The Dynamic Retail Landscape
Here are some facts on the Retail landscape –
Retail Sales in Asia Pacific touched USD 9.25 trillion in 2017 (which was about 40% of the global numbers)
E-commerce represented 14.7% of the total retail sales in the region*.
E-commerce market is on a growth trajectory, with the entrance of players like Amazon into the South-East Asia market, players like Lazada, Shopee improving their presence and Chinese players like Alibaba and Tencent increasing their investment and presence for a pie of the market.
However, the interesting thing to note is that :
Around 85% of retail business in Asia-Pacific is still happening at retail outlets, stores and shops.
Due to low credit card penetration in the South-East Asia region, both eCommerce players and Retail stores and shops, are turning towards newer modes of mobile payments.
However, Cash on Delivery remains among the popular methods of payment. For instance, Cash on Delivery is offered by more than 80% of the players in both Vietnam and Philippines.**
Digital Payments is on the rise, but Cash is still King
Yes……cash is still the dominant method of payment, especially in Asia!
A recently conducted survey by PayPal found that almost 3/5th (57%) of the respondents in Asia, prefer cash for their day-today transactions. Geographically, more than 70% of the respondents in India, Philippines and Indonesia said they use cash most often and in HK and Singapore – which happen to be the financial hubs in Asia – more than 40% said the same.
Interestingly however, half of the respondents were aware of digital wallets and contactless payments but chose not to engage those mediums for their daily transactions. And this was despite the regular problems these respondents had around lack of easy access to ATMs & usual long queues at bank branches.