eCommerce scenario in Italy
The eCommerce sector in our country is constantly growing. During 2023, purchases via eCommerce were worth over 54.2 billion euros, recording growth of over 6 billion compared to the previous year.
According to the survey by the Netcomm B2C eCommerce Observatory of the Polytechnic University of Milan, this increase is mainly attributable to online purchases of services in the Tourism and Transport sector (+30%) and from other sectors such as Ticketing for events (+8%).
Among the product sectors with above-average growth rates we find Beauty (+11%), IT and consumer electronics (+8%) and Publishing (+8%). Clothing (+7%) and Furnishings and home living (+7%) also recorded positive growth, while the Food & Grocery sector showed a slowdown (-0.5%).
Despite the growth of this sector, the market distribution between online and physical in Italy has recorded a modest increase, bringing the online penetration rate of total consumption to 13%.
Gen Z is certainly one of the main driving forces of digital purchases, representing the majority of the world's population.
Digital therefore remains essential for retail as it offers the possibility of amplifying the relationship between brands and consumers and extending the purchasing experience beyond the boundaries imposed by physical stores.
eCommerce Trends for 2024:
Let's see the trends that brands will have to monitor to provide an increasingly engaging shopping experience:
• Omnichannel and ROPO phenomenon
Users increasingly expect seamless experiences across touchpoints, both online and offline. In this context, there is the phenomenon of ROPO, an acronym for "Research Online Purchase Offline": the practice of searching for information online - on brand sites, marketplaces, social media, price comparators or review platforms - and then carrying out purchases in physical stores. This trend is also true in reverse: almost one online purchase in four (24%) occurs only after a visit to a physical store, where customers can ask sales staff for information or advice.
• Video Commerce
Among the types of Video Commerce growing in 2024, there is the phenomenon of Live Shopping. This form of online shopping, based on the broadcast of live videos in which products are presented, is rapidly making its way globally. In Europe, it is expected that by 2024 there will be 160 million live streaming users, of which 100 million will purchase during live broadcasts.
• Chatbots, conversational commerce and AI:
Thanks to these tools it is possible to respond to customer questions and requests in real time 24/7, without the need for human intervention.
Forecasts indicate that the global AI in eCommerce market will reach over $22.6 billion by 2032, with growth estimated at a compound annual rate of approximately 15% between 2023 and 2032.
• Community Commerce and UGC
It is a form of Content Marketing focused on the role of creators and the ability to build and nourish communities, through the creation of content capable of engaging and entertaining.
The advantage of UGC content is that it gives customers the opportunity to share authentic opinions about the company and become the face of the brand. This engagement is crucial, considering that 92% of consumers trust customer reviews and testimonials more than traditional advertisements.
• Augmented reality and virtual reality
Augmented reality gives consumers the ability to view products in real-world contexts through devices such as AR glasses or headsets, allowing them to see items before purchasing almost as if they were live. This approach not only improves the purchasing experience but also strengthens consumer trust, reducing the risk of post-purchase dissatisfaction.
• ESG issues
The importance of sustainability and ESG (Environmental, Social and Governance) issues is emerging as one of the most significant trends in digital commerce.
Almost 80% of Italian consumers prefer to make online purchases from brands that have introduced sustainability policies. Yet, less than 50% of the country's companies have invested in this area.
E-Business Consulting, marketing agency active since 2003, awaits you on May 8-9 at stand L16 (at Mico in Milan) for the Netcomm Forum 2024! Contact us to build a customized project for your business!