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From socks to sofas to shampoo, online shopping has taken over. Whatever it is we need,
we’re now used to going online, adding it to our online basket and making the purchase
without us ever having to go near a store. In Asia Pacific (APAC), the trend for e-commerce
has been even more meteoric. Between 2013 and 2023 APAC’s retail e-commerce sales
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increased by an incredible 630% to USD 1.8 trillion .
his makes APAC is one of the fastest- AI-powered chatbots to help consumers explore products
growing retail spaces in the world. In 2023, and make the right choice. Leading APAC marketplace
TAsia Pacific accounted for 46% of global AliExpress is based in China and owned by the Alibaba
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retail e-commerce sales . And countries like India Group. Launched in 2010, it is made up of small businesses
and China lead the way with more than two-thirds of in China and other locations and has a whopping 20
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consumer spending taking place online . So why has million daily visitors. From fashion to electronics to
e-commerce grown so fast in the APAC region? And homeware, throughout the region, online marketplaces are
how is it different? Let’s start with the differences accelerating e-commerce. These platforms are easy to use
because they help explain the rapid growth. and make the purchase process as easy as possible – often
supporting cash on delivery payments, a popular means of
A mobile-first approach payment in Asia Pacific.
The main difference between the APAC region and western
markets, is that unlike Europe and North America that From order to door - fast
continue to rely on traditional credit cards and bank transfers, Delivery is another key difference between Western
e-commerce in the APAC region is driven by smartphones markets and APAC. In the APAC region, an informal
and the widespread use of digital wallets. In fact, in many delivery structure of drivers is embedded in the region.
APAC markets consumers have skipped desktop browsing With mopeds a common means of transport, making a few
altogether and gone straight to mobile. This means that of deliveries on the way home from work is seen as a source
businesses can reach a much wider audience, especially in of extra income. This has fed into the trend for lightning
regions where mobile devices are the primary means of fast delivery times. In fact, a DHL e-commerce report has
accessing the internet. Mobile sites load faster and can use highlighted these expectations finding that more than two
tactics such as personalised offers or reminders sent directly to in three online consumers in APAC consider next-day
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users’ phones. This keeps consumers engaged making it easier delivery essential . Furthermore, according to a report by
to drive repeat business. VML, 29% of APAC consumers now expect their online
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orders to be delivered within two hours – reflecting a
Social commerce growing demand for near-instant gratification.
What’s more, social networks in Asia integrate shopping
features allowing consumers to blend social interactions with The will to wait
shopping experiences. This type of conversational online retail This almost-immediate delivery can be a challenge when it
is becoming a driving force in e-commerce. For example, comes to Western exports to the region. Not least because
the Chinese app WeChat has integrated payment services the European goods that are popular with Asian consumers
in its service. WeChat users can chat to friends on instant tend to be high-end luxury goods, such as handbags,
messaging, make video calls, share files, livestream – and do apparel and footwear. And when Asian consumers purchase
their shopping and payment – all from one app. In 2023, the an expensive Western item, such as a handbag, they are
global short video social media platform TikTok followed emotionally invested in the item and expect it to arrive
suit. They launched shop functionality enabling brands to fast. This stands in stark contrast to goods shipped from
showcase and sell products to the TikTok community. So, in APAC to Europe, which tend to be low-cost and lacking
addition to watching and uploading videos, users can browse in emotional investment. Here consumers consider a low
and buy everything from fashion and beauty products to price to be the tradeoff for a longer delivery time. So if
home goods and electronics directly from their feed or using we were to answer the first question of what is behind
the shop tab. the rapid growth of e-commerce in APAC, all of these
factors play a large role. The mobile-first culture has made
A love of the online marketplace online shopping more accessible. Unlike desktop browsing,
The APAC e-commerce space also differs from western consumers can browse wherever they are – on the bus, at
online retail because of the popularity and diversity of home – even while watching TV. Brands have adapted
the online marketplaces. Marketplaces give consumers to this mobile reality by integrating their offerings into
choice and act as a search engine where consumers can the most used platforms in the region, leveraging content
find information and products. What’s more, many have from TikTok and Facebook to influence buying – a process
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