Welcome to Asia Pacific, the Future of eCommerce

Welcome to Asia Pacific, the Future of eCommerce

Global eCommerce has grown 13% annually over the past five years and is now a vital part of a retailer’s multi-channel strategy. In particular, 2012 was a tremendous year for eCommerce. Global sales crossed US$1 trillion for the first time, while Asia Pacific eCommerce revenues grew 2.2x faster than North America. To top it off, Chinese eCommerce giant Alibaba recorded US$3 billion in sales in a single day. Never before has the world witnessed such explosive growth in eCommerce. And yet only 27.8% of the population of Asia Pacific is currently connected to the Internet, according to Internetworldstats. Despite such low penetration rates, 46% of all internet users in the world come from Asia Pacific. It’s clear where the opportunities for eCommerce lie in the future. Asia Pacific – The Next Frontier Towards the end of 2011, the world’s largest daily deal company, Groupon, went public with a valuation of US$12.7 billion. That valuation has fallen 63% to US$4.72 billion today. Even Facebook has seen 44% of its market cap value disappear in just over a year. Contrast that picture with China’s Alibaba. In 2012, Alibaba’s combined merchandise value across its two major platforms, Taobao.com and TMall, exceeded Rmb 1 trillion (US$163 bn) and its transaction volume is likely to outstrip all American eCommerce companies combined in 2013! And it’s not just China that is driving eCommerce growth in Asia. Countries like Indonesia, Malaysia and Singapore are playing their part. Per capita spend by Indonesians online is estimated to be US$239 and growing, according to a study by Rakuten. Additionally, 75% of Singapore’s population is connected to the Internet,...