Ecommerce delivers an immediate convenience and price benefit for consumers eCommerce in Asia is exploding!
Online retail market in Asia Pacific is growing rapidly and the region is set for a transformation of consumer markets. The major global online players are starting to turn their eyes to this part of the world.
With millions of consumers having already bought online, and Internet use surging, the market is reaching critical mass. New entrants now have the opportunity to capture strong revenues as attractive new users start experimenting with online shopping. But as critical mass is reached, regional companies wanting to succeed in this new market must act act fast to leverage their local knowledge if they want to win the competition that is coming with these global players.
Many areas in the market are virtually unexplored. For example, the accelerating use of wireless access to the Internet will translate into new customers wanting new services. Online brokerage, travel, automotive and real estate are e-commerce areas that having much growth potential! The popularity of online trading in many markets makes this a natural entry point. Once customers have learned to trade online, they are likely to gain confidence to make other purchases. Online brokers are building customer bases that are highly valuable to other online players.
Asia’s already high and still-rising mobile-phone penetration rates suggest that the current growth rate of eCommerce will only increase as consumer access to the Internet expands beyond computers. Anyway, business must be defensible and flexible. Strong partnerships with both key suppliers and new customer communities is critical. A natural inclination toward collaboration gives many Asian companies a distinct advantage. Many Asian companies are used to doing business as part of a family or relationship based network, where high levels of trust are the norm. This business culture can be used to accelerate the evolution of eMarkets in the region and globally as well—by moving quickly into the collaborative phase, where maximum benefits can be realized for all participants.
Despite the strength of Asia, there are few shortage in this region too. Retaining quality high-tech and information-technology (IT) professionals was a problem for the development of sound IT infrastructures in many Asian countries. Different cultural patterns and conflicting legal frameworks are also likely to impede progress toward harmonization.
The rewards for those companies that can capture the eCommerce opportunities now available will be enormous. And the risks for those that fail to respond effectively will be equally significant.
