RAKUTEN MARKETING ECOMMERCE REPORT 2 Foreword The Asia-Pacific (APAC) e-Commerce market is thriving. By the end of 2019, eMarketer estimates that the APAC region will account for 64% of global online retail spend with further growth forecasted through to 2022. The scale and impressive growth of the APAC e-commerce market makes the region highly desirable for international brands. At Rakuten Marketing, we are committed to helping our partners expand beyond their borders into Asia-Pacific by capitalising on the e-commerce growth opportunities in this region. It is our hope that this report will assist brands and marketers in developing a deeper understanding of the APAC e-commerce market to help identify opportunities for expansion and make informed decisions on how to best engage and operate within APAC markets. Anthony Capano Managing Director, InternationalRAKUTEN MARKETING ECOMMERCE REPORT 3 Inside this report: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Chapter One: Where are consumers shopping? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Chapter Two: What are consumers buying? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Chapter Three: How are Asia-Pacific consumers engaging with brands? . . . . . 17 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28RAKUTEN MARKETING ECOMMERCE REPORT Introduction According to eMarketer, the global e-commerce market is forecasted to grow 21% in 2019 to $3.54 trillion. The Asia-Pacific (APAC) region alone will account for 64% of total e-commerce sales worldwide this year, a 25% Y ear-on-Y ear (Y oY) growth. In addition, the APAC market will drive 78% of global m-commerce sales in 2019. For brands to succeed in APAC, understanding the nuances of device use, consumer behaviour and consumer preferences within the region is key. This is why Rakuten Marketing surveyed 4,500 consumers across nine key markets within APAC. Responses are featured from Australia, China, Hong Kong, Singapore, South Korea, Malaysia and New Zealand. In addition, this year responses from Japan and India were added. The research delivered findings in the following three sections: 1) Where are consumers buying? 2) What are consumers buying? 3) How are Asia-Pacific consumers engaging with brands? Each section is broken down into each of the nine markets, to highlight both the unique and shared behaviours and preferences of shoppers in APAC. RAKUTEN MARKETING ECOMMERCE REPORT 5 Where are consumers shopping? In order to determine where and how consumers are shopping in Asia-Pacific (APAC), survey respondents were asked to outline their split of total online spending across in-store, desktop, mobile and tablet. T o understand what drives this split of spend, consumers were also asked to identify the barriers that prevent, or discourage them from completing online purchases. KEY INSIGHTS: m-Commerce has eclipsed desktop or laptop sales in five out of nine markets and as a whole region, accounts for a larger portion of total online sales (46%) compared to desktop or laptop purchases (41%). Throughout APAC, in-store purchases continue to account for the largest portion of total retail at 53%. The number one barrier to online shopping in APAC is high-shipping fees, followed by concerns over the ability to return items, lack of payment options and security. CHAPTER 1 53 % 6 % 21 % 19 % Percentage breakdown of total retail spend in AP AC