This document analyzes e-commerce trends and strategies in Asia. It notes that B2C online sales in Asia will reach $525 billion in 2014, accounting for half of global online sales. It provides data on internet, mobile, and e-commerce penetration rates across major Asian markets like China, Japan, Singapore, Indonesia, and others. Strategies discussed include the growth of mobile commerce, social commerce, differences between Southeast and Northeast Asian markets, and whether the unique Chinese e-commerce model poses a threat or opportunity for other countries.

1. E-COMMERCE IN ASIA, ANALYSIS & STRATEGIES
STEPHANE PRUD’HOME, M.A. COMM, I.E.MBA
APRIL 2014 - ALL RIGHTS RESERVED

2. IN 2014, B2C ONLINE SALES WILL HIT
$525 BILLION IN ASIA
HALF OF THE WORLD ONLINE SALES

4. POPULATION : 2,2 BILLION
• CHINA 1,357,379,000
• INDONESIA 248,731,000
• JAPAN 127,350,000
• PHILIPPINES 98,000,005
• VIETNAM 89,702,000
• THAILAND 67,357,000
• SOUTH KOREA 50,394,000
• MALAYSIA 30,476,000
• NEPAL 27,224,000
• TAIWAN 23,344,000
• CAMBODIA 14,572,000
• HONG KONG 7,193,000
• LAOS 6,581,000
• SINGAPORE 5,437,000
• MACAU 593,000

6. INTERNET PENETRATION

11. ASIA: SOUTHEAST VS. NORTHEAST

12. CHINESE HAVEN’T INVENTED ANYTHING

14. E-COMMERCE IN ASIA
• ECOMMERCE
• MCOMMERCE
• VCOMMERCE
• SOCIAL ECOMMERCE
• B2C, C2C, O2O, E2E, B2B

15. MAIN MARKETS
• JAPAN
• SOUTH KOREA
• INDONESIA
• MALAYSIA
• HONG KONG / MACAU
• SINGAPORE
• TAIWAN
• CHINA

16. SINGAPORE
55% OF ONLINE TRANSACTIONS
ARE CROSS-BORDER.

17. • INTERNET PENETRATION
4,015,121 INTERNET USERS, 75.0% PENETRATION
• MOBILE PENETRATION
156%, OF WHICH 3/4 ARE 3G SUBSCRIPTIONS
• TABLET PENETRATION
47% OF SINGAPOREANS OWN A TABLET, COMPARED TO 17% IN 2012
• SMARTPHONE PENETRATION
88%
• ONLINE SHOPPERS
52% OF INTERNET USERS SHOP ONLINE
• ECOMMERCE SALES
$1.3B, WITH GROWTH RATE OF 15%
B2C ECOMMERCE IS EXPECTED TO CLIMB BY ALMOST 50% BETWEEN 2011 & 2015
• ECOMMERCE PENETRATION
89% OF THE POPULATION
• MOBILE COMMERCE
$259M (2011)
A MILLION SINGAPOREANS MADE A PURCHASE THROUGH A MOBILE DEVICE IN 2011

18. CHINA
618 MILLION INTERNET USERS
81% OF THEM GO ONLINE THROUGH MOBILE

19. • INTERNET PENETRATION
564 MILLION INTERNET USERS, 47% OF THE POPULATION
• MOBILE PENETRATION
90%
• TABLET PENETRATION
30% PENETRATION WITHIN TIER 1 - 5 CITIES
• SMARTPHONE PENETRATION
700 MILLION SMARTPHONES BY 2016
• ECOMMERCE SALES
$212B ECOMMERCE SALES IN 2012, REACHING $538B BY 2015
• ECOMMERCE PENETRATION
40% OF CHINA’S 1.3B POPULATION USE THE INTERNET, WHILE 20% ARE ECOMMERCE USERS

20. JAPAN
WELCOME IN
RAKUTEN’S
KINGDOM

21. • INTERNET PENETRATION
101.5 MILLION INTERNET USERS, 80% INTERNET PENETRATION
• MOBILE PENETRATION
136.6% (98% 3G SERVICES)
66M MOBILE INTERNET, IS ESTIMATED TO INCREASE TO 93M IN 2016 (84% MOBILE INTERNET PENETRATION)
• TABLET PENETRATION
11%
• SMARTPHONE PENETRATION
33%
• ONLINE SHOPPERS
WITH 73.3M ONLINE SHOPPERS, JAPAN RANKS WORLDWIDE ON THE 3RD POSITION AFTER CHINA AND THE US
70% OF JAPANESE INTERNET USERS SHOP ONLINE, 80% HAS AN ACCOUNT ON RAKUTEN
• ECOMMERCE SALES
$64B ECOMMERCE SALES IN 2012, 20% OF WHICH WAS GENERATED BY MOBILE COMMERCE ($97 BILLION BY 2016)
B2C ECOMMERCE SALES AT $127.8M 2012
• ECOMMERCE PENETRATION
97%
• MOBILE COMMERCE
47% OF JAPAN’S ONLINE SHOPPERS USE THEIR MOBILES & TABLETS

23. INDONESIA 70 MILLION PEOPLE WILL ENTER
MIDDLE CLASS BY 2020

24. MALAYSIA 72% ONLINE MERCHANTS ARE
SELLING VIA THEIR OWN WEBSITE

27. SOUTH KOREA

28. HONG KONG

29. • INTERNET POPULATION: 4,879,000
• 85% PENETRATION
• 90% HOUSEHOLD ARE CONNECTED
• 85% OF ONLIN SHOPPERS ARE USING MCOMMERCE
• SINGAPORE: 67%
• MALAYSIA: 38%
• THAILAND: 31%
• PHILIPPINES: 30%
• INDONESIA: 19%

30. WEBROOMING & SHOWROOMING

31. THE UNIQUE CHINESE PHENOMENON
BY 2020, CHINESE ECOMMERCE MARKET WILL BE BIGGER THAN
AMERICAN, BRITISH, JAPONESE, GERMAN AND FRENCH MARKETS ALL TOGETHER

32. IS CHINESE MODEL A THREAT?

33. ARE WE DOING INBOUND MARKETING
THE SAME WAY IN ASIA?

35. SOCIAL MEDIA AND
SOCIAL ECOMMERCE

38. PENETRATION
STRATEGIES

39. CONCLUSION

40. STEPHANE PRUD’HOME
ALL RIGHTS RESERVED
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