The global home shopping market size accounted for USD 3,047 billion in 2021. It is expected to reach USD 11,207.11 billion by 2030, growing at a CAGR of 17.68% during the forecast period (2022–2030). Home shopping is also known as E-commerce shopping. It is Direct-to-Consumer buying done from one's home using products advertised on the internet or television. Home shopping has gained popularity in recent years with the development of the internet and sophisticated supply chains that enable goods to be transported directly to customers at a reasonable price.
Briefly, home shopping is carried out through interactive television, mail, phone, and door-to-door sales. Since the introduction of direct-response television, interactive television, infomercials, and cable network-shopping channels, in-home shopping has increased substantially. Consumers receive product information at home via mail campaigns, catalogs, print commercials, broadcast media, and outbound phone calls. Convenience is the primary driver of in-home buying, although other drivers include entertainment and impulsiveness.
Home shopping can be a desirable market for customers worldwide, especially in times of global pandemics like the coronavirus. Besides the rapid increase of internet users, better internet connections, and advancements in security and encryption, the internet is increasingly becoming a crucial tool for businesses looking to expand their offerings in the virtual market. Thus, it significantly boosted consumer confidence and dependence on online buying, which has, in turn, inflated industry growth.
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Rapid Growth in the Technology
Business companies have shifted from the conventional method of selling items to the electronic method due to the rapid development of technology. Online stores do not have space restrictions and can display various products on websites. Businesses use the internet as their primary means of conducting business. It makes it easier for analytical buyers to buy a product after doing some research. Customers can shop from the convenience of their homes or places of employment. The internet simplifies and facilitates shopping for the consumer. Customers can cancel payment transactions with ease as well.
Most e-commerce websites are outfitted with technology that makes them user-friendly and secure. Online retail websites use various technologies to guarantee customer security and satisfaction. Customers may now have a pleasant shopping experience from the convenience of one's home, owing to the expansion of broadband internet connections and recent developments in security and encryption. The sales of the home shopping sector have also been boosted by the internet's rising affordability and the rise in mobile phone ownership. The increase in sales is mainly due to the accessibility of smartphones and internet connections.
Over 77% of urban and 92% of rural users in India identify mobile as their primary device for accessing the internet. Since mobile apps have become a significant gateway for customer purchases, the growth potential for e-commerce in a market is closely correlated with its internet and smartphone adoption. To increase their market share, offline firms also concentrate on online channels.
Public and private postal services are used in most e-commerce transactions. The reliability of these services significantly influences the success of e-commerce. The importance of postal reliability grows as more customers depend on their goods to arrive on time and in good shape. With its standardized addresses, effective postal code system, heavily inhabited areas, and solid transportation infrastructure, Singapore is an excellent example of postal dependability. Overnight delivery of packages is a cost-effective option for moving items nationwide.
Governments, banks, financial institutions, and logistics and communication businesses would make "strategic investments" to advance e-commerce. Similarly, public administrations play a significant role in other nations reducing the obstacles and establishing an environment that is beneficial for Internet adoption (particularly for SMEs). As a result, the timely and efficient execution of such programs will probably help the development of the e-commerce market.
Barriers to Home Shopping in Developing Countries
Many barriers exist to adopting efficient digital technology in many developing nations, especially LDCs. The practical implementation of e-commerce is hampered by a lack of human experience and skills, erratic power supplies, poor connectivity, and constrained bandwidth. Despite substantial advancements in access to ICTs, there are still broad differences in how these technologies—particularly broadband—are used. Due to poor connectivity, a lack of understanding of the advantages of digitization, a lack of necessary skills, and other obstacles, many small businesses in developing nations continue to have limited digital involvement in pertinent value chains.
Internet users in developing nations are less likely to engage in online buying than in social networking, which may be due to a mix of cultural preferences, a lack of trust in the online environment, and a lack of knowledge about e-commerce. Due to poor connectivity, a lack of awareness, and a skills gap, MSMEs in low-income economies still find it difficult to reap the benefits of digitization. Additionally, when smart gadgets spread with little preparation or monitoring, a lack of regulatory capacity exposes consumers and businesses in developing nations to fraud, cybercrime, and privacy abuse. Therefore, those nations now at a relatively low level of readiness hinder the growth of the home shopping market.
The global home shopping market is segmented by type and region.
By type, the global home shopping market is classified into Teleshopping, E-Commerce, and Others.
The E-Commerce segment owns the largest market share and is anticipated to grow at a CAGR of 18.34% during the forecast period. Introducing new sales channels, such as social media platforms and smart devices, will expand the current portfolio. The usage of online platforms is expanding, particularly in industries with lots of customers and sellers and intense worldwide competition. As one of the most effective platforms for one-to-one marketing, mobile commerce is also bringing about a revolutionary shift in the retail industry. Travel-related purchases are one of the fastest-growing e-commerce segments. A trend toward e-commerce has also been pushed by the start of the COVID-19 pandemic.
The Teleshopping segment witnessed significant sales since it offers a simple purchase method, payment on delivery capabilities, order cancellation and product return services, reasonable offers and discounts, and product monitoring capabilities. During the projected period, it is anticipated that the growing number of televisions in big cities and smaller towns worldwide would propel the market's expansion. The need for teleshopping is expected to increase because urban and rural television viewers may typically place orders for goods through teleshopping channels or infomercials.
Direct mail and catalogs comprise most of the market's other types of sectors. Direct client targeting with particular offers and discounts that can be of interest to them drives the market. The crucial jobs of consumer education and brand storytelling are made more accessible with the help of a regular product newsletter.
By region, the global home shopping market is analyzed across North America, Asia-Pacific, Europe, South America, and the Middle East and Africa.
Asia-Pacific Reigns Supremacy Over Others
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Asia-Pacific commands the market and is estimated to grow at a CAGR of 15.52% during the forecast period. The primary reason for the region's dominance is the remarkable performance of China. China's online retail industry has experienced rapid growth in recent years. This massive growth of China's e-commerce industry has been made possible by the country's rising number of online shoppers. More people are turning to internet buying since it is easier and more convenient, especially for busy urbanites, as more Chinese customers have more disposable income. Fast delivery to practically every place in China is made possible by sophisticated logistical networks, cloud computing, and drone-based delivery, enabling consumers' need for convenient yet quick delivery of their goods. In India, the advent of the 4G network, fueled by the expanding smartphone penetration and rising consumer income, are the key elements propelling the home shopping sector.
North America holds the second-largest market share and is expected to grow at a CAGR of 19.51%, accounting for USD 559.18 billion by 2030. The primary cause behind North America's growth is the US's existence, as online shopping is experiencing a boom and is anticipated to have double-digit growth over the projected period. The number of online sales demonstrates positive data estimates. Still, offline sales influenced by the web and mobile devices are also anticipated to rise in the coming years. As the baby boomer group ages, service providers like Alliance Rx Walgreens Prime and CVS ProCare Mail Service have benefited. Drugstore giants have been encouraged to operate in the online market by pharmacies and other drug stores, which have managed to secure top-of-the-mind positioning among consumers in the face of competition from online delivery services. Online pharmacies have ultimately increased the market for home shopping. Fashion brings in the most money from e-commerce in the North American region, ahead of electronics and gadgets in Costa Rica and Greenland. Additionally, the region's growing millennial population bolsters the home shopping industry.
Europe occupies a moderate share in the home shopping market. The UK is the main factor driving this region's growth. Retail outlets, catalogs, customer magazines, websites, social media platforms, mobile and smart TV apps, and many other sales channels are used by home shopping companies in addition to television to sell their items. The switch to multi-channel home shopping is potentially opening up new opportunities for the nation's home shopping market. Therefore, to build a seamless supply chain for customers, market players have been pushed to develop their presence in the nation due to the rising popularity of online shopping and other forms of e-commerce. Moreover, In Sweden, there is a high level of IT literacy, and customers value e-speed, commerce's ease, and the ability to compare prices. As the older, less tech-savvy population ages or is exposed to online shopping, present teleshopping customers will probably continue to transfer to e-commerce channels throughout the forecast period, supporting market growth.
List of key home shopping companies profiled