Market Report of e-Commerce Sites in Asia Pacific

April 28, 2017
Posted in Journal
April 28, 2017 O2O Pro Management

E-commerce is growing rapidly in the Asia Pacific with venture capital backed e-commerce players going head to head against traditional retailers. Who are the leaders? What is behind their competitive edge? How fast is Asia’s e-commerce market growing? Which verticals have been growing the fastest?

In this article, e-commerce marketing expert Metisa compare the growth, engagement and sources of traffic across five e-commerce verticals:

  • Fashion
  • Home & Electronics
  • Beauty
  • Luxury
  • Food & Groceries

This analysis is based on the market reports where over 370 popular e-commerce websites in Asia Pacific were analysed.

How is the market growing and which are the fastest-growing verticals?

  • Image Credit: Tech in Asia

    In six months, most verticals are seeing high growth in web and mobile web traffic. This is broadly in line with Emarketer’s full-year growth estimate of 29 percent for Asia Pacific e-commerce in 2017.

  • Over the past six months, the Food & Groceries vertical has been growing the fastest, with more consumers opting for the convenience of getting their food delivered to their doorsteps.
  • On the other hand, the Beauty vertical is the only segment that is experiencing negative growth.

How do engagement metrics compare across verticals?

Image Credit: Tech in Asia

For the Beauty vertical, minutes on site and pages visited are less than the inter-industry average. This indicates that O2O and the offline experience are key parts to customers interacting with businesses in the vertical.

Customers are spending more time on sites and pages in the Food & Groceries vertical. This may be because customers shopping for food and groceries have more products in their basket and hence visit many pages to find all the groceries they need.

The Home & Electronics vertical saw high minutes on site but low pages per view. This could mean that customers visit ecommerce sites with an idea of what particular piece of furniture or gadget they want and spend time reading product details and reviews instead of browsing through the site to seek inspiration. This kind of buying behavior may be due to the high cost of furniture and electronics, which are typically not impulse buys.

In the Luxury vertical, pages visited is high and bounce rate is low compared to the average. This could imply that customers tend to browse through luxury product catalogs for inspiration, putting items into their mental wishlist.

How does each vertical draw web traffic?

Image Credit: Tech in Asia

Fashion receives a high proportion of traffic from direct visits, while luxury companies do not.

Image Credit: Tech in Asia

Fashion, beauty, and luxury e-commerce companies draw more traffic via display ads, given the focus on aesthetics within those verticals.

Image Credit: Tech in Asia

Luxury companies use email the most to draw traffic. This could indicate that sending personalized emails to valued customers are seen to be a better and more targeted way to build brand exclusivity than mass advertisements.

Image Credit: Tech in Asia

Referrals from other sites comprise a larger proportion of web traffic for the Food & Groceries, Beauty, and Luxury verticals, and a smaller proportion of web traffic for Home & Electronics and Fashion.

Image Credit: Tech in Asia

Fashion receives the least web traffic from search, while luxury receives the most. Many luxury companies in our index sell clothing and apparel, so the variation is due more to customer behavior than product type. The spelling of European luxury brands may be unfamiliar to the SEA market we surveyed, so customers may be using search engines to locate those luxury brands, directly keying in the URLs of mainstream fashion brands. This matches our earlier observation that fashion companies receive more traffic from direct entries while the reverse is true for luxury companies.

Image Credit: Tech in Asia

Use of social networks to draw web traffic is more prevalent in the Beauty and Fashion verticals, suggesting that customers in these segments could be swayed by social pressure.

On the other hand, luxury companies tend not to use social networks, which may be due to an apprehension of diluting their brand image. Food & Groceries e-commerce companies are also less reliant on social to draw web traffic.

Source: Tech in Asia