INTERNATIONAL

EXPANSION INTO

EMERGING MARKETS

2014

1

WHITE PAPER:

KEY BUSINESS DRIVERS &OPPORTUNITIES INCROSS-BORDER ECOMMERCE

2

ECOMMERCE IS 20 YEARS OLD.

On August 11th 1992, Sting’s album Ten Summoner’s Tales sold for

$12.48 on NetMarket

The first secure online purchase

3

GLOBAL ECOMMERCE WAS $1.25 TRILLION IN 2013

AND WILL REACH $1.5 TRILLION IN 2014

In 2013 the main market was North America at $431 billion

By the end of 2014 the Asia Pacific region will take the lead

4

CROSS-BORDER ECOMMERCE

IS GROWING

In 2013, 50% of polled merchants engaged in cross-border ecommerce

In 2014 it was 82%

5

KEY TRENDS

6

THE BIGGEST GAME CHANGER TO CROSS-BORDER

ECOMMERCE IS MOBILE COMMERCE

7

M-COMMERCE CONTRIBUTED $133 BILLION TO

GLOBAL ECOMMERCE IN 2013

$516 billion by 2017, half will be driven from Asia

8

A NEW GLOBAL ECOMMERCE SUPER POWER

IT IS ALL ABOUT CHINA

In 2013 China drove a higher ecommerce value than the US

$296 billion and $263 billion respectively

999

NEW GOVERNMENT INITIATIVES

SHANGHAI FREE TRADE ZONE

9

China is open to cross-border ecommerce import

Since May 2014, Q.City— a quality lifestyle city funded by the Zhejiang

Qiansheng Holding Group as part of the FTZ pilot cities initiative —

already handles over 10,000 packages a day

10

CHINA

A GAP IN THE MARKET?

In our survey The US was the top choice for cross-border ecommerce

expansion

Only 31% of merchants focus on emerging markets for cross-border

ecommerce. 18% believe China is not open to foreign players

11

REGIONAL BREAKDOWN

12

IN EUROPE

30.5% of the world’s ecommerce sales came from Europe

Revenue from ecommerce grew 16.3% to $481.6 billion; 15% more

than the previous year

13

IN EUROPE

43% of Spanish online shoppers, 20 million people, shop on overseas

sites

The most popular destinations are the UK, China and Germany

Unlike other developing markets, Spanish online consumers are

comfortable credit card users

14

IN NORTH AMERICA

The US total retail sales were $4.5 trillion in 2013

Ecommerce made up a significant proportion of this figure; $263 billion,

17% of total retail

15

IN NORTH AMERICA

In the US there are 34.1 million cross-border shoppers, who spent

$40.6 billion in 2013

They mostly purchase from the UK (49%) and China (39%)

16

IN ASIA

Singapore leads in cross-border ecommerce, with the highest share of

transactions (55%)

Higher than Japan and South Korea (18% and 25%)

17

IN ASIA

In South Korea overseas credit card spending grew 15.4% in 2013.

Domestic credit card spending grew by 3.2%

Imports through ecommerce websites rose 47% to $1 billion

18

IN ASIA

Singles Day 2013 in China, sales reached nearly $5 billion in one day.

Double that of Cyber Monday in the US

19

IN LATIN AMERICA

Facebook is the number one driver for time spent online, with around

179 million users

19% of Facebook’s user base lives in Latin America

20

IN LATIN AMERICA

Brazilian cross-border online shoppers will reach almost ten million by

2018

53% estimated annual growth over the next five years, expenditure of

+546%

Argentinian cross-border shoppers doubled in 2013

21

IN OCEANIA

79% of Australian online consumers purchase from international

websites

45% of online expenditure goes overseas

22

IN OCEANIA

In New Zealand, 34% of 2013 ecommerce sales came from cross-

border imports, double that of 2011

Consumers spent $1.3 billion on international sites

23

CONCLUSION

24

WHAT NOW?

Merchants are cautious about Eastern expansion

They prefer markets where languages and cultures are similar, and

infrastructure is developed

This reveals a gap in the market

25

WHAT NEXT?

Don’t wait for someone else to get there first

The potential lies in the emerging markets now, in particular those

where credit cards are already a popular payment choice

The Chinese market holds the most opportunities

26

FULL REPORT

The full report is available to download for free on the Payvision

website

Source: Payvision – Key Business Drivers in Cross-border Ecommerce, 2014

Images: FreeDigitalPhotos.net

2727

CONNECTING THE DOTS... CONNECT AND

GROWOne-stop Global Payment Processing Platform to Merchants

Global Domestic Acquiring with the same quality in all regions.TO WEBSITE