E-commerce retail sales expected to rise 14% yearly until 2026
In 2021, the sector posted a 24% sales growth.
Retail sales in Asia’s e-commerce sector, one of the fastest-growing retail channels in the region for the past decade, were seen to post a compound annual growth rate of 14% from 2021 to 2026, Euromonitor International said in a report.
The digitally savvy population, growing appreciation for convenience, and the pandemic have accelerated the growth of e-commerce which posted a 24% growth in 2021.
“Disruptions from the pandemic forced companies to rethink their business models. And the growth potential of e-commerce caused many to pivot towards online platforms to complement existing physical stores,” the Top 100 Retailers in Asia report read.
To increase the adoption of omnichannel strategies to integrate e-commerce into their operations and expand the customer base, retailers have been relying on mergers and acquisitions.
It cited some of the most notable acquisition moves such as South Korea-based retailer Shinsegae, which outbid competitors to acquire a majority stake in eBay Kore in 2021. This move increased the company’s online consumer base “exponentially overnight.”
Indonesia’s tech startup Gojek and Tokopedia also merged in 2021 to create GoTo Group, combining Tokopedia’s e-commerce services, and Gojek’s last-mile delivery capabilities.
As e-commerce grows, players in the industry are focused on improving the efficiency of last-mile deliveries through tech and innovation.
Euromonitor noted that Japan uses shared lockers such as PUDO Station where they can pick up packages as these are contactless and conveniently located near train stations.
“Last-mile delivery is also part of a broader [direct-to-consumer] model. Poor shipping logistics can quickly override even the best products and social media campaigns. Robust delivery capabilities can help increase sales and build loyal customers,” it said.