Several industry articles recently have shown a focus on emerging ecommerce markets. Here we round up the key stats and deliver a concise overview of these markets.
First up, China. Now this is hardly an emerging market with several key players in retail already making their presence felt here, however the countries adoption of online shopping is rising. This rise is mainly due to increased consumer confidence in the channel plus the popularity of online fashion retail in the country.
Increased consumer confidence in China
Indonesia is another emerging commerce market - set to soar to $10 billion by 2015. With the world’s fourth largest population, a resilient and growing economy and emerging ecommerce activity it is a main attraction for many organisations as well as significant investment.
However Indonesia’s lack of legal regulations, difficult geography and lack of infrastructure will pose a challenge for market entry. Although the tendency for Indonesian people to shop on their smartphones more so than other areas does present a significant market opportunity.
Indonesian ecommerce market to grow to $10 billion by 2015
The ecommerce market in India is said to be experiencing some tough times. Poor logistics, skeptical customers and mainly slim margins mean ecommerce is challenging. Also risky supply chains mean stock must be kept in warehouses while customers often only pay upon delivery meaning cash flow issues arise.
Yet this market is worth $10 billion and with annual growth in this area at 34% it is predicted to become hugely profitable.
Indian market must overcome cash flow problems
Andy Rubin from Pentland Group summarised the importance of these economies at a recent Drapers event. He predicted international expansion in these emerging markets would be critical to future success. By 2022 China will account for 25% of global retail sales. Therefore retailers worldwide must consider how these shifts will impact their strategies now.