Via WiT : ‘Shop till you drop’ is a common phrase among most Asians as shopping is a favourite past time and, for some, an indispensable part of their life.
With the ‘invasion’ of technology into so many aspects of our lives and the proliferation of mobile gadgets, shopping online has become very popular even among those who were wary before of disclosing their personal information and financial details to faceless sites.
It is, thus, not unexpected that ecommerce revenue has seen a surge in the last few years, and will continue to rise as revealed by PayPal in its latest survey.
The third annual PayPal-Ipsos Cross-Border research report provides insights on what, how and where shoppers in Asia Pacific (APAC) are spending their online dollars.
The report delves into the shopping trends of five APAC countries – Singapore, Thailand, China, Japan and India
Projected increase in mobile spend for 2017
PayPal said the forecasted increase in mobile spend comes at a time when APAC countries are “flying the mobile-first flag, with the region leading in terms of mobile connection penetration”.
Here’s how each of the five countries will perform this year:
- Singapore: Mobile shopping spend to increase by 42% from 2016 to more than S$1.2 billion (US$857.82 million). This is a third of the city state’s forecasted total online spend of S$3.5 billion (US$2.5 billion).
- Thailand: Mobile online shopping spend (online spend via smartphone or tablet) to rise by 22% from 2016 to more than 173 billion baht (US$5.02 billion). This is less than half of Thailand’s forecasted total online spend for this year of 376 billion baht/US$10.91 billion.
- China: Mobile shopping spend (online spend via smartphone and tablet) to grow by 26% from 2016 to more than RMB1,287 billion (US$186.86 billion). Total online spend for this year is estimated at RMB3,441 billion(US$499.59 billion).
- Japan: Mobile spend (online spend via smartphone and tablet) to climb by 16% from 2016 to an estimated ¥3,424 billion (US$30,99 billion). Total online spend for this year is expected to reach ¥11,524 billion (US$104.3 billion).
- India: Mobile spend (online spend via smartphone and tablet) to expand by 46% from 2016 to an estimated 2,977 billion rupee (US$45.76 billion). Total online spend for this year is predicted to top 6,709 billion rupee (US$103.13 billion).
The report finds that two-thirds (68%) of all cross-border shoppers interviewed in APAC made a purchase on a smartphone in the past 12 months – the highest net incidence out of all regions surveyed.
Among Chinese consumers 47% of cross-border purchases during this period were made on a mobile device, while for Thais it is 46%. Singapore shoppers lagged behind as 70% still make purchase on a computer.
However, Singapore has the highest number of cross-border shoppers in APAC with 51% of Singaporean doing that in the past 12 months. This is followed by China (26%), India and Thailand 25% and Japan 5%.
What shoppers buy
According to the findings, daily necessities such as household goods, groceries, F&B products, clothing, footwear and baby/children supplies are the most popular items among online shoppers in Singapore and Thailand.
Shoppers in India, China and Japan tend to purchase leisure goods, consumer electronics, clothing, health and beauty products.
Rahul Shinghal, general manager for PayPal Southeast Asia, said, “2017 looks to be a year of growth and opportunities for savvy businesses that are equipped to take their sales online, on mobile and in-app. This in turn provides endless choices and possibilities for the mobile-savvy generation as they live their lives on the go.”