International Expansion Into Emerging Markets 2014 Our 2014 research is the result of a collaborative survey with CardNotPresent.com. Merchants, PSPs, acquirers and consultants were polled on their cross-border ecommerce strategies, drivers and challenges. This year, industry experts from HSBC, Realex and EBANX, as well as executives from a major card brand and a successful mobile payment app were also interviewed, giving their candid opinions on international business and key trends such as mobile commerce. Download your FREE copy of the report: http://www.payvision.com/cross-border-ecommerce-report-survey-2014

1. INTERNATIONAL
EXPANSION INTO
EMERGING MARKETS
2014
1
WHITE PAPER:
KEY BUSINESS DRIVERS &
OPPORTUNITIES IN
CROSS-BORDER ECOMMERCE

2. 2
ECOMMERCE IS 20 YEARS OLD.
On August 11th 1992, Sting’s album Ten Summoner’s Tales sold for
$12.48 on NetMarket
The first secure online purchase

3. 3
GLOBAL ECOMMERCE WAS $1.25 TRILLION IN 2013
AND WILL REACH $1.5 TRILLION IN 2014
In 2013 the main market was North America at $431 billion
By the end of 2014 the Asia Pacific region will take the lead

4. 4
CROSS-BORDER ECOMMERCE
IS GROWING
In 2013, 50% of polled merchants engaged in cross-border ecommerce
In 2014 it was 82%

5. 5
KEY TRENDS

6. 6
THE BIGGEST GAME CHANGER TO CROSS-BORDER
ECOMMERCE IS MOBILE COMMERCE

7. 7
M-COMMERCE CONTRIBUTED $133 BILLION TO
GLOBAL ECOMMERCE IN 2013
$516 billion by 2017, half will be driven from Asia

8. 8
A NEW GLOBAL ECOMMERCE SUPER POWER
IT IS ALL ABOUT CHINA
In 2013 China drove a higher ecommerce value than the US
$296 billion and $263 billion respectively

9. 9
NEW GOVERNMENT INITIATIVES
SHANGHAI FREE TRADE ZONE
China is open to cross-border ecommerce import
Since May 2014, Q.City— a quality lifestyle city funded by the Zhejiang
Qiansheng Holding Group as part of the FTZ pilot cities initiative —
already handles over 10,000 packages a day

10. 10
CHINA
A GAP IN THE MARKET?
In our survey The US was the top choice for cross-border ecommerce
expansion
Only 31% of merchants focus on emerging markets for cross-border
ecommerce. 18% believe China is not open to foreign players

11. 11
REGIONAL BREAKDOWN

12. 12
IN EUROPE
30.5% of the world’s ecommerce sales came from Europe
Revenue from ecommerce grew 16.3% to $481.6 billion; 15% more
than the previous year

13. 13
IN EUROPE
43% of Spanish online shoppers, 20 million people, shop on overseas
sites
The most popular destinations are the UK, China and Germany
Unlike other developing markets, Spanish online consumers are
comfortable credit card users

14. 14
IN NORTH AMERICA
The US total retail sales were $4.5 trillion in 2013
Ecommerce made up a significant proportion of this figure; $263 billion,
17% of total retail

15. 15
IN NORTH AMERICA
In the US there are 34.1 million cross-border shoppers, who spent
$40.6 billion in 2013
They mostly purchase from the UK (49%) and China (39%)

16. 16
IN ASIA
Singapore leads in cross-border ecommerce, with the highest share of
transactions (55%)
Higher than Japan and South Korea (18% and 25%)

17. 17
IN ASIA
In South Korea overseas credit card spending grew 15.4% in 2013.
Domestic credit card spending grew by 3.2%
Imports through ecommerce websites rose 47% to $1 billion

18. 18
IN ASIA
Singles Day 2013 in China, sales reached nearly $5 billion in one day.
Double that of Cyber Monday in the US

19. 19
IN LATIN AMERICA
Facebook is the number one driver for time spent online, with around
179 million users
19% of Facebook’s user base lives in Latin America

20. 20
IN LATIN AMERICA
Brazilian cross-border online shoppers will reach almost ten million by
2018
53% estimated annual growth over the next five years, expenditure of
+546%
Argentinian cross-border shoppers doubled in 2013

21. 21
IN OCEANIA
79% of Australian online consumers purchase from international
websites
45% of online expenditure goes overseas

22. 22
IN OCEANIA
In New Zealand, 34% of 2013 ecommerce sales came from cross-border
imports, double that of 2011
Consumers spent $1.3 billion on international sites

23. 23
CONCLUSION

24. 24
WHAT NOW?
Merchants are cautious about Eastern expansion
They prefer markets where languages and cultures are similar, and
infrastructure is developed
This reveals a gap in the market

25. 25
WHAT NEXT?
Don’t wait for someone else to get there first
The potential lies in the emerging markets now, in particular those
where credit cards are already a popular payment choice
The Chinese market holds the most opportunities

26. 26
FULL REPORT
The full report is available to download for free on the Payvision
website
Source: Payvision – Key Business Drivers in Cross-border Ecommerce, 2014
Images: FreeDigitalPhotos.net

27. 27
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