SEOUL, July 16 (Korea Bizwire) – A recent survey revealed that more than 80 percent of global online e-commerce vendors have plans for expansion in Asia for the next 12 months but most respondents (99%) said they face obstacles in gaining a firm foothold in the Chinese market.
According to a report “Breaking into the e-Commerce Market in Asia: Opportunities and Challenges” published by NTT Communications Corp. based on interviews on 200 decision makers from the retail, gaming, travel, and hospitality industries to evaluate the business potential of Asia’s e-commerce market, two-thirds of respondents forecast the volume of their companies’ e-commerce transactions in Asia (including China) to increase by 10 and 50 percent in the next three years.
Over 80 percent of respondents considered global e-commerce crucial to the success of their businesses. According to the survey, Greater China turned out to be a high potential market for e-commerce, including Mainland China (79%), Hong Kong (66%) and Taiwan (57%) as the three most popular Asian destinations for e-commerce expansion in the next 12 months.
Still, the companies face many challenges that must be overcome to be successful in these markets, including local tax regulations and compliance (50%), local market needs (46%), language barriers (44%), shipping difficulties and cost (42%), locally preferred payment types (37%) and cross-border currency settlement (37%).
Acquirer connections (45%), or connections with local acquiring banks, topped the list of key success factors for delivering e-commerce services in Asia. This is followed by risk and fraud management (43%), global acquirer connections (35%), acquirer connections in Asia (30%) and alternative payment methods (30%).
Tyrone Lynch, NTT Com Asia’s vice president in charge of e-business, said, “China is in a unique situation where conventional and mainstream payment methods used internationally has not fully established. Understanding the unique payment landscape in China, while providing consumers with the ability to pay in their preferred local methods is critical for success in this vast and fast-growing market.”
Written by Sean Chung (email@example.com)