E-commerce: China leads emerging markets
China comes out on top of emerging markets in an e-Commerce ranking established by the consulting firm AT Kearney, beating out Brazil, Russia, Chile and Mexico. The study also shows that brands are focusing on the Internet more than ever to test such markets before opening stores.
China's top position comes as no surprise – 23 billion dollars in sales and 29% growth expected within five years. Still, the study does reveal the Chinese enthusiasm for online purchasing of electronics and clothing in particular. Nevertheless, certain elements are restraining market growth.
"The infrastructure of China hinders the full development of potential e-commerce in the country," said Mike Moriarty, co-author of the report. "The delivery infrastructures vary outside of metropolitan areas and inhibit the effectiveness of the last-mile delivery of products purchased online."
Brazil ranked second, boasting 10.6 billion dollars in sales and an expected growth of 12% within five years. However, much remains to be accomplished when it comes to clothing, since Brazilians still largely favor a real-time shopping experience for clothes buying.
With $ 9.1 billion, Russia took third place on the podium. The market shows an expected growth of 12% in the next five years that will likely largely happen via m-commerce or mobile commerce, given the fact that Russians have an average of 1.8 mobile phones per person.
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