Asia-Pacific online retailers need to act fast to leverage their local knowledge if they want to win the competition that is coming with these global players. Despite the tremendous diversity in the Asia-Pacific region, the online retail market in still highly concentrated, with the leading 25 players in most countries accounting for more than 60 percent of overall revenue. While some markets and categories, such as computer hardware and software, financial services, and travel are already starting to get crowded, the report also points to the many areas that are virtually unexplored. E-commerce delivers an immediate convenience and price benefit for consumers and there are few of the fulfillment problems that often plague online retailers selling physical products. Online trading is also a natural point for converting Internet users into online shoppers, according to the report.
Customers gain confidence from trading online, and use it to make other purchases.
Established players have the security of well-known brand names, plus consumer demand for physical as well as online outlets working to their advantage. Given multichannel advantages, including existing assets and relationships, as well as the success of those who have already come online, BCG expects many more traditional retailers will establish online operations this year. More than 1,500 retailers outside Japan are now actively engaged in e-commerce. More than half of the total sites are pure-plays, indicating that multichannels have been slow to adopt the Internet despite their dominance of overall online revenue. Corp. All Rights Reserved.