Industry Trend Analysis - Chinese Players To Feed Off e-Commerce Startups, India Becomes A Three-Horse Race - JAN 2018

BMI View : Asia is the largest market for e-commerce services, applications and solutions in the world. Besides hosting the largest addressable consumer and enterprise customer bases, the region is driven by a number of highly-developed retail markets where vendors are leveraging ubiquitous high-speed i nternet connectivity to offer an ever-widening choice of goods and services. Numerous low-cost start-ups have emerged in the e-commerce space in the last three years and those that outperform not only the traditional retailers , but also the established online platforms are becoming acquisition targets, especially for Chinese players looking to increase scale rapidly.

Asia is also the focus of numerous infrastructure modernisation and expansion initiatives, as governments seek to take advantage of new technologies that can diversify their economies and provide the springboards for sustainable growth. e-commerce players that have developed their own digital and physical distribution channels can, therefore, benefit twice over as they can use their resources to service the needs of other industries as much as their own. The more adept legacy logistics providers - the most notable being SingPost - have not been slow to adapt their business models to suit the new environment.

Five markets stand out in the Asian e-commerce competitive landscape, accounting for 92.9% of total sales of USD776.8bn generated in 2016. These five countries will still dominate the field by 2021, with their total share expected to be marginally improved. By then, the value of the market will have risen to USD1.602trn.

China Benefits From Cross-Border Sales
Asia Pacific e-Commerce Sales (USDmn)
Source: BMI, national sources

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