Everyone sees the potential explosive growth for e-commerce in Asia as incomes rise, technology improves and faster connections increase ease of access. But this still doesn’t there won’t be challenges ahead.
Asia is a large continent with huge regional differences in language, local customs, online access, regulatory frameworks and laws.
Quite frankly you can’t have one “Asia Strategy”. To succeed you’ll need may, tailored to each local, national or regional market you want to launch in.
Competition in ecommerce in Asia
The ecommerce market in Asia is very competitive. According to a report, there are over 8,000 established online retailers competing in this market. It is hard for a new entrant to gain a significant share, which is why most businesses choose to invest in growing their online presence at home first before expanding into new markets.
Ecommerce in Asia: the top challenges
The top challenges that you will face when you start an ecommerce business in Asia include:
- Finding the right suppliers: finding good suppliers who can help you meet your production requirements and provide you with quality goods will be a key challenge for all e-commerce businesses in Asia
- Cultivating a local customer base: e-commerce businesses in Asia need to find ways to expand their customer base by attracting new customers in the region
- Having the right digital strategy in place: creating a strong digital presence for your business in Asia will ensure that you are meeting consumers’ needs and expectations
Selling goods in Asia: overcoming challenges
Now that you know which challenges you will face when you start an ecommerce business in Asia, it is time to look at the goods that you can sell in the region.
- Food and beverage: the food and beverage industry in Asia is a growing market and it is particularly strong in China and India
- Fashion and lifestyle: the fashion and lifestyle industry in Asia is booming, and it is expected to become even stronger in the coming years
- Home goods: the home goods industry in Asia is growing, and so is the demand for quality and affordable household goods
Success in e-commerce in Asia
Ecommerce is the future of retail, and Asia is at the heart of this growth. In fact, it is predicted that the ecommerce industry in Asia will grow by 10.5% CAGR between 2018 and 2022. Similarly, the e-commerce market in Asia generated revenue of $1.9 trillion in 2018, and it is expected to grow to $3.3 trillion by 2022.
If you are looking to succeed in e-commerce in Asia, you should have a firm understanding of the current landscape and the opportunities available to you.