Technology has come a long way to smoothen the gradual progress and working of the human kind. When it comes to the working ways of eCommerce, it has taken a quantum leap forward to ease people’s frequent shopping woes and daily requirements. Revolutionising the business sector, eCommerce has provided a net-enabled market for the manufacturing sectors to explore the opportunities in this vast virtual space.
It will not be a wrong paradigm to declare that the pace of eCommerce industry has been faster than the speed of light. During the past half a decade, the eCommerce sector has created numerous jobs, besides establishing completely innovative selling channel to retailers.
According to UNCTAD’s (a permanent intergovernmental body established by the United Nations General Assembly in 1964) most recent estimation, the global electronic commerce market, better known as eCommerce, was at around US $22.1 trillion in 2015, wherein the B2B sector estimates at around US $19.9 trillion and B2C at US $2.2 trillion.
Going by the figures in the report, in terms of sales as well as number of online shoppers, China tops the chart as the world’s largest B2C (business-to-consumer) eCommerce market. This position is followed by the US and Japan. Furthermore, the report hints at India being the 10th largest market in terms of buyers. Though the country is ahead of Brazil and Russia in terms of annual spend (s) per buyer.
In another research by growth partnership company Frost & Sullivan, eCommerce revenues in Southeast Asia are projected to exceed USUS $25 billion by 2020. The study is based on market trends and opportunities in six Southeast Asian markets. It reveals that the total revenues from business-to-consumer (B2C) eCommerce in Malaysia, Indonesia, Singapore, Thailand, the Philippines and Vietnam markets will increase at a CAGR of 17.7 per cent. It is noteworthy that the global B2C eCommerce sales reached US $1.7 trillion in 2015, and it is estimated to reach US $2.35 trillion by 2018 according to Hosting Facts internet stats.
As per UNCTAD’s most recent estimation, China is the market leader, but the trend is gradually shifting. With technology taking a grand shift, future projections seems indeed illusory. According to Statista calculations, Indonesia will rank first in terms of e-retail development over the period 2016-2020 with a growth rate of 18.82. Going by a similar pace, India’s rank would be second with retail eCommerce CAGR of 16.98 per cent, followed by Mexico and China.
Technology has played a pivotal role in growth of the sector. Boom in internet penetration coupled with spurt in the integer of smart phone users, has taken the market to a new level. Knowing that internet contributes to over US $2.2 trillion in annual retail sales may raise several eyebrows and leave many perplexed.
There is no denying the fact that internet has today become a power to reckon with, regardless of the arena, especially for monetary communication. Right from eCommerce to online payment solutions to online transactions to offline stores to brand merchandising, internet has become dependable for trillions of dollars in direct and indirect revenue annually. Understanding this growing power can help enhance your business enormously.
Internet is propelling the smartphone usage and these mobiles have definitely become the leading digital platforms. According to a report by comScore, the fuel driving mobile’s relentless growth is primarily app usage, which alone makes up a majority of total digital media engagement at 52 per cent. The total activity on smartphones and tablets accounts for an astounding 60 per cent of digital media time spent in the U.S.
Wolfgang Baier, Group CEO, Luxasia, believes, “Technology is the key enabler to get the industry much faster into an omni-channel environment in both brick and mortar retail and eCommerce. Combining the right technology with the right skills and differentiate your offerings is one of the keys to be triumphant in retail. For the desired boom in eCommerce, there is need to choose the right CRM, WMS, OMS and POS systems. At Luxasia, we intend to provide the market platforms to connect best global brands with Asian consumers through brick and mortar, as well as online channels across all our existing markets and beyond, 24/7.”
Undeniably, the internet boom is the sole reason behind several rags to riches stories to discuss. There is no denying the fact that the success of all the major players in eCommerce arena is based on the power of internet.
Pierre Omidyar, Founder, eBay says, “People were doing business with one another through the Internet already, through bulletin boards. But on the Web, we could make it interactive, we could create an auction, we could create a real marketplace. And that’s really what triggered my imagination, if you will, and that’s what I did.”
As of June 2015, China had an internet user base of 650 million, followed by India with about 354 million users. As per the growth rate it is expected that it will cross the 500 million mark by the end of 2016. India being the second-largest user-base in world, the penetration of eCommerce is low in comparison to markets like the United States with 266 million or France 54 million. The user base is growing at an unparalleled rate and it is believed that around 6 million new entrants are being added to the list every month.
ComScore report shows how mobile usage surpassed the average desktop users by the end of 2013. Number of global users crossed the 1900 million mark in 2015 and the numbers are increasing by the day.
As per Hosting Facts internet stats, till December 2015, there were 3.26 billion internet users across the globe and Asia, as a continent, has the most internet users which count to 48.4 per cent of the total number. China tops this list as a country, with majority internet users estimating to approximately 640 million internet users. Going by percentage, China has the highest percentage of internet users 21.97 per cent, followed by the U.S. 9.58 per cent and India 8.33 per cent. It also suggests that by 2017, there will be more internet traffic than all prior internet years combined and Wi-Fi and mobile-connected devices will generate 68 per cent of all internet traffic.
Evolution of the mobile internet over the period of time too has played an essential role in boosting the present day eCommerce through its mobile based apps. With 2G (second-generation wireless telephone technology) incepted in the year 1991, today it has entered the lightening fast 4G (fourth-generation wireless telephone technology)era after succeeding the 3G technology. Undeniably, one of the major beneficiaries of this revolution is the eCommerce sector. Contemporary smarter phone, coupled with cutting-edge speed and connectivity of internet, gives the consumer a better experience, enabling in faster online purchases and transactions.
Suresh Sharma, founder and director of iSpyPrice.com believes, “Gradually the eCommerce firms are turning to mCommerce for better results. To utilise the lucrative mobile space efficiently, eCcommerce firms are coming up with ground-breaking designs and models. 4G, the improved and enhanced version of 3G, is metamorphosing the entire domain of eCommerce, making transactions instant, thus delivering reliable and constraint-free experiences”.
With millions of eCommerce websites currently active, the eCommerce and mCommerce trade is here to stay. This sector is not only enabling customers’ an ease to shop but also opening up boulevard jobs for a better and prospect economy.