The Global eCommerce Newsletter 09.12.16

1. Amazon is doubling down on retail stores with plans to have up to 100 pop-up stores in US shopping malls
Amazon had opened 16 pop-up stores in U.S. shopping malls as of this August, displaying and selling the company’s hardware devices, including Kindle, Fire TV, Echo speakers, and accessories.  The number of the pop-up store is expected to exceed 30 this year and could go up to 100 next year. Although the pop-up kiosks will increase fixed costs, the effort intends to boost brand awareness and sales of Amazon devices. This initiative also allows customers to try out new devices.

2. Alibaba’s Jack Ma agrees to become RI e-commerce adviser
Alibaba’s Jack Ma has accepted to become an advisor to the Indonesian government’s e-commerce steering committee. The government recently launched an e-commerce roadmap to foster the burgeoning industry, with transactions expected to reach US$24.6 billion this year. The roadmap focuses on seven major issues: start-up funding, logistics, consumer protection, communications infrastructure, tax revision, human resource development and cyber security. Indonesia now has 50 million SMEs, the most in the region. But only a tiny fraction of them are online.  The government is targeting to bring 8 million SEMs online by 2020. //Alibaba has a vast interest in the success of SEA’s ecommerce sector.

3. Ecommerce players can buy a .shop domain on September 26
The .shop top-level domain will be available to the general public on September 26th. The .shop top-level domain was first launched with a Sunrise period for trademark holders on June 30. Lots of major retailers already registered to secure their domain names. During the Sunrise phase, there are over 1,200 domain name registrations, including etsy.shop, walmart.shop and facebook.shop. European brands account for 64% of all applications. There’s a strong demand for such domains from brands in fashion, luxury and sports.

4. Indian e-commerce market could reach $28 billion by FY 2020: Kotak Institutional equities
According to Kotak Institutional equities, an Indian brokerage firm, the country’s ecommerce market could reach $28 billion by 2019-20. The growth will be driven by an increase in the number of online shoppers and average online spending, and a steady growth in household incomes. The report says the country will see a compounded annual growth of 45% over the next four years.

RELATED: Research and Markets predicts online fashion boom
India’s online fashion retail market is expected to grow at a compound annual growth rate of 63.45 per cent between now and 2020, says a new report from Research and Markets. The report says the growth will be largely driven by demand from non-urban areas where there is a lack branded brick-and-mortar store presence. Another factor is the improved logistics infrastructure: companies such as Amazon and Flipkart are in talks with the government to improve the postal service so they can deliver products within 24 hours in any part of India.

5. Smartphones account for nearly half of traffic to e-commerce sites in Q2
Visits to retail websites increased 24% worldwide year over year in Q2, according to the latest Demandware Shopping Index report. The report, from e-commerce technology vendor Demandware Inc., analyzed 400 million shoppers at its more than 800 clients worldwide during Q2 2016 and Q2 2015. The report found that 47% of all traffic to these sites worldwide came from smartphones. 27% of orders came through smartphones, 13% from tablet and 61% from computers. Social media accounted 2.7% of all digital traffic and drove 1% of orders.

 

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