Digital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -
A new study from Juniper Research found that global spending on digital commerce will fall by 14% in 2020 as lockdowns and reductions in consumer spending are felt. Spending will fall from $11.2 trillion in 2019 to $9.7 trillion.
The new research, Digital Commerce Coronavirus Analysis: Impact Assessments & Market Forecasts 2020-2024, identified the digital ticketing area as particularly at risk; given the effect of widespread lockdowns on transport usage and events. It found that digital ticketing spend will drop by 59% in 2020 compared to 2019. Airline ticketing will struggle to recover fully over the next 5 years, as airlines face unprecedented cash flow challenges which are set to reshape the face of the industry.
Recovery Anticipated in 2021 as Digital Channels Benefit from Offline to Online Migration
The research identified that digital commerce spend will recover in 2021; exceeding 2019’s spend levels by 4%. While Juniper Research anticipates the economic disruption from the pandemic will last well into 2021, digital services are better placed than offline commerce for recovery, as there has been considerable migration from offline spend to online during the pandemic.
As a result of enforced changes during the pandemic, such as using contactless payments instead of cash, or buying groceries online, there will be permanent changes in consumer behaviour to the much greater use of digital services, which will bolster growth in digital commerce spend over the next 5 years.
The research also forecasts that payments for digital goods, such as digital games or video subscription services will continue to increase during the pandemic, as users on lockdown use digital services more extensively.
Research author Nick Maynard explained: “Digital commerce vendors will face disruption in 2020, but the shift of spend from offline to online channels presents a crucial opportunity for the market. Vendors must act to build on increased digitisation of services during the pandemic to sustain future growth”.
- Advertisement -
Digital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand SpurDigital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Digital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand SpurDigital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand Spur

Latest News

Qatar Airways Touches Down for the First Time in Abuja, Nigeria

The airline will operate three weekly flights from Abuja via Lagos Passengers from Abuja can enjoy more flexible travel options...

Why the South African Rand is 2nd-best performing EM currency

Since the onset of the COVID-19 pandemic, foreign exchange markets experienced a whirlwind of volatility as movement restrictions and a weakened global trade weighed...

Weststar Increases Product Portfolio with Mercedes-Benz Axor

Weststar Associates Limited, Authorized General Distributor of Mercedes-Benz in Nigeria, has announced Mercedes-Benz Axor as its new offering for commercial vehicle fleet owners in...

Ellah Lakes announces a joint venture with Ondo State for the development of Oil Palm and Cassava Plantation

Lagos, November 27, 2020: Ellah Lakes Plc (Ellah Lakes) is happy to announce that it has executed an agreement with Ondo State Government for...

GOtv Nigeria: For the Love of Local Entertainment

In two days, a new cooking and lifestyle show will debut on GOtv, the digital terrestrial television platform from MultiChoice Nigeria. Titled 'Jollof With...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Digital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand SpurDigital Commerce Spend to Fall by 14% in 2020, as Industry is Rocked by Coronavirus Impact - Brand Spur