China's e-commerce market keeps rising
China and Southeast Asia are two large ecommerce markets which draw a lot of attention. China is one of the biggest e-commerce markets nowadays; whilst Southeast Asia is expected to be one of the highest growth eCommerce markets in the next 5 years. In the light of Covid-19 there are new changes in terms of consumer behaviours; therefore, companies are now trying to find the best solution that can satisfy the new needs of consumers and create new values of products and services.
“In terms of scale the Chinese e-commerce market is one of the largest in the world at the moment,” says Terry Chan, expert in the ecommerce market in China and Southeast Asia. In the next five to ten years the region is expected to substantially increase its importance and further develop e-commerce. That is further accelerated by the impact of pandemic. The tremendous growth of e-commerce in China relies on the support of logistics, payments, category and sellers solutions which are highly linked by information technology.
China leads the way in the region with a relatively standardised process as it is a single, large market compared to the Southeast Asian market. Singapore, Malaysia, Philippines, Thailand, Indonesia, and Vietnam are the 6 key e-commerce countries but as a whole the market is very fragmented with different infrastructure, culture, connectivity, and maturity. The difference in regulations is another hurdle which companies need to overcome when they want to develop e-commerce business in the region. “There is no perfect solution right now,” Chan continuous. “We act first, try and continue to learn from errors.”
Read more on the Chinese e-commerce market in The Logistics Point October 2020 HERE on page 20!