Assuming that at present you are working at a retail outlet which has no online presence yet. Based on the article above, convince your employer on why he should consider e-commerce, as an alternative channel for their customers. a. Holding other variables constant (ceteris paribus) - illustrate using relevant (and completely labelled) diagram(s) the effect of this trend on the demand curve for online and offline retail stores. b. In light of the above issue, briefly explain other two (2) factors that may shift the demand curve in favour of the online stores.
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Southeast Asia’s online shopping boom is here to stay, even after the pandemic Southeast Asian shoppers will likely continue buying groceries and other essential items online — even after the coronavirus pandemic ends, according to research from consultancy Bain & Company and Facebook. A new report from the two firms said e-commerce and other digital trends across the region were accelerated by the Covid-19 outbreak — the disease that has infected more than 7 million people worldwide. “Some of these trends are here to stay,” Praneeth Yendamuri, a partner with Bain & Company based in Singapore.“One of the trends we identified was essential online shopping, and that’s here to stay,” he told CNBC’s “Street Signs” on Tuesday. He explained that online groceries are a massive category that is relatively underpenetrated due to logistics and other reasons. But the sector grew nearly three times during the outbreak in Southeast Asia, and one in three users who were surveyed said they planned to continue buying their groceries over the internet in future, according to the report. Total grocery spend in Southeast Asia is roughly around $350 billion, and online grocery accounts for a fraction of that overall value, but it is gaining traction, according to industry experts. Alibaba-backed Lazada, which operates across the region, recently told CNBC its online grocery sales in Singapore jumped four times from early April — since the city-state introduced movement restrictions as the number of coronavirus cases intensified. Even after economies are fully reopened, people in Southeast Asia are 1.5 times less likely to go out in the future compared to their American counterparts, which would mark a massive culture shift in the region, according to the report. Source: https://www.cnbc.com/2020/06/09/southeast-asias-online-grocery-shopping-trends-during-coronavirus pandemic.html
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Assuming that at present you are working at a retail outlet which has no online presence yet. Based on the article above, convince your employer on why he should consider e-commerce, as an alternative channel for their customers.
a. Holding other variables constant (ceteris paribus) - illustrate using relevant (and completely labelled) diagram(s) the effect of this trend on the
b. In light of the above issue, briefly explain other two (2) factors that may shift the demand curve in favour of the online stores.
c. If at the same time, more retailers participate in e-commerce, illustrate (using relevant and completely labelled diagrams) the possible implication(s) on the
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