According to Global E-commerce 2019, with $1.935 trillion in e-commerce sales China will be main online market in the world. Asia-Pacific area is growing too
In its annual report eMarketer reported how in 2019, the top global e-commerce market will be China with $1.935 trillion in e-commerce sales—more than three times greater than the US at No. 2 with $586.92 billion. Actually China represents 54.7% of the global e-commerce market, a share nearly twice that of the US, UK, Japan, Germany and South Korea markets. As China goes, so goes the global e-commerce market!
Moreover, even with the cooling off of China’s previously hot consumer economy, Asia-Pacific will still lead the global e-commerce growth charge in 2019. According to eMarketer the whole region will see growth of 25.0% to $2.271 trillion, representing 64.3% of global e-commerce spending.
What about other new realities? Latin America and Middle East/Africa are growing too experiencing year-over-year growth rates of 21.3%. Nowadays, six of the top 10 fastest-growing e-commerce countries in 2019 hail from the Asia-Pacific region, will be India, Philippines and rounded out by China, Malaysia, Indonesia and South Korea.
How much will consumers in China spend on retail e-commerce in 2019? Chinese economy is facing a cooling moment, by the way in 2019, retail e-commerce sales will expand 27.3%, reaching $1.935 trillion and 36.6% of total retail sales. Statics have shown that e-commerce sales will maintain strong growth through the end of 2023. Among Chinese e-commerce top platforms, Alibaba is the undisputed leader with 55.9% of retail e-commerce sales. JD.com is following behind with 16.7% share, while the “new star” Pinduoduo will grow much faster than any other site in the top 10.
About key drivers of Chinese retail e-commerce sales, eMarketer appointed while digital buyer penetration is reaching saturation among younger demographics, it still has room to grow among consumers over 35. In rural areas and smaller cities, GDP is growing much faster than in the major city centers, and consumers there will continue to drive growth.
Thus, what about global e-commerce? The report estimates that the global retail market will reach $25.038 trillion in 2019, an increase of 4.5% and slight acceleration in growth vs. the prior year. At the same time, it represents a marked decline from the five years preceding that, when global retail sales grew between 5.7% and 7.5% each year his consumer spending slowdown over the past two years reflects growing economic uncertainty and a dampening economic environment across many corners of the globe.
Amid this backdrop of declining momentum, we estimate that global e-commerce will rise 20.7% in 2019 to $3.535 trillion. Despite its obviously strong growth rate, 2019 will experience a decline from the previous two years when e-commerce grew 28.0% in 2017 and 22.9% in 2018. By 2021, we expect global e-commerce will approach $5 trillion, though growth rates will fall below the 20% threshold beginning in 2020.
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