Ecommerce Trends: Growth in Resale and Retail Media in 2023
Major retailers are entering the resale market, and digital transformation is reshaping ecommerce, with Thailand's growth rate at 15.40% and global app ad spend reaching $6.6 billion. Retail media has experienced a growth rate of 9.9% this year, while resale volume is projected to see a 7.6% increase. China-based ecommerce apps have been particularly dominant, constituting 85% of iOS user acquisition spend.
The landscape of ecommerce is undergoing significant transformations in 2023, marked by notable surges in retail media and resale sectors. Retail media has experienced a growth rate of 9.9% this year, while resale volume is projected to see a 7.6% increase. In comparison, overall retail volume is expected to grow by 3.3%.
Resale Market and Consumer Behavior
In the resale market, a considerable portion of consumers, approximately 76%, shop for used goods primarily due to affordability. Simultaneously, the same percentage of shoppers is drawn to resale items for their uniqueness. Notably, 63% of consumers are driven by sustainability considerations, reflecting a broader trend towards environmentally conscious shopping habits.
Major retailers are increasingly entering the resale market, acknowledging the shifting consumer preferences towards more affordable options. This trend highlights the importance of affordability and sustainability as key factors influencing consumer decisions in the current market climate.
Retail Media and Digital Transformation
The year 2023 is pivotal for ecommerce, with digital transformation reshaping the commerce landscape. Retail media has seen a significant surge, reflecting the evolving strategies businesses are employing to reach consumers. The constant change in ecommerce underscores the necessity for businesses to adapt to new technologies and consumer behaviors.
In Thailand, the ecommerce growth rate has reached 15.40% in 2023, with a compound annual growth rate (CAGR) forecast of 11.73% from 2023 to 2027. Niche trends such as live streaming and cross-border ecommerce are gaining traction, with particular focus on the retail, travel, and food service sectors.
App Usage and Consumer Conversion
App usage has shown a notable increase, with 4.6 billion app installs recorded globally. The total global app ad spend reached $6.6 billion in 2023, with iOS platforms accounting for $2.9 billion of this expenditure. China-based ecommerce apps have been particularly dominant, constituting 85% of iOS user acquisition spend.
Consumer conversion rates during peak seasons are significant, with 1 in 10 consumers converting to a purchase. Moreover, 60% of consumers become loyal customers after their first purchase, indicating strong potential for repeat business. Furthermore, non-organic installs on iOS have increased by 60%, with a 40% conversion rate on the first day post-install and a 75% conversion rate within the first week.
Regional Dynamics and Ad Spend Trends
Regionally tailored strategies are proving to be crucial in the dynamic ecommerce landscape. For instance, iOS user acquisition (UA) in Germany saw a 170% year-over-year increase, while in France, it more than doubled. This highlights the importance of adapting strategies to regional preferences and behaviors.
Ad spend trends show a 43% increase in spending on Apple devices, while Android ad spend decreased by 18% in 2023. This shift underscores the growing importance of iOS platforms in the global ecommerce ecosystem. In-app spending increased by 15% year-over-year in Q4 2023, with iOS users experiencing a 21% uplift in spending during the same period, compared to a 9% increase among Android users.
Overall, the ecommerce industry is witnessing significant growth and transformation in 2023, driven by evolving consumer preferences, technological advancements, and strategic shifts by major players. As the landscape continues to change, businesses must remain agile and responsive to capitalize on emerging opportunities.