ecommerce in asia-pacific: landscape, challenges & opportunities
TRANSCRIPT
Ecommerce In Asia-Pacific
Landscape, Challenges &
Opportunities
Ecommerce transactions in the
Asia-Pacific region is expected
to reach USD 2.352 trillion in
2017 and more than double to
USD 4.058 trillion by 2020.
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Why Invest in Asian Ecommerce Market(s)?
× Ecommerce Growth in Asia is significantly higher, as
compared to the rest of the world.
× Driven by higher incomes and a rich middle class, this
sector is expected to grow by an average of 6.2%
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4.82 billion Asia-Pacific offers a gigantic target for
ecommerce sales.
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With a population over
Strong Growth in Online Shopping
APAC accounted for 40%
of global ecommerce
sales in Q1 2017 in
Southeast Asia
Amount spent by Asian
people online per capita
is more than spent by
the Americans.
China has surpassed the
United States as the
world’s largest market
for ecommerce with 35%
of annual growth rate.
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Strategic Position & Competitiveness
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Sale of products
via existing
platforms1, cert-
ainly facilitates
the process.
To enter, foreign
investors must
decide their
positioning on
the Internet.
Luxury brands,
often prefer to
launch their own
shopping
solution.
1Platforms such as Tmall (China), Lazada (South-East Asia), Snapdeal (India) or Rakuten (Japan)
1,139,100Whoa! That’s a the estimated number of digital buyers
in Asia-Pacific by 2019
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Estimated Number of Digital Buyersin Asia-Pacific
Year Number of Digital Buyers (in Millions)
2016 812.2
2017 921.6
2018 1025.1
2019 1139.6
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Impact of Mobile Commerce
× Asian consumers are increasingly using their
smart devices to search and buy products online.
× Ecommerce players must adopt m-commerce
strategies to increase their sales.
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46% of total Asia-Pacific
online retail sales were
done by mobile phones in
2015 & expected to reach
69% by 2020.
Use of Social Networks
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× It allows consumers to inform ecommerce stores
about a purchase made or to share their
experiences.
× Brands can solicit opinions on new products or
developing projects, while getting closer to
consumers.
In China, in particular,
the growing influence of
WeChat encourages
brands to open an
account.
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Online Payment Methods
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× The penetration rate of credit cards varies in
Asian countries, & mobile payment methods are
not available everywhere
× In China, Alipay and Tenpay have become
widespread, while in Australia, consumers prefer
to use BPAY, POLi, PayPal, and PayMate.
Many Asian consumers prefer to pay
in cash (especially in India, Japan and
in the emerging countries of
Southeast Asia).
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Prefer CashThen credit
cards
Logistics & Support Services
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× Asian consumers are used to relatively short delivery
times and are not very tolerant in this respect.
× Many delivery companies (originally set up for delivery
to businesses) now cater to all customers.
× Though it is is less of a problem in China, where
infrastructure investment has been a priority of the
Chinese government for many years.
Availability of Local Data Centers
Almost every major
hosting providers have
data center located
within the Asia-Pacific
region
To side steps the hassles of application management, it is best to
opt for managed hosting solution so that the ecommerce store
managers/owners could focus on business processes rather than
underlying technical issues.
This reduces the latency
factor and ensures
great user-experience
for the visitors
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The page load speeds, in
particular, increases
significantly because of
low latency factor
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From Opportunities to Challenges
The first of these obstacles is the maze of local tax rules. Then
comes the problems of local needs; the demand is not the same as
in the West.
The language barrier is also cited, in the third place as an obstacle.
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Asia is a promising ecommerce market with prospects of a
double-digit growth.
It is important to understand that Asia is not Europe.
It is an entirely different market with challenges such as
language barrier, tax laws, and logistics.
Final Thoughts…
Thank You!
You can read the full blog post here.
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Slides By Muhammad Sajjad ShahidContent by Mansoor Ahmed Khan