Tuesday, 13 November 2012

China and India being the next big thing!

Many foreign have long recognized the potential China and India present, based on the size of the market and predicted growth in e-commerce” -Paul Jung, Visa – Head of e-commerce solutions for APAC

Foreign investors plan to breakthrough the e-commerce walls of China and India but penetrating the local market surfaces as a major challenge. Being a company decision maker, you will have to study the market very eagerly, their behavior in consuming products: how they buy – either through cash or credit card, when they buy – be it holidays, weekends, or every cut-off of salary, and where they buy – do they a lot time to go to the mall or are the consumers way too busy and shop online instead?

Entering a new market is a risk every business has to face. But these risks are calculated risks, meaning the risk of failing has been minimized thru an extensive study and research. However, according to Kumar Das, IDC Center for Consultancy and Research – research manager of retail insights for APAC, said that markets in both countries still lack the technological and logistic infrastructure for e-commerce.

Just like in any other country, people from rural areas find it hard to have an access to internet connection. And with this, people find it hard to trust e-commerce, due to the obvious reason – security. Everyone is pretty careful when it comes to purchasing online, who else to blame when cybercriminals are also part of that next big thing.

It will be difficult though for foreign investors to analyze the market as they need to segment locals based on their behavior. Shift strategies per capita including pricing, marketing, purchasing, branding and promoting. One of which is to enter partnership with local businesses. This helps them gain people’s trust more easily.

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