The e-commerce industry grows exponentially. This phenomenon occurs in the Asia region as well.
In 2018, the region’s e-commerce industry is growing to USD 2.86 trillion and is forecasted to grow further to USD 6 trillion by 2022, according to an E-commerce in Asia report.
To give you an idea about the e-commerce industry in the region, we listed the top 5 Asia e-commerce cities. These cities are Bangkok, Beijing, Ho Chi Minh City, Hong Kong, and Jakarta.
Top 5 Cities E-Commerce in Asia Report
With a population of 15.7 million and internet penetration of 67%, Bangkok is among the top e-commerce cities in the region. The city’s retail market size is estimated to be in the USD 62 billion range, which is quite significant.
Although the city is very attractive for e-commerce businesses, there is no support and promotion from the government in terms of incentives and policies.
The customers’ propensity for trust, branding, and product quality also serve as barriers for e-commerce in the city.
The city of Beijing has a population of 21.7 million with 78% internet penetration rate. The city’s retail market size is estimated to be around USD 152 billion.
The city’s smartphone and digital banking penetration rates are also high, around 85% and 65%, respectively.
Moreover, the city also adapts and embraces the e-commerce industry quite well. In the city, traditional wholesalers and retailers are encouraged by the government to develop online businesses.
- Ho Chi Minh City
The population of Ho Chi Minh City is less than Bangkok’s and Beijing’s. However, the internet, smartphone, and digital banking penetration rates are high, estimated to be 87%, 88%, and 81%, respectively. The city also has a sizable retail market size, which is worth USD 26 billion.
Ho Chi Minh City adapts very fast towards digitalization and e-commerce. This provides opportunities for e-commerce businesses alike, both local and international.
The weaknesses of the city are that its underdeveloped infrastructure and the population’s lack of trust towards financial institutions.
- Hong Kong
Hong Kong is the least populous of the five cities. While the city doesn’t have as many populations with a population of 7.5 million, it does have the highest rates of internet (87%), smartphone (85%), and digital banking (90%) penetration. Hong Kong’s retail market size is estimated to be USD 75 billion.
While the city of Hong Kong offers opportunities for e-commerce businesses, the development of the industry is hindered by several factors.
There are also online security concerns from Hong Kong shoppers, which can be barriers to e-commerce.
Jakarta is a sizable city with a population of 31.6 million. The internet, smartphone, and digital banking penetration rates (estimated to be 72%, 68%, and 49%, respectively) are not as high as other cities, the sheer number of the population more than make up for it.
E-commerce in Jakarta is growing and will continue to grow rapidly in the foreseeable future.
Not to mention the customers’ increased interest in e-wallets, which makes e-commerce even more convenient.The e-commerce industry is projected to grow even further in Asia in the foreseeable future.
The cities above, with their unique situations, strengths, and weaknesses, are among the most attractive for e-commerce businesses according to an E-commerce in Asia report.