The retail sector in the Asia Pacific (APAC) region has grown by US$75 billion from 2010 to 2016, equivalent to a 13.63 percent compound annual growth rate (CAGR), according to IDC's Retail Insights' Perspective: Asia/Pacific Excluding Japan (APeJ) Retail Industry Update.
The growth was mainly driven by cross-border e-commerce, demographic changes, and the rising income in the region. The report indicated that cross-border e-commerce is continuously gaining popularity as a retail channel among shoppers. This is accelerated by the use of social media to search for new products and new shopping experiences, especially, by millennials.
"Asia Pacific remains the most dynamic amongst country economies despite facing heightened uncertainty from a still weak global recovery, slowing global trade, and the short-term impact of China's growth transition. This slowdown, however, was not seen in a transformative retail industry, where tech-enabled capabilities have brought stiffer competition between traditional and online retailers," said Mike Ghasemi, Retail Insights Research Director at IDC Asia/Pacific, in a press release.
More so, urbanisation and the rising middle class income are expected to help fuel consumption which will thus drive the retail volume growth in the region.
In addition, mobility, social, and cloud technologies will play a bigger role for APAC e-commerce businesses this year. The report said these technologies will help them enable easier and more affordable platform to extend their products and services to other countries.
However, the report advised companies to also invest in infrastructure and back-end enterprise software such as supply chain management, analytics, and cognitive technology.
They must also start looking for logistics partners that can support multi-location, multi-transfer, and integration of business information and goods, securely and reliably.
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