The digital revolution has been rewiring retail for years. The COVID-19 pandemic accelerated this transition as e-commerce became the default setting for many homebound consumers. The crisis-inspired surge in e-commerce is leading to a permanent shift in retail, creating both new challenges as well as new opportunities for retailers and consumer brands alike. This report explores those opportunities and challenges in the Asia Pacific region, including Australasia.
This report comes in PPT.
E-commerce in Asia Pacific and Australasia stands as the most dominant region with significant unmet opportunities in 2021 and beyond. To put that into perspective, this expansion in the region will account for more than 45% of the global absolute value growth in the 2020-2025 forecast period.
China is the largest and fastest-growing e-commerce market in Asia Pacific and Australasia. The market alone accounted for 64% of the absolute value growth in Asia Pacific and Australasia in 2020 and will continue to grow at a CAGR of 7% by value during 2020-2025 and more than USD99 billion in unmet e-commerce opportunity, according to the Euromonitor E-commerce Readiness Model.
Mobile is quickly becoming a popular device of choice replacing tablets and laptops for consumers when shopping online. Even during the pandemic, consumers have been increasingly turning to mobile to keep them engaged. With the evolution of new shopping channels such as livestreaming services, usage of mobiles for shopping is expected to grow further.
The retail industry’s traditional wholesale model has been turned on its side due to the emergence of new business models and channels such as marketplaces, subscription services and direct-to-consumer brands. E-commerce is here to stay, and it is vital to stay current with all facets of the digital retail landscape.
Consumers in Asia Pacific and Australasia have elevated consumer expectations and in this increasingly crowded and hyper-competitive e-commerce market it will be vital for retailers to address key challenges such as fulfilment, data privacy and shopping experience to prime themselves for future e-commerce success.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.See All of Our Definitions
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