According to a current report from consultancy A.T. Kearney, China has the most e-commerce potential among emerging markets. It has, however, poor transportation options and low internet availability that could slow down progress and development.
In the reports inaugural e-retail index of emerging markets, entitled “Online Retail: The New Frontier for International Expansion,” China is at the top of a list of 10 countries with potential for e-commerce growth. The report calculated growth potential by examining important factors like overall market attractiveness, online infrastructure development, retail development, and digital laws and regulations.
China tops countries like Brazil, Russia, Chile, Mexico, United Arab Emirates, Malaysia, and Uruguay. That is mainly because of what the report calls China’s vast online retail markets–at $23 billion, second in the world next to the United States.
E-commerce has improved by a 78% compound annual growth rate since year 2006, the report says, and will reach about $81 billion over the next five years. The report also goes on to say that China has 513 million web users–the largest online population in the world. Among these, 164 million are online shoppers who spend their money most often on consumer electronics, apparel and beauty products.