China is anticipated to have the most extensive e-commerce market in the world in 2022, with nearly half of its retail sales taking place online. Following closely after are the UK and South Korea, where more than 36% and 32% of retail purchases, respectively, are anticipated to be made online.
Beyond the chart: With its roughly $3 trillion e-commerce sector, China will surpass the two runners-up in absolute dollar quantities. Digital sales will total over $246 billion in the UK and $143 billion in South Korea. Only the US will surpass $1 trillion in e-commerce orders, although that amount will only account for 16.1% of all retail sales.
Since individuals frequently shopped online out of necessity during the epidemic, it has been difficult to overlook how quickly e-commerce has grown throughout the world. As a result, firms have had to quickly adapt their business models.
Almost every aspect of online shopping has changed or advanced since March 2020, including consumer behavior, demand forecasting, and retention.
The only nation from Southeast Asia on the list is Indonesia. The market in Indonesia, which has the fourth-largest population in the world, is anticipated to increase by 19.00% annually to reach US$37.8 billion in 2022.
The B2C e-commerce sector's medium- to long-term growth story in Indonesia seems promising. Over the projected period, B2C e-commerce is anticipated to expand gradually, with a CAGR of 15.56% between 2022 and 2026. The Gross Merchandise Value of B2C e-commerce in the nation will rise from US$31.7 billion in 2021 to US$67.3 billion in 2026.
Due to social isolation measures taken to control Covid-19 and the global pandemic epidemic, which kept most people to their homes, the B2C e-commerce business expanded globally. The global growth of online transactions was boosted by the stay-at-home strategy, and Indonesia was no exception.
Comparing Indonesia to other developed economies like the US, France, Spain, and Sweden, ecommerce transactions as a percentage of overall retail sales are also greater in Indonesia.
With over 40% of the regional market share, the nation is expected to become one of the largest digital economies in Southeast Asia. In the short to medium term, it is anticipated that Indonesia's young population will play a significant role in propelling the industry's growth.
Homegrown e-commerce marketplaces like Tokopedia and Shopee continue to dominate the market in terms of competition. These firms now have a larger portion of the market than their rivals Lazada, Bukalapak, Blibli, and JD.com Indonesia.
Each of the nation's e-commerce markets has a particular advantage. For instance, Shopee has a closed-loop ecosystem because to its logistics and payment services, and the company now has access to more resources thanks to the merging of Tokopedia and Gojek.
The Bukalapak mitra initiative, on the other hand, focuses on mom-and-pop shops all throughout the nation. While there are numerous things that set these players apart, there are also many things that bring them together, such as marketing materials, free delivery, and promotional initiatives.
Source: InsiderIntelligence.com, Statista.com, BusinessWire.com, econsultancy.com