The e-commerce industry in Asia Pacific has seen a significant growth in the last decade. There is growth in the number of customers and growth in the contribution to economies of the Asian countries through this sector. A lot of predictions suggest that the region will experience a boom in the e-commerce market. This blog will analyse the reasons that support the prediction and look at the current trends which reveal that something big is in making.
The Key Indicators
The Asia Pacific regions consists of developing countries which have experienced unprecedented growth over the past few years. Countries like India, Japan, China, Singapore, etc. are continuously growing in terms of education, infrastructure, and facilities to citizens. The two major developments in these countries have been: population growth significantly of the middle class and familiarity with Internet.
The middle class in the developing countries mainly comprises educated individuals who are earning a decent income which is sufficient for their personal needs and certain luxurious wants. The e-commerce companies in Asia Pacific countries offer the comfort of shopping from home at attractive discounts and deals. This is what makes middle class important. The second factor which is the rise of Internet usage is extremely critical because that is what lend the “e” to commerce. Both of these factors play a vital role in expansion of e-commerce industries in these Asia-Pacific countries.
The Current Trends
A simple glimpse into the current population and infrastructure growth of Asia-Pacific countries is sufficient to suggest a promising growth. But, if you are looking for concrete happenings, then major global companies and regional players have been engaged in certain activities that will prove that Asia Pacific is emerging as a hot market.
- Entry of Global Players in Asia Pacific Market: Two major e-commerce giants Amazon and e-bay have entered the Asia Pacific market looking at the predictors like rising middle class and Internet. While the entry of these companies suggests a promising growth, it would also mean stiff competition for regional companies. For example, Amazon entering the Indian market and destabilizing the regional companies like Snapdeal.
- Merger of Regional and Global Companies: In some countries, the global companies have either invested in regional companies or have bought stake in these companies to do business as partners. This also suggests that the established infrastructure of regional companies will make it easy for global companies and at the same time, the financial capabilities of global companies can help regional partners grow better. An example is eBay’s share in Flipkart.
- Positive App Performance: There are some companies that have taken bold steps like limiting mobile consumers to shop via app only. To some people, this seemed like a not-so-smart move, but it has not limited the capabilities of the company. Some companies have since then stuck to this strategy and performed well. For example, Flipkart (Indian e-commerce giant) and Amazon (global e-commerce giant) have both hit 100 million downloads on play store.
- Attractive Deals for Better Sales: Both regional and global players have been trying to monetize on the regional festivities and occasions in different Asia Pacific countries. There are a lot of past events to prove how these companies performed exceptionally good by offering limited period sales and offers. For example, Alibaba which is a China-based e-commerce giant recorded a sale of $10 billion in a single-day sale.
The reasons like rise of middle class and growing Internet access are going to gain momentum in Asia Pacific countries. It means that e-commerce is bound to flourish and grow at an even more faster rate. The current industry trends reveal that the companies are all ready to tap the potential in the Asia Pacific region. Now, only time can tell how well it goes for consumers and companies alike.
Author Bio : James Warner – Experienced and Senior Magento Certified Developer at NexSoftSys. Experienced Magento Developer with a demonstrated history of working in the information technology and services industry as well as Magento module Customization, Magento Module up-dation and Mangento Installation, Troubleshooting etc.
Is Asia Pacific Going to Be the Next E-Commerce Destination?