Building global e-commerce market share? Know your destination. A retailer’s growth will follow a different path in developing countries, versus mature markets. According to eMarketer, worldwide business-to-consumer ecommerce sales will increase by 20.1% this year to reach $1.5 trillion. For the first time, consumers in Asia are expected to spend more on e-commerce purchases than those in North America.
“Think Global, but Act Local’ should apply to all global e-commerce strategy. Every country has a unique e-commerce logistics landscape.”
But in many developing countries, poor logistics infrastructure means that retailers may not see ROI for up to five years, despite high growth figures. And it’s important to know the local landscape; e-commerce supply chains are evolving in highly divergent ways, influenced by local regulation economic and cultural factors. In India, for example, the soon-to-be implemented Goods and Services Tax (GST) is transforming a network of smaller distribution centers to a consolidated system of fewer, larger facilities. It’s also no surprise that the “Big Three” integrators — UPS, Fedex and DHL are setting their sights on China, despite regulatory and competitive pressures, according to this Journal of Commerce.
In mature markets, on the other hand, growth is more measured and competition is high – yet retailers are taking advantage of established infrastructure to drive more immediate profits. New omni-channel strategies are transforming logistics models to satisfy demanding customers through ‘click and collect’ and other rapid delivery methods.
For more information on the e-commerce logistics landscape in specific countries, click here.
By: Kris Bjorson, head of JLL’s retail, e-commerce and distribution division