Asia Pacific (APAC) is the top region for e-commerce globally and will lead the way in the global transition to m-commerce according to Worldpay.
Specifically, m-commerce will become the most popular online channel in APAC over the next four years, gaining dominance in markets including Hong Kong and Singapore this year, and Australia and India by 2020. China and South Korea are ahead, with m-commerce already the most popular e-commerce channel.
Below are some Worldpay’s 2019 predictions for key countries in the APAC.
Mobile in China
According to Worldpay, the behemoth e-commerce market in China is set to increase by another 41% by 2022, reaching US$1.78 trillion – a compound annual growth rate (CAGR) of 9%. Mobile is the fastest growing channel at 12% CAGR, while desktop sales are growing by just 4% CAGR.
It is no secret that China is two steps ahead when it comes to the adoption of m-commerce. The country is moving towards tighter and more seamless integration between payment, online retail and social communication – with consumers ready for the next generation of frictionless, invisible payments.
Worldpay predicts that the rise of “new retail” concepts such as Alibaba’s Hema Supermarkets will continue to influence shopper demands for seamless retail between online to offline.
Hong Kong and Singapore
In Hong Kong, the e-commerce market is poised to increase by 11% in 2019 to reach $17.9 million. Mobile commerce is set to become Hong Kong’s most popular online shopping channel in the next 12 months, at which point mobile is projected to account for over 50 percent of all online sales.
In Singapore, the e-commerce market in Singapore is set to grow by 48% by 2022 to $7.4 billion. Desktop sales are projected to remain stagnant, while m-commerce is on track to overtake desktop sales this year – tipping over to make up 52% of all online sales.
“Asia leads the way in a trend we’ve seen across the globe – the rise of m-commerce and alternative payments like e-wallets, both in-store and online, as consumers increasingly seek the most friction-free shopping and payment experience,” said Phil Pomford, general manager for Asia Pacific, global enterprise eCommerce at Worldpay.
“With some of the highest rates of smartphone penetration in the world and a preference for digital payment methods like e-wallets, it’s no surprise that consumers in Asia Pacific are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.”
Pomford advised retailers to provide a consistent overall retail experience that matches their brand attributes, ensuring that consumers can enjoy a seamless and secure shopping and payment whether from the desktop, mobile devices, or a brick-and-mortar store.
First published in CMO Innovation