- China, Japan and South Korea accounted for 87% of Asia Pacific and 40% of global e-commerce sales value in 2023
- Better prices and ability to order at “anytime, anywhere” accelerate East Asian consumers’ online shopping habits
- Beauty and personal care, consumer health and pet care top online penetration rate in the region
TOKYO, JAPAN | SEOUL, SOUTH KOREA – Nearly a third of consumers in East Asia find the ability to “order at any time, from anywhere” as a key motivation driving the region’s online shopping habits, data analytics firm has revealed.
With increased high-speed internet availability and rapid urbanisation in East Asia, a strong demand for quick and efficient shopping solutions has driven the region’s evolving e-commerce shopping environment, according to Euromonitor International’s recent report Unlocking E-Commerce in Asia and Beyond: Lessons from China, Japan, and South Korea.
Sachi Kimura, Consultant at Euromonitor International, said: “The demand for quick and efficient shopping solutions in the region is being driven by the tech-embracing, fast-paced nature of daily life in these three countries. E-commerce platforms are continuously evolving to meet the increasing need for convenience among consumers in East Asia.”
East Asia remains a powerhouse of e-commerce globally and regionally. China, Japan and South Korea, accounted for 87% of Asia Pacific e-commerce sales value in 2023, which is 40% of global e-commerce sales value. Though these countries are considered mature markets, they are expected to continue to lead total e-commerce by 2028 by maintaining 85% of the region’s total retail e-commerce sales.
Health and beauty e-commerce well established, over-indexing offline channel
The health and beauty industries showed a strong presence in the online space in East Asia, benefitted by the market’s unique position as the ‘home of health and beauty’, with the eminent market positions held by J-, K- and C-Beauty businesses. Four of the top 10 companies in beauty and personal care, and six of the top 10 companies in consumer health, are based in Asia Pacific.
The food and drink industries, which have relatively lower online penetration, have also shown growth as their e-commerce channel is still nascent and has greater room to grow.
South Korea showed double digit growth in percentage terms in 2023 as it relaxed online retail regulations for local small breweries’ traditional alcoholic products. Soft drink online retail in Japan increased by 14%, reflecting an increasing demand of bulk option and sustainable packaged bottled drinks.
China showed a strong e-commerce presence in most fast-moving consumer goods (FMCG) spending, recording double-digit penetration online.
Kimura noted: “Low penetration can suggest the product nature and consumers’ preference is to shop in person. However, convenience seeking is pushing these categories towards online channels, with many opportunities lying ahead.”
Marketplaces top health and beauty shopping for East Asians
Unlike e-commerce leading markets such as the US or the UK, marketplace platforms dominate the landscape in East Asia. The top two retailers in China, Tmall and Douyin, hold over 70% of the e-commerce market share in health and beauty online sales in China over the past two years, findings from Euromonitor International’s e-commerce platform showed.
According to Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey 2023, nearly half (47%) of China’s consumers consider social media influencers as trustworthy for health information. This is higher than the global average of 34%. Further, 27% of respondents in China selected social media as an information source that influences their decision to take dietary supplements in 2023, which was also higher than the global average of 16%.
Marketplaces dominate health and beauty online sales in Japan and South Korea as well, with the top two online e-commerce retailers, Amazon and Rakuten in Japan, and Coupang and Naver in South Korea, remaining relatively stable over the past two years.
The report also highlighted the growth potential in other online channels, especially in health and beauty specialist online shops. In South Korea, health and beauty specialist retailer Olive Young is positioning itself as the go-to health and beauty lifestyle platform online too, offering exclusive brands and competitive prices, while building consumer trust through strict merchandising selection.
Yang Hu, Insights Manager for Health & Beauty Asia at Euromonitor International, said: “Digital marketplaces are constantly evolving. Through various channel sales, businesses can gain dynamic insights into market trends, consumer preferences, pricing strategies and promotional tactics. This knowledge enables brands to identify gaps in the market, differentiate their offerings and refine their own approach to stand out in a crowded digital landscape.”
For further information see Euromonitor’s report Unlocking E-Commerce in Asia and Beyond: Lessons from China, Japan, and South Korea.
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