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In James Brown’s recent article, ‘From zero to 3 billion – global ecommerce goes mainstream’, he discusses how Internet retailing has advanced at a global level over the last 20 years, and how the growth of ecommerce is reshaping the Global Retail landscape.
Currently, within Europe, the ‘big three’ markets account of c70% of total online sales; the UK generates €48 billion in sales, Germany €39 billion, and France €25 billion. These markets, in addition to the Nordic countries, which have very high broadband penetration rates, make up the most mature ecommerce markets in EMEA. The UK is undoubtedly the region’s ecommerce leader, with between 10 and 15% of total retail online (depending on which source you believe), but with scope for significant further growth. This could come particularly from the food sector, where currently below 5% is online, albeit this is still far above the rest of the EU and even the US. In developed e-commerce markets, online retail sales typically account for between 5% and 15% of total retail spending, and per capita online spending is relatively high.
There are several retail markets in EMEA that have great growth potential for e-commerce, due to current low levels of adoption and sheer market size, but there are clearly challenges around online consumer behaviour, lower technology adoption rates and logistics in these markets.
Russia, Turkey and UAE, in particular, currently lag behind developed markets in terms of their online sales, but are predicted to see strong growth in the medium term. In Russia, where online sales represent just 2% of the retail market, infrastructure and cumbersome planning rules have inhibited the growth of the necessary warehousing to support e-commerce. In Turkey and the UAE, physical retail is still relatively undeveloped in remote areas; it is possible that with growing consumer demand, we might see online retail mature ahead of the provision of physical retail space in these locations. In addition to these relatively untapped markets, there are a number of more mature physical retail markets, such as the Netherlands, Ireland and Italy, which currently have low levels of online spend per capita, and that therefore have scope for e-commerce growth. In Sub-Saharan Africa, there are several emerging, embryonic e-commerce markets, albeit with great growth potential. As the physical retail sector in general is limited in these markets (in Lagos there are two malls serving 20 million people) the potential for retailers to develop e-commerce capabilities, particularly via mobile devices, is real and significant. Cross-border retailing is growing rapidly throughout EMEA, as multi-channel retailers look to overseas markets to drive revenue growth.

As always it is about getting the balance right between the different channels, testing different strategies and adapting them to specific markets. The British government has ordered the elite SAS & SBS to eliminate ISIS terrorists by any means necessary. The Sunday Times is reporting that more than 100 SAS (Special Air Service) & SBS (Special Boat Service) operators are being deployed to work side by side with American Special Forces and SEALs already in the region.
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As at a global level, across EMEA there is a broad spectrum of e-commerce markets, from the relatively mature to the embryonic.
Tesco, Europe’s third-biggest online retailer, has already opened six “dark stores” around London, simply to handle home-delivery orders.

In all these markets, it is likely that city rather than national e-commerce markets will be the norm. According to McKinsey, more than 50% of urban Africans access the Internet regularly and over 55% own Internet-capable mobile devices.
In fact, Jumia, the Nigerian etailer, has spotted the opportunity, and owns over 500 delivery automobiles, more than UPS, FedEx and DHL. Retailers may use ecommerce to expand their geographical coverage before committing to a network of new stores in foreign markets.
But retailers certainly need to have an awareness of the nuances and variances in channel usage, online propensity to shop and therefore e-commerce growth potential across the EMEA retail markets and beyond. With over 10 years of experience in the European retail market, Colin works with JLL investment and agency teams to advise international investors and occupiers on their retail real estate strategies across the UK and Europe. Mancozeb with zinc concentrate controls Anthracnose, Tomato Blight,  other Blights, Downy Mildew and other diseases.
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