Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Online transactions accounted for 19 per cent of total retail sales in 2020, up from 16 per cent in 2019, as Covid-19 movement restrictions fuelled e-commerce growth, the UN Conference on Trade and Development said.
Several countries reported a growth in online sales, with South Korea topping the list at 25.9 per cent of total retail sales, up from 20.8 per cent in the previous year, Unctad said in a report.
The value of South Korea's online sales rose from $84.3 billion in 2019 to $104.4bn last year. The country's total retail sales stood at $403bn last year.
Other countries also reported higher online sales amid the pandemic.
China's online transactions accounted for 24.9 per cent of total sales last year, up from 20.7 per cent in 2019, while UK online transactions as a share of total sales rose from 15.8 per cent in 2019 to 23.3 per cent last year.
In the US, online portion of total sales grew from 11 per cent in 2019 to 14 per cent last year.
In terms of value, China's online sales stood at $1.4 trillion last year, up from $1.23tn in 2019. The US had $791bn in online sales while the UK had $130bn.
Global e-commerce sales jumped to $26.7tn globally in 2019, up 4 per cent from 2018, according to the Unctad report.
“These statistics show the growing importance of online activities,” said Shamika Sirimanne, Unctad’s director of technology and logistics.
“They also point to the need for countries, especially developing ones, to have such information as they rebuild their economies in the wake of the Covid-19 pandemic.”
The pandemic resulted in mixed fortunes for leading business-to-consumer e-commerce companies, according to the report.
Data for the top 13 e-commerce businesses, 10 of which are from China and the US, show a notable reversal of fortunes for companies offering services such as ride hailing and travel. All of them experienced sharp declines in gross merchandise volume and booking values.
Travel company Expedia was ranked 11th on the rankings after falling from fifth place in 2019 while Booking.com's parent Booking Holdings dropped from sixth place to 12th. Airbnb fell from 11th to 13th, according to Unctad.
Despite the reduction in the gross merchandise volume of services companies, the figure for the top 13 e-commerce companies rose by 20.5 per cent last year, compared with a 17.9 per cent increase in 2019.
There were particularly large gains for Canada’s Shopify and US retail company Walmart, according to the data.
Chinese e-commerce company Alibaba retained the top position with a gross merchandise value of $1.14tn last year, followed by Amazon at $575bn and Chinese site JD.com at $379bn. China’s Pinduoduo, Shopify, e-Bay and Walmart were in the top 10.
Overall, business-to-customer gross merchandise value for the top 13 companies stood at $2.9tn last year, according to the report.
Unctad also estimated the value of global business-to-business e-commerce transactions at $21.8tn in 2019, about 82 per cent of all e-commerce sales, including sales made through online market platforms and electronic data interchange transactions.
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium, Malayisa
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
W.
Wael Kfoury
(Rotana)
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
UAE currency: the story behind the money in your pockets
Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
