In corporate world, there are sometimes seismic shifts that happen. When a David beats a Goliath in terms marketshare or turnover or market capitalisation.
Once such instance happened recently in the UK retail space. BooHoo.com an eCommerce company beat Marks & Spencer (M&S) in terms of market capitalisation - that is the value of shares traded by companies in the stock market. M&S is a 125 year old and one of the biggest names in the high street for retail shopping. On the other hand, BooHoo.com was started in 2008, just 12 years back.
While Boohoo.com is going from strength to strength, the Turnover and profitability of M&S has been declining. One of the major reasons for the decline of M&S is failure to dominate the Digital and Social Media space and lack of investment in digital marketing. Almost all of BooHoo.com's sales is via online with advertising in Social media and digital channels and also capitalising on Social media influencers. BooHoo build a very strong website as well as mobile APPS to sell their products and has been pushing hard on digital marketing to accelerate sales.
M&S on the other hand has been slow to get onto the online market. Being a big corporate, they have been rather slow to move and make changes to their online shopping experience which is costing them market share. Other major retailers like Debenhams, another big name in retail, have filed for bankruptcy and closed / closing shops. Others like TopShop, Topman and Dorothy Perkins (all part of Arcadia Group) are closing shops due to drastic reduction in store sales.
UK like the US and rest of Europe is an advanced market in terms of online sales. India is catching up with the west in terms of sales of goods and services online with a massive increase in mobile phone usage and mobile data available at very low cost.
Indian eCommerce scenario
Indian eCommerce market is still in it's infancy, if we can use that terminology. The eCommerce sales in India is expected to leapfrog from USD 39 billion (Rs.273,000 Crores) to about USD 120 billion in 2020 (Rs.840,000 Crores), that is a 3 fold jump in just 3 years! Those who are quick to embrace technology will be winners, while those who are slow to move will end up losing market share.
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