As global eCommerce players like Alibaba and Rocket Internet have made headlines in recent weeks, there has been much focus on how eCommerce is emerging around the globe. While a lot of the media coverage has looked at the specific operations of these two players, it’s important to note some of the trends that are powering growth in emerging eCommerce markets. Below are two themes we discuss in our research — and one more that keeps rearing its head in the media:
- If traditional retail stores don’t meet rising consumer demand, eCommerce will fill the void. In some emerging markets, the nature of the traditional retail market left consumers particularly ripe for eCommerce. In markets like China and India — which have highly fragmented traditional retail landscapes and few retailers with nationwide footprints — consumers in smaller cities have traditionally had little access to global brands. This situation leaves an opportunity wide open as the growing number of middle-class consumers seek out access to a greater variety of products. Even as eCommerce revenues have soared across Asia, few traditional retailers have been quick to embrace the new medium. Today, eCommerce in many countries across the region is almost completely dominated by Web-only players.