Online merchants in the United Kingdom and the United States plan to expand their e-commerce activities in Asia within the next 12 months, but say there are obstacles to gaining a foothold in this market, particularly China.
This was according to a press statement by NTT Communications, which announced results of its survey, Breaking into the e-Commerce Market: Opportunities and Challenges.
The survey results prompted a top executive of the Hong Kong-based subsidiary of the Nippon Telegraph and Telephone Co. to remark that there is a need for a payments solution provider in Asia with strong local acquiring capabilities to attend to these obstacles.
The survey involved a sample size of 200 decision makers in the UK and US involved in the retail, gaming, travel and hospitality industries.
The survey results showed two thirds of respondents had forecast volumes of their e-commerce transactions in Asia to increase 10 to 50 % in the next three years.
Furthermore, 80% of respondents said global e-commerce is crucial to the success of their businesses.
At the same time, respondents listed parts of Greater China as the top three destinations in Asia with these being the following:
- Mainland China, 79%
- Hong Kong, 66%
- Taiwan, 57%
On the other hand, the following were cited as challenges to the delivery of e-commerce services:
- Local tax regulations and compliance, 50%
- Local market needs, 46%
- Shipping difficulties and cost,42%
- Local preferred payment types, 37%
- Cross-border currency settlement, 37%
Cited as key success factors for the delivery of e-commerce services in Asia were the following:
- Acquirer connections, 45%
- Risk and fraud management, 43%
- Global acquirer connections, 35%
- Acquirer connections in Asia 30%
- Alternative payment methods, 30%
NTT Communications Asia VP for e-Business Tyrone Lynch was quoted by the press statement as saying there is need for a payments solutions provider with strong local acquiring capabilities to enable online merchants to take full advantage of e-commerce opportunities in Asia.
Sign up for CIO Asia eNewsletters.