- Three key countries make up 87% of the USD 1.6 trillion-sized APAC Retail e-commerce market
- Marketplaces dominate FMCG sales in these markets with nearly 70% of total sales in the first half of 2023
Singapore, SINGAPORE — Market research firm Euromonitor International launched its E-commerce solution in China, Japan and South Korea this week.
The Euromonitor E-Commerce solution will equip businesses with market intelligence and insights on how consumers are engaging with brands online to aid their decision-making processes.
Euromonitor International's E-Commerce solution provides online sales data by industry, category, company, brand, and retailer, updated every quarter. This data helps companies benchmark performance, uncover growth opportunities, strike the right partnerships, and gain a competitive advantage to enhance online successes. The solution maps stock keeping unit (SKU), level purchase data from clickstream panels, e-receipts and online retailers to a globally standardised category for easy tracking and comparison.
E-commerce will account for 46% of Asia Pacific retail absolute value growth by 2027
Han Hu, Euromonitor’s E-Commerce Research Consultant, said that during the global COVID-19 pandemic, e-commerce growth was propelled by the increased focus on digital sales channels by businesses, to circumvent lockdown measures. In the Asia Pacific region, e-commerce is forecast to account for 46% of retail absolute value growth by 2027 compared to 2022.
China makes up 70% of the retail e-commerce market in the Asia Pacific in 2022, while Japan and South Korea make up 7.8% and 8.5% respectively. The three markets are forecast to hit a total of USD 1.6 trillion in retail e-commerce in 2023, which make up more than 87% of the e-commerce market in the Asia Pacific.
Marketplaces dominate the FMCG sector in all three countries, making close to 70% of total sales made in the first half of 2023. Douyin (TikTok) has seen dramatic growth in China, gaining more than 10 full share points in the first half of 2023.
Gaining an edge in the post-pandemic e-commerce landscape
By leveraging the expertise of top retailers, the e-commerce landscape of China, Japan, and South Korea’s markets has reached a level of maturity. This has been characterised by surging online sales driven by pandemic-induced demand. In addition, consumer behaviour is transitioning post its pandemic peak, resulting in a gradual deceleration of e-commerce growth.
Han Hu added: “In an era marked by homogeneity, both online and offline retailers are challenged with how to differentiate. While traditional brick-and-mortar establishments initially championed experiential retail, a comparable trend is emerging in the digital realm as consumer journeys increasingly unfold across digital touchpoints.”
Jared Koerten, Head of E-Commerce at Euromonitor International, said: “By mapping real Stock Keeping Units purchase data from clickstream panels, e-receipts and online retailers to globally standardised taxonomy using our expertise in machine learning and data science, we help companies take the guesswork out of tracking online sales performance. We’re thrilled to expand our unique methodology to the leading e-commerce markets in Asia.”
Euromonitor’s E-Commerce solution includes:
- Quarterly online sales for 12 FMCG industries in 15 countries.
- ountries covered include Australia, Brazil, Canada, France, Germany, India, Italy, Mexico, Poland, Spain, the United Kingdom, the United States of America, now China, Japan and South Korea added
- Industries include Alcoholic Drinks, Beauty and Personal Care, Consumer Health, Home Care, Hot Drinks, Soft Drinks, Dairy Products and alternatives, Cooking Ingredients and Meals, Snacks, Staple Foods, Pet Care, and Tissue and Hygiene
- Market sizes for each of the 12 industries and 500 FMCG categories
- Market shares for companies, brands and retailers in 301 categories
- 520+ retailers covering 80%+ of the e-commerce landscape in 15 countries
NOTES TO THE EDITOR
Key highlights in e-commerce markets in South Korea, Japan, and China include:
- Beauty and Personal Care tops online FMCG spending in these markets, with more than USD 50 billion in e-commerce sales in 2022. Of this sector, China’s market saw consumers spending USD 41.6 billion in 2022, making up 84% of the APAC market, while South Korea and Japan make up 10% and 6%, respectively.
- Savory snacks dominate the food e-commerce in these markets, accounting for approximately 13% of total sales, reaching USD 4.3 billion in 2022
- Grocery e-commerce experienced a substantial surge in popularity during the pandemic, and this trend has persisted beyond the pandemic era in APAC countries. Food and drink e-commerce continues to exhibit remarkable growth rates, with South Korea leading the pack with 29% growth rate in the first half of 2023, compared to the first half of 2022.
- Within the realm of food e-commerce across these markets, the savoury snacks category emerges as the most popular segment, constituting nearly 13% of the total food e-commerce market and achieving USD 4.3 billion in sales in 2022. This category continues its impressive growth trajectory, maintaining a 16% year-on-year increase in the first half of 2023.