Today, we’re on a shopping trip around the world to see the latest in e-commerce markets you may not be following closely. We start with a report from New Delhi that World Trade Organization is suspected of a backdoor attempt to push e-commerce which some Indian businesses do not like. Google Assistant will make money from advertising according to Google ads chief Sridhar Ramaswamy.
Some financial analysts are predicting Alibaba still has as much as 24% growth potential despite already dominating its home base China Market. Thailand e-commerce is growing fast with internet use up an impressive 21% since January alone. With 165 million people and more than 7,000 online businesses, Bangladesh is well on the way to a strong e-commerce market. In Sweden, foreign e-commerce sites are popular but three local stores — IKEA, Netonnet and Elgiganten — are also a hit with Swedish customers.
With the growth of e-commerce businesses like Amazon and others, warehouse leasing in Europe is booming according to property broker CBRE. Amazon’s newly acquired Souq.com may soon have a powerful and well-financed e-commerce rival in Saudi Arabia if Noon can get through its startup struggles. AT Kierney says e-commerce in Saudi Arabia could grow from $5.3 billion in 2015 to $20 billion in 2020. AliExpress is building deeper Russian e-commerce business ties, benefiting from the EU and the West’s Russian boycott.
WTO’s call for a review meet might be a backdoor attempt to push e-commerce
NEW DELHI: The World Trade Organisation has called a review meeting to promote connectivity through digital trade in developing countries, particularly least developed countries, amid strong opposition by India owing to apprehensions among experts that this may be a back door attempt to push e-commerce.
The aim of the evaluation, which will take place, in July is development of e-commerce, infrastructure investment, services markets and investment in climate reforms.
Moreover, the global review of Aid for Trade is influential in galvanizing support and directing strategies to help developing countries derive the maximum development benefit from trade. “The strategy is to sell e-commerce to the African nations and get their critical support. If Africa comes in support, then the e-commerce deal is done. It will be pushed as being development friendly,” said a Delhi-based trade expert, requesting anonymity. Via economictimes.indiatimes.com
Google Assistant will make money from e-commerce
Google Assistant, the search giant’s answer to Apple’s Siri and Amazon’s Alexa, will make money from e-commerce, according to Google ads chief Sridhar Ramaswamy.
The revenue model for Google’s AI service, which lives on devices like Home and smartphones like Pixel, had remained unclear until now. Apple’s main revenue source, the iPhone, clearly benefits from its AI platform, while Amazon’s Alexa technology is designed to stoke more buying on Amazon.
Earlier this year, a promotion that played on Google’s Home devices gave a clue to how ads might work. Google said the promotion, for the Disney film “Beauty and the Beast,” wasn’t a paid spot, just an experiment. Via recode.net
Alibaba Has More Room to Grow Its E-commerce Business Says MKM Partners
Alibaba Group (BABA), the Chinese e-commerce giant’s stock has been on a tear all year, with a laundry lists of Wall Street firms issuing bullish notes on the company’s prospects. MKM Partners is the latest to pile on, updating its growth targets for the company Monday and laying out seven reasons why the bulls outweigh the bears.
MKM analyst Rob Sanderson said in a research report covered by Barron’s that Alibaba’s china retail business, which accounts for 70% of its sales, has more room to grow thanks to healthy online consumption by consumers in the country, growth in traffic to its websites and improving relevance in the ads it serves up. What’s more the analyst, who last week set a $155 price target on the stock, implying it has room to climb another 24%, said Alibaba has the potential to increase its ad load which would provide another “meaningful” driver of revenue growth. (For more, see more: Alibaba: Raymond James Likes What It Sees.)
“Consensus revenue estimates for fiscal 2018 moved about 5 billion RMB ($730 million) higher (on the back of fiscal fourth quarter earnings), but the year on year growth expectation remains at 32%,” wrote Sanderson in a research note to clients. “The Q4 result was the strongest growth since the IPO at 60%; we estimate around 45% [of it was] organic growth. Management offered an initial revenue target of greater than 48% y/y growth, then went on to deliver over 54%. We believe that Cloud, Digital Media, International Retail and Other Innovations (combined over 20% of FY17 revenue) will all grow above the company average in FY18.”
According to the Wall Street Watcher the seven things that make the bull case better than the bear argument include revenue and EBITDA upside, gross merchandise value growth of around 17% during the next three years; international revenue growth, cloud business strength, narrowing losses in its media business, strong commerce margins even with “heavy” investments, and a new $6 billion stock buyback program. (For more, see also: E-commerce Earnings on the Rise.) Via investopedia.com
Here’s how Thailand is catching up on the e-commerce game
It appears that 4G development and the growing middle class are at the crux of the transformation, where faster connectivity is becoming more available to more people with disposable income. The rapid expansion has resulted in a slew of international companies and heavily backed startups looking wanting to form partnerships or launch e-commerce solutions in the country.
The recent numbers
Sixty-seven percent of the Thai population have access to the internet, according to the latest report from We Are Social. But in a population of 68.3 million people, only 52 percent are living in urban environments with easy access to internet.
Despite infrastructural issues, internet usage has grown 21 percent since January 2016, enabling 8 million more people to become active on social media on their mobile devices. The use of mobile phones in Thailand is well-documented with 105 percent market penetration and 96 percent of the population owning at least one mobile phone. Over 21 percent of Thais have a smartphone, 26 percent have a computer, and 11 percent own a tablet. Via techinasia.com
A look into e-commerce trends and companies in Bangladesh
E-commerce is one of the biggest markets in Bangladesh. According to e-cab, there are more than 7,000 e-commerce websites that sell their products on their website or Facebook page.
Facts about Bangladesh e-commerce market
The current population of Bangladesh is about 165 million, and it is 2.19 per cent of the total population of the world. Also, Bangladesh is eighth in the list of highest-population counties. Around 14.5 per cent of the population uses the internet. According to Prothom-Alo, about 2 million users shop online every year and growth rate is 20 per cent. Dhaka reportedly ranks among most active Facebook users, and the social network’s penetration rate is at 12.7 per cent. According to the report, 22 million users in Dhaka are on social media. This means Bangladesh is a good market for any type of business wanting to sell online.
There are a number of e-commerce and online shopping companies in Bangladesh, including Daraz, AjkerDeal, Bagdoom, Bikroy.com, Ekhanei and amikinee.com. Many companies have been developed to provide support services to e-commerce companies, such as e-Courier, Pathao, and GoFetch. Recently Amazon and Alibaba were reportedly planning to create their network in Bangladesh. Via e27.co
DHL says new Chile e-commerce business is ‘booming’
DHL e-commerce’s first entry into South America via Chile is exceeding expectations a month after starting as it gives retailers easier ways to deliver to consumers that could boost online shopping, a regional executive said.
E-commerce is still in its infancy in Latin America, held back by poor infrastructure, consumer fears over fraud, and lack of practical payment options.
Chile, one of the region’s most developed markets, has a high level of credit card use and good quality roads, but its package delivery industry to date has been largely focused on business-to-business transactions. Via markets.businessinsider.com
The most popular online stores in Sweden
Foreign e-commerce websites are popular among online consumers in Sweden. But online shoppers also rely on local companies, such as IKEA, Netonnet and Elgiganten. The most popular online store in Sweden however, is a foreign e-commerce website.
This was found by online couponing platform CupoNation, which analyzed the most visited online shops in Sweden during the last three months. The data somewhat correlate to what PostNord showed in their half-yearly “E-commerce in the Nordics” report, when they mentioned that many Swedish consumers mostly shopped from the United Kingdom and China during the first half-year of 2016.
Among Swedish cross-border shoppers, especially clothes and shoes and consumer electronics are popular items to buy. Of all countries in the Nordic region, consumers in Sweden shop the most online. About two in three consumers (66 percent) in this country had shopped online during the first six months last year. In the next quarter, between January and March this year, Amazon.com was visited almost 16 million times, followed by Ikea.com (8.8 million) and Netonnet.se (7.4 million). Via ecommercenews.eu
Europe Sees Record Warehouse Leases As E-Commerce Booms
Warehouse leases and property investment hit record highs in Europe last year amid the continued growth of e-commerce.
Property broker CBRE said that warehouse space leased in the region climbed from 205 million square feet in 2015 to 230 million square feet last year, according to The Wall Street Journal. Nearly one-fourth of all leased warehouse space in the U.K. last year according to Savills, another property broker.
U.K. real estate investor LondonMetric said that it leased additional space to Amazon last week, and the company recently announced plans for new warehouses in Germany, France, Poland and Slovakia. Via manufacturing.net
Amazon’s Souq v Alabbar’s Noon: the Middle East’s e-commerce battle
The imminent launch of Noon.com will pitch Saudi Arabia’s state investment fund and a prominent Dubai tycoon against the might of Amazon in a battle for preeminence in the Middle East’s rapidly growing e-commerce sector.
High levels of disposable income, as well as widespread smartphone adoption, will enable the region’s relatively undeveloped online retail industry to have a market size of $20 billion in 2020, up from $5.3 billion in 2015, according to consultants A.T. Kearney.
Amazon, which in March agreed to buy Dubai-based Souq.com for an undisclosed amount, has both first mover advantage regionally and the parent firm’s incredible global scale in its favour, while Noon.com has already missed its target launch date of January 2017.
Mohamed Alabbar, chairman of Dubai’s Emaar Properties, the majority owner of sister firm Emaar Malls, last November unveiled plans to partner with Saudi Arabia’s Public Investment Fund (PIF) to launch Noon.com with an initial investment of $1 billion. Via zawya.com
AliExpress eyes wider partnership with Russia
The latest estrangement between Russia and the West turned out to be favourable to manufacturers and retailers from China, India and ASEAN countries. Asian companies are eager to fill the gap left by European suppliers. AliExpress, which is already extremely popular with Russian customers, sees huge prospects for further development.
AliExpress online retail service considers Russia to be a market of significant growth potential, says Channel EMEA. According to General Manager of AliExpress Leo Shen, who has visited Russia five times in the last two years, the Russian market has huge prospects and enormous opportunities of boosting retail trade via electronic platforms. ”Development of e-commerce in Russia resembles now the situation observed in China several years ago,” he stated in an interview.
The existing Western sanctions also help brands from China, India and ASEAN countries build business ties with Russia. Chris Devonshire-Ellis, the founder of Dezan Shira & Associates, said: ”AliExpress’ experience is really taking up the loose reins that the EU left dangling when they imposed sanctions on Russia. Europe will find they have no business opportunities to go back to in Russia once the sanctions are lifted.” He believes that the creation of a trade corridor between Russia and Asia is a hot subject right now. ”The supply chain is changing and Asian MNCs from China, ASEAN and India are all looking to get into the Russian market. The EU’s self-inflicted loss is Asia’s gain,” added the expert. Via realnoevremya.com