2020 meant different things to commercial entities. For some, it was the year their venture closed shop, while for some others, it brought along massive growth and plenty of revenue.
But one thing all parties (businesses and consumers) can agree on is that the Covid-19 pandemic altered the status quo.
And e-commerce was not left out.
The lockdowns that followed the pandemic outbreak placed restrictions on in-person services, which resulted in the explosion of e-commerce in both developed and emerging markets.
In this post, we will be exploring how e-commerce is transforming emerging markets one year after the start of the lockdowns and how crucial it is for businesses to reach newer regions.
The current trend of e-commerce in emerging regions
How do we better describe the present situation of e-commerce in emerging nations other than with insights from the global review recently released by the United Nations Conference on Trade and Development (UNCTAD)?
Highlights from the reports show that despite a decline in GDP and trade in goods and services worldwide, global e-commerce retail share saw a 3% increment, from 14% in 2019 to 17% in 2020.
Besides retail, there was also significant appreciation in digital transformation, especially in areas of; teleworking, digital entertainment, online conferencing distance learning and gaming.
The report also shows that emerging markets in Latin America, Asia and Africa are critical stakeholders in digital transformation. For instance, in Thailand, the number of shopping apps downloads grew by 60% between February and March 2020, while Africa’s e-commerce giants Jumia witnessed a 50% spike in the number of transactions in the first six months of 2020 when compared to 2019.
All these signify a change in consumer habits due to the pandemic which would likely be sustained post-pandemic posing newer opportunities and segments businesses can explore.
Improved internet infrastructure is facilitating e-commerce growth
Although data from the UNCTAD report suggests that the pandemic could be the catalyst for surge in e-commerce adoption despite the constraints that exist, the presence of decent internet infrastructure serves as the backbone for this growth.
Due to improved internet infrastructure, smartphones usage in some of these countries have gone as high as 18% in 2013 to 47% in 2018, and these devices serve as a primary platform for e-commerce.
Other segments being spurred by e-commerce
As the adoption of e-commerce continues to swell, it can only logically contribute to the development of other segments.
For example, segments like logistics that involves various components from warehousing to transportation and everything in-between, would all experience various growth levels as e-commerce continues to expand in emerging regions.
The logistics sector is not the only beneficiary of e-commerce. Technological startups also emerge in a bid to get rid of stumbling blocks usually associated with emerging markets.
We have seen scenarios where fintech-powered payment service providers spring forth to facilitate e-commerce and compensate the large numbers of un-banked people in developing regions.
The end result is a vibrant and efficient e-commerce driven ecosystem that can create more jobs and business opportunities across all the sectors involved.
Businesses are urged to explore the potentials of other regions
While developed markets may pose a challenge to penetrate and compete for smaller players, the same cannot be said for most emerging markets.
Emerging regions present unique opportunities for large and small businesses alike to provide services that have the potential to gain mass adoption.
Don’t just take our word for it. A quick view of where the money is heading proves that other players are already getting involved.
In 2020 alone, Indian start-ups were able to attract $10 billion in funding, out of which a whopping $3 billion went into e-commerce. This has also spilled into supporting segments like Fintech and Edtech, both seeing $2.37 billion and $1.52 billion respectively.
Conclusion
E-commerce, if adopted correctly could be the game-changer for sustainable growth in emerging regions, and businesses who want to succeed in these competitive times must be on the lookout to spot opportunities either locally or internationally.
When it comes to entering other foreign regions, there are several variables at play to succeed, but a good starting point is by localizing your content to your new audience, which could be the difference between success and failure when you proceed to enter these regions.
At Translationsinlondon, we go the extra mile to ease your market entry process by adequately conveying your message to your new audience.
Give us a call or send us a message today to get started!