In a digital era marked by convenience and connectivity, the “anytime, anywhere” concept has emerged as a catalyst propelling the online shopping across East Asia.
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Insights from data analytics firm Euromonitor International shed light on the region’s growing e-commerce landscape, where China, Japan, and South Korea collectively drove a remarkable 87 percent of Asia Pacific’s e-commerce sales value in 2023, around 40 percent of global e-commerce sales.
The allure of better prices, coupled with the ability to shop at one’s convenience, has accelerated the adoption of online shopping habits among East Asian consumers.
According to Euromonitor International, nearly a third of consumers in East Asia cite the freedom to “order at any time, from anywhere” as a primary motivator fuelling their online shopping behaviours.
Euromonitor’s projections indicate that China, Japan, and South Korea are poised to capture 85 percent of the region’s total retail e-commerce sales by 2028. Despite being considered mature markets, these nations are anticipated to continue growing in the e-commerce scene.
East Asia the “home of health and beauty”
Sectors such as beauty and personal care, consumer health, and pet care have emerged as frontrunners with the highest online penetration rates within the region.
In the health and beauty sectors, J-, K-, and C-Beauty businesses have cemented their presence, with a significant number of top-ranking companies in beauty, personal care, and consumer health coming from APAC.
In East Asia, marketplace platforms reign supreme in the health and beauty sector, dominating the online sales landscape.
Retailers such as Olive Young in South Korea are positioning themselves as comprehensive health and beauty lifestyle platforms, curating exclusive brands and competitive pricing to foster consumer trust and loyalty.
FMCGs on growth path
With relatively lower online penetration, the food and drink industries have shown growth as e-commerce offers more opportunities for growth.
South Korea experienced double-digit growth in online retail following the relaxation of regulations for local breweries, while Japan saw a 14 percent surge in soft drink online retail, reflecting evolving consumer preferences for bulk options and sustainable packaging.
Market leaders such as Tmall, Douyin, Amazon, Rakuten, Coupang, and Naver have emerged as frontrunners, commanding substantial market shares and offering diverse product selections to cater to consumer demands.
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As digital marketplaces continue to evolve, the growth potential in specialised online channels, especially in health and beauty segments, remains promising.