Bulls n Bears Entrepreneurship Zone :: E-commerce: What are the economies to watch in 2019?

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The year 2018 has seen growth in many markets, often helped by progressive
changes in import/export regulation. It all means that it’s becoming easier
to do business in more regions than ever before.


First, the global leaders


Right now, the United States is still the biggest economy in the world, and
New Zealand tops the list for ‘ease of doing business’. But which are the
countries to watch? At DHL Express, we’ve crunched the numbers and can now
share our guide to 13 of the world’s economies with the most potential for
e-commerce.

According to a World Bank report in 2018, growth in China remains strong.
The cross-border e-commerce market in China is estimated to have brought in
sales worth US$105bn last year, with the average cross-border shopper
spending $848 each year, according to a 2018 report by Azoya and Frost &
Sullivan.

As growth continues in China, speed of service is of particular importance,
with next-day delivery edging ahead of price considerations in the UK. In
fact, nearly a quarter of consumers in the US, Germany and China say they’d
pay significantly more for same-day or instant delivery.

Another global trend is mobility – according to one state of e-commerce
delivery consumer research report, 46% of shoppers say they’d change their
delivery preferences after placing an order if the option were available.
It’s a clear message – businesses should be making long-term plans for
flexible last-mile delivery services.


What’s going on in the rest of the world?


Australia

The Australian cosmetics market is estimated to be worth AU$3.4bn
(US$2.4bn), and imports satisfy 70% of this demand – natural products and
premium products are increasingly popular. It is ranked number 14 out of 190
territories in the Doing Business report from the World Bank, because it has
many time-saving processes in place that make starting a business (ranked
seventh) and getting credit (ranked sixth) attractive prospects.

Brazil

As a member of the hotly-tipped BRICS group of economies, 41% of the
Brazilian population shops online, with a 10.7% growth in the e-commerce
market and a $19bn B2C e-commerce turnover. The state has reduced the time
needed for documentary compliance for import/export, by enhancing its
electronic data interchange system. So if your e-commerce operation isn’t
set up to serve Brazil, you’re missing out.

Hong Kong

Forty-one percent of millennials in Hong Kong intend to buy fashion items
online in the next two years, up from 28% in 2016. The Doing Business report
ranked Hong Kong at number five. There’s a fast-growing French population
and young people in Hong Kong are using the gym more than ever, so if your
e-commerce business is relevant to these two areas, Hong Kong is the place
to target.

India

Sixty percent of online purchases in India happen during business hours, so
retailers should capitalise by scheduling marketing and promotions
accordingly, to reach this huge and fast-growing population of potential
customers. One big cultural trend that informs many of the changes is the
shrinking of the Indian family. With fewer children and less time spent in
the family home, greater independence creates opportunity for enterprising
e-commerce brands.

Indonesia

As with much of the developed world, Indonesians are becoming more
health-conscious than ever. They are also using the internet with greater
enthusiasm with every passing year. While e-commerce sales currently account
for only 5% of Indonesia’s total retail sales, this figure is expected to
rise to the range of 17-30% in the next five years. Central government
changes have made importing from Jakarta and Surabaya quicker by introducing
an electronic single billing system, so there are more opportunities than
ever for brands to export to Jakarta and beyond.

Kenya

The Communications Authority of Kenya and the Kenya National Bureau of
Statistics reported huge potential and steady momentum for growth in
e-commerce, thanks to increasing numbers of young people starting online
businesses. Most of the younger generation find it much easier to do
business online compared to brick-and-mortar enterprises, where huge
financial outlay is required to set up the infrastructure. In fact, a recent
study by IPSOS found that young people in countries such as Kenya are more
optimistic about the future than many of their contemporaries in more
developed nations. So if you’re exporting here, it’s wise to tailor your
message accordingly.

Malaysia

In Malaysia, importing and exporting is easier than before, thanks to the
improved infrastructure, equipment and facilities installed at Port Klang.
Total Malaysian e-commerce revenue is $1.31bn, and is expected to grow to
$2.53bn by 2022. Electronics and media is currently the leading product
category, accounting for $477.7m market share, followed by furniture and
appliances, which generate $356.3m in sales.

The Netherlands

Home electronics are increasingly popular in the Netherlands, making up 23%
of the online purchase market. The efficiency and speed of the country’s
import/export processes led to it taking the number one spot for trading
across borders according to the World Bank. And the country’s reputation for
arts consumption and progressive culture shows no signs of decline, so it’s
always worth targeting the Dutch if this is a relevant area for your brand.

Russia

By opening a new deep-water port on the coast of the Gulf of Finland,
Russia has increased competition and reduced the cost of border compliance
at the Port of St. Petersburg. The import/export market is opening up, with
the most cross-border trade done with China. However, Russian search engine
Yandex – the Google of Russia – and Sberkbank are launching e-commerce site
Beru, hoping to rival Chinese brand Alibaba, which currently accounts for
69% of the Russian e-commerce market. Supporters think Beru could open up
the market and help bring more Russian shoppers online, especially if it can
promise reliable logistics. Now is definitely the time to target this BRICS
economy with a coordinated export push.

Singapore

Import/export has been made easier in Singapore by improving infrastructure
and electronic equipment at the port. A report by online saving platform
Flipit says that three in five Singaporeans shop online, with market revenue
per user reaching $1,022 last year, and the e-commerce market is projected
to expand by 11.2% by 2021. Opportunities in many sectors are available, not
least in the field of well-being. Stressed, overworked Singaporeans are
looking to find contentment in their leisure periods, so if your brand can
offer a moment of calm, this is a promising export territory.

South Korea

Ninety percent of South Koreans own a smartphone, with m-commerce sales
continuing to grow at impressive rates. Incorporating responsive mobile
platforms with user-friendly designs would help brands reach the most Korean
shoppers. South Korea is known for having fast fulfilment rates, which means
efficient delivery systems, express delivery – championed here at DHL
Express – and wide distribution warehouse networks are basics for succeeding
in the Korean market. A cultural trend that hard-working South Koreans are
embracing is playfulness, as well as the more usual healthy pursuits. With
children at school for as long as 14 hours a day, and adults focused on
working harder than ever, if you make something that’s fun, the South
Koreans might want it.

Spain

According to data from IAB Spain, last year Spanish purchases could mostly
be divided into fashion (65%), travel tickets (59%), consumer electronics
(55%), other tickets (54%), and books and CDs (46%). The Doing Business
report awarded Spain joint first place for ‘Trading across borders’ as it
only takes one hour to complete documentary compliance. A cultural trend to
watch here is a seeming backlash against the traditional life-prolonging
Mediterranean diet and lifestyle. Younger Spaniards are even avoiding
choices marketed as healthy, choosing such items as breakfast biscuits
instead of fruit. If you’re in a food category that’s becoming unfashionable
at home, perhaps Spain is where you should look for customers.

UAE

The e-commerce purchasing population of the UAE is one of the youngest in
the world. E-shoppers in the UAE have the highest per capita spend on luxury
goods and are a top importer of Swiss watches, with Dubai alone importing
one million per year. The UAE is ranked highly in the ease of doing business
index, at number 21 (out of 190 territories). Although imports of such items
are still high, the UAE is finally showing signs of moving away from
luxuries and indulgences. Conspicuous consumption has given way to more
value-based purchasing decisions, so it’s time to export to Dubai if your
product offers lasting quality at a reasonable price.-Howwemadeitinafrica 

 

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