Transcription of The Changing Face of eCommerce and Logistics in Asia Pacific
1 THE Changing FACE OFECOMMERCE AND LOGISTICSIN asia PACIFICAN OVERVIEW OF asia Pacific S eCommerce POTENTIAL AND THE KEY FACTORS DRIVING ITS RAPID GROWTH2014 Singapore Post Limited. All Rights asia s Evolving Logistics Infrastructure 7 - 801 Introduction 102 The Future Pulse of eCommerce and Logistics in asia Pacific 2 - 403 The Drivers of eCommerce Growth in asia Pacific 5 - 605 Meeting Changing Customer Needs 9 - 1006 Key Challenges for eCommerce Growth 11 - The Growth of eCommerce in asia Domestic and Cross-border Online Sales in the The Role of Marketplaces and Logistics Service Rise of the Middle Mobile and Internet Growth in Supply from New eCommerce
2 Increasing Logistics Options for eCommerce Optimising Online Think Global, Execute The Omnichannel Lack of a Robust eCommerce Managing Customer Expectations and Cross-border Commerce Lack of a Reliable, Low-cost eCommerce Logistics Infrastructure07 Singapore: Southeast asia s eCommerce Hub 13 - 1408 Summary 15 ContentsThe Changing Face of eCommerce and Logistics in asia Pacific 2014 Singapore Post Limited. All Rights Pacific (APAC) is the fastest growing region in the global eCommerce landscape.
3 This paper explores key trends and opportunities for Logistics companies serving this fast moving sector. It also discusses challenges of doing business in asia and specific initiatives that some companies have taken to stay competitive and effective in this dynamic region. Key Highlights asia Pacific is the Pulse of the Global eCommerce Boom: The region s growth in online retail is forecast to surpass North America by 2014, making APAC the largest region for B2C online sales in the world.
4 Four Key Factors Fuel eCommerce Growth in the Region: The rise of the middle class, greater mobile and Internet penetration, more supply of new eCommerce players and increasing Logistics options in the ecosystem have greatly contributed to this growth. Southeast asia s Logistics Infrastructure is Changing : Logistics and transportation providers need to reinvent themselves to stay competitive in the fast- Changing eCommerce landscape. Customer Needs are Changing : Customer-centric design is key, with a greater emphasis on localisation and creating seamless experiences across multiple touch points.
5 asia Pacific is Facing Multiple Challenges for eCommerce Growth: The region s eCommerce ecosystem and supporting infrastructure need to develop to keep up with the industry s growth. Managing customer expectations and complexities in cross-border commerce are also key challenges. Singapore is Set to Be a Key Gateway into asia Pacific s eCommerce Market: Strategically located in the region, Singapore s highly developed infrastructure, technological advancements and global connections make it a promising entry point into the Changing Face of eCommerce and Logistics in asia Pacific 2014 Singapore Post Limited.
6 All Rights *India*JapanSouth KoreaONLINE BUYING POPULATION (2015) RETAIL SPEND (2015) USD5B USDCAGR(2013 - 2018)10%18%50%10%10% asia Pacific is undergoing an exciting period of rapid eCommerce growth. According to eMarketer, a market research company that focuses on eCommerce trends, business-to-customer (B2C) eCommerce sales in APAC are expected to not only surpass B2C sales in North America in 2014, but will also drive the asia Pacific region to become the largest geographic region in the world in terms of such sales.
7 THE GROWTH OF eCommerce IN asia PACIFICW hile asia Pacific is rich with opportunities, the multi-faceted region is also faced with challenges for eCommerce eCommerce Sales Worldwide by Region (US$Billions)Source: eMarketer Moreover, eMarketer estimates show that APAC eCommerce sales will grow at a compound annual growth rate (CAGR) of between 2011 and 2016. From 2012 to 2013 alone, eCommerce in APAC grew By the end of 2013, the total online retail revenues in China, South Korea, Japan, Australia and India were close to the combined figure for online retail in the United States (US) and all of Western Europe.
8 The bulk of online spend in APAC comes from China, where online retail spend has surpassed that of the United States. Additionally, online retail sales in APAC grow at fast rates: the CAGR for online retail in China, for example, is 18%, compared to the online retail CAGR of 10% in the by the Numbers: APAC (US$)*B2C and C2C salesSource: Forrester Research Online Retail Forecast, 2013 To 2018 ( asia Pacific )REGIONN orth AmericaAPACE uropeLatin AmericaWorldwide201132823825028857201237 3316296381,0432013E420389340461,2212014E 469502384561,4452015E523607423631,655201 6E580708457701,86002 The Future Pulse of eCommerce and Logistics in asia Pacific2 The Changing Face of eCommerce and Logistics in asia Pacific 2014 Singapore Post Limited.
9 All Rights is also worth noting that many online retailers in the APAC region are innovating a great deal; Alibaba Group is the most productive of these retailers and its retail innovations have not only disrupted retail in APAC, but are making headlines around the globe. Retail disruptors like Alibaba Group will influence and change the face of eCommerce in the APAC region in the same way Amazon and eBay disrupted eCommerce in North America. Alibaba Group has created a customer-to-customer (C2C) and B2C marketplace platform that puts all the power in the customers hands.
10 Online shoppers in China now expect to have hundreds of ratings and reviews about a single product, inexpensive and speedy shipping options, incessant promotions and the option to communicate with customer service through a multitude of channels. While these expectations set a high bar for businesses, they also help businesses drive alone transacted over USD$70 billion in sales in 2013 while Taobao transacted nearly double that amount in the same time period. Many expect Alibaba Group to use its eCommerce expertise and expand globally while many more speculate that it has its sights set on Southeast asia , in addition to the United States.
