Worldwide retail ecommerce is booming and retailers should expand their businesses internationally to meet the demands of global consumers and build an international presence.
While retail ecommerce sales growth is continuing to outpace brick and mortar sales growth, over half of global retail ecommerce sales are driven by Asia-Pacific, accounting for $874.46 billion in 2015, according to Worldwide Retail Ecommerce: The Emarketer Forecast for 2015.
China, Japan, Australia, Singapore, and South Korea all rank among the top global ecommerce countries in the Asia-Pacific region. According to a recent study by FitforCommerce, “over 80% of brands and retailers with an ecommerce channel plan on expanding sales to Asia-Pacific in the near future (12-24 months).”
But what exactly is penetrating this growth?
Online sales, mobile usage, and infrastructure are the driving factors of Asia-Pacific ecommerce growth.
Large populations in emerging markets are purchasing online for the first time and continue to fuel worldwide ecommerce growth from 1.4 billion active Internet users in Asia-Pacific last year.
With this growth, it’s no surprise that mobile shopping is the driving force to contribute to overall global ecommerce growth. According to FitforCommerce, consumers in many Asian markets have a higher mobile proficiency using their mobile devices for digital shopping and mobile payments than consumers in the U.S.
Shipping and payment infrastructure are also fueling growth in the market while solution providers are making it easier for brands and retailers to enter Asia-Pacific.
China is forecasted to generate $672.01 billion this year, with more than three-fourths of all ecommerce spending in the region.
Last year, French cosmetics company L’Oreal generated more than $900 million in online sales including China. Ecommerce in China represents more than 10% of their sales in L’Oreal’s consumer products division. With the extensive growth in China, it has provoked the company to invest more in its ecommerce infrastructure there.
According to eMarketer, “China will become the first $1 trillion retail ecommerce market in the world” by 2017. New digital buyers will drive the country’s massive growth on mobile and new digital buyers residing in rural areas.
Mobile shopping is forecasted to contribute to overall global ecommerce growth since mobile usage is notably higher than other countries. With $8.625 trillion in sales in 2015, representing nearly 38% of total worldwide retail economy, Asia-Pacific will remain the largest regional retail market.