Why the Asia- Pacific market is vital to worldwide online retailers?

The Asia-Pacific markets are becoming very attractive for online retailers worldwide. According to Econsultancy’s Internet Statistics Compendium, Asia-Pacific represents 39.8 % of the global internet audience and it is expected to increase to 44% by 2014. The level of penetration of interactive services in this area is much higher than in Europe or North America.

Asia-Pacific countries are world leaders when it comes to e-commerce, particularly Taiwan, Japan, Australia, New Zealand, China and South Korea where over 90% of consumers purchase online. In China, e-commerce is getting stronger with the main Chinese search engine, Baidu, growing at more than 88% per year.

Much of the e-commerce growth in Asia-Pacific is due to the increase in mobile shopping particularly in countries such as South Korea and Indonesia. According to a survey carried out by AdMob, traffic from smartphones in South Korea increased more than 67 times over the past 12 months. 29% of respondents said that they spend more than one hour a day using the mobile Internet with 58% accessing the mobile Internet at least 5 times a day.

Indonesia is another country where mobile internet use is becoming very popular. An overwhelming 63% of Indonesian Internet users have adopted mobile Internet in April 2011, placing the country at the top in South East Asia for mobile Internet use.

According to the effective Measure Regional Director (SEA) Russell Conrad, the increased activity seen on mobile Internet provides an opportunity for businesses to target the Indonesian market and establish mobile-friendly interfaces to strengthen an online presence.”

How to target the Asia Pacific online market?

Without a doubt, the Asia Pacific market is very attractive and many western companies have succeeded there, but many others have failed. Asian consumers love western goods but western companies that attempt to target the region should be responsive to the unique needs and preference of customers in the different Asian markets while retaining their identity.

How can western e-commerce companies succeed in Asia?

There is not a unique answer but many factors that need to be taken into consideration.

•    Choose the geographic regions that you want to target.
•    Carry on feasibility studies and establish your business objectives, goals and the level of investment required.
•    Analyze current customer perception and needs, the regional market, competitors, technology, and regulatory trends.
•    Create an integrated marketing campaign to target Asia Pacific region.
•    Establish a business model ad hoc to the specific market and able to capture changing market dynamics.
•    Establish a web presence in Asia Pacific by building websites that are tailored to that market.
•    Optimize your site search and navigation for mobile devices.
•    Be culturally sensitive. McDonald’s is a classic example of how a global brand has customized its offering and built a brand that reflects its identity and the local values.
•    Build a rapport with the local people using their local social media sites.

These are exciting times to target the Asia-Pacific market but entrepreneurs will need a dose of caution. Success in that highly competitive market will depend on the ability to adopt and adapt appropriate strategies and tactics. Bear in mind that the marketing strategy should depends on your specific objectives, the particular characteristics of the business and the external environment.