MARKET INSIGHTS

CHINA
BY DHL EXPRESS
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CHINA
AT A GLANCE
QUICK INTRODUCTION
Population: 1.4 billion VAT: 17%
Currency: CNY GDP per Capita: US$11,199

56.26% US$3,428
Internet penetration Average spend per shopper

US$681.9bn 33.3% 36%

B2C e-commerce turnover Growth e-commerce market Of the population shops online

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CHINA
E-COMMERCE DEVELOPMENT
This year, nearly one-quarter (24.0%) of digital buyers in China will buy
internationally, eMarketer predicts — representing an 11.5% increase from 2017.

 Cross-border retail e-commerce sales will rise 15.3% in 2018 to reach US$115.47
billion, and will hit US$144.15 billion in 2021

 Pitney Bowes pegged China’s 2017 increase in cross-border buyer penetration at

12%, second only to India (18%). As for the rest of Asia-Pacific, the share of digital
buyers purchasing on foreign sites is still increasing in South Korea (8%), while
Australia already has a high number of buyers making purchases internationally

 Cross-border e-commerce in China will remain unfettered in 2018 as the Ministry of

Commerce (MOFCOM) – People’s Republic of China, for the second year, decided to
postpone higher taxes on goods bought online from foreign sites

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CHINA
E-COMMERCE ENVIRONMENT
China is the largest e-commerce market in the world with a higher
market volume than the US. 41% of online shoppers have bought
an item from Europe. 67% of Chinese online purchases are made
41%
through eWallets. Chinese buyers purchase overseas products Of online shoppers have
bought from the EU
online to fulfill their demand for premium goods.

TOP ONLINE SOCIAL MEDIA USAGE

PAYMENT METHODS
China is the world's largest social network market. Its market composition
eWallet (PayPal): 62% varies considerably from the rest of the world. Due to the Great Firewall of
Credit cards: 10% China, Facebook, Twitter and YouTube are all blocked in China. However,
Bank transfer: 8% China’s social media landscape is not incomparable with its western
Cash on delivery: 8% counterparts. Tencent’s Qzone, the most valuable social media brand in
Other: 5% China as of 2013, is a combination of Facebook and Tumblr, where users
Debit cards: 4% share photos, leave messages and blog.
Pre-paid 3%

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CHINA
REASONS FOR BUYING ABROAD
Most Chinese consumers favor cross-border shopping
due to better quality products, better offers, variety and
authenticity. The need for authenticity was stronger in
2017, as there were continuous media reports on
counterfeit products in local retail markets.
EC100 research shows that Chinese
customers are shifting from being price
sensitive to quality sensitive. This means that
Chinese shoppers will accept higher prices if
products have better quality and brand
prestige.

H1
2017

Better Better cost Wide range Authenticity

quality performance of choices assured

2016 2016 2017

Price Quality
Better Lower prices Better Wide range
quality for same availability of choices
product than domestic

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CHINA
FACTS AND FIGURES
E-SHOPPER PENETRATION: REGIONAL E-SHOPPER SPENDING GROWTH
Share of internet users shopping online, regional, 2017 (f) Average amount spent per e-shopper, per year, Asia Pacific,
2014- 2017(f); e-shopper spending growth rate, Asia
Pacific, 2015-2017(f), US$
6.7%
70.0% 5.25%
-1%
58%
50.4% 1,293.73
43.5% 43.5% 45.5%
1,218.81 1.206.81
1,154.78

South Asia Pacific Middle Overall Europe North 2014 2015 2016 2017
America East & America
Africa

North America has the highest share of Average spending per e-shopper is increasing in
e-shoppers at 70%. Asia Pacific.

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MARKET INSIGHTS

HONG KONG
BY DHL EXPRESS
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HONG KONG
AT A GLANCE
QUICK INTRODUCTION
Population: 7.2 million VAT: 0%
Currency: HKD GDP per Capita: US$54,279

87.3% US$1,206
Internet penetration Average spend per shopper

US$2.9bn 10.2% 50.6%

B2C e-commerce turnover Growth e-commerce market Of the population shops online

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HONG KONG
E-COMMERCE ENVIRONMENT

Only 24% of consumers prefer to shop in traditional

brick and mortar stores. Women are more likely to
shop online in Hong Kong than men. 48% of people in
Hong Kong read online reviews about a product
48%
Read online reviews
before making an online purchase. about products

TOP ONLINE SOCIAL MEDIA USAGE

PAYMENT METHODS
Credit cards: 55% 76% 15%
eWallet (PayPal): 21%
Bank Transfer: 8% 29% 24%
Cash on delivery: 7%
Debit cards: 3% 43% 12%
Pre-paid 3%
Other: 3%

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HONG KONG
A BIG E-COMMERCE OPPPORTUNITY
Hong Kong has one shopping mall for every square mile, so until now, e-commerce hasn’t seen
the explosive growth it has in other countries. But with 5 million of its 7.4 million population
online, e-commerce is set to grow in coming years.

POOR ONLINE SHOPPING EXPERIENCES

 Online shoppers in Hong Kong are unhappy with service standards.
 Only 38% say they’re satisfied, compared with 83% in the US, 78% in Europe, and 60% in China.
 Offer a great service online and you’ll have a better chance of success.

YOUNG AUDIENCE
 Almost 100% of those 44 or under use the internet.
 For those 65 or older, this drops to 44%.

WHAT HONG KONG’S ONLINE SHOPPERS WANT

 Waiving of shipping/delivery fees
 Convenience to shop anytime and anywhere
 Special discounts offered online

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HONG KONG
REASONS FOR NOT POTENTIALLY REASONS FOR POTENTIALLY
BUYING ONLINE BUYING ONLINE

38%
36% 36%
54%

28%
40% 38%
23%

13% 12%

Trust/worry about the quality of the product 38% Waiving of shipping/delivery fee 54%
Distance to physical stores in Hong Kong is short 36% Convenience to shop anytime and anywhere 40%
Dislike paying shipping costs 36% Special discounts are offered online 38%
Need the products/services immediately 28% Online payments are more secure and convenient 13%
Don’t like the pricing strategy of online stores 23% Ability to purchase from shops overseas 12%

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HONG KONG
FACTS AND FIGURES
E-SHOPPER PENETRATION REGIONAL E-SHOPPER SPENDING GROWTH
Share of internet users shopping online, regional, 2017(f) Average amount spent per e-shopper, per year, Asia Pacific,
2014-2017(f); e-shopper spending growth rate, Asia Pacific,
2015-2017(f), US$ 6.7%
5.25%
-1%
70.0%
58%
50.4% 1,293.73
43.5% 43.5% 45.5%
1,218.81 1,206.81
1,154.78

South Asia Middle Overall Europe North 2014 2015 2016 2017
America Pacific East & America
Africa

North America has the highest share of e-shoppers Average spending per e-shopper is increasing in
at 70% Asia Pacific

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HONG KONG
INDUSTRY COMMENTS

FASHION
 41% of Hong Kong millennials intend to buy fashion
items online in the next two years,
up from 28% in 2016.

ELECTRONICS
 Long-term trends paint a positive picture of telecoms,
circuitry, and smartphone imports,
 although the Hong Kong market dropped slightly 2015
to 2016. Enjoy more cross-border
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BEAUTY PRODUCTS
 Up 22% between 2015 and 2016, the health and beauty
market in Hong Kong is buoyant.

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MARKET INSIGHTS

JAPAN
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JAPAN
AT A GLANCE

QUICK INTRODUCTION
Population: 127 million VAT: 8%
Currency: JPY GDP per Capita: US$38,282

92.7% US$892.53
Internet penetration Average spend per shopper

US$79.2bn 32.6%
B2C e-commerce turnover Growth e-commerce market
76%
Of the population shops online

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JAPAN
MOST POPULAR PURCHASES FOR
CROSS–BORDER SHOPPING
 According to a November 2016 MasterCard survey,
crossborder accounted for 17.5% of digital purchases in
India and 19.9% in Japan. 27%
21% 20%
 According to Ministry of Economy, Trade and Industry 14%
(METI) - Japan data issued in 2017, online buyers in 21%
10%
China spent $3.92 billion in the US and $0.21 billion in
Japan during 2016. This is much less than buyers in the
US and Japan spent in China: Those from Japan spent
$9.53 billion on sites in China and $5.66 billion in the US.
Books, CDs or video games 27%
Cosmetics 21%
 The largest and fastest growing e-commerce and cross Clothing and footwear 20%
border e-commerce markets are all in the Asia-Pacific Food 14%
region, with China being the leader. Higher internet Digital cameras 12%
penetration, increasing mobile usage, a rising middle Mobile phones 10%
class, and improved delivery infrastructure are some of
the triggers of this rapid growth.

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JAPAN
E-COMMERCE ENVIRONMENT
E-COMMERCE SALES

55
Japan is a popular cross-border People
destination for Asian countries, (US$, billions)
overthe 66.6
especially for India and South Korea.
ageof
Owing to their aging population, it is
the Japanese over 55 years who
over 54.2
49.2 48.3
spend most time online. spend the most time online 45

TOP ONLINE SOCIAL MEDIA USAGE

PAYMENT METHODS
Credit cards: 56%
Other: 20% 17% 2%
Bank transfer: 13%
Cash on delivery:
eWallet (PayPal):
7%
2%
15% 2%
Debit cards: 1% 2012 2013 2014 2015 2016

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JAPAN
REASONS FOR NOT BUYING ABROAD REASONS FOR BUYING ABROAD
45%
50%
38%

26% 25% 23% 23%

17%
13%
9%

Own country meets my needs 50% Better availability 45%

Assume will struggle with language 26% Better conditions 38%
Assuming difficult to return/costly 25% Better quality 17%
Assuming delivery takes longer 23% Broader range of products 13%
Not trusting foreign sites 23% Appealing offer 9%

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JAPAN
FACTS AND FIGURES
E-SHOPPER PENETRATION REGIONAL E-SHOPPER SPENDING GROWTH
Share of internet users shopping online, regional 2017(f) Average amount spent per e-shopper, per year, Asia Pacific,
2014 - 2017(f); e-shopper spending growth rate, Asia
Pacific, 2015 - 2017(f), in US$
6.7%
70% 5.25%
58% -1%
50% 1,293.73
43.5% 43.5% 46%
1,218.81 1.206.81
1,154.78

South Asia Middle Overall Europe North 2014 2015 2016 2017
America Pacific East & America
Africa

North America has the highest share of Average spending per e-shopper is increasing
e-shoppers at 70%. in Asia Pacific.

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JAPAN
 Using credit and debit cards is the most preferred  Japan is a popular cross-border destination for
payment method, while bank transfer is their Asian countries, especially for India and South
second choice. Korea.

 Twitter is used by 36% of the Japanese  E-comerce takes a share of 2.8% of Japan’s $4123
population. Japanese online shoppers engage billion GDP. With the aging population, Japanese
with brands on social media to get coupons and people over the age of 55 spend the most time
free products. online amongst all age groups.

 With rapidly growing mobile usage, online  Rakuten, Amazon Japan, and Yahoo Japan
transactions on mobile platforms make up nearly Shopping are the three biggest marketplaces in
60% of all purchases, with sales of $16 billion. the country, with around 50% of the total
Japanese annual e-commerce revenue in 2015.
 Japanese shoppers are generally risk averse so
they only look for brands they know and trust.
Low return rates and excellent customer service
are expected in their purchases.

Enjoy more cross-border

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SOUTH KOREA
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SOUTH KOREA
AT A GLANCE
QUICK INTRODUCTION
Population: 50.4 million VAT: 10%
Currency: KRW GDP per Capita: US$49,928

95.2% US$759
Internet penetration Average spend per shopper

US$43.6bn 33.3% 61.5%

B2C e-commerce turnover Growth e-commerce Of the population shops
market online

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SOUTH KOREA
E-COMMERCE ENVIRONMENT

2nd
South Korea are 2nd on the International
Information and Communication Technologies
(ICT) Development Index, making them online E-COMMERCE SALES
experts. South Korea is the third largest e-
commerce market in the Asia-Pacific region. (US$, billions)
Female Korean shoppers are more likely to shop On the ICT 37.2

online than male shoppers. 33.6

Development Index 31.8
30.2
27.9
TOP ONLINE SOCIAL MEDIA USAGE
PAYMENT METHODS
Credit cards: 63%
45.7% 30%
eWallet (PayPal): 10% 43.1% of the Korean population use
Other: 9% social media, according to a survey
Debit cards: 6% by Korea Information Society
Cash on delivery: 5% Development Institute.
Bank transfer: 4% Kakao Story is the most widely-used
Pre-paid 3% social media (45.7%), followed by
Facebook (30%).
2012 2013 2014 2015 2016

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SOUTH KOREA
THE MARKET
 South Korea is the third largest e-commerce market in MOST POPULAR PRODUCTS
the Asia-Pacific region. Domestic online purchases still SOURCED FROM DOMESTIC
ONLINE RETAILERS
make up a majority of South Korea’s e-commerce
revenue, but cross-border e-commerce has been rapidly 17.4%
growing, reaching $1.6 billion in 2016.
11% 10.6% 10.2%

 With high smartphone penetration rates and outstanding 7.9%

6.2%
internet infrastructure in this country, m-commerce sales
account for more than 53% of the total market volume.
Mobile e-commerce will continue to be the key driver of
orea’s e-commerce growth. Travel and Reservation Services 17.4%
Home Appliances and Electronics 11%
 Amazon and eBay are the most popular overseas Clothing 10.6%
marketplaces Korean shoppers visit. Home and Car Accessories 10.2%
Cosmetics 7.9%
Computers 6.2%

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SOUTH KOREA
FACTS AND FIGURES
E-SHOPPER PENETRATION REGIONAL E-SHOPPER SPENDING GROWTH
Average amount spent per e-shopper, per year, Asia Pacific,
Share of internet users shopping online, regional 2017(f)
2014 - 2017(f); e-shopper spending growth rate, Asia
Pacific, 2015 - 2017(f), in US$
6.7%
5.25%
70% -1%
58%
50% 1,293.73
43.5% 43.5% 46%
1,218.81 1.206.81
1,154.78

South Asia Middle Overall Europe North 2014 2015 2016 2017
America Pacific East & America
Africa

North America has the highest share of Average spending per e-shopper is increasing
e-shoppers at 70%. in Asia Pacific.

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SOUTH KOREA
MORE TIPS
 South Korea is known for having fast fulfilment rates,
which means efficient delivery systems, Express
Delivery and wide distribution warehouse networks are
basics for succeeding in the Korean market.

 90% of Koreans own a smartphone. m-commerce sales

will continue to grow at impressive rates. Incorporating
responsive mobile platforms with user friendly designs
would help merchants reach the most Korean Enjoy more cross-border
shoppers. tips, LIKE us on Facebook
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MARKET INSIGHTS

INDIA
BY DHL EXPRESS
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INDIA
AT A GLANCE
QUICK INTRODUCTION
Population: 1.3 billion VAT: 12.5-15%
Currency: INR GDP per Capita: US$1,850

33% US$498.6
Internet penetration Average spend per shopper

US$37.6bn 22% 17%

B2C e-commerce turnover Growth e-commerce market Of the population shops online

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INDIA
E-COMMERCE ENVIRONMENT
India has the second largest internet
population in the world, with over 462
million internet users. India tops the e-
commerce market growth rate with 51%
60%
Online purchases
E-COMMERCE SALES
(US$, billions)
31.3

annual growth. 60% of online purchases happen during 25.7

happen during business hours. business hours

20.7

TOP ONLINE 16.3

SOCIAL MEDIA USAGE
PAYMENT METHODS
12.1
eWallet (PayPal): 26% 17% 15%
Bank transfer: 24%
Cash on delivery: 19% 5% 3%
Credit cards: 12%
Debit cards: 9% 2%
Other: 6% 2012 2013 2014 2015 2016
Pre-paid 3%

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INDIA
A VIEW ON THE CONSUMERS
 Cash on delivery is the beloved online payment MOST POPULAR PURCHASES
method, but this payment method is proven to be FOR CROSS-BORDER
very slow and risky for couriers in light of manual SHOPPING
cash collection and high return rates. 45%

 The average Indian male’s online order value is 3 26% 24%

times higher than the average female’s. The reason 20%
17%
for this is attributed to men’s larger pool of 13%

disposable income.

 60% of online purchases happen during business

Clothing and footwear 45%
hours. While this may show a questionable
Cosmetics 26%
workplace practice, retailers can schedule
Mobile Phones 24%
marketing and promotions accordingly to reach the Toys 20%
biggest shopper population. Gifts and flowers 17%
Digital Cameras 13%

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INDIA
A VIEW ON THE LOCAL MARKET

 India has the second largest internet population in the

world, with over 462 million internet users, but that
makes up less than half of the total population despite its
large internet user base

 While being the third biggest e-commerce market in the

world, India tops the e-commerce market growth rate
with 51% annual growth. Retail e-commerce sales are
estimated to reach $79.41 billion by 2020

 The Indian e-commerce market is described as a

battleground with leading local players such as Flipkart,
Snapdeal and Amazon India fighting for bigger shares in
the market

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INDIA
REASONS FOR NOT BUYING ABROAD REASONS FOR BUYING ABROAD

33%
42%
26% 37%
22%
17% 26%
24%
13%
16%

Own country meets my needs 17% Trustworthiness 37%

Never occurred 33% Better availability 16%
Assuming it’s more expensive 22% Better conditions 26%
Worrying about Customer service 13% Better quality 42%
Wasn’t convenient 26% Broader range of products 24%

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INDIA
FACTS AND FIGURES
E-SHOPPER PENETRATION REGIONAL E-SHOPPER SPENDING GROWTH
Share of internet users shopping online, regional, 2017(f) Average amount spent per e-shopper, per year, Asia Pacific,
2014-2017(f); e-shopper spending growth rate, Asia Pacific,
2015-2017(f), US$
6.7%
5.25%
70% -1%

58%
50% 1,293.73
43.5% 43.5% 46%
1,218.81 1,206.81
1,154.78

South Asia Middle Overall Europe North 2014 2015 2016 2017
America Pacific East & America
Africa

North America has the highest share of Average spending per e-shopper is increasing in
e-shoppers at 70%. Asia Pacific

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INDIA
MORE TIPS…
 Similar to the Australian e-commerce market, innovation over
the traditional e-commerce business nature is the key to
breaking through the giant wall built by the three e-commerce
powers. Specifically, a better customized user experience in
terms of user searches is what online retailers and
marketplaces should aim for.

 There are more than 120 dialects and languages in India.

Language is then another key to succeed in this diversified
market. Specified localization is necessary in suiting each
Indian shopper segments’ tastes.
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 The Indian e-commerce sector is regulated by 9 government tips, LIKE us on Facebook
agencies. Being a relatively new market with a fast growing today!
pace, changes in regulatory efforts, whether contributing to or
hindering the industry growth, are being launched from time to
time. Merchants have to pay close attention to these fast-
changing policies and adjust their business models
accordingly.

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