The term Retail refers to the process of selling goods and services to a consumer by any means in order to make some profit and when it is done with the use of internet, it is called online retailing.
In online retail sector the transaction of goods and services between retailer and consumer is done remotely over the internet. Online retailing is growing at a very fast pace because of the penetration of mobile phones and internet services. There are various websites and applications launched for mobile phones which makes the reach of online retail sector wide.
Growth of Online Retail sector in Asia
According to the report Asia-Pacific B2C E-Commerce Market, over one half of total global online retail sales happens in the Asia-Pacific region. The report covers sales data, trends, payment preferences of consumers and other pertinent information about eleven economies of the region.
The report says that over three-fourths of E-Commerce in the region is M-Commerce, and merchant apps account for more than half of purchases made through a mobile device.
Based on the analyses it is concluded that over 50% of all the online shopping for retail goods and services takes place in the Asia Pacific region, where China, Japan and South Korea are the major players. Other countries of the region like India, Thailand, Vietnam, Indonesia and Philippines also show a rise in percentage of online shopping transactions. South-East Asia accounts for about 40% of the e-commerce market of the region.
Now one of the major sector in retail industry is e-commerce. South Korea was the first country in the region where e-commerce became biggest channel in 2013 having 11% of total retail sales. Now China is leading the region with 17% of the retail sales claimed by e-commerce. Alibaba group and JD.com are the leading retailers in China.
One of the main reason for the evolution of Retail Sector and the future of retail sector in the region is the spread of Internet connectivity through mobile devices, especially smartphones. Other reasons such as the unavailability of products domestically, affordable costs, consumer-focused targeting by market players, and higher quality of goods, are leading to an increase in the demand for online retail services.
The success achieved by e-commerce in the region lead to an intense competition among online merchants. China’s Alibaba and JD.com are the regional leaders, Amazon is also trying to take advantage of the growth of retail sector in the region, various local and regional players are also in the market.
The competition between the merchants will provide more opportunity for consumers and it will work in the direction of taking retail industry to a new level.
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