Global
B2C E-commerce
Report 2014 Report 2014
Asia-Pacific
B2C E-commerce
Facts, Figures, Infographics & Trends of 2013 and the 2014, 2015 Forecasts
of the Asia-Pacific B2C E-commerce Market of Goods and Services
www.ecommercefoundation.org
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of:
In cooperation
with:
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Global B2C E-commerce report 2014
Colophon
Ecommerce Foundation
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1077 BE Amsterdam - Netherlands
Website: www.ecommerce-europe.eu
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Republic
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2
Table of Contents
PREFACE
OUR REPORT PARTNERS
GLOBAL B2C E-COMMERCE IN BRIEF
Infographic
Overview of the Covered Countries
B2C E-commerce in a Global Perspective
Growth in Global B2C E-commerce Sales
Social media around the world
Worldwide Mobile Commerce
Usage of Smartphones and Tablets
ASIA-PACIFIC E-COMMERCE IN MARKETS
Infographic
Asia-Pacific in Brief
Internet Penetration
Population and E-households
Gross Domestic Product
B2C E-commerce Share of Asia-Pacific
Market Share and Growth Rate
Online Spending
Mobile Commerce
B2C E-commerce Turnover and Growth
© Ecommerce Foundation
page 4
page 5-10
page 11-18
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19-28
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
AUSTRALIA
CHINA
INDIA
INDONESIA
JAPAN
SOUTH KOREA
ABOUT ECOMMERCE FOUNDATION
INFORMATION ABOUT THE REPORTS
GOMSEC
DEFINITIONS
SOURCES
ACKNOWLEDGEMENTS
www.ecommercefoundation.org
page
page
page
page
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page
page
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page
30-46
47-64
65-79
80-95
96-112
113-126
127-128
129
130-132
133-134
135
136-137
3
Global B2C E-commerce Reports 2014
Preface
The importance of e-commerce continuous to grow. More and more people
buy their products and services online and they do so from various places,
such as at home, at work, en route or in the highstreet, and sometimes even
online in the store. Meanwhile, e-commerce has become a major influence
on the global economy. Whereas the Global Gross Domestic Product was
around $74.9trn in 2013, the eGDP accounted for 1.34% of this number. In
addition, e-commerce is responsible for the creation of many new jobs and
all this makes it a significant economic power around the globe.
Naturally, we could not have realized these reports without the help of others.
Therefore we want to use this opportunity to express our gratitude to all
participating national associations and their individual research partners for providing
us with the required data and information. In addition, we are very grateful to the
experts across the world who selflessly invested their time and effort to share their
insights. And finally, a special word of thanks goes to our sponsors GlobalCollect,
Informatica Corp, RichRelevance and Salesupply, who enable us to make the reports
widely available, and to GfK for their close cooperation and involvement.
Measuring the size and growth of the e-commerce sector worldwide is vital
for understanding its economic impact and growing contribution.
Ecommerce Europe strongly believes that it is with economic facts that
messages in support of our industry can be heard.
If you would like to receive additional information, purchase reports or become
involved with Ecommerce Foundation, please contact us via our website
www.ecommerce-europe.eu or send us an email at [email protected]
The newly estahblished Ecommerce Foundation publishes several reports. It
publishes the six European reports under auspicien of Ecommerce Europe.
The Ecommerce foundation also publish a global report as well as five
regional reports, covering North America, Latin America, Asia-Pacific, the
Middle East and Northern Africa (MENA) and the BRICS countries (Brazil,
Russia, India, China and South Africa).
Through the Ecommerce Foundation B2C Research Reports we want to
share our knowledge with our readers around the world. By means of
figures that are based on the Global Online Measurement Standard for B2C
E-Commerce (GOMSEC), interviews with e-commerce experts and clear
tables and infographics, we provide online retailers and other stakeholders
with practical means that can help them to optimize their businesses.
© Ecommerce Foundation
Jorij Abraham
Bert Nagelvoort
Director Ecommerce Foundation
Senior Researcher
www.ecommercefoundation.org
4
Our Report Partners
This report is powered by the following partners
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000
market research experts combine their passion with GfK’s 80 years of data science experience. By using innovative technologies and data
sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and
choices.
GlobalCollect is the most knowledgeable global Payment Service Provider in the world, processing international e-commerce payments for
more than 600 of the world’s most recognized e-commerce brands in the digital goods and services, travel, retail and video gaming industries,
among many others. GlobalCollect’s business intelligence tools, Managed Fraud Services and more than 400 payments experts help our clients
elevate their payment strategies to become a strategic asset to their companies.
Informatica Corporation (Nasdaq:INFA) is the world’s number one independent provider of data integration software. Organizations around
the world rely on Informatica to realize their information potential and drive top business imperatives. Informatica Vibe, the industry’s first
and only embeddable virtual data machine (VDM), powers the unique “Map Once. Deploy Anywhere.” capabilities of the Informatica Platform.
With regard to information technology, Informatica helps wherever possible by delivering the right data in the right way to the right users.
RichRelevance is the global leader in omni-channel personalization. More than 160 companies in 40 countries use RichRelevance to turn data
into actionable insight, which delivers the most relevant experience for consumers as they shop across web, store and mobile. RichRelevance
drives more than one billion decisions every day, and has delivered over $8 billion in attributable sales to its clients, which include Target,
Marks & Spencer and PriceMinister.
Salesupply is a global e-business services company that enables online retailers to achieve profitable international growth faster, more
efficiently and with relatively low costs. Salesupply provides a full range of solutions ranging from research and strategy, to effective
localization of online shops, followed by complete operational support, traffic generation and brand management.
© Ecommerce Foundation
www.ecommercefoundation.org
5
“Online Touchpoints are Key for Purchase Decisions”
Consumer Expectations Are Changing Rapidly
It is safe to say that e-commerce is always fluid. Just when e-commerce standards
appear to be solidifying, something disruptive comes along to break down the
status quo and move customers in another direction. A clear example of this
tendency in 2013 was the rise of click and collect as a key element in many brickand-mortar retailers. The term ‘webrooming’ became a buzz word as the physical
retail sector played to their historic strengths in face-to-face customer service to
claw back trade from the pure-play sector. As we approach our future ecommerce strategies, understanding how customer interactions with the many
online touch points along the supply chain influence their ultimate purchase
decisions is more important than ever.
While the developed markets are establishing expectations, customers in
emerging markets both within Europe and beyond our borders recognize the
innovations in other regions and are rapidly adjusting their expectations to
achieve parity in their own experiences. If such an experience is not available
locally, the cross-border nature of global retail allows them to seek it elsewhere.
The ability to compare situations across multiple markets is becoming increasingly
important and there is no single template for success. Increasingly, the true
evaluation of the market potential that e-commerce businesses can realize will
only be found through a blended understanding of local customer desires and
retail insights.
Changing expectations
As the customers progress through from research, to purchase, to fulfilment
stages along their purchase journey, the amount of information they possess
continues to increase. Their expectations are changing fast. In order to secure
trade, all businesses involved in online retail have to understand these change
drivers to adapt their own proposition accordingly. The crossover space between
digital and physical is increasingly complex, and while the share on sales being
made online continues to march forward across the European markets, there are
indicators in developed markets that shares are beginning to stabilize. Through
our research, GfK seeks to understand the complex interplay between brand
perception, expectation, service, and value. Gaining insights into this complex
connection enables us to understand the end-to-end customer experience better.
Remaining fundamentals
While the details may change from customer to customer and location to
location, the fundamentals however remain. We are aiming for getting the right
product with the right value proposition to the customer quickly and efficiently
for both parties, at the same time providing
sufficient after sales support and service to ensure
satisfaction and repeat business. Understanding
the drivers and triggers of the whole interaction
through data-driven insights speeds us to
achieving these goals.
Friedrich Fleischmann
Global Director Retail World at GfK Retail and Technology GmbH
© Ecommerce Foundation
www.ecommercefoundation.org
6
“The European Market Changes Constantly”
Key Trends and Best Practices for Cross-border E-commerce
Europe is a mature e-commerce market, but it changes and evolves constantly.
For merchants, there is still plenty of opportunity for growth by expanding into
new European markets. However, the unique dynamics of the European market
place do require careful consideration and planning.
While selecting the right payment mix per country is the necessary basis,
successful merchants also anticipate and act on macro-trends, such as changes in
the regulatory environment, or in consumer behavior and expectations. At the
same time, these merchants actively analyze and optimize their businesses
through aggressive fraud management and the application of big data analytics.
Mobile first strategy
In 2014, mobile commerce well and truly arrived in Europe. The use of mobile
devices for online shopping and payments is accelerating, with Sweden and the
UK in particular matching the global leaders in mobile shopper penetration. In
addition, merchants that have adopted the mobile first strategy in both check out
and payment pages are seeing considerably higher success rates.
Big data to monitor risks and identify opportunities
Another big trend that is further maturing in 2014 is the application of big data
analytics and visualization to the domain of online payments. E-commerce leaders
such as Amazon have been applying big data for years now with the objective of
building sophisticated profiles of their consumers for Conversion Rate
Optimization (CRO). And with good reason.
opportunities. By applying analytics and visualization to payments data,
merchants can track and compare performance per country, per payment method
or per time period, and take appropriate steps to optimize processes.
Combating sophisticated fraud
Fraud is a fact of life for merchants. This is particularly true for international
merchants, because cross-border payments have significantly higher fraud rates
than domestic payments. Increasingly, sophisticated fraudsters also take
advantage of the shift to mobile payments, where fraud losses are higher as a
percentage of revenue.
However, rather than accepting fraud as a cost of doing cross-border business,
merchants can take action to minimize its impact. In addition to improving the
bottom line, this also limits the risk of the kind of reputation damages that go
hand-in-hand with online fraud.
The year of SEPA?
Finally, 2014 is a watershed year for cross-border
payments in the Single Euro Payments Area
(SEPA). The goal of SEPA is to create a harmonized
payments infrastructure throughout the SEPA
countries. This is done through the use of common
payment instruments and standards, supported by
a regular and accepted legal structure.
Cross-border payments can quickly become very complex and hard to manage.
Huge volumes of data need to be analyzed in order to identify issues and
© Ecommerce Foundation
John Snoek
Global Vice President Marketing at GlobalCollect
www.ecommercefoundation.org
7
“Information Must Be Relevant to Customers”
Omnichannel Tomorrow Means Predicting the Next Logical Purchase Everywhere
A lot is changing in the landscape of e-commerce. For example, the “e” in ecommerce is disappearing. There is no longer a strict separation between online
retail and shopping at bricks-and-mortar shops, as all purchases will take place
through omnichannel retailing.
To be able to do this, the motto of offering the right product to the right
customer, in the right place and at the right time should be in the company’s
mindset. In addition, it needs to have the proper technology to execute this
strategy.
By the end of 2013, 36% of in-store purchases were influenced by digital devices,
for instance as consumers compared prices through comparison websites or
looked for additional information. This number is expected to have increased to
around 50% at the end of 2014.
Brand-switching
A final aspect that will be very important in the upcoming years is the apparent
lack of brand loyalty. In the US, 75% of the consumers state that they easily switch
between brands, and for the rest of the world this rate amounts to 60%.
Consumers receive an overload of information and in combination with the total
transparency of the markets, buying somewhere else is just one click away.
Companies have to deal with this by ensuring that their marketing activities only
contain relevant information. Commerce Relevancy is taking omnichannel to the
next level for customer experience.
Companies have to be aware of these developments and invest sufficiently in
reaching customers through the several touch points. This way, they will be able
to create a flawless customer experience, which is very important for attracting
and holding on to customers.
Real-time experience
The biggest challenge for companies will be real-time experience. For customers it
will not be enough to receive information tomorrow or even later today; they
want it right away. In other words, fast anticipation is key. By 2017, customer
experience is what buyers are going to use to make purchase decisions.
Therefore, only companies that can deliver instant information will be successful.
In order to achieve this, retailers must be able to predict the next purchases of
customers. When shoppers are about to make a purchase, merchants should offer
enticing product and/or service bundles. In addition, once a purchase has been
concluded, customers should later receive recommendations through all channels
regarding products and/or services that might be interesting to them.
© Ecommerce Foundation
www.ecommercefoundation.org
Ben Rund
Senior Director Product Marketing
at Informatica Corp
8
“Service Is Going to Be a Key Area”
Technical Developments Help Retailers to Optimize Their Service
The United States is the largest e-commerce market in the world, and as a result,
it is a frontrunner in terms of trends in this area. Already the de facto standard for
location-based services in stores, iBeacon is one of the most important trends
here. It will even gain popularity as the technology of choice due to its price,
scalability and ease of maintenance. In order to make iBeacons and in-store
technology really smart, consumers have to be willing and able to use apps. Then
it will provide a massive opportunity to step up and engage with consumers
through a value proposition centered on service, rather than on offers and
products. Consider an iBeacon that triggers when you enter a store to pick up
your click-and-collect order, enabling you to skip a 15-minute queue, or reminding
you of items you might wish to replenish. This trend offers a lot of opportunities
for retailers.
Service is key
Through technical developments in shops, retailers are able to optimize their
services. And most retailers are realizing that their service arm is going to be a key
area where they can differentiate themselves from the Amazons and Alibabas of
the world. Sales associates are on the cusp of being much more intelligent and
powerful, providing choice, value and time savings to the consumer when armed
with the right tools. A sales associate may have an interaction with a shopper in
the dressing room. Instead of pausing to think about what color looks good with
her skin tone or what pants best match this top, she can access and leverage
online clickstream behavior derived from similar shoppers to guide the customer
with appropriate cross-sells and accessories. Combine the power of this online
data with store availability and sizing, and less experienced sales associates can
now provide the level of customer experience usually delivered by the bestperforming associates.
© Ecommerce Foundation
Preparing for e-commerce giants
Conventional wisdom states that traditional retailers retain one enormous
advantage in their battle against e-commerce superpowers, such as Amazon: the
physical store. However, as price pressures have increased, retail war rooms have
focused on deals and promotions. Still, no matter how many coupons they email
and social media contests they run, America’s retailers cannot play the same old
game and expect to win and beat Amazon in this escalated battle. To stay in the
game, traditional retailers must respond quickly. The real – and only – opportunity
is to let go of deals and embrace consumer data in order to make sales associates
more helpful and stores more entertaining, and ultimately to save consumers
time. By doing this, retailers can offer unique value to customers untouchable by
e-commerce giants. For retailers gearing up for this new marketplace, the goal is
to optimize the human dimension of shopping in-store. Deals and promotions
remain part of the equation, but on their own they will not cut it. It is the
connected cycle of discovery, meaningful experiences,
human interaction, and sales connected by data
crunching that will make brick-and-mortar retail more
competitive.
www.ecommercefoundation.org
David Selinger
CEO of RichRelevance
9
“The APAC region is extremely diverse”
Every country need an individual approach
Not only is the Asia-Pacific region the largest global region when it comes to ecommerce turnover, its tremendous growth rate of on average 45 percent is five
times higher than that of North America. This can only lead to one conclusion:
Potential! And, indeed, the APAC markets with their booming economies and
governments actively supporting the digital economy are ideal target markets for
cross-border e-commerce.
Australia, New Zealand, China and Japan already are top destinations for US ecommerce sellers. 75 percent of Australian shopper purchase beyond borders,
which is due to the fact that there is only little local competition and much of the
international brands and retailers offer an English- language website.
Merchants shouldn’t just look at the size of a country, but the willingness of the
shoppers there to go online and purchase . Singapore for instance is worth some
attention: An estimated 55 percent of all ecommerce transactions in Singapore
are cross-border according to a Paypers report in 2014, an impressive number.
China is a huge and largely promising market, with a young and internet savvy
population hungry for Western brands and merchandise. Chinese local and
national authorities are actively supporting international e-commerce to stimulate
this new fuel to economic growth.
However, selling in China has some challenges to it which can best be solved
working with a local partner. Issues such as warehousing, logistics and all kinds of
business arrangements require local expertise. It is for instance often tempting to
sell via Alibaba’s platform Tmall, which allows merchants to open branded
storefronts. However, only 10 percent of sellers on Tmall are really profitable. A
good alternative can be We Chat, that recently launched We Chat Stores and
interesting ad opportunities at much lower fees.
Online retailers who strive to expand into this dynamic and promising region can
expect relatively much purchasing power and a high acceptance of digital buying.
The APAC region is extremely diverse, with Australia and New Zealand being
culturally closer to European standards that its Asian neighbors. Needless to say
that any of these countries should be analyzed and approached individually. In
this region, it might be a really good idea to think about responsive web design:
M-Commerce is becoming increasingly important, as mobile internet usage is
surpassing that via desktop PCs. Also customer service should be one of the toppriorities: Local language, adequate opening hours and a broad understanding of
the local (business) culture is a real must.
Henning Heesen
Cross-Border E-Commerce Specialist
and Board Member at Salesupply AG
© Ecommerce Foundation
www.ecommercefoundation.org
10
Global B2C E-commerce
2014
GlobalReport
B2C E-commerce
in Brief
Highlights of the Global B2C E-commerce market
www.ecommercefoundation.org
Under auspices
of:
Global 2013 and 2014 Forecast Key B2C E-commerce Data of Goods and Services at a Glance
Top 10 e-commerce countries in
turnover (USD billion)
Asia-Pacific
North America
Europe
Latin America
MENA
USA
China
UK
Japan
Germany
France
Australia
Canada
Russia
S. Korea
$ 567.3 bn +44.6%
$ 452.4 bn +10.1%
$ 482.3 bn +17.1%
$ 33.2 bn +21.5%
$ 14.7 bn +32.7%
$
$
$
$
$
$
$
$
$
$
419.0
328.4
142.3
136.7
84.2
67.8
35.7
23.9
20.5
20.2
7,358 million
100%
people live in the world
56%
4,164 million
14%
$ 1,552 bn
Turnover E-commerce
Goods & Services
people use the Internet
1,036 million
people are e-shoppers
1
2
3
* B2C & C2C goods & services, excluding insurances
Global $1,552.0 bn +23.6%
Estimated share
of online goods
in total retail of goods
4.2%
Share of Internet users
through a
73.4% accessing the web
mobile device*
*Average worldwide
Total B2C e-sales 2013 of goods and services
Forecast 2014 $1,907.0 bn +22.9%
Cross-border B2C E-commerce
Most popular countries:
USA
45%
UK
37%
China / HK
26%
Canada
18%
Australia
16%
Germany
14%
% of cross-border shoppers purchased in these
markets the last year.
“1,878 million estimated social media users”
The Ecommerce Foundation B2C E-commerce Reports
· 1 Global report
· 10+ regional reports
· 50+ country reports
“94 million consumers buy
cross-border and this number is
expected to grow in 2014”
The mission of the Ecommerce Foundation is to facilitate
the development of practical knowledge, insights and
learnings for which individual institutions, associations and
B2C selling companies do not have the (financial) resources
and/or capabilities.
© Ecommerce Foundation January 2015
www.ecommercefoundation.org
info: [email protected]
for reports: [email protected]
Twitter: @eComFound
Overview of the Covered Countries
Global B2C E-commerce in Brief
Country
Covered countries
This table provides you with some relevant information
regarding the countries that are covered in our reports. The
highlighted countries, as well as Indonesia, are covered in
this report
The countries mentioned in the table were selected for the
reports because they are influential in their regions. They are
all discussed in brief in the Global Report, with the exception
of Egypt, Israel, Jordan, Kuwait, Saudi Arabia and the United
Arab Emirates, as we covered the MENA region as a whole
there.
© Ecommerce Foundation
Argentina
Australia
Brazil
Canada
Chile
China
Egypt
France
Germany
India
Israel
Italy
Japan
Jordan
Kuwait
Mexico
Russia
Saudi Arabia
South Africa
South Korea
Spain
United Arab Emirates
United Kingdom
United States
Capital
Buenos Aires
Sydney
Brasilia
Ottawa
Santiago
Beijing
Cairo
Paris
Berlin
New Delhi
Jerusalem
Rome
Tokyo
Amman
Kuwait City
Mexico City
Moscow
Riyadh
Pretoria
Seoul
Madrid
Abu Dhabi
London
Washington D.C.
www.ecommercefoundation.org
VAT
21.0%
10.0%
17.0%
5.0%
19.0%
17.0%
10.0%
19.0%
19.0%
12.5%
18.0%
22.0%
5.0%
16.0%
16.0%
16.0%
18.0%
0.0%
14.0%
10.0%
21.0%
N/A
20.0%
5.0%
Currency
Peso (ARS)
Dollar (AUD)
Real (BRL)
Dollar (CAD)
Peso (CLP)
Yuan (CNY)
Pound (EGP)
Euro (EUR)
Euro (EUR)
Rupee (INR)
New Shekel (ILS)
Euro (EUR)
Yen (JPY)
Dinar (JOD)
Dinar (KWD)
Peso (MXN)
Ruble (RUB)
Riyal (SAR)
Rand (ZAR)
Won (KRW)
Euro (EUR)
Dirham (AED)
Pound (GBP)
Dollar (USD)
Population
41.4mn
21.1mn
200.3mn
35.1mn
17.6mn
1,357.3mn
82.0mn
65.5mn
82.0mn
1,252.1mn
8.0mn
59.6mn
127.3mn
6.4mn
3.3mn
122.3mn
142.5mn
28.8mn
52.9mn
50.2mn
46.7mn
9.3mn
63.8mn
315.1mn
13
Social media around the world
Global B2C E-commerce in Brief
Chinese social media sites, 2012 - 2013
Social media
As was the case in 2012, Facebook was again the
most popular social media platform in 2013. The
percentage of online adults using Facebook even
increased from 67% to 71%.
The other popular social media also increased in
popularity, but remained far behind Facebook.
LinkedIn stayed in second place with 22% but
Pinterest is catching up and is now ranked third
with 21%. Twitter and Instagram ended up in
fourth and fifth place, with only 1% between
them.
Global social media sites, 2012 - 2013
67 71
% of online adults who use the following
social media websites, in millions
20 22
© Ecommerce Foundation
15
21
16 18
2012
2013
13 17
Other social media
In addition to the global social media, several
countries/regions have their own versions. Some
of these are taken over or integrated in global
giants, such as Orkut, which was particularly
popular in India and Brazil but which has now
been integrated in Facebook.
In other countries, “local” social media do survive
and even attract a lot of users. For instance in
China, where global websites such as Facebook
and Twitter are banned by the government.
Chinese companies use this to their advantage
and because of the large population, there are
many social media with hundreds of millions of
registered users in China.
Another example is Russia, in which vKontakte
and Odnoklassniki attract millions of people. In
contrast with China, other social media are
allowed in Russia, but these two are still the most
popular ones.
www.ecommercefoundation.org
Number of online adults who use the following social media
websites, in millions 712
531
600
400
259
200
178
540
469
2012
2013
300
200
194
Russian social media sites, 2012 - 2013
Number of online adults who use the following social media
websites, in millions
46.8
40
31.5 34
2012
2013
16
Usage of Smartphones and Tablets
Global B2C E-commerce in Brief
TABLETS AND SMARTPHONES
Overview of usage of mobile devices per region, in millions of US dollars
Smartphones continue to dominate
When we look at the use of mobile devices in global
regions, we see that smartphones remain the most
important mobile device with regard to shopping
through the Internet.
North America
China
300
500
250
400
200
300
150
200
100
100
50
Especially in China and MENA, the popularity of
tablets lags behind. However, Europeans and North
Americans are more and more embracing tablets
for buying goods and/or services online. This is
evident from the growing share of e-commerce
turnover made through tablets, which is shown in
the tables on the right.
Smartphone sales increased by 48%
in the developed world, but by 164%
in the emerging countries
0
0
2010
2011
2012
2013
2010
2014
2011
2012
2013
2014
2011
2012
2013
2014
2011
2012
2013
2014
Western Europe
Eastern Europe
250
100
200
80
150
60
100
40
50
20
0
0
2010
2011
2012
2013
2014
2010
Latin America
MENA
150
200
150
100
100
50
50
0
0
2010
2011
2012
2013
2014
2010
Source: Total market including 2014 estimation by GfK Trends and Forecasting
© Ecommerce Foundation
www.ecommercefoundation.org
18
Asia-Pacific
An overview of e-commerce markets in Asia-Pacific
www.ecommercefoundation.org
www.ecommercefoundation.org
Under auspices
of:
Asia-Pacific
2013 Key B2C E-commerce Data of Goods and Services at a Glance
China
South-Korea
Japan
5,218 million
100%
people live in Asia Pacific
53%
Indonesia
2,807 million
8%
Australia
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
1.93%
National e-commerce Associations:
China
Turnover E-commerce
Goods & Services
people are e-shoppers
Ranking covered Countries
in turnover (USD million)
eGDP
Total GDP $ 22,132 bn
Australia
447 million
$567bn
49% 51%
Services Goods
Total B2C E-commerce 2013 of goods & services
Asia-Pacific
$ 567.3bn 44.5%
people use the Internet
1
2
3
1
2
3
4
5
6
China
Japan
Australia
South Korea
India
Indonesia
In cooperation with:
$
$
$
$
$
$
328,428
136,710
37,764
20,242
10,736
3,652
Powered by:
Estimated share of
5.3% online goods in
total retail of goods
Estimated 72% of active Internet users are
on social media
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Japan
Twitter: @eComFound
India
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Asia-Pacific in Brief
Asia-Pacific
For the purpose of this report, the AsianPacific region consists of Australia, China,
India, Indonesia, Japan and South Korea.
Together, these countries cover an area
of 20.8 million km2, which equals 16.2% of
the total global land area.
With about 9.6 million km2, China is the
largest country of this region, taking up
39.7% of the combined area of the
countries covered. It is followed by the
Australia with an area of 7.6 million km2.
On January 1, 2014, the total population
of the region was 5.2 trillion people.
ASIA-PACIFIC POPULATION
Share of Asia-Pacific population, 2013
Australia;
0.4%
South Korea
Others;
41.5%
China;
26.0%
China
Japan
India
Thailand
India;
23.8%
South Korea;
1.0% Japan;
2.4%
Indonesia;
4.8%
With China (1.3 trillion inhabitants) and
India (1.2 trillion inhabitants), Asia-Pacific
has the two countries with the largest
population in the world. Within the
region, they are followed by Indonesia,
which has 249.8 million inhabitants.
Vietnam
Indonesia
Australia
New Zealand
© Ecommerce Foundation
www.ecommercefoundation.org
21
Internet Penetration
Asia-Pacific
Internet penetration
The average Internet penetration in
Asia-Pacific was 53.8% in 2013. With this,
it was below the global average of 64.0%.
This Asian-Pacific rate is lowered
considerably by India and Indonesia.
These countries had an Internet
penetration of 15.1% and 15.8%,
respectively. Countries with the highest
Internet penetration within this region
were Japan (86.3%), South Korea (84.4%)
and Australia (83.0%). Interestingly
enough, in the largest ecommerce
market of the region, China, only 45.8%
of the population was connected to the
Internet in 2013.
In total, the number of Internet users in
Asia-Pacific was estimated at 2.8 billion
in 2013.
© Ecommerce Foundation
INTERNET PENETRATION ASIA-PACIFIC
Internet access and online population, 2013
North American
Internet access*
Online population
World
64.0%
4,164.8mn
Asia-Pacific
53.8%
2,807.1mn
Japan
86.3%
109.8mn
South Korea
84.8%
42.4mn
Australia
83.0%
19.1mn
China
45.8%
621.6mn
Indonesia
15.8%
39.4mn
India
15.1%
239.0mn
Sources: National Statistical Offices, Eurostat and Ecommerce Foundation Research
* share of total population
www.ecommercefoundation.org
22
Population and E-households
Asia-Pacific
E-households
As China and India have by the far the
most inhabitants in the region, they also
have the highest number of households.
However, in terms of e-households,
there is a large difference between the
two. Given the very low Internet
penetration in India, “only” 46.1 million
Indian households were connected to the
Internet in 2013.
Even though Japan does not has nearly as
much inhabitants as India, due to its
higher Internet penetration, the country
does contain more e-households (46.9
million).
POPULATION AND E-HOUSEHOLDS ASIA-PACIFIC
Population, households and e-households, 2013
Region
Total
Population
Number of
households
Number of
e-households
World
7,358.5mn
1,506.5mn
765.9mn
Asia-Pacific
5,218.0mn
908.1mn
335.5mn
23.1mn
9.7mn
8.0mn
China
1,357.3mn
452.4mn
207.2mn
India
1,243.3mn
305.4mn
46.1mn
Indonesia
249.8mn
66.4mn
10.5mn
Japan
127.3mn
54.4mn
46.9mn
50.1mn
19.6mn
16.6mn
Australia
South Korea
Sources: National Statistical Offices, Eurostat and Ecommerce Foundation Research
© Ecommerce Foundation
www.ecommercefoundation.org
23
B2C E-commerce Share of Asia-Pacific
Asia-Pacific
E-commerce share in the world
MENA;
1.0%
Total B2C e-commerce turnover (including
online goods and services) reached
$567.3bn last year, which represents an
increase of 45.6% compared to 2012. The
2013 share of e-commerce in the region’s
GDP was 1.93%.
North
America;
29.2%
Asia-Pacific;
36.6%
Europe;
31.0%
And then there is China. The huge growth
rates suggest that this is an emerging
market, but the B2C e-commerce sales
reached $328.4bn, making China the
second-largest e-commerce market in the
world in 2013, only behind the US.
Asia-Pacific made up 36.6% of the total
global online sales ($1,552.0bn) in 2013.
Latin America;
2.2%
Average annual online sales
growth since 2009 (CAGR)
+23.6% Global
+45.6% Asia-Pacific
© Ecommerce Foundation
In terms of global B2C e-commerce, AsiaPacific led the way in 2013, followed by
Europe and North America.
Internet penetration and purchasing
online still widely vary in the various
countries of Asia-Pacific. While Japan,
South Korea and Australia are more
developed countries, e-commerce is still
at the very beginning in India and
Indonesia.
www.ecommercefoundation.org
25
Country Report Australia 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the Australian B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
Australia 2013 Key Data at a Glance
23.1 million
$ 35.7bn
people live in Australia E-commerce Turnover
Goods & Services
100%
19.1 million
83%
Canberra
people use the Internet
71%
16.5 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
25%
Services
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
E-commerce GDP
1.73%
Total GDP $1,532.4bn
Australian Trustmark:
Australian national E-commerce
association:
1
1
2
2
3
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
5.1%
75%
Goods
Share of Australian ecommerce market in AsianPacific e-commerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report Australia
Area: 7,692,024 km2
Capital: Canberra
Currency: Dollar (AUD)
Australia is officially called the Commonwealth of
Australia. It is an Oceanian country comprising the
mainland of the Australian continent, the island of
Tasmania, and numerous smaller islands. It is the
world's sixth-largest country by total area.
As Australia consists of islands, it does not have any land
borders with other countries. However, its neighboring
countries include Indonesia, East Timor and Papua New
Guinea to the north, the Solomon Islands and Vanuatu
to the north-east, and New Zealand to the south-east.
Institution: Federal parliamentary
democracy and a commonwealth realm
Internet access: 88%
Official language: English
URL country code: .au
Dialing Code: +61
Source: Eurostat, Worldbank, 2014
© Ecommerce Foundation
Australia is one of the wealthiest in the world, with the
world's 12th-largest economy. With the second-highest
human development index globally, Australia ranks
highly in many international comparisons of national
performance, such as quality of life, health, education,
economic freedom and the protection of civil liberties
and political rights.
Australia is a member of the United Nations, G20,
Commonwealth of Nations, ANZUS, Organisation for
Economic Co-operation and Development (OECD),
World Trade Organization, Asia-Pacific Economic
Cooperation, and the Pacific Islands Forum.
www.ecommercefoundation.org
83%
of the Australian population
had access to the Internet in 2013
32
Key Demographic Indicators
Country Report Australia
Total population: 23,130,900
Australia covers an area of 7.6 billion
km2 with a population of around 23.1
million inhabitants.
The median age is 38.3 years and
41.8% of the population is between 25
and 54 years old, making it the
country’s largest age group.
49.8%
Median age:
Male:
Female:
50.2%
38.3 years
37.5 years
39.0 years
Population growth
+1.09%
Australia has 9.7 million households.
On average, each household comprised
2.3 persons in 2013.
Source: Eurostat, 2014
AGE STRUCTURE AUSTRALIA
The population is growing at an
average annual rate of 1.09%. Among
other things, this growth is influenced
by migration as Australia is a popular
destination for immigrants from
countries such as New Zealand, the UK
and India.
By age category, 2013
41.8%
18.0%
13.3%
0-14
15-24
11.8%
25-54
55-64
15.1%
65+
Source: Worldfactbook, 2014
Source: Worldfactbook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
33
Gross Domestic Product
Country Report Australia
GDP
Even though the Australian Gross Domestic
Product has been increasing steadily over the
past few years, the growth rate declined from
3.6% in 2012 to 2.7% in 2013. As a result, the
GDP increased to $1.53trn.
For 2014, the growth rate is expected to have
grown again, to 3.1%. The GDP is estimated to
have increased to $1.56trn last year.
eGDP
In 2013 the share of B2C e-commerce was 1.73%
of the total Australian GDP. The Internet is one
of the fastest-growing sectors compared to
traditional sectors. It is expected to be one of the
key drivers of the economy in the coming years.
TOTAL GROSS DOMESTIC PRODUCT AUSTRALIA
GDP at market prices, 2010 - 2014
Year
GDP (in millions
of dollars)
2014 (f)
$1,560,597
2013
$1,532,407
2012
$1,386,889
2011
$1,141,793
2010
$926,710
Source: Ecommerce Foundation, 2014
Source: Eurostat and IMF World Economic Outlook, 2014
GROSS DOMESTIC PRODUCT REAL GROWTH RATE AUSTRALIA
Percentage change of GDP, 2010 - 2014
3.6%
2.0%
2.2%
2010
2011
2.7%
2012
2013
3.1%
2014 (f)
Source: Eurostat and IMF World Economic Outlook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
34
Unemployment and Inflation
Country Report Australia
Unemployment
The Australian labor force reached the
mark of 12.4 million persons in 2013. With
the economy growing below potential, the
labor market is expected to remain
relatively weak in 2014.
Over the last few years, unemployment
has been slowly increasing in Australia. It
reached 5.4% in 2013 and is expected to
have grown to 6.0% in 2014.
Inflation
The Australian inflation rate increased
from 1.8% in 2012 to 2.2% last year. For
2014, this number is expected to have
increased again, to 2.5%.
UNEMPLOYMENT RATE AUSTRALIA
Percentage of the total labor force, 2010 - 2014
6.0%
5.3%
2010
5.0%
5.4%
5.1%
2011
2012
2013
2014 (f)
Source: Eurostat and IMF World Economic Outlook, 2014
INFLATION RATE AUSTRALIA
Source: Worldbank, 2014
Annual change on Consumer Price Index (CPI), 2010 - 2014
2.9%
3.3%
1.8%
2010
2011
2012
2.2%
2013
2.5%
2014 (f)
Source: Eurostat - IMF World Economic Outlook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
36
Online B2C Sales per Service Group
Country Report Australia
Online sales per service group
This table shows the percentage of online B2C sales
in the total service group. For example, of all the
Australian B2C sales in the Cinema Tickets
category, 25% were made online.
The table shows that travel-related services are
frequently sold online. People do not have to
physically go to a travel agency anymore for their
flights or hotel accommodation. As a result, most
sales in these categories are made through the
Internet.
ONLINE B2C SALES PER SERVICE GROUP AUSTRALIA
The percentage of online B2C sales in each service group in Australia
Cinema Tickets
25.0%
Event Tickets
69.0%
Insurance: Car Insurance
41.0%
Insurance: Home insurance
32.0%
Travel: Hotel Stays
70.0%
Travel: Leisure Flights
78.0%
Travel: Package Holidays
48.0%
00%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Sources: Ecommerce Foundation, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
39
Cross-border
Country Report Australia
The favorite countries for Australian crossborder e-shoppers were the US (69% of all
cross-border e-shoppers purchased at least
one item from an American online shop),
the UK (47%) and China (31%). The other
way around, China is the most popular
cross-border e-commerce destination for
Australian companies.
When shopping cross-border, Clothes,
Shoes and Accessories is the most popular
category among Australian e-shoppers,
with a revenue of $890,000. This category
is followed by Books ($480,000) and Airline
Tickets ($426,000).
© Ecommerce Foundation
CROSS-BORDER E-COMMERCE AUSTRALIA
Australia
Cross-border
In terms of cross-border e-commerce,
Australia can be a very good destination for
foreign companies. Being less effected by
the economic crisis, the Australian dollar is
a strong currency, as a result of which
buying from foreign companies can be
quite profitable for Australian companies.
Top 5 purchased goods, 2013
Rank
Category
Revenue
1
Clothes, Shoes and Accessories
$890,000
2
Books
$480,000
3
Airline Tickets
$426,000
4
Health & Beauty Products
$335,000
5
Personal Electronics
$275,000
Source: Payvision/ The Paypers.com, 2014
CROSS-BORDER E-COMMERCE AUSTRALIA
Australian consumers shopping overseas, 2013
Rank
Country
CROSS-BORDER E-COMMERCE AUSTRALIA
%
Top 3 countries Australian e-merchants sell to, 2013
Rank
Country
%
1
United States
69%
2
United Kingdom
47%
1
China
39%
3
China
31%
2
United Kingdom
18%
4
Hong Kong
29%
3
Japan
10%
5
Canada
9%
Source: Payvision/ The Paypers.com, 2014
Source: Payvision/ The Paypers.com, 2014
www.ecommercefoundation.org
42
Social Media
Country Report Australia
Facebook was used by
of the population
Social media
Facebook is the most popular social media
platform in Australia, with 81% of all
Australians using this platform. It is
interesting to note that almost two thirds
of all people with a Facebook account is
between 13 and 34 years old.
81%
FACEBOOK USERS
In terms of popularity, Twitter is lagging
behind. Still, 42% of the Australians had a
Twitter account in 2013.
Instagram is also a popular social media
platform in Australia, with 15% of the
population having an account.
Percentage of population, 2013
5.2%
8.3%
42%
7.6%
of the population had
a Twitter account
20.9%
13.3%
Instagram is used by
of the population
17.9%
26.8%
13-17 yrs
18-24 yrs
25-34 yrs
45-54 yrs
55-64 yrs
65+ yrs
15%
35-44 yrs
Source: Socialbaker, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
45
General Tips and Tricks
Country Report Australia
Every country has its own social habits and rules. Therefore, when doing business in a foreign country, you should be aware of
the DOs and DON’Ts of that particular nation.
Below, you will find some general tips and tricks that might help you when expanding to Australia.
•
•
•
•
Due to its small domestic market, Australia needs to trade actively on the international market place and Australians know
this – they are open to new ideas from overseas
Teams are best managed by somebody who wants to be part of the team, rather than by somebody who wishes to be seen as
apart from the team
Australians like people who say exactly what is on their mind
Do not get into immigration and aboriginal issues no matter how curious you are. Also, comments on accents will not be
appreciated, as they often distinguish social classes.
© Ecommerce Foundation
www.ecommercefoundation.org
46
Country Report China 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the Chinese B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
China 2013 Key Data at a Glance
1,357.3 million $ 328.4bn
people live in China
100%
Beijing
621.6 million
46%
E-commerce Turnover
Goods & Services
people use the Internet
22%
302.0 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
50% 50%
Services Goods
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
E-commerce GDP
2.68%
Total GDP $9,240.2bn
Chinese Trustmark:
Chinese national E-commerce
association:
1
1
2
2
3
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
67.3%
Share of Chinese ecommerce market in AsianPacific e-commerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report China
Area: 9,600,001km2
Capital: Beijing
Currency: Yuan (CNY)
China is officially called the People's Republic of
China (PRC) and is a sovereign state located in East
Asia. China is a single-party state governed by the
Communist Party, with its seat of government in the
capital city of Beijing.
China is the world's second-largest country by land
area, only behind Russia. The Himalaya, Karakoram,
Pamir and Tian Shan mountain ranges separate
China from South and Central Asia. China's coastline
along the Pacific Ocean is 14,500 kilometers long,
and is bounded by the Bohai, Yellow, East and South
China Seas.
Institution: Communist state
Internet access: 45.8%
URL country code: .cn
Official languages: Chinese, Mandarin
Dialing Code: +86
China has been a United Nations member since 1971
and is also a member of numerous formal and
informal multilateral organizations, including the
WTO, APEC, BRICS, the Shanghai Cooperation
Organization, the BCIM and the G-20.
45.8%
of Chinese population
used the Internet in 2013
Source: Eurostat, Worldbank, 2013
© Ecommerce Foundation
www.ecommercefoundation.org
49
Key Demographic Indicators
Country Report China
Total population: 1,357,380,000
China covers an area of 9.6 billion km2
with a population of around 1.3
billion inhabitants.
The median age is 36.7 years and
47.5% of the population is between
25 and 54 years old, making it the
country’s largest age group.
51.8%
Median age:
Male:
Female:
48.2%
36.7 years
35.8 years
35.7 years
Population growth
0.44%
There were 452.4 million households
in China in 2013. As a result, the
average household consisted of 3.0
persons.
As China introduced a family planning
policy in 1979, meaning that families
are encouraged to only have one
child. As a result of this policy, the
birthrate has decreased significantly
over the years.
Still, compared to 2012, the Chinese
population grew by 0.44% in 2013.
Naturally, this rate was also affected
by the migration of people to China.
AGE STRUCTURE CHINA
By age category, 2013
17.1%
0-14
47.5%
14.7%
15-24
25-54
11.3%
9.4%
55-64
65+
Source: Worldfactbook, 2014
Source: Worldfactbook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
50
Unemployment and Inflation
Country Report China
Unemployment
The total Chinese labor force
comprised 797.6 million persons
in 2013.
Unemployment has been quite
stable in China over the last few
years. Since 2010, this rate has
gradually increased, from 4.2% in
2010 to 4.6% in 2013.
For the first time in years,
unemployment is estimated to
have declined in 2014, to 4.1%.
Inflation
Inflation was recorded at 2.7% in
China in 2013. It is estimated that
this rate increased a little in 2014,
to 3.0%.
UNEMPLOYMENT RATE CHINA
Percentage of the total labor force, 2010 - 2014
4.6%
4.5%
4.2%
2010
4.4%
4.3%
2011
2012
2013
2014 (f)
Source: Eurostat and IMF World Economic Outlook 2013
INFLATION RATE CHINA
Annual change on Consumer Price Index (CPI), 2010 - 2014
5.4%
3.3%
2010
2011
2.7%
2.7%
3.0%
2012
2013
2014 (f)
Source: Eurostat and IMF World Economic Outlook 2013
© Ecommerce Foundation
www.ecommercefoundation.org
53
Share of Goods and Services
Country Report China
The share of online goods was
Top 10 Online purchased
estimated at 50% of the total
goods and services:
online sales of $328.4bn.
Source: FDIH Denmark
1. Travel and Cultural
Activities
2. Film, Music, Books, Games
3. Toys
4. Clothing,
Shoes and Jewelry
Services
5. IT, Telecom
50% and Photo
Goods
50%
Penetration levels (in %)
Internet
Mobile
Smartphone
Tablet
$328.4bn
total online sales
The shares of online goods and services in the total
B2C e-commerce of goods and services were both 50%.
In turnover, this amounted to $328.4bn for both online
goods and e-services.
In China, a division is made between cities on the basis
of size and GDP per capita. In total, there are four Tier 1
cities: Beijing, Shanghai, Guangzhou and Shenzhen. The
other Chinese metropolises are second-tier cities and
include Chengdu, Wuhan and Dalian.
However, many of these second-tier cities are on the
rise and have become interesting destinations for
foreign companies. They are primarily located in central
China and have been boosted by the Chinese stimulus
package that provided better highways and faster trains
to increase access to these areas.
Interestingly enough, e-commerce grows faster outside
of these first- and second-tier cities. Studies have
shown that online consumption grew 13.6% faster
outside of these cities than within them.
Source: Ecommerce Foundation, 2014
$1,087
Average expenditure
per e-shopper in 2013
Source: Ecommerce Foundation, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
55
Online B2C Sales per Service Group
Country Report China
Online sales per service group
This table shows the percentage of online B2C sales
in the total service group. For example, 44.2% of all
e-shoppers bought an item from Food and
beverage, health and wellness category.
The table shows that the Clothing accessories,
shoes and hats, bags and suitcases category was
most popular among digital shoppers. Almost 80%
of them bought something from this product group
in 2013.
MOST POPULAIR RETAIL CATEGORIES
By share of digital buyers July 2014
78.8%
44.2%
39.3%
38.4%
38.2%
34.8%
Books, audio and video products and software
were less popular with a little more than one third
of the e-shoppers buying an item from this
category.
Clothing,
Food and
Virtual products,
Cosmetics,
Mobile phones, Books, audio and
accessories, shoes beverage, health recharge cards, personal care and digital products, video products,
and hats, bags
and wellness
certificate,
wellness
household
software
and suitcases
coupon
applicances
information
Source: eMarketer, Statista 2015
© Ecommerce Foundation
www.ecommercefoundation.org
56
M-commerce
Country Report China
Mobile
Top 10 Online purchased
subscriptions
goods and services:
reached 72 per
Source: FDIH Denmark
100 households
1. Travel and Cultural
in 2013.
Activities
2. Film, Music, Books, Games
3. Toys
There
are 500mln
4. Clothing,
mobile
phoneShoes and Jewelry
5.
IT,
Telecom
users in China and Photo
Mobile commerce
Just like in other developed countries, mobile commerce is gaining
popularity in China. Whereas 21.8% of Chinese consumers bought
goods and/or services once a day through a mobile device in 2012,
this number increased to 22.5% in 2013. In addition, 23.9% had
made a mobile purchase once a week in 2013.
FREQUENCY OF MOBILE PURCHASES
Still, there are numerous reasons for Chinese consumers to not
purchase items through a mobile device. The most important
barrier is that the screen size is too small for properly buying goods
and/or services. In addition, Chinese consumers do not trust credit
card security on mobile devices and it takes them too much time to
open the website.
23.9%
23.7%
21.8%
2012
Once a day
22.5%
2013
Once a week
BARRIERS FOR CHINESE PEOPLE SHOP ON THEIR MOBILE DEVICE
Penetration levels (in %)
TOP 3 MOBILE PAYMENTS
Alipay (69.5%)
1. Internet
Credit Cards (27.8%)
2. Mobile
Payment on Delivery (24.5%)
3. Smartphone
Tablet
Source: Google Mobile Planet, 2014
© Ecommerce Foundation
Percentage of total population, 2013
Screen size is too small
Cannot trust credit card security on mobile device
Takes too much time to open the website page
Not used to smartphone interface
Information is not rich enough
Cannot see detailed product/service information
Hard to compare prices and options
Hard to type
Battery life is short
Mobile online access tend to be interrupted
Other
41.5%
40.5%
40.2%
34.6%
32.2%
28.3%
27.2%
19.9%
18.5%
17.3%
3.4%
www.ecommercefoundation.org
Source: Google Mobile Planet, 2014
59
Payments and VAT
Country Report China
48.7%
Payment methods
The most popular payment method for
online purchases in China was Alipay in
2013. 48.7% of the Chinese Internet
shoppers paid for their purchase using this
third-party payment platform.
MARKET SHARE OF LEADING THIRD-PARTY ONLINE PAYMENTS PROVIDERS
Share in 2013
19.4%
Ten Pay ranked second with 19.4%, followed
by UnionPay with 11.2%. 99bill (6.7%) and
China PnR (5.8%) completed the top 5.
VAT
China does not have a threshold for
registration for VAT, meaning that every
company in China has to pay VAT. The
standard VAT rate is 17%. However, there
are reduced VAT rates in place for food
grains and vegetable oils, heating, airconditioning, among other things (13%), for
transportation services (11%), for modern
services (6%), for small-scale taxpayers (3%)
and for agricultural products, contraceptive
drugs and devices, antique books, among
other things (0%).
11.2%
6.7%
Alipay
Tenpay
UnionPay
99bill
5.8%
China PnR
3.4%
2.9%
1.9%
Yeepay
IPS
Other
Source: iResearch, China Internet Watch, Statista 2015
VAT overview China
Threshold
No threshold
Standard VAT rate
17%
Reduced VAT rates
0%, 3%, 6%, 11% and 13%
Where to register
State Administration of Taxation
(SAT)
Periods for declaration
Quarterly
Source: International VAT Management, Van Driel Fruijtier Resseler
© Ecommerce Foundation
www.ecommercefoundation.org
62
Country Report India 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the Indian B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
India 2013 Key Data at a Glance
1,243.3 million
people live in India
100%
New Delhi
239.0 million
15%
$ 10.7bn
E-commerce Turnover
Goods & Services
people use the Internet
2%
24.6 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
50% 50%
Services Goods
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
E-commerce GDP
0.43%
Total GDP $1,876.7bn
Indian Trustmark:
1
2
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
1.5%
Share of Indian e-commerce
market in Asian-Pacific ecommerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Indian national e-commerce
association:
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report India
Area: 3,287,263 km2
Capital: New Delhi
Currency: Rupee(INR)
India is officially called the Republic of India and is
located in South Asia. It is the seventh-largest
country by area, the second-most populous country,
and the most populous democracy in the world.
Bounded by the Indian Ocean on the south, the
Arabian Sea on the south-west and the Bay of Bengal
on the south-east, India shares land borders with
Pakistan to the west, China, Nepal and Bhutan to the
north-east, and Burma and Bangladesh to the east.
In the Indian Ocean, India is in the vicinity of Sri
Lanka and the Maldives. In addition, India's Andaman
and Nicobar Islands share a maritime border with
Thailand and Indonesia.
Institution: Federal Republic
Internet access: 15%
URL country code: .in
Official languages: Hindi, Bengali, Telugu,
Marathi, Tamiol
Dialing Code: +91
The Indian economy is the world's tenth-largest by
nominal GDP and third-largest by purchasing power
parity (PPP). Following market-based economic
reforms in 1991, India became one of the fastestgrowing major economies and is considered a newly
industrialized country. However, it continues to face
the challenges of poverty, corruption, malnutrition,
inadequate public healthcare and terrorism.
15%
of Indian population
used the Internet in 2013
Source: Eurostat, Worldbank, 2013
© Ecommerce Foundation
www.ecommercefoundation.org
67
Key Demographic Indicators
Country Report India
Total population: 1,243,340,000
51.7%
Median age:
Male:
Female:
48.3%
27.0 years
26.4 years
27.7 years
Population growth
+1.25%
India covers an area of 3.2 million
km2 with a population of 1.2
billion people.
The median age is 27.0 years,
making India a very young country
in
comparison
with
other
countries. The reason for this is
that a large share of the
population (28.5%) is between 014 years old.
AGE STRUCTURE INDIA
By age category, 2013
India
has
305.4
million
households. As a result, the
average household comprised 4.0
persons.
In 2013, India’s population grew
by 1.25%. This rate is considerably
higher than in China, and it is
forecast that India will surpass
China as the most populous
country in the world in 2028.
40.7%
28.5%
18.1%
0-14
15-24
25-54
7.0%
5.7%
55-64
65+
Source: Worldfactbook, 2014
Source: Worldfactbook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
68
Gross Domestic Product
Country Report India
TOTAL GROSS DOMESTIC PRODUCT INDIA
GDP at market prices, 2010 - 2014
GDP
In 2013, the Indian GDP in constant prices
increased to $1.8trn. The real growth rate of
the GDP increased from 4.7% in 2012 to 5.0%
in 2013, ending a negative trend of the last
number of years.
In 2014, the Indian GDP is expected to have
increased by 5.6%. This will result in a GDP of
$2.0trn.
Year
GDP (in millions of
dollars)
2014 (f)
$2,047,800
2013
$1,876,797
2012
$1,858,744
2011
$1,880,100
2010
$1,708,458
Source: Eurostat and IMF World Economic Outlook, 2014
eGDP
Last year, the share of B2C e-commerce was
0.43% of the total Indian GDP. The Internet is
one of the fastest-growing sectors compared
to traditional sectors. It is expected to be one
of the key drivers of the economy in the
coming years.
GROSS DOMESTIC PRODUCT REAL GROWTH RATE INDIA
Percentage change of GDP, 2009 - 2014
Source: Ecommerce Foundation, 2014
10.3%
6.6%
4.7%
2010
2011
2012
5.0%
2013
5.6%
2014
Source: Eurostat and IMF World Economic Outlook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
69
Popular E-commerce Categories and E-tailers
Country Report India
E-commerce categories
Consumer Electronics was the most
popular e-commerce category in India
in 2013. Of all the Internet orders,
34% included an item from this
category.
Top 4 Goods and Services purchases online in 2013:
1. Consumer Electronics (34%)
2. Apparel and Accessories (30%)
3. Books (15%)
At 30%, Apparel and Accessories
ranked second, followed by Books
(15%) and Beauty and Personal Care
(10%).
Online retailers
Myntra.com, India’s largest fashion
and lifestyle website, is the most
visited online retailer in India. In 2013,
it attracted 14,000 visitors per day to
its website.
Flipkart.com is Myntra.com’s main
competitor with 13,000 visitors per
day, closely followed by Jabong.com
(12,500). Amazon.in (12,500) and
Snapdeal.com (8,500) complete the
top 5.
4. Beauty and Personal Care (10%)
SourcePayvision, 2014
Source: Payvision, 2014
TOP 5 ONLINE RETAILERS OF INDIA
Rank
Online Retailer
Visitors per day
1
Myntra.com
14,000
2
Flipkart.com
13,000
3
Jabong.com
12,500
4
Amazon.in
12,000
5
Snapdeal.com
8,500
Source: Payvision,, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
74
M-commerce
Country Report India
Mobile
Top 10 Online purchased
subscriptions
goods and services:
reached 74 per
Source: FDIH Denmark
100 households
1. Travel and Cultural
in 2013.
Activities
2. Film, Music, Books, Games
3. Toys
How
do Indians buy
4.their
Clothing,
Shoes and Jewelry
on
mobile
5.
IT,
Telecom
and Photo
devices?
Mobile commerce
M-commerce did not gain popularity in India. As a matter of fact,
whereas 26.1% of Indian consumers bought goods and/or services
once a week through a mobile device in 2012, this number
decreased to 25.7% in 2013. The number of people who purchased
an item through their mobile device once a day did increase a little,
from 17.5% to 17.8%.
FREQUENCY OF MOBILE PURCHASES
26.1%
17.5%
There are numerous reasons for Indian consumers to not purchase
items through a mobile device. The most important barrier is that
they do not trust credit card security on mobile devices. In
addition, Indian consumers find it hard to compare prices and
options on their mobile device and believe that the screen size is
too small.
2012
Once a day
25.7%
17.8%
2013
Once a week
BARRIERS FOR INDIAN PEOPLE TO SHOP ON THEIR MOBILE DEVICE
Penetration levels (in %)
TOP 3 MOBILE PAYMENTS
Payment on Delivery (45.6%)
1. Internet
Credit Card (44.4%)
2. Mobile
Debit Card (34.9%)
3. Smartphone
Tablet
Source: Google Mobile Planet, 2014
© Ecommerce Foundation
Percentage of total population, 2013
Cannot trust credit card security on mobile device
Hard to compare prices and options
Screen size is too small
Takes too much time to open the website page
Cannot see detailed product/service information
Mobile online access tend to be interrupted
Information is not rich enough
Hard to type
Battery life is short
Not used to smartphone interface
Other
www.ecommercefoundation.org
40.2%
29.5%
25.1%
24.0%
23.7%
19.7%
16.5%
13.8%
12.8%
10.9%
7.3%
Source: Google Mobile Planet, 2014
76
Social Media
Country Report India
Social media
Facebook and Twitter are not
very popular within India. On a
population of 1.2 billion people,
only 13 million consumers were
active on Twitter in 2013. With
9.6 million people, Facebook had
even less users during that year.
Of the people who do have a
Facebook account, 88.3% is
between 13 and 34 years old.
In terms of gender, there are
much more male social media
users than that there are female
users (70% vs. 30%).
Facebook has
Percentage of population, 2013
1.0%
2.5%
7.6%
0.6%
12.5%
13mn users on Twitter
27.1%
48.7%
SOCIAL MEDIA USERS BY GENDER
In % of total population
13-17 yrs
35-44 yrs
65+ yrs
18-24 yrs
45-54 yrs
25-34 yrs
55-64 yrs
Source: Socialbaker, 2014
70.0%
© Ecommerce Foundation
9.6mn users
FACEBOOK USERS
www.ecommercefoundation.org
30.0%
78
General Tips and Tricks
Country Report India
Every country has its own social habits and rules. Therefore, when doing business in a foreign country, you should be aware of
the DOs and DON’Ts of that particular nation.
Below, you will find some general tips and tricks that might help you when expanding to India.
•
•
•
•
•
•
Indians are very impressed by titles and degrees of education, so be sure to make yours well-known. Use a title, such as “Mr.”,
“Mrs.”, “Miss” or “Ms.” to address a person, especially if he or she is older to you
Business is not conducted during the numerous religious holidays, so it is best to check this first
Do not use the word “no”. It is much better to be vague. If you refuse an invitation, it is taken as a high insult. It is better for
you to say “maybe” or “I’ll try”
Indians avoid going directly to the point. They like talking around problems. If a mistake has occurred, they will avoid talking
about it
If you are invited for a business dinner, you will notice that people eat with their right hand and hold the drink with their left
one. Most restaurants have cutlery service, but you should, if the occasion demands, try to show respect and eat with your
right hand
The best time to visit India is between October and March, when conditions are pleasant across the country.
© Ecommerce Foundation
www.ecommercefoundation.org
79
Country Report Indonesia 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the Indonesian B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
Indonesia 2013 Key Data at a Glance
249.8 million $ 3.6bn
people live in Indonesia
100%
39.4 million
16%
people use the Internet
2%
Jakarta
50% 50%
Services Goods
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
E-commerce GDP
Total GDP $868.3bn
Indonesian Trustmark:
4.3 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
0.32%
E-commerce Turnover
Goods & Services
1
2
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
0.7%
Share of Indonesian ecommerce market in AsianPacific e-commerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Indonesian national e-commerce
association:
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report Indonesia
Area: 3,287,260 km2
Capital: Jakarta
Currency: Rupiah(IDR)
Indonesia is officially called the Republic of
Indonesia. It is a sovereign state in Southeast Asia
and Oceania. Indonesia is an archipelago
comprising
thousands
of
islands
and
encompasses 34 provinces.
In terms of land area, Indonesia is the 15thlargest country in world and the fourth-most
populous one.
The country shares land borders with Papua New
Guinea, East Timor, and Malaysia. Other
neighboring countries include Singapore, the
Philippines, Australia, Palau, and the Indian
territory of the Andaman and Nicobar Islands.
Institution: Federal Republic
Internet access: 39%
URL country code: .mx
Official languages: Bahasa Indonesia
Foreign languages spoken: English, Dutch
Dialing Code: +62
Indonesia is a founding member of ASEAN and a
member of the G-20 major economies. The
Indonesian economy is the world's 17th-largest by
nominal GDP.
16%
of Indonesian population
use the Internet in 2013
Source: Eurostat, Wiorldbank, 2013
© Ecommerce Foundation
www.ecommercefoundation.org
82
Key Demographic Indicators
Country Report Indonesia
Total population: 249,895,631
50.3%
Median age:
Male:
Female:
49.7%
29.2 years
28.7 years
29.8 years
Population growth
+0.95%
Indonesia covers an area of 3.2
million km2 with a population of
249.8 million people.
The median age is 29.2 years,
making Indonesia a quite young
country in comparison with other
countries. The reason for this is
that a large share of the
population (26.2%) is between 014 years old.
Indonesia has 66.4 million
households. As a result, the
average household comprised 3.7
persons.
AGE STRUCTURE INDONESIAN
In 2013, Indonesia’s population
grew by 0.95%.
17.1%
By age category, 2013
42.4%
26.2%
0-14
15-24
25-54
7.9%
6.4%
55-64
65+
Source: Worldfactbook, 2014
Source: Worldfactbook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
83
Unemployment and Inflation
Country Report Indonesia
UNEMPLOYMENT RATE INDONESIA
Unemployment
The Indonesian labor force
reached the mark of 120 million
persons in 2013.
In total, 5.8% of this labor force
was
unemployed,
which
represents a small decrease
compared to 2012 (4.9%).
Unemployment is expected to
decrease a little further in 2014,
with an estimated unemployment
rate of 5.7%.
Inflation
In comparison with 2012, inflation
increased to 6.4% in Indonesia in
2013. In 2014, it is expected that
this number has remained at
6.4%.
Percentage of the total labor force, 2010 - 2014
7.4%
2010
6.8%
6.2%
2011
2012
5.8%
2013
5.7%
2014 (f)
Source: Eurostat and IMF World Economic Outlook 2013
INFLATION RATE INDONESIA
Annual change on Consumer Price Index (CPI), 2010 - 2014
5.1%
2010
5.4%
6.4%
6.4%
2013
2014 (f)
4.3%
2011
2012
Source: Eurostat and IMF World Economic Outlook 2013
© Ecommerce Foundation
www.ecommercefoundation.org
86
Share of Goods and Services
Country Report Indonesia
The turnover of online services
Top 10 Online purchased
were estimated at 50% of total
goods and services:
online sales at $1.8bn.
Source: FDIH Denmark
1. Travel and Cultural
Activities
2. Film, Music, Books, Games
3. Toys
4. Clothing, Shoes and Jewelry
5. IT, Telecom
Photo
Services and
Goods
50%
50%
Penetration levels (in %)
Internet
Mobile
Smartphone
Tablet
$3.6bn
total online sales
© Ecommerce Foundation
The combined turnover of online goods and services
reached $3.6bn in 2013 and both goods and services
represented 50% of this amount. As a result, the
turnover of online goods and that of online services
both amounted to $1.8bn.
The B2C e-commerce market in Indonesia looks a lot
like the early years of the e-commerce market of the
western world; people are hesitant about paying
online due to a lack of trust, the logistics
infrastructure almost non-existent and there are not
any large e-commerce players yet.
However, Indonesia also shows a lot of resemblance
with the beginning of the e-commerce boom in China.
It has a lively entrepreneurial base of sellers who are
finding their way to the Internet, social
recommendations are growing more and more
important and numerous innovative payments
systems are emerging rapidly.
As a result, the Indonesian B2C e-commerce market is
set to become a small combination of these two
major e-commerce markets over the next few years.
www.ecommercefoundation.org
Source: Ecommerce Foundation, 2014
$312
Average expenditure
2013 per e-shopper
88
Online B2C Sales per Product Group
Country Report Indonesia
Online sales per product group
This table shows the percentage of online B2C
sales in the total product group. For example, of
all the Indonesian B2C sales in the Books
category, 11.0% were made online.
ONLINE B2C SALES PER PRODUCT GROUP INDONESIA
The percentage of online B2C sales in each product group in Indonesia
Books
11.0%
Electronics: Consumer
9.0%
Electronics: Information Technology (IT)
Products from the Clothing category were most
popular online, with 39.1% of all purchases
within this product group being made online.
16.1%
Fashion: Clothing
39.1%
Fashion: Shoes and Personal Lifestyle
In the Tickets category, 16.9% of the purchases
were made through the Internet.
8.8%
Tickets
For the Media/Entertainment category,
Indonesian consumers primarily used offline
channels. Only 5.5% of the total B2C sales in this
product group was made online.
16.9
Media / Entertainment
5.5%
00%
05%
10%
15%
20%
25%
30%
35%
40%
45%
Sources: Ecommerce Foundation, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
90
Payments and VAT
Country Report Indonesia
TOP ONLINE PAYMENT METHODS
Payment methods
Indonesian consumers mostly
used Bank Transfers (57%)
when they purchased goods
and/or services online in 2013.
Cash on Delivery ranked
second with 28%.
A third popular payment
method was the use of Credit
Cards (2%). Of all Internet
purchases, 7.0% were made
using a credit card.
Others;
8.0%
Credit Card;
7.0%
Bank Transfer;
57.0%
Cash on
Delivery;
28.0%
Source: ThePaypers, 2014
“Online shops with a
turnover exceeding
$48,012 per year
must be registered
for VAT in Indonesia”
10%
Standard VAT rate
VAT
Online shops with a turnover exceeding $48,012 per year must be
registered for VAT in Indonesia. The standard VAT rate is 10%
here, but there is also a reduced VAT rate of 0% for goods
produced by mining or drilling that are taken directly from their
source, basic necessities such as rice, corn and salt, food and
beverages sold at hotels and the like, as well as money, gold
ingots and negotiable instruments.
VAT overview Indonesia
Threshold for registration
$48,012 (IDR600,000,000)
Standard VAT rate
10%
Reduced VAT rates
0%
Where to register
The Directorate General of Taxes
Periods for declaration
Monthly
Source: International VAT Management, Van Driel Fruijtier Resseler
© Ecommerce Foundation
www.ecommercefoundation.org
93
Social Media
Country Report Indonesia
Social media
Facebook had many Indonesian users
in 2013, with about 28% of the
population having an account.
Nearly 90% of the Facebook users are
between 13 and 34 years of age. This
shows that this social media platform
is especially popular among younger
people in Indonesia.
Twitter also quite popular among the
Indonesian population with more
than 20% having an account.
Facebook is used by
of the population
FACEBOOK USERS
Percentage of population, 2013
1.9%
0.4%
27.6%
1.9%
6.9%
21.9%
20.8%
23.7%
of the population has
a Twitter account
43.3%
However, Instagram is even more
popular than both Facebook and
Twitter. Almost one third of the
Indonesian people had an account on
this social media platform in 2013.
© Ecommerce Foundation
13-17 yrs
35-44 yrs
65+ yrs
18-24 yrs
45-54 yrs
25-34 yrs
55-64 yrs
Source: Socialbaker, 2014
www.ecommercefoundation.org
Instagram is used by
of the population
32.0%
94
General Tips and Tricks
Country Report Indonesia
Every country has its own social habits and rules. Therefore, when doing business in a foreign country, you should be aware of
the DOs and DON’Ts of that particular nation.
Below, you will find some general tips and tricks that might help you when expanding to Indonesia.
•
•
•
•
•
•
Negotiations can be lengthier than you may be used to in your country of origin. Multiple meetings may be necessary in order
to come to a final decision or agreement. Refrain from hurrying your Indonesian business partners along, as this may cause
offense
Do not take every yes as a yes. In the native language, Bahasa Indonesia, there are 12 words that say yes but really mean no.
You should interpret a, “Yes, but– ” as a clear “No.” It is up to the listener to read between the lines and pay attention to body
language to get the real message
On Chinese New Year, give children and people you frequently deal with, and who are not government employees, a gift of
money. The money must be an even number of new bills, and presented in a red envelope (Chinese)
The left hand is considered unclean. Do not touch food, pass or receive anything, touch anyone or point with your left hand.
Westerners are expected to be punctual for business appointments. Call ahead when you are delayed. However, it is very
common for Indonesians to arrive late
It is best to conduct a first meeting with the highest ranking person of a company. An introduction from a local associate or
bank representative is helpful.
© Ecommerce Foundation
www.ecommercefoundation.org
95
Country Report Japan 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the Japanese B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
Japan 2013 Key data at a glance
127.3 million $ 136.7bn
people live in Japan
100%
Tokyo
109.8 million
86%
E-commerce Turnover
Goods & Services
people use the Internet
59%
75.6 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
65% 35%
Services Goods
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
1
E-commerce GDP
2.10%
Total GDP $4,901.5bn
Japanese Trustmark:
Japanese national E-commerce
association:
2
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
18.6%
Share of Japanese ecommerce market in AsianPacific e-commerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report Japan
Area: 177,955 km2
Capital: Tokyo
Currency: Yen (JPY)
Japan is a stratovolcanic archipelago of 6,852 islands
in Southeast Asia. The country’s four largest islands
are Honshu, Hokkaido, Kyushu, and Shikoku, which
together comprise about 97% of Japan's land area.
Located in the Pacific Ocean, Japan lies to the east of
the Sea of Japan, China, North Korea, South Korea
and Russia, stretching from the Sea of Okhotsk in the
north to the East China Sea and Taiwan in the south.
Institution: A parliamentary government
with a constitutional monarchy
Internet access: 86%
URL country code: .jp
Official languages: Japanese
Dialing Code: +81
A major economic power, Japan is a developed
country and has the world's third-largest economy
by nominal GDP and the world's fourth-largest
economy by purchasing power parity. It is also the
world's fifth-largest exporter and fifth-largest
importer.
Japan ranks high in metrics of prosperity such as the
Human Development Index, with the Japanese
population enjoying the highest life expectancy of
any country in the world and the infant mortality
rate being the third-lowest globally.
86%
of Japanese population
used the Internet in 2013
Source: Eurostat, Wiorldbank, 2013
© Ecommerce Foundation
www.ecommercefoundation.org
98
Key Demographic Indicators
Country Report Japan
Total population: 127,338,621
48.7%
Median age:
Male:
Female:
51.3%
46.1 years
44.8 years
47.5 years
Population growth
-0.13%
Source: Worldfactbook, 2014
© Ecommerce Foundation
Japan covers an area of 177,955
km2 with a population of 127.3
million people.
The median age is 46.1 years,
making Japan a rather old country
in
comparison
with
other
countries. The reason for this is
that a large share of the
population (24.8%) is between
older than 65 years.
AGE STRUCTURE JAPAN
By age category, 2013
Japan
has
54.4
million
households. As a result, the
average household comprised 2.3
persons.
Japan’s population decreased by
0.13% in 2013. The main reason
for this is that there are more
deaths than births in the country.
If this trend continues, it is
expected that Japan will lose one
third of its population in the next
50 years.
39.1%
24.8%
13.2%
9.7%
3.2%
0-14
15-24
25-54
55-64
65+
Source: Worldfactbook, 2014
www.ecommercefoundation.org
99
Gross Domestic Product
Country Report Japan
TOTAL GROSS DOMESTIC PRODUCT JAPAN
GDP at market prices, 2010 - 2014
GDP
In 2013, the Japanese GDP in constant prices
increased to $4.9trn. The real growth rate of
the GDP increased very slightly, from 1.4% in
2012 to 1.5% in 2013.
In 2014, the growth of the Japanese GDP is
expected to drop again, as the growth rate is
expected to have decreased to a negative
value (-1.9%). This resulted in an estimated
GDP of $4.7trn.
eGDP
Last year, the share of B2C e-commerce was
2.10% of the total Japanese GDP. The Internet
is one of the fastest-growing sectors compared
to traditional sectors. It is expected to be one
of the key drivers of the economy in the
coming years.
Year
GDP (in millions of
dollars)
2014 (f)
$4,769,800
2013
$4,901,529
2012
$5,937,766
2011
$5,905,630
2010
$5,495,387
Source: Eurostat and IMF World Economic Outlook, 2014
GROSS DOMESTIC PRODUCT REAL GROWTH RATE JAPAN
Percentage change of GDP, 2009 - 2014
Source: Ecommerce Foundation, 2014
4.7%
2010
2011
-0.5%
1.4%
1.5%
2012
2013
2014
-1.9%
Source: Eurostat and IMF World Economic Outlook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
100
Unemployment and Inflation
Country Report Japan
UNEMPLOYMENT RATE JAPAN
Unemployment
The Japanese labor force reached
the mark of 65.6 million persons
in 2013.
Percentage of the total labor force, 2010 - 2014
5.1%
4.6%
4.3%
4.3%
2012
2013
4.2%
In total, 4.3% of this labor force
was unemployed, which is equal
to rate in 2012.
Unemployment is expected to
decrease a little in 2014, with an
estimated unemployment rate of
4.2%.
2010
2011
2014 (f)
Source: Eurostat and IMF World Economic Outlook 2013
INFLATION RATE JAPAN
Annual change on Consumer Price Index (CPI), 2010 - 2014
Inflation
Inflation increased from 5.1% in
2012 to 6.3% last year. It is
expected that this number
remained at 6.3% in 2014.
7.1%
8.3%
5.1%
2010
2011
2012
6.3%
6.3%
2013
2014 (f)
Source: Eurostat and IMF World Economic Outlook 2013
© Ecommerce Foundation
www.ecommercefoundation.org
102
Popular E-commerce Categories and E-tailers
Country Report Japan
E-commerce categories
Accessories and footwear were the
most popular e-commerce category in
2013. Of all the Internet orders in
Japan, 33% included an item from this
category.
Top 4 Goods and Services purchases online in 2013:
1. Accessoires and Footwear (33%)
2. Food & Nearfood (21%)
3. Media Products (20%)
At 21%, Food & Nearfood ranked
second. Media Products (20%),
Consumer Electronics (9%) and
Household Goods (7%) completed the
top 5.
Online retailers
Amazon is the most important online
retailer in Japan in terms of unique
visitors per month. It is followed by
Rakuten Ichiba and Yahoo Shopping.
4. Consumer Electronics (9%)
5. Household Goods (7%)
Source: Statista, Payvision, Ecommerce Foundation 2014
TOP 5 ONLINE RETAILERS OF JAPAN
Rank
Online Retailer
1
Amazon
2
Rakuten Ichiba
3
Yahoo Shopping
4
Yahoo auctions
5
Kakaku.com
Source: Payvision,, 2014
© Ecommerce Foundation
SourcePayvision, 2014
www.ecommercefoundation.org
105
Online B2C Sales per Service Group
Country Report Japan
Online sales per service group
This table shows the percentage of online B2C sales
in the total service group. For example, of all the
Japanese B2C sales in the Cinema Tickets category,
10% were made online.
ONLINE B2C SALES PER SERVICE GROUP JAPAN
The table shows that, in general, purchasing
services online is quite popular in Japan. Only in the
category of Car Insurance, less than a quarter of
the total sales in this category were made through
the Internet. At 73% of the total turnover being
made online, Hotel Stays is the most popular
service with regard to Internet sales.
Event Tickets
The percentage of online B2C sales in each service group in Japan
Cinema Tickets
26%
64%
Insurance: Car Insurance
10%
Insurance: Home insurance
40%
Travel: Hotel Stays
73%
Travel: Leisure Flights
53%
Travel: Package Holidays
49%
00%
10%
20%
30%
40%
50%
60%
70%
80%
Sources: Ecommerce Foundation, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
106
M-commerce
Country Report Japan
Mobile
Top 10 Online purchased
subscriptions
goods and services:
reached 102 per
Source: FDIH Denmark
100 households
1. Travel and Cultural
in 2013.
Activities
2. Film, Music, Books, Games
3. Toys
How
do Japanese buy
4.their
Clothing,
Shoes and Jewelry
on
mobile
5.
IT,
Telecom
and Photo
devices?
Mobile commerce
Mobile commerce did not gain popularity in Japan. As a matter of
fact, whereas 49.3% of Japanese consumers bought goods and/or
services once a week through a mobile device in 2012, this number
decreased to 46.6% in 2013. The number of people who purchased
an item through their mobile device once a day did increase a little,
from 9.2% to 10.5%.
FREQUENCY OF MOBILE PURCHASES
49.3%
9.2%
There are numerous reasons for Japanese consumers to not
purchase items through a mobile device. The most important
barrier is that the screen size is too small for properly buying goods
and/or services. In addition, Japanese consumers do not trust credit
card security on mobile devices and believe the battery life of
these devices is short.
2012
Once a day
46.6%
10.5%
2013
Once a week
BARRIERS FOR JAPANESE PEOPLE TO SHOP ON THEIR MOBILE DEVICE
TOP
3 MOBILElevels
PAYMENTS
Penetration
(in %)
1. Credit Card (64.5%)
2.Internet
Payment at convenience store
Mobile
(22.5%)
3.Smartphone
Payment on Delivery (14.8%)
Tablet
Source: Google Mobile Planet, 2014
© Ecommerce Foundation
Percentage of total population, 2013
Screen size is too small
Cannot trust credit card security on mobile device
Battery life is short
Hard to compare prices and options
Takes too much time to open the website page
Hard to type
Information is not rich enough
Cannot see detailed product/service information
Mobile online access tend to be interrupted
Not used to smartphone interface
Other
www.ecommercefoundation.org
44.1%
29.8%
21.6%
19.2%
19.1%
18.9%
18.6%
16.7%
9.2%
8.3%
7.9%
Source: Google Mobile Planet, 2014
109
Country Report South Korea 2014
Facts, Figures & Trends of 2013 and Forecast 2014 of the South Korean B2C E-commerce Market
www.ecommercefoundation.org
Under auspices
of:
South Korea 2013 Key Data at a Glance
Seoul
$ 20.2bn
50.1 million
100%
people live in South-Korea E-commerce Turnover
Goods & Services
42.4 million
85%
people use the Internet
43%
24.4 million
people are e-shoppers
North America $452.4 bn +10.1%
Latin America $33.2 bn +21.5%
Europe $482.3 bn +17.1%
MENA $14.7 bn +32.7%
Asia-Pacific $567.3 bn +44.6%
50% 50%
Services Goods
Ranking World
in turnover ($ million)
Total B2C E-commerce 2013 of goods & services
1
E-commerce GDP
1.17%
Total GDP $1,304.5bn
South Korean Trustmark:
South Korean national Ecommerce association:
2
3
1
2
3
4
5
6
7
8
United States
China
United Kingdom
Japan
Germany
France
Australia
Canada
In cooperation with:
$
$
$
$
$
$
$
$
419,000
328,428
142,315
136,710
84,201
67,865
35,764
23,972
2.7%
Share of South-Korean ecommerce market in AsianPacific e-commerce market
Estimated 54% social media users
© Ecommerce Foundation Dec 2014
info: [email protected]
for reports: [email protected]
Twitter: @eComFound
Free download at:
https://www.ecommerce-europe.eu/
facts-figures/free-downloads
Country Profile
Country Report South Korea
km2
Area: 100,140
Capital: Seoul
Currency: WON (KRW)
South Korea is officially called the Republic of
Korea and commonly referred to as Korea. It is a
country in East Asia, constituting the southern part
of the Korean Peninsula.
South Korea shares land borders with North Korea to
the north, and oversea borders with Japan to the
east and China to the west.
South Korea is East Asia's highest ranked developed
country in the Human Development Index. Its
citizens enjoy a very high standard of living. Globally,
it is one of the highest ranked countries in education,
quality of healthcare, ease of doing business and job
security.
Institution: Republic
Internet access: 85%
URL country code: .kr
Official languages: Korean
Foreign languages: English
Dialing Code: +82
Source: Eurostat, Wiorldbank, 2013
© Ecommerce Foundation
It is the world's most research- and developmentintensive country and measured to be the most
innovative country by Bloomberg. South Korea is the
world's seventh largest importer and eighth largest
exporter, driven by high-tech multinationals such as
Samsung, Hyundai-Kia and LG. A highly advanced
information society, South Korea has the world's
fastest Internet connection speed, ranking first in eGovernment and 4G LTE penetration, and second in
smartphone penetration.
www.ecommercefoundation.org
85%
of South Korean population
used the Internet in 2013
115
Key Demographic Indicators
Country Report South Korea
Total population: 50,100,000
South Korea covers an area of
100,140 km2 with a population of
50.1 million people.
The median age is 40.2 years and
47.7% of the population is
between 25 and 54 years old,
making it the country’s largest age
group.
49.7%
Median age:
Male:
Female:
50.3%
40.2 years
38.7 years
41.6 years
Population growth
+0.16%
South Korea has 19.6 million
households. As a result, the
average household comprised 2.5
persons.
South
Korea’s
population
increased by 0.16% in 2013. This
small increase is partly due to the
country’s
strict
immigration
policies.
AGE STRUCTURE SOUTH KOREA
By age category, 2013
47.7%
14.1%
13.5%
0-14
15-24
25-54
12.4%
12.3%
55-64
65+
Source: Worldfactbook, 2014
Source: Worldfactbook, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
116
GDP per Capita and Consumer Confidence
Country Report South Korea
GDP per capita
In South Korea, the GDP per capita
at current prices was $25,977 last
year. In 2014, this number is
projected to grow and reach
$26,248, meaning that the standard
of living will improve for South
Koreans.
Consumer confidence
South Korean consumers have
become increasingly satisfied with
their economy over the years.
GROSS DOMESTIC PRODUCT PER CAPITA SOUTH KOREA
At current prices, 2010 - 2014
Year
GDP per capita
2014 (f)
$26,248
2013
$25,977
2012
$24,454
2011
$24,156
2010
$22,151
Source: Eurostat and IMF World Economic Outlook, 2014
Source: Heritage.org, 2014
Since October 2012, when the CCI
was at its lowest at -2.0, consumer
confidence has gradually increased.
In January 2013 this rate already
reached positive figures at 2.0 and
one year later it even stood at 9.0.
CONSUMER CONFIDENCE INDEX SOUTH KOREA
CCI on a three-month basis, 2012 - 2013
9.0
5.0
4.0
2.0
2.0
Jan-13
Apr-13
6.0
0.0
Apr-12
Jul-12
Oct-12
-2.0
Jul-13
Oct-13
Jan-14
Source: Finland National Statistics April 2012 – January 2014
© Ecommerce Foundation
www.ecommercefoundation.org
118
B2C E-commerce of Goods and Services
Country Report South Korea
B2C e-commerce
Around 24.4 million South Korean
e-shoppers bought goods and
services online for a total amount
of $20.2bn in 2013. This is an
increase of 12.4% compared to
2012.
Over the last few years, the
growth rate has decreased,
indicating that the South Korean
online market is becoming more
and more mature. For 2014,
another decrease in the growth
rate has been estimated. The
South Korean B2C e-commerce is
expected to have grown by 5.4%,
to $21.3bn.
B2C E-COMMERCE SOUTH KOREA
Total sales of goods and service, in billions of dollars, 2010 - 2014
$13,875
2010
$18,018
$15,961
2011
2012
$20,242
$21,329
2013
2014 (f)
Source: Ecommerce Foundation, 2014
B2C E-COMMERCE GROWTH SOUTH KOREA
Percentage change in B2C e-commerce turnover, 2010 - 2014
53.8%
15.0%
2010
2011
12.9%
2012
12.4%
2013
5.4%
2014 (f)
Source: Ecommerce Foundation, 2014
© Ecommerce Foundation
www.ecommercefoundation.org
120
Share of Goods and Services
Country Report South Korea
The turnover of online services
Top 10 Online purchased
were estimated at 50% of total
goods and services:
online sales at $10.1bn.
Source: FDIH Denmark
1. Travel and Cultural
Activities
2. Film, Music, Books, Games
3. Toys
4. Clothing, Shoes and Jewelry
5. IT, Telecom
Photo
Services and
Goods
50%
50%
Penetration levels (in %)
Internet
Mobile
Smartphone
Tablet
$20.2bn
total online sales
© Ecommerce Foundation
The combined turnover of online goods and
services reached $20.2bn in 2013 and both goods
and services represented 50% of this amount. As a
result, the turnover of online goods and that of
online services both amounted to $10.1bn.
Shopping is very popular among South Koreans. In
addition, the country enjoys very fast Internet
connections and around two thirds of the
population has a smartphone. As a result, South
Korea is an ideal e-commerce market.
Still, it is not easy to enter the South Korean
market as a foreign company. Several international
e-commerce giants tried to conquer South Korea,
such as Groupon and Yahoo, but they were not
able to establish themselves there.
The main reason for this is that there already are
several domestic “copycats” which are very
popular among South Koreans. This makes it
difficult for western companies to obtain a piece of
the e-commerce pie in South Korea.
www.ecommercefoundation.org
Source: Ecommerce Foundation, 2014
$829
Average expenditure
2013 per e-shopper
121
Payments and VAT
Country Report South Korea
TOP ONLINE PAYMENT METHODS
Payment methods
South Korean consumers
mostly use Credit Cards
(73.6%) when they purchased
goods and/or services online
in 2013. Money Transfers
accounted for 22.6% of all
online payments, and E-money
ranked third with 2.0%
EMoney;
2.0%
Other;
1.8%
Money
Transfer;
22.6%
Credit
Cards;
73.6%
VAT
South Korea does not have a threshold for registration for
VAT, meaning that every company in South Korea has to
pay VAT. The standard VAT rate is 10%, but there is a zero
rate in place for the export of goods, the supply of services
outside Korea, the supply of international transportation
services by vessel or aircraft, and the supply of certain
goods or services for which the compensation is received
in foreign exchange. In addition, goods and services such as
unprocessed basic foodstuffs, tap water and medical and
health services are exempted from VAT.
VAT overview South Korea
Source: Payvision, 2014
10%
Standard VAT rate
Threshold for registration
No Threshold
Standard VAT rate
10%
Reduced VAT rates
0%
Where to register
National Tax Service
(http://www.nts.go.kr)
Periods for declaration
Quarterly
Source: International VAT Management, Van Driel Fruijtier Resseler
© Ecommerce Foundation
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124
Social Media
Country Report South Korea
Social media
Facebook had a lot of South Korean
users, with about 75% of the
population having an account. More
than three quarters (78%) of the
Facebook users is between 13 and 34
years of age. This shows that this social
media platform is especially popular
among younger people in South Korea.
Facebook is used by
of the population
FACEBOOK USERS
Percentage of population, 2013
6.9%
2.1%
75%
0.8%
15.7%
12.2%
Twitter is also quite popular among
South Koreans, with more than halve
(56%) having a Twitter account. In
addition, 38% of the population had an
account on Google+ in 2013.
SOCIAL MEDIA USERS BY GENDER
In % of total population
46.2%
© Ecommerce Foundation
34.0%
28.3%
13-17 yrs
35-44 yrs
65+ yrs
18-24 yrs
45-54 yrs
56%
of the population has
a Twitter account
25-34 yrs
55-64 yrs
Source: Socialbaker, 2014
Google+ is used by
of the population
38%
53.8%
www.ecommercefoundation.org
125
General Tips and Tricks
Country Report South Korea
Every country has its own social habits and rules. Therefore, when doing business in a foreign country, you should be aware of
the DOs and DON’Ts of that particular nation.
Below, you will find some general tips and tricks that might help you when expanding to South Korea.
•
•
•
•
•
Koreans believe that contracts are a starting point, rather than the final stage of a business agreement and prefer them to be
left flexible enough so that adjustments can be made
Maintain an element of modesty and humility as these aspects are extremely important in Korean culture. With this in mind,
you must try to avoid over-selling previous business achievements
Refrain from being overly impatient. The decision-making process in Korea is often done collectively and will therefore require
more time
Do not address a Korean by his or her given name as it is considered extremely impolite. Korean names begin with the family
name and are followed by a two-part given name. The correct way to address a Korean is with Mr., Mrs., Miss or Ms. together
with their family name. You should address your Korean counterparts using appropriate titles until specifically invited to do
otherwise.
Do not display criticism in public. It should be conducted in private where loss of face will be diminished. In a similar vein,
opposing someone directly can also cause a Korean to lose face and should be avoided.
© Ecommerce Foundation
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126
Global B2C E-commerce
Report
2014
About
Ecommerce
Foundation
Information about Ecommerce Foundation and its Reports
www.ecommercefoundation.org
Under auspices
of:
Information about Ecommerce Foundation
About Ecommerce Foundation
Mission
A lot of information is available on the Internet but the information is fragmented
and often shallow, lacking real insights and depth. The Ecommerce Foundation’s
objective is to help retailers to expand and improve their e-commerce activities with
key market data, practical expert insights & cross-company benchmarking.
Services
The Ecommerce Foundation aims to fulfil its objective by offering specific services to
consumers all over the world:
• Market reports: the goal of these reports is to help retailers make better choices
when going cross-border. The Foundation has already collected necessary insights
for 48 countries (online penetration, e-commerce turnover per segment, payment
and logistical insights, does & don’ts, etc.)
• Ecommerce Wiki: the goal of the Ecommerce Wiki is to collect all necessary
knowledge for starting, operating and improving an online shop at one single
source. From branding and performance advertising to merchandising, selecting
an e-commerce platform and customer care
• Ecommerce Benchmark: the goal of the Ecommerce Benchmark is to allow CEOs,
CMOs and E-commerce Directors to compare their e-commerce activities with
other players in their industry, without providing any insights to their competitors
• Practical insights: ad hoc reports using the Ecommerce Foundation network to
get insights into new developments and trends.
© Ecommerce Foundation
One of the Ecommerce Foundation’s other services, the Ecommerce Benchmark
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128
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About Ecommerce Foundation and its reports
About the reports
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Light reports
Ecommerce Europe also publishes light reports, which contain a summary of the
full reports. These light reports can be freely downloaded from www.ecommerceeurope.eu/facts-figures/free-downloads
© Ecommerce Foundation
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Global Online Measurement Standard B2C E-Commerce (GOMSEC)
About Ecommerce Foundation and its reports
Classification of B2C E-commerce
GOMSEC
Definition of B2C e-commerce sales
GOMSEC aims to provide guidelines for measuring and
monitoring B2C e-commerce. As a result, all countries
worldwide are enable to provide data with respect to the
penetration of B2C e-commerce in a standardized way. All
Ecommerce Europe figures and estimates are based on
GOMSEC, unless stated otherwise. The data and research
by GfK is also in accordance with GOMSEC.
“Any B2C contract regarding the sale of goods and/or The following classification in Table 1 provides an overview
services, fully or partly concluded by a technique for of areas and sectors included in GOMSEC.
distance communication.”
Online purchases of the following items are excluded from
Technique for distance communication: means that can GOMSEC:
be used for communication regarding the offer made by • Transactions between private individuals/ consumers
(C2C), such as auctions and marketplaces, and between
the trader and the conclusion of a contract, without the
businesses (B2B)
necessity of the consumer and trader being in the same
• Online gambling and gaming
place at the same time.
• Cars and other motor vehicles
Contract: a contract whereby use is made, either solely • Houses and real estate
or in part, of one or more techniques for distance • Utilities (e.g. water, heating and electricity)
communication within the framework of a system • Mortgages, loans, credit cards and overdrafts
organized by the trader for the distance sale of goods • Savings accounts, funds, stocks&shares and bonds
and/or services, up to and including the moment that
B2C e-commerce therefore includes all online transactions
the contract is concluded;
between businesses and consumers using desktop
computers, laptops, tablets, smartphones, point-of-sales
and smart-wearables, for instance through online shops,
physical stores (“online instore”), email, QR codes,
catalogue, etc. B2C e-commerce includes Value Added Tax
(VAT) or other sales tax, delivery costs and Apps, but
excludes returns.
The GOMSEC reports on sales figures for the total B2C ecommerce worldwide and for each country apart in the
country profiles, based on total sales of goods and
services.
Total sales of goods and services are based on the
areas/sectors/classification of areas and sectors, as
stated on the next few pages.
All data reported in the national currency of the country
involved are converted into dollars according to the
average (annual) rate of exchange as provided by,
preferably, the European Central Bank (ECB) or the
national bank of the particular country. The reference
period that is used for this was from 1 January 2013 to 31
December 2013. Growth rates are calculated and
measured by the B2C e-commerce sales in the national
currency.
© Ecommerce Foundation
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130
Global Online Measurement Standard B2C E-Commerce (GOMSEC)
About Ecommerce Foundation and its reports
Food/Nearfood/Health
Food/Nearfood
Health & Beauty
Food & Beverages
Personal care & Hygiene
Fresh produce
Baby care
Packaged consumer goods
Perfume
Detergents/household cleaning
OTC
Animal feed
Tobacco
Event Tickets
Event Tickets
Tickets for concerts and festivals
Tickets for (movie) theaters
Tickets for zoos and amusement parks
Tickets for museums
Tickets for sports games
Fashion
Clothing
Underwear & Upperwear
Children's wear
Swimwear & Sportswear
Nightwear & legwear
Shoes & Personal lifestyle
Shoes
Jewellery, Bijoux, Watches & others
fashion accessories (e.g. sunglasses)
Bags, wallets, suitcases
Sports & Recreation
Sport & Recreation
Sports hardware (e.g. soccer shoes, tennis rackets)
Bicycles & accessories
Articles for camping and recreation
Electronics
Consumer Electronics Information Technology (IT)
Photo equipment
Audio equipment
IT hardware (PCs, laptops,
tablets, etc.)
Computer Software
TV/video equipment Music instruments
Car electronics
(navigation, audio,
etc.)
USB sticks, DVD/CDrecordable, ink cartridges,
computer accessories
Household Electronics
MDA:
airconditioning,
dishwashers, wash
machines and other
white goods
SDA: equipment for
personal care, home
comfort, kitchen
appliances
Toys
Toys
Indoor and outdoor toys
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Global Online Measurement Standard B2C E-Commerce (GOMSEC)
About Ecommerce Foundation and its reports
Insurances
Package Travel
Package travel
Travel
Flight Tickets & Accommodations
Flight Tickets
Private transport if booked
through a tour operator
Hotel stays
Apartment/bungalow/camping site
New indemnity, Life and Health Insurances
-> all of the above not booked in
combination with other travel-parts
Media & Entertainment
Media & Entertainment
Music (physical, download & streaming)/Spotify based on new subscriptions
Video (DVD, blu-ray, downloads)
Games hardware & games software
Books & e-books
Apps
New subscriptions newspapers ands magazines (no single copy sales)
Telecom
Telecom
Smartphones, mobile phones & mobile devices
Telefax and answering machines
Headsets & Accessoires (mobile) phones
Prepaid cards and tariffs of new phone subscriptions
© Ecommerce Foundation
Liability insurance
Car insurance
Fire and theft insurance
ANW-gap insurance
(insurance for receiving a
payment in addition to a
survivor's allowance)
Health Insurance –
Base
Health insurance –
additional
Bike/caravan/motorbike/
Scooter insurance
Accident insurance
Boat insurance
Legal assistance insurance
Home insurance
Travel insurance
(continuous/annual + shortterm)
Insurance package
Annuity insurance
Pension
Life insurance
Funeral insurance
Endowment insurance
based on savings
Endowment insurance
based on investments
Disability insurance –
entrepreneurs
Disability insurance –
private
Mortgage-related
disability insurance
Mixed insurance
(=endowment
insurance + life
insurance)
Services
Dating based on new
subscriptions
Other Services
www.ecommercefoundation.org
Others
Products
Cars and parts
Products for animals
Flowers & Plants
Optician (excl. sunglasses, hearing aid)
Adult
132
Definitions related to the Internet, E-commerce and Online Retailing
About Ecommerce Foundation and its reports
Broadband access: the availability of broadband is measured by the
percentage of households that are connectable to an exchange that has
been converted to support DSL technology, to a cable network upgraded
for Internet traffic, or to other broadband technologies. It includes fixed
and mobile connections (source: Eurostat)
•
E-households: number of households that use the Internet for personal
gain.
•
E-household expenditure: expenditure per household that bought goods
or services in the past year.
•
Cross-border e-commerce: percentage of e-commerce purchased at
foreign sites
•
•
E-commerce (or electronic commerce), a subset of e-business: any B2C
contract on the sale of products or services fully or partly concluded by a
technique for distance communication.
Global Online Measurement Standard for B2C E-commerce (GOMSEC):
aims to provide guidelines to measure and monitor B2C e-commerce in
order to enable all European countries to provide data with respect to the
penetration of B2C e-commerce in a standardized way.
•
E-services or electronic services: “Deeds, efforts or performances whose
delivery is mediated by information technology. Such e-service includes
the service element of e-retailing, customer support, and service delivery.”
This definition reflects three main components: service providers, service
receivers and the channels of service delivery (i.e. technology). (Jennifer
Rowley, Professor Information and Communications, Manchester
Metropolitan University, UK)
•
Inactive online population: users that have access to the Internet but have
not (yet) purchased goods or services online in the past year.
•
•
E-commerce GDP: total amount of goods and services online divided by
the total Gross Domestic Product (GDP).
•
Economic Freedom Index: the Index of Economic Freedom is an annual
guide published by The Wall Street Journal and The Heritage Foundation,
Washington's No. 1 think tank. For over a decade, the Wall Street Journal
and The Heritage Foundation have tracked the march of economic
freedom around the world with the influential Index of Economic
Freedom.
© Ecommerce Foundation
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133
Definitions related to the Internet, E-commerce and Online Retailing
About Ecommerce Foundation and its reports
•
•
•
•
Logistics Performance Index (LPI): The Logistics Performance Index (LPI)
measures the “logistics friendliness” of 155 countries. It helps countries
identify the challenges and opportunities they face in their trade logistics
performance and what they can do to improve this. The Index is developed
by the World Bank and is based on a worldwide survey of operators, such
as global freight forwarders and express carriers.
Mobile commerce (or m-commerce): the ability to conduct commerce
using a mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet
or other (emerging) mobile equipment.
Mobile subscriptions: mobile cellular telephone subscriptions are
subscriptions to a public mobile telephone service using cellular
technology, which provide access to the public switched telephone
network. Post-paid and prepaid subscriptions are included (source:
Eurostat)
Online buyer (or e-shopper, e-buyer): an individual who regularly bought
or ordered goods or services through the Internet.
© Ecommerce Foundation
•
Online expenditure: spending per user who purchased goods or services
online.
•
Online Retail (or e-retail, electronic retail or retailing or even e-tailing):
the selling of retail goods and services on the Internet. In the limited sense
of the word, sectors such as online leisure travel, event tickets,
downloading music or software are not included. Online-only retail shops
are often referred to as pure players.
•
Penetration levels: the percentage of a population using the Internet,
mobile phones, smartphones or tablet devices.
•
Retail sales: the selling of mainly goods from businesses to individuals
from a traditional or so-called bricks-and-mortar shop.
•
The Ease of Doing Business Index is developed by the World Bank, and
averages the country's percentile rankings on nine topics. It is made up of
a variety of indicators, giving equal weight to each topic. The rankings for
all economies are benchmarked to June 2010. The Index covers 185
countries.
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134
Methodology , Acknowledgements and Sources
About Ecommerce Foundation and its reports
This report could only be realized by consulting a great
many sources, available in various countries and regions
in Europe and around the globe. The wide variety of
sources include public domain publications, blogs,
websites, industry and financial specialist publications,
regional and local news, annual reports and press
releases. Sometimes the information sources are
contradictory. Sometimes different figures and data were
given by different sources within the same country, for
example due to different definitions.
In our reports and country profiles we have mentioned
different sources, definitions and the different outcomes
of such reports, studies and interpretations. This report is
meant solely for use by the recipient and is not for
circulation. This report is based on information that we
consider reliable, but we cannot vouch for it being
accurate or complete, nor should it be relied upon as
such. Opinions expressed are our current opinions as of
the date of this report.
© Ecommerce Foundation
The sources consulted include:
(Inter)national Associations
• Ecommerce Europe
• Distansehandel Norge (Norway)
• FDIH (Denmark)
• KAUPPA (Finland)
• SDH (Sweden)
• Adigital (Spain)
• BeCommerce (Belgium)
• BvH (Germany)
• Händlerbund (Germany)
• ETID (Turkey)
• FEVAD (France)
• National Retail Federation (USA)
• Netcomm (Italy)
• Retail Excellence (Ireland)
• Shop.org (USA)
• Sdh (Sweden)
• Apec (Czech Republic)
• Thuiswinkel.org (Netherlands)
• Netcomm Suisse (Switzerland)
• BritORA (United Kingdom)
Corporate sources
• A.T. Kearney
• Deloitte
• Facebook
• Forrester
• GfK
• Google
• Hybris
• Innopay
• Planet Retail
• SaleSupply
• Social Bakers
• Twitter
• TNS NIPO
• I-Research
• TWS Global
Other sources
• Digital Hub Development Agency (DHDA)
• European Commission
• Eurostat
• European Central Bank (ECB)
• European Banking Association (EBA Clearing)
• International Monetary Fund (IMF)
• International Telecommunications Union (ITU)
• Internetworldstats
• National Statistics offices
• The Heritage Foundation
• United Nations (UN)
• CIA: World Factbook
• World Economic Forum
• Statista.com
• Worldbank
Publications
• eMarketer
• E-commercefacts.com
• Eurostat
• Internet Retailing
• Tribes.no
• Digitaleastfactor.com
• Euromonitor.com
•
•
•
•
•
•
www.ecommercefoundation.org
Dibspayment.com
Ystats.com
Ekathimerini.com
Ecommercenews.eu
About-payments.com
The Modern Spice Routes (PayPal)
135
About
the
Authors
About Ecommerce Foundation and its reports
Bert Nagelvoort, Senior Researcher E-commerce
Aad Weening, Advisor International E-commerce
Bert Nagelvoort (1977) has been working for Ecommerce Europe since 2013. He
is involved in international e-commerce and develops the Ecommerce Europe
reports and the Ecommerce foundation reports. He studied Business
Administration at Radboud University Nijmegen and he has a great interest in
the international (digital) economy and e-commerce.
Aad Weening (1941) has been involved in distance selling and retail practically
all his working life. From 1966 until 1979 he offered legal and economic advice
as well as lobbying services.
Previously, he worked as Project Manager in the financial services industry.
Please feel free to contact Bert at: [email protected]
From 1979 he managed the Dutch Mail Order Association (currently
Thuiswinkel.org), at first in the Netherlands and later on a European level.
Between 1993 and 2006 he served as the Secretary General of the European
Distance Selling Trade Association (EMOTA). At the moment, Weening is Senior
Advisor at Ecommerce Europe and the Ecommerce Foundation.
Richard van Welie, Editor
Jorij Abraham, Director Research & Advice
Richard van Welie (1979) has been working for Ecommerce Europe as an
editor since March 2014. Prior to this, he worked as a freelance
translator/copywriter for five of years. One of his main tasks is providing
content for the Ecommerce Europe reports.
Jorij Abraham (1972) has been part of the international e-commerce community
since 1997. He was an e-commerce manager at Bijenkorf, TUI and Sanoma
Media and Director of Consulting at Unic.
After graduating in Communication Sciences in 2004, he studied American
Studies at Radboud University Nijmegen and graduated in 2008.
Since 2013 he has been Director of Research & Advice at Ecommerce Europe.
He is also director of the eCommerce Foundation, a research institute offering
practical e-commerce research and benchmark services.
Jaap van Erp, Trainee Research & Advice
Peter van den Brink, Trainee Research & Advice
Jaap van Erp (1988) has been working for Ecommerce Europe since 2014. He
studied Marketing Management at Tilburg University and is interested in
research. He is involved in the research of the e-commerce market and is codeveloper of the Ecommerce Europe reports and the Ecommerce foundation
reports.
Peter van den Brink (1992) has worked for Ecommerce Europe since 2014. He
studies Business Management at the University of Applied Sciences in Ede. He
is involved in the research of the e-commerce market and is co-developer of
the Ecommerce Europe reports and the Ecommerce foundation reports.
© Ecommerce Foundation
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136
Address, Disclaimer and Copyright
About Ecommerce Foundation and its reports
Ecommerce Foundation
Apollolaan 98
1077 BE Amsterdam - Netherlands
Website: www.ecommerce-europe.eu
Contact us at: [email protected]
For reports: [email protected]
Twitter: @Ecommerce_eu
In cooperation with:
Disclaimer
The B2C E-Commerce Reports are publications by Ecommerce Foundation and/or Ecommerce
Europe. Although the utmost care has been taken in the construction of this report, there is
always the possibility that some information is incorrect. No liability is accepted by Ecommerce
Foundation and/or Ecommerce Europe for direct or indirect damage arising pursuant to use of
the report.
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It is allowed to use information published in this report, provided that there is a proper source of
information: Ecommerce Foundation and/or Ecommerce Europe / https://www.ecommerceeurope.eu/facts-figures/
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