How many zeros is that?
Mar 08, 2016
According to a recent Forrester report total eCommerce revenue for China, Japan, South Korea, India and Australia is projected to double in the next five years from $733 billion in 2014 to $1.4 trillion by 2020. Forrester has also reported that these five markets already outpace the combined online retail markets in the US and all of Western Europe.
China remains the worldâ€™s largest eCommerce market. And whilst it isnâ€™t experiencing the astonishing rates which saw the region increase year on year, growth is steady and more consistent with other more mature markets like Japan and South Korea.
More than half of Chinaâ€™s internet users shop online and the Alibaba Group now has access to a quarter of Chinaâ€™s population. This desire to shop online combined with greater internet and smartphone penetration, an expanding middle class with higher disposable income and greater consumer confidence all make the region a great opportunity for UK, EU and US retailers. Despite these opportunities there is still a reluctance to enter the region. It is true that China has always been considered a difficult market to enter and there are a number of not insignificant barriers to entry. Yet despite the challenges there are more than enough opportunities to make the effort worthwhile. On Singles Day 2015 alone, Alibaba made $1 billion of sales in the first 8 minutes and went onto rack up a staggering $14.3 billion of sales in just over 24 hours.
We have supported a number of retailers with their expansion into China. Recognition of the opportunities there motivated us to further explore the region so that we could develop a comprehensive understanding of the market. China has very specific requirements with businesses requiring a Chinese business licence to operate. Coupled with this the buying habits are very different from what is witnessed elsewhere in the world. It is vital that brands wishing to access the market not only understand this but appreciate the importance. These factors were key when developing our Chinese offering. We quickly realised that we had to develop much more than a delivery service but a mechanism for retailers to operate within this very specific market. In order to do this we decided to develop a partnership with experts in China who could bring this experience and cultural understanding to our logistics services.
So keen for a slice of the trillion dollar sized pie? Come and have a chat with us.