While over 80 percent of global online merchants plan on expanding their e-Commerce businesses in Asia over the next 12 months, almost all respondents (99 percent) say they face obstacles in gaining a firm foothold in the market, and in particular China, according to research by NTT Communications.
The survey, Breaking into the e-Commerce Market in Asia: Opportunities and Challenges, interviewed 200 United Kingdom and United States based decision-makers from the retail, gaming, travel and hospitality industries to evaluate the business potential of Asia’s e-Commerce market, the challenges merchants face, and the role that payment solution providers should play in helping merchants overcome these challenges.
Two-thirds of respondents forecast the volume of their companies’ e-Commerce transactions in Asia and China to increase by 10 and 50 percent in the next three years, reflecting the promising business potential of the market. However, the study also reveals a number of local challenges that merchants need to overcome to successfully grow in the region.
Other key findings include:
- Over 80 percent of respondents consider global e-Commerce crucial to the success of their businesses.
- Greater China is a high-potential market for e-Commerce. Mainland China (79 percent), Hong Kong (66 percent) and Taiwan (57 percent) top the list as the three most popular Asian destinations for e-Commerce expansion in the next 12 months.
- Challenges most respondents face when delivering e-Commerce in Asia 1 include local tax regulations and compliance (50 percent), local market needs (46 percent), language barriers (44 percent), shipping difficulties and cost (42 percent), local preferred payment types (37 percent) and cross-border currency settlement (37 percent).
- Acquirer connections (45 percent) topped the list of key success factors for delivering e-Commerce in Asia and China. This is followed by risk and fraud management (43 percent), global acquirer connections (35 percent), acquirer connections in Asia (30 percent) and alternative payment methods (30 percent).