seasonal preferences of consumers also come into play for sales over the course of the year. For instance, red wine performed the strongest in the Australia’s winter months of July to September, with 40% higher sales compared with online sales of still white wine. Conversely, during the summer months when temperatures are highest, white wine exceeded red wine by 25% in the first quarter of 2023.

Additional analysis has also reflected that consumers still prefer to purchase sparkling wine in-store, due to the tactile experience of interacting with the product and the gratification of purchasing a product with a high price point in-person. However, Australian shoppers tend to prefer purchasing still red and white wine online, given the superior selection and information that online retailers provide.

India: Localised variations and flavours key win in chocolate online sales

In India, chocolate confectionery has been one of the fastest growing snacks in the country over the last two years, with sales from 2021 to the end of 2023 predicted to grow by 40%. Despite challenges in delivering such products in the country’s hot and humid conditions, retailers and delivery services have adapted by improving last-mile delivery options.

Online sales performance in the second quarter of the year is typically a slow period for the market in India, with consumers favouring other products such as ice cream and soft drinks, to cope with high temperatures. In addition, the holiday period for educational institutions also limits the popularity on-the-go consumption.

As a result, this data reflects that sales are expected to continue to grow and provide a variety of opportunities for manufacturers and retailers in a market that is still vastly undersaturated across both urban and rural areas. Consistently keeping an eye on metrics is crucial for a category like chocolate confectionery, which has immense potential in India.

These studies reflect the dynamism of the world of e-commerce, and how insights across industry sectors on the changing habits of consumers can uncover new opportunities for businesses in today’s landscape.

China: Slowdown in online instant noodles, while Douyin rises a new powerhouse in the market

Sales online for instant noodles in China were very strong throughout 2022 as continued regional lockdowns in both high- and low-tier cities led to consumers looking to consume as well as stockpile the convenient and affordable food option. The first two quarters of 2023 tell a completely different story of how this category has cooled off with rising economic concerns.

However, with concerns of shrinking market sizes and deflationary concerns, the competitive landscape of retailers and their pricing behaviour must also be carefully monitored to gauge where consumers are migrating. While JD and Tmall saw higher average prices of products stocked online, Douyin managed to stock lower average priced products and saw relative stability of monthly prices for these products. Douyin’s dramatic rise in e-commerce sales is just as impressive in instant noodles, as the TikTok equivalent saw Q2 sales rise by 17% from Q1, whereas JD and Tmall saw sales decline in the category. Douyin’s engaging videos and creative partnerships with brands and creators have helped catapult sales in staple foods category.

In the face of prevailing challenges in the Chinese market and the looming concerns of deflation, effective pricing strategies and vigilant monitoring of their impact on e-commerce channels can serve as a guiding light, offering manufacturers and retailers a viable path forward.