Despite the economic slowdown, China's e-commerce market is expected to continue dominating the online retail revenues in the Asia Pacific region.
According to Forrester's forecast, the total online retail revenues in China, Japan, South Korea, India and Australia will nearly double from US$733 billion in 2015 to US$1.4 trillion in 2020. China's online retail market will reach US$1.1 trillion in 2020, which is nine times larger than Japan's US$122 billion market and 17 times larger than South Korea's US$65 billion market.
Forrester also predicts that India will be the fastest growing e-commerce market in the region, with its online sales projected to grow by five times by 2020 due to the increasing number of online buyers and per capita online spending. However, the country's e-commerce growth will be hindered by its cash-based culture, underdeveloped logistics, and challenging last-mile connectivity.
Besides that, Forrester said that Japan, South Korea and Australia had characteristics of mature e-commerce markets: high Internet and broadband subscriber penetration, a large percentage of online shoppers, and high per-capita online spending. However, each market has unique characteristics that e-commerce leaders operating in these markets, or thinking about doing so, need to know and consider when crafting their offerings.
"The Asia Pacific region encompasses online retail markets that span varying sizes, maturity levels, and industry dynamics. Yet despite these differences, a series of trends is evident in every market in Asia Pacific," said Forrester analyst Lily Varon
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