This week Brazilian President Jair Bolsonaro tested positive after disregarding the virus when the pandemic began. Second only to the United States in cases and deaths, Brazil’s economy has been decimated by the pandemic, and despite recent growth in e-commerce, the nation is one of the hardest hit in the Americas.
In the US, cases of COVID-19 have crossed the 3 million mark, and we’re seeing many businesses enforcing a mask policy for consumers in-store. Data clearly shows that countries (Thailand, for example) where citizens wear masks in public have much lower infection and death rates and far better e-commerce growth when coming out of lockdown.
Welcome to the CCInsight project where we track how COVID-19 impacts consumer spending around the world. Here are some of the top e-commerce trends we’ve spotted over the past seven days.
Consumers Are Buying Travel and Sports Products and Hoping for a Vacation
Consumers across the world are getting ready to go on holiday as sales of related items see significant growth. Online purchases of suitcases and backpacks are up 83% and 42% YoY, while flip-flops and swimwear are also up 79% and 12%.
Alex Timlin, SVP of Verticals at Emarsys, commented: “Consumers across the globe are understandably desperate for a holiday now that governments are opening up borders to tourism once more. This growth in typical holiday products coincides with a significant uptick in web traffic for many of our travel clients — many of which are starting to see the web traffic turn into bookings once again.”
Australia Home and Leisure Gets a Major E-Commerce Investment
The in-store experience has irrevocably changed, prompting brands to apply more budget to e-commerce growth. This week, Australian brands Super Retail Group (investing AUD $200 million) and Temple & Webster (investing AUD $40 million) have announced major investments in improving online purchase.
CCInsight data shows that online sales in the Home & Leisure category have been booming since January, with nearly 100% growth for Australia. Some retailers are capitalizing on the acquisition of new online customers, and consumers are starting to prefer e-commerce as their primary channel for engagement.
A Tale of E-Commerce Growth for Two Countries: Romania and Mexico
As the number of COVID-19 cases continues to rise around the globe, countries are reeling with the speed of change in e-commerce. Some are doing better than others.
Romania is a standout in Europe. With a population of 19.23 million, 30,789 confirmed cases, and 1,834 deaths, Romania’s infection rate is 16% of the population, and the death rate is 0.95%, very good numbers and a great boon for Romanian e-commerce.
Mexico, on the other hand, has been hit significantly harder. Not only are they a much larger country that’s been in a recession since last year, but unemployment in Mexico is reaching epic proportions with more than 700,000 jobs lost in March and April. With a population of 128.9 million citizens, 282,000 confirmed cases, and 33,526 deaths, Mexico’s infection rate (22%) and death rate (2.6%) is nearly twice that of Romania.
Tied closely to revenue growth in Canada and the US, Mexico is of particular concern, and with no government financial relief, the country may have a hard Q3 and Q4.
But the takeaway here is that online shopping has been growing by leaps and bounds for both countries. Pure players, in particular, have seen amazing growth despite unemployment and contracting economies.
Data Insights for the Week
Argentina, Chile, and Puerto Rico remain pure e-commerce revenue growth leaders in the Americas, with quite a chasm between the top three and the rest of the region. Retail online, though, is performing better as a whole.
Revenue Increase Leaders at a Glance
European pure e-commerce revenue growth on the whole is doing better than the Americas and APAC, with less division between the top performers and the top 20. Retail e-commerce is also performing better in Europe than the other two regions, with Poland and Serbia seeing great gains in the last two to four weeks.
Revenue Increase Leaders at a Glance
Except for the top four countries, APAC revenue growth for pure players is below 0% for the region. Similarly, retail e-commerce in APAC is lagging behind the rest of the world.
Revenue Increase Leaders at a Glance
Top Product Trends of This Week
Key Product Trend Insights: Bidets are back in demand, as is one of the strong performers during the entire pandemic: The beloved dishwasher is up +1,487% YoY in uplift. Consumers are still buying sports and hobbies products with the soccer ball at #1 and dartboards falling off, though still seeing 1,416% YoY growth in uplift.
Growth Rate of Online Transactions
Even as the pandemic goes on, online purchasing continues to see YoY growth. This week, pure players are performing the best, though in almost all categories, we’re seeing a growing divide between the top performers and the majority of other countries in the region, affected by local lockdowns and reopenings as well as unemployment and changes in household spending.
Trends by Region
Pure e-commerce: Pure e-commerce revenue growth YoY had been dominated by APAC. The region was up until July 2nd when sales began to decline. Two days later on July 5th, APAC fell below the Americas (who has taken the lead for the moment) and is almost even with Europe.
Retail online: The Americas, who had been leading APAC by 43% YoY revenue growth and Europe by 65% back on June 25th, began a gradual decline over the last two weeks falling below APAC on July 5th and below Europe two days later. APAC is now on an upward arc and finishes the two-week period at 23% above Europe and 28% above the Americas.
Trends by Country
Pure e-commerce: Argentina and Puerto Rico lead the Americas for the sixth week in a row with over 200% YoY revenue growth, with Chile just below 200% this week, down only -0.25% in the last two weeks. In the same time, though, most countries have seen growth decline. After a huge rise four weeks ago, Peru fell 129% in the last two weeks to +71% revenue growth YoY, second only to the Dominican Republic who fell 134% to +59% YoY.
North America also declined in varying degrees with the United States out front with +89% revenue growth YoY (-18% in the last two weeks), followed by Mexico with +16% (-50% in the last two weeks), and Canada who fell 51% in the last two weeks to -3% growth, which is still 43% better than Brazil this week.
Since the first week of July, pure e-commerce in Europe has been growing in terms of revenue, with Belarus again the best at +109% YoY, even though the country fell 46% in the last two weeks.
Elsewhere, Sweden grew 20% over the last two weeks to +99% YoY revenue growth, followed by Germany (+69% YoY, +18% in the last two weeks), Estonia (+68% YoY and rising over the last month), Denmark (+54% YoY and new to the top five), and the United Kingdom (+46% YoY, -9% in the last two weeks).
Still doing well, Romania has fallen 167% over the last two weeks down to +23% YoY revenue growth.
Pure play in APAC has declined in the last two weeks overall. Only the top four countries in the region are seeing revenue growth. In the last two weeks, India fell 70% (+84% YoY), Australia gained +9% (+76% YoY) and traded place with Japan who fell 57% (+61% YoY). Thailand dropped 39% to finish the week at +23% YoY revenue growth, and China continues to struggle in online revenue, falling 21% in the last two weeks to -82% YoY revenue decline.
Retail online: In the Americas, Ecuador and Mexico have seen 200% YoY revenue growth for the last six weeks. Looking at growth in North America, Canada is second to Mexico with +85% YoY revenue growth (-11% in the last two weeks), followed by the United States at +49% (-48% in the same time frame). Despite declines for Canada and the US in the last two weeks, North America is not suffering in the way Brazil continues to (-39% revenue YoY).
Turkey grew +31% in the last two weeks to continue leading retail e-commerce YoY revenue growth in Europe with 187% YoY. Overall, Europe is on an upward arc. Belgium (+121% YoY, -29% in the last two weeks) and Poland (+116% YoY, +32% in the same time) are close behind, followed by the United Kingdom with +92% YoY (+5% in the last two weeks), Germany with +44% YoY (+29% in the same time), Sweden with +41% YoY (-12% in the same time), and France with +27% YoY (-19% in the last two weeks).
In this week’s retail e-commerce revenue growth in APAC, New Zealand (+94% YoY, +39% in the last two weeks) and Australia (+80%, +20% in the last two weeks) performed the best. Thailand’s climbed 9% in the last two weeks to reach a healthy +32% YoY growth, and though Japan fell 31% in the same time, the country is still +5% over the previous year.
The giants aren’t faring as well, with India at -62% YoY revenue decline (-18% in the last two weeks) and China at -29% YoY decline (-32% in the last two weeks after making great gains a month ago).