Asia Pacific online sales to reach US$1.6 trillion by 2023

Alibaba was the top Asia Pacific retailer last year. (Reuters pic)

KUALA LUMPUR: The Internet retailing market sales in the Asia Pacific region are expected to reach US$1.6 trillion by 2023, almost doubling from 2018, according to Euromonitor International.

As Asian households will become wealthier over 2018 to 2023 led by Indonesia, Malaysia and India, the larger regional markets remain in the focus of large retailer expansion plans.

This follows the newly-released white paper – ‘Top 100 Retailers in Asia’ – by the company, examining how the Asia Pacific region is shifting its retailing landscape and what factors are leading to this change.

According to the white paper, the rise of the marketplace model is cited as a major factor in the continuous growth of digital commerce.

Last year, 47% of all digital business-to-consumer commerce sales were made via the marketplace model, up from 27% in 2009.

With the region accounting for 41% of global spend last year, increased wealth, ageing, urbanisation and single households are major drivers impacting consumer attitudes towards retail.

“E-commerce has eclipsed non-store retailing in the Asia Pacific region, with urban consumers shifting from bulk purchases to a ‘buy as you need’ mentality,” said Euromonitor International research manager, Ivan Uzunov.

“The major shift of the consumers, though, is away from the physical store as shoppers become more comfortable with buying non-grocery products online.”

Alibaba Group Holding Ltd was the top Asia Pacific retailer last year, followed by Inc, Seven & I Holdings Co Ltd, AEON Group and Inc.