The Recent Trend of Online Retail Marketing

Question: Discuss about The Recent Trend of Online Retail Marketing. Answer: Introduction The purpose of the concerned report is to make a critical evaluation of certain aspects related to the recent trend of online retail marketing and its future opportunities. Additionally, the critical discourse has concentrated on to identify and analyze the impact of the growing trend of online retail trading on the traditional retail shopping. In the present era of rapid development through the hand of globalization, e-business is one facet that is growing in fast pace in both the developing and developed nations of the world. Fast technical growth and easy access to the internet has accelerated the emergence of online retail marketing (Gallino Moreno, 2014). This critical assignment therefore aims to understand whether online retail trading is the ultimate future of retail marketing or there is any scope for the re-emergence of traditional retail trading. Comparison and analysis of the recent trend of online retail marketing in developed and developing countries Over last few years, the online retrial marketing around the world is achieving an impressive growth as growth of the e-business has increased more than 20% in the year 2014, which amounts to near about $840 billion (Siqueira et al., 2014). Probably the reason behind this boom in both developing and developed countries is the continuous support from the stock markets and growing success of public offerings. In the developed countries like the United States, Australia and European continent the online retail trading has already set its foot and rapidly dominating the overall retail market. The developing countries on the other side has started to encounter a progressive growth in online retail shopping in an active pace as the rapid development of this aspect in developed countries have contributed a fruitful impact over developing nations. It is fortunate that developing countries are now giving tough competition to the most developed countries. According to the global index of 2013, China and Japan have scored highest than developed countries like US, Germany, Canada, UK, Italy and other ones. The prominent features of the online retail sector in developing countries like China, Hong Kong and United Arab Emirates rely not only upon the consumer behaviour and infrastructure facility but also upon the organized health of their domestic physical retail industries. It is unfortunate at the same time that in comparison with other South East domains, India who is considered to have second biggest population could not make its list in the tip 30 position in global online retail index (Wischenbart, 2013). Nevertheless, instead of grabbing top position developed countries have acquired the top half list of the global index. However, there are certain differences in terms of retailers between developed and developing countries. Retailers in the developed countries who both have virtual and physical stores are concerned more to integrate their in-store with the online ones to maximise customer engagement. On the contrary, the retailers of the developing countries are struggling to develop the logistic and economic infrastructure to break down the barriers related to online retail purchasing (Wischenbart, 2013). However, customers of both the countries possess same purchasing attributes. Critical views regarding online retail trading in future According to Fernie and Sparks (2014), the online retail purchasing sector is expected to grow on fast velocity as the account for retail spending around the world in 2015 will experience a growth by 8.8% in the year 2018 and further by 13% in the year 2019. Therefore, it is understandable that in case of having bright scope in future, both developed and developing countries will found themselves fortunate. The reason behind expecting rapid growth in online retail marketing is the increasing development in the technology and rising consumption of electronic gadgets like tablets, smart phones and laptops. Consumption rate of laptops and personal desktops is high as around 53.9% of the online user access to online stores through them and 33.7% use smart phones for the access (Clemes et al., 2014). Other chief reasons behind this expectation is most of the giant in store retailers like Wal-Mart, Sears and Kmart are going hand in hand with online successors like Amazon. Most of the physi cal stores concentrating on online marketing are implementing smart systems like in store pick up facility, home delivery and designing retail based websites. Amazon, who is considered as the most dominating online retailers of the world, has opened a physical bookstore in the university village of Seattle as a brick and mortar extension. Hence, it is understandable that the future of online retail marketing is hugely depending on the race between online retailers like Amazon and those retailers who are trying to win over both the on line and off line retail stores (Meeker Wu, 2013). To give competition to each other, retailers will implement more technologies and infrastructure in the field of online retailing and through this process the industry will continue its growth. Impact of online retail shopping on traditional retailing It is unfortunate that the growing trend in consumer behaviour to address online retail shopping is affecting negatively upon the physical retail parlours. Instead of trying hard to compete with the online retailer by developing several new channels, most in-store retailers are having rapid reduction in sales density in both developed and developing countries (Labrecque et al., 2013). The reason consumers prefer to buy retrial products online is that online retail purchasing is more convenient and easy. For evidence, in the year 2014, commerce department of US had noticed that e-retailers have consumed near about 8.3% of the unadjusted sales of retail excluding service sector of food and automobile. Consequently, the community retail stores are lagging and struggling. Because of the impact of online retailing, first in-store retailers have encountered decreasing sales for books and toys then reduction of sales have been found in the clothing and thereafter in the grocery system (Morg an-Thomas Veloutsou, 2013). It can be recommended that off line retailers should implement offers that are more lucrative and discount to keep their target market in hand. Conclusion The discourse has bring out some key points which suggest that in the world of online retail marketing, developing countries like China, Japan, Hong Kong are giving hard competition to the developed countries like US, UK and Canada. Most importantly, online retail trading will find a potential buyers market in future as recently physical retail stores are approaching the online retail trading to increase the revenue margin and to give seamless shopping experience. However, the report has pointed out that because of the rapid increase in online shopping, in-store retailers are encountering rapid decrease in sales. References Clemes, M. D., Gan, C., Zhang, J. (2014). An empirical analysis of online shopping adoption in Beijing, China. Journal of Retailing and Consumer Services, 21(3), 364-375. Fernie, J., Sparks, L. (2014). Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers. Gallino, S., Moreno, A. (2014). 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