Web shops on the rise in Middle East, Asia
Leading international retailers believe that emerging countries in the Middle East and the Asia-Pacific regions will increasingly integrate with e-commerce platforms, a survey conducted by CBRE, a property consultant, recently revealed.
Most notably, Indonesia’s growing middle class and internet-penetration rate will prove to be a boon for virtual sales.
The 50 retailers surveyed have a combined network of over 32,000 stores, of which 5 per cent of their total sales comes via online platforms.
These retailers estimate that the contribution of online purchases to total sales will double to 10 per cent by 2014 as more businesses incorporate e-commerce platforms, mobile phone apps and social media campaigns to their sales strategy.
However, the survey found that emerging markets currently make up a fraction of total global online sales compared to developed nations and face numerous growth challenges, such as poor postal services and low internet penetration levels.
“In the Middle East, participation in multi-channel retailing is still in its infancy with consumers immersed in an established mall culture that has become a focal point for everyday life and an avenue for social interaction among the region’s growing youth population,” said Matthew Green, the head of research & consultancy for CBRE Middle East, told UAE-based The National.
“However, there has been notable growth in participation levels for web-based auction sites, group discount sites and flight and hotel bookings engines.”
In Asia, Facebook and the groundswell of online stores has lead to substantial retail growth in the e-commerce sector in Indonesia.
The untapped potential of the country’s burgeoning youth population has attracted a number of international consumer goods retailers, such as Nestle, Procter & Gamble, and Unilever.
Of the country’s 240 million people, only about 50 million are internet users, including both fixed-line and mobile phone. But, according to research by MarkPlus Insight, Indonesia’s internet penetration grew by 32 per cent in 2011 alone, suggesting that the archipelago’s young population is becoming more and more reachable.
In the same year, e-commerce rang up a total of $1 billion in Indonesia, according to research by Frost & Sullivan.
Leading international retailers believe that emerging countries in the Middle East and the Asia-Pacific regions will increasingly integrate with e-commerce platforms, a survey conducted by CBRE, a property consultant, recently revealed. Most notably, Indonesia’s growing middle class and internet-penetration rate will prove to be a boon for virtual sales. The 50 retailers surveyed have a combined network of over 32,000 stores, of which 5 per cent of their total sales comes via online platforms. These retailers estimate that the contribution of online purchases to total sales will double to 10 per cent by 2014 as more businesses incorporate e-commerce platforms,...
Leading international retailers believe that emerging countries in the Middle East and the Asia-Pacific regions will increasingly integrate with e-commerce platforms, a survey conducted by CBRE, a property consultant, recently revealed.
Most notably, Indonesia’s growing middle class and internet-penetration rate will prove to be a boon for virtual sales.
The 50 retailers surveyed have a combined network of over 32,000 stores, of which 5 per cent of their total sales comes via online platforms.
These retailers estimate that the contribution of online purchases to total sales will double to 10 per cent by 2014 as more businesses incorporate e-commerce platforms, mobile phone apps and social media campaigns to their sales strategy.
However, the survey found that emerging markets currently make up a fraction of total global online sales compared to developed nations and face numerous growth challenges, such as poor postal services and low internet penetration levels.
“In the Middle East, participation in multi-channel retailing is still in its infancy with consumers immersed in an established mall culture that has become a focal point for everyday life and an avenue for social interaction among the region’s growing youth population,” said Matthew Green, the head of research & consultancy for CBRE Middle East, told UAE-based The National.
“However, there has been notable growth in participation levels for web-based auction sites, group discount sites and flight and hotel bookings engines.”
In Asia, Facebook and the groundswell of online stores has lead to substantial retail growth in the e-commerce sector in Indonesia.
The untapped potential of the country’s burgeoning youth population has attracted a number of international consumer goods retailers, such as Nestle, Procter & Gamble, and Unilever.
Of the country’s 240 million people, only about 50 million are internet users, including both fixed-line and mobile phone. But, according to research by MarkPlus Insight, Indonesia’s internet penetration grew by 32 per cent in 2011 alone, suggesting that the archipelago’s young population is becoming more and more reachable.
In the same year, e-commerce rang up a total of $1 billion in Indonesia, according to research by Frost & Sullivan.
