As seen from the number of Amazon’s Prime subscribers, it is certain that in developed markets, e-commerce online shopping has become the second nature of consumers. According to Statista, until June 2018, there were 95 million Prime subscription members in the United States. The e-commerce industry in the United States and China has been relatively saturated and has spawned giant platforms such as Amazon and Alibaba. It is only a matter of time before sales in developing markets will increasingly come from e-commerce.
Three emerging markets with the greatest opportunities
Although the concept of e-commerce is well known all over the world, it may not be easy to achieve e-commerce in developing countries, or it may encounter many challenges. According to the World Trade Organization, more and more people are connected to the Internet every day in less developed countries. Let us take a look at how e-commerce will affect these three developing countries in the coming years.
India has proven to be one of the fastest growing e-commerce markets in the world. Since 2015, the number of Internet users in India has increased nearly 10 times from a decade ago. With cheap mobile connectivity and Internet access, users can make the most of the Internet, including e-commerce.
The one who is dominating the Indian market is its largest e-commerce platform, FlipKart. Since launching in October 2007, it has been the preferred e-commerce platform for Indian and many different international brands. The platform offers more than 80 million products in more than 80 different categories. The platform was acquire a few months ago by retail giant Walmart. From this acquisition, we can expect Walmart to bring lower prices and more international products, which will completely change the business status of India.
The India Brand Equity Foundation estimates that by 2026, the size of the Indian e-commerce market will increase from $38.5 billion in 2017 to $200 billion. E-commerce revenue is expect to jump from $39 billion in 2017 to $120 billion in 2020, with an annual growth rate of 51%, which is the highest rate in the world. Also, India is currently undergoing a digital transformation.So, by 2034, India may surpass the United States and become the world’s second largest e-commerce market.
E-commerce is also becoming a major industry in Southeast Asia. According to TechinAsia, there are more than 330 million Internet users in Southeast Asia, and this number is increasing. The majority of Southeast Asia’s population is young, so it is a mobile-first economy. Singapore, Malaysia, Indonesia and the Philippines, mobile commerce has grown by 20%, as Southeast Asians spend an average of 140 minutes a month shopping online. Past few years ago , e-commerce startups have been very successful in Southeast Asia. In 2017, different startups raised nearly $8 billion. For example, Carousell, a Singapore-based e-commerce startup, raised $85 million in Series C financing earlier this year. It is clear that small businesses have found their niche in the e-commerce market and have developed very smoothly with the support of the government and educational institutions.
According to ValueWalk’s estimates, by 2025, the valuation of the Southeast Asian e-commerce market will reach 200 billion US dollars. Obviously, with a successful entrepreneurial culture community, we can expect the Southeast Asian e-commerce market to succeed in the next few years.
Despite a long way to go, Latin America is steadily trying to enter the e-commerce market. Brazil and Mexico are undoubtedly the two largest countries in Latin America. In terms of e-commerce, the size of these two countries has double, and many goods import from the United States are sold there. According to DigitalCommerce360, in 2017, 3/4 Mexican netizens shop online. Some of the more developed countries in Latin America, such as Argentina and Colombia, are worthy of attention, especially for online retailers who want to enter the Latin American market.
However, there are some challenges in the e-commerce industry in Latin America. A major problem facing Latin America is the different payment methods across the country. Most consumers use cash to pay because of the large number of people in the region who do not have adequate financial and banking services. This means that if the only payment method is cash payment, then using e-commerce can be difficult. But despite this, Latin American e-commerce is expect to reach $118 billion in 2021.
From the list of developing countries listed above (and many more), it is certain that e-commerce markets around the world are emerging. In the next few years, we can expect a variety of online retailers and e-commerce companies to emerge in these emerging markets.
China as the forerunner of across boarder e-commerce has been aggressively starting up new shopping platforms, such as wish.com, aliexpress, lightinthebox, Gearbest and so on. Maybe, this is also the future of other developing countries.