Asia is at the forefront of e-commerce globally, and we can expect this growth to continue in 2022. In early 2021, Asia accounted for nearly 60% of the world’s online retail sales, with Chinese consumers alone contributing to more than a third of the global purchases online.
The year 2021 cemented a new culture of digital payments, online shopping, and seamless on-demand experiences. Which trends impacting Asia’s ecommerce landscape are here to stay? Here are some key trends that we need to look out for as we move into 2022.
1. Asia is more ready for a digital-first approach. Online shopping has witnessed incredible growth with 70 million new digital consumers added in Southeast Asia alone since the onset of the pandemic. Retailers are now better prepared to leverage digitalization for success and will be marked by digitalization roadmaps and increasing digital maturity. In Asia alone, digital transformation is expected to exceed $1.3 trillion by 2027.
2. Demand for personalized and frictionless experiences will increase. Having an online presence is no longer enough. Frictionless commerce is now imperative. Each second of delay before checkout drags conversion by 7%. Quick loading sites and intuitive navigation, and a seamless checkout experience are just a few ways to serve digital consumers’ needs. As well, inventory planning can no longer be a hit or miss. Analytics is playing a key role in offering personalized incentives to consumers, and tailoring product recommendations to retain them.
3. Diversity in payment types is key. According to IDC, digital payments are expected to account for 91% of total ecommerce spending by 2025. We will also see greater diversity in digital payment methods, as well as major developments in cross-border mobile payments, and more interoperable e-payment systems region-wide. Recently, Singapore’s and Korea’s new digital economy agreement heralds deeper bilateral cooperation in and development of cross-border e-payments.