Over the last two decades, the way we shop has transformed. While many of us do still shop in person, shopping for deals online has become something of second nature. The COVID-19 pandemic which broke out in early 2020, accelerated this shift towards online shopping.
As the world was confined inside, online shopping rates soared across all verticals. But as the pandemic subsides, the growing trend of online shopping is unlikely to subside with it. Consequently, the e-commerce sector has become one of the most dynamic and promising for entrepreneurs. In this article, we will take a look at some of the emerging e-commerce markets around the world.
India is home to one of the largest populations globally with over 1.4 billion people. Furthermore, India is shaping up as an essential e-commerce location. It is also a so-called BRIC economy, comprising Brazil, Russia, and China. These are nations considered destined to be leading suppliers and manufacturers in the near future.
While India suffered heavily during the COVID-19 pandemic, the forecast looks good. With an increasingly mobile middle class and rising consumerism across the entire country, sales are up by almost 30%. Around half of the population have internet access, which is triple the number of active users compared to Brazil.
This sector is projected to grow by around a fifth over the next three years. Top verticals include airline and travel, fashion, and electronic items. When it comes to payments, Indians prefer cards (32%), eWallets (26%) and cash (17%).
In 2020, e-commerce in Brazil and Mexico increased by an impressive 79%, putting the LATAM region really on the map. According to data from logistics giant DHL, moving into 2021, the region led the world in e-commerce growth. Home to 214.25 million people, with 70% of the population online, this is a behemoth of a market.
For Brazilians, customer service is vital, with over 40% saying poor service would put them off in the future. Regarding which verticals appeal to Brazilians most, fashion comes first with around 20%. This is followed by cosmetics with nearly 15% and entertainment with over 12%.
The vast majority of transactions are settled with a credit card, most local cards, not international ones such as Visa. This is important to keep in mind if you plan to sell to Brazilian customers.
South Korea has over 51 million residents, and 97%, one of the highest rates in the world, have internet access. Koreans love to buy luxury fashion and clothing items, followed by groceries and consumables, and then kitchen items.
Payments-wise, credit cards reign supreme, followed by mobile and debit cards. While e-commerce is established with over 80% of the population using at least one platform in 2020, this will increase. This means for entrepreneurs that there is still plenty of room to enter the market.
South Korea has one of the highest per-capita incomes in the entire region, meaning selling to Korean clients could be a very smart move.
If you are thinking of setting up an e-commerce business, Fast Offshore can help. We have over two and a half decades of experience in helping startups succeed. Our portfolio of services includes company incorporation, structuring, payments, and compliance. We can even take care of all ongoing corporate maintenance as you grow.
Our team places a big emphasis on customer service, along with transparency and professionalism. To find out more about what we can do to help you, contact us today.
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