Today we’re taking a look at e-commerce developments around the world from Europe to SE Asia. CB Insights Venture Report shows why VC investment in EU lags the US. Scandinavian e-commerce grew 15% according to a report from PostNord. German shoe and apparel web merchant Zalando SE rose 36% in 2015 after improvements in their technology platform. Rocket Group’s food delivery service Foodpanda continued to expand by acquiring Delivery.com in Hong Kong.
Starbucks continues its growth in China and now has more than 2,000 coffee shops in 99 cities. Deep discounts are driving the growth of e-commerce site Coupang over other retailers in South Korea. Indonesian e-commerce phenomenon MAP offers more than 2,000 international brands. TechinAsia profiles 11 of the most popular online shopping sites in Philippines including Lazada, OLX, Cebu Pacific and Zalora. E-bit research shows mobile commerce in Brazil grew by 47% in 2015, accounting for 14.3% of total e-commerce.
Why Europe lags behind the US in VC investment
Activity in the USA and Europe firmly dominates the venture capital (VC) industry. Where ‘the Valley’ led the way, start-up ecosystems have sprouted across the whole of Europe. Be it financial technology in London, ecommerce in Berlin or advertising technology in Paris, over the last decade Europe has grown a number of healthy start-up centers encouraging entrepreneurs to take a leap of faith in their ideas and start building a business.
But despite being equal to the US in terms of GDP and possessing a larger population, Europe sits very far behind the US in terms of venture financing. As Figure 1 shows (based on data from CB Insights Venture report 2014), in 2015, VCs invested 5.4 times more money in the US compared to Europe. VCs also closed more than three times as many deals in the US as in Europe. Via venturebeat.com
Nordic consumers spent €17.39 billion ($19.6 billion) online in 2015
Consumers in Sweden, Norway, Finland and Denmark have purchased goods online worth a total of €17.39 billion ($19.6 billion) in 2015. That’s an increase of around 15% compared to the year before. Four out of ten Nordic residents bought goods online from foreign websites, spending a total of about €4.3 billion ($4.8 billion) across the border.
This was revealed by PostNord, that published its report ‘E-commerce in the Nordics 2016‘. It’s based on online interviews it conducted each quarter of 2015 among private individuals aged 18-79 years.
In terms of spending money online at foreign websites, it seems that the United Kingdom, Germany, the United States and China were the most popular countries to buy from. “The domestic market’s relative maturity is what drives international commerce. The Swedish range has been good. Finland’s, Norway’s, and Denmark’s domestic alternatives haven’t been as good, which has made local consumers more eager to buy online from foreign retailers”, explains Arne Andersson, Nordic ecommerce specialist at PostNord. Via ecommercenews.eu
German e-retailer Zalando grows web sales 36% in 2015
German shoe and apparel web merchant Zalando SE put new website features and functions to work in 2015 and the result was more growth in such key measures as sales, orders and order size. Mobile traffic and app downloads also increased, according the company’s year-end earnings report.
New site features targeted customer satisfaction, including easier and faster delivery and returns, and the retailer also expanded the product assortment across its dedicated websites serving 15 European countries, the company says.
Mobile accounted for 57.1% of total traffic for the year compared with 42.3% in 2014, Zalando says. App downloads more than doubled to 19 million in 2015 from about 7 million in 2014. Joint promotions with brand manufacturers led to a 22% increase in active customers to nearly 18 million. Via internetretailer.com
Foodpanda acquires Delivery.coms Hong Kong business
News of yet more movement among on-demand food startups: Rocket Internet-backed Foodpanda announced today that it has acquired Delivery.com’s Hong Kong business and will take over its operations there.
Food delivery startups have popped up all over the world, but low margins, high delivery costs, and competition means that many will have to merge with rivals if they want to survive. Foodpanda’s announcement comes a day after SpoonRocket said it has been purchased by Brazilian food delivery platform iFood and a few weeks after Berlin-based Delivery Hero confirmed that it will exit China after struggling to compete with domestic players.
Foodpanda has been on an international shopping spree over the past two years, snapping up food delivery startups around the world in order to expand in Europe, Asia, and Latin America. Via techcrunch.com
Starbucks Launches E-commerce in China
As China has modernized, coffee and café culture has become an increasing part of urban life in China’s big cities. Starbuck’s has been at the forefront of this cultural shift, building their number of stores in China to two thousand across ninety-nine cities nationwide.
Importantly, Starbucks has not rested on its laurels, continually innovating their propositions to match the increasing sophistication of local coffee drinkers. An integral part of this has been the roll out of “Starbucks Reserve” in selected local stores, where new pour-over blends are introduced to local enthusiasts. The bespoke proposition is now available at forty-five stores nationwide. Via socialbrandwatch.com
How South Korea Does Ecommerce Discounts
Western retailers are just now starting to see daylight at the end of a long winter of discounting discontent, and many standbys like Macy’s and JCPenney haven’t come out unscathed. It’s tempting to think that U.S. retail has had its eyes opened to the profoundly damaging effects of its discounting dependency, and the eternal optimist might even believe that since a few American companies were laid low by overaggressive promotions, the rest of the world will learn from its mistakes.
On the contrary, South Korean eCommerce and brick-and-mortar retailers seem to be stuck in much the same discounting death spiral as their American counterparts.
The Korea Herald has the story of the lowball pricing war going on between Coupang, one of the country’s fastest-growing online marketplaces, and E-mart, the oldest and largest in-store retailer in South Korea. Launched in 2010, Coupang has been making gains over local retailers by targeting the most commonplace, everyday items the average consumer might need; consumable home goods, like tissues and bottled water, comprise a good deal of sales, while diapers and baby formula offer the chance for steep discounts off of market prices. Add onto this the fact that Coupang offers free one-day delivery for all purchases over about $8 — an easy benchmark when buying baby products — and it’s clear as day why eCommerce companies in South Korea seem to find sales falling over. Via pymnts.com
Indonesians love brands. This e-commerce newcomer has them all.
Mitra Adiperkasa, the Indonesian retail giant known as Map, is finally taking its business online. It announced ecommerce plans mid-2015, but it took another half-year for the site to launch. Since yesterday, customers can shop on Map Emall. The site offers fashion, travel accessories, and some home furnishing items – no electronics.
Map Emall’s edge over other ecommerce players in Indonesia is its vast range of international brands. It is, for example, the local franchise holder for Zara, TopShop, DKNY, Barbie, Adidas, and many more. International labels are available on other online stores, but Indonesia has a history of dealing with counterfeit goods, so buying them online from a third party seller poses a risk. Access to the genuine article is Map Emall’s trump card. Via techinasia.com
11 popular online shopping sites in the Philippines
Talk about the hottest ecommerce markets in Southeast Asia, and the Philippines comes right at the top of the list. According to a 2014 study by Ken Research, the Philippines’ ecommerce market can expect a stupendous compound annual growth rate of 101.4 percent from 2013 until 2018, thanks to rising internet and social media adoption.
So we’ve put together a list of popular online shopping sites and marketplaces in the country. Some of them are early players who remain strong, while some are new ones which have already caught up. Via techinasia.com
M-commerce sees growth in Brazil
The number of people buying products and services via their phones in Brazil has gone up by 47% in 2015, according to research. According to statistics compiled by consulting firm E-bit, m-commerce accounted for 14.3% of all online trading in the country last year.
This is a significant increase on 2014 numbers, when 9.7% of all online purchases were carried out via mobile phones. The research also suggests that the channel has been used by 22%of the consumers that used the online channel for the first time. Via zdnet.com