Tuesday, 14 May 2013

Contribution of German eCommerce to the German GNP in 2013-2017

Germany is the second largest e-commerce market in Europe. The German people are very familiar with online shopping; making them smart, savvy eConsumers with high expectations and highly cautious with online shopping where a typical customer reviews a store's terms and conditions, compares commodity prices etc.

Last year (2012), there was a notable growth in the German eCommerce revenues, something that can be attributed to the increasing use of mobile technologies such as smartphones and tablets in Germany, and to some extent by e-commerce marketing in social media networks such as Facebook. It is estimated that in that year, online shopping in Germany grew by 27 percent to reach a total volume of 27.6 billion euros ($37 billion), according to figures released by German mail order lobby group BVH with clothing making up the biggest share of Internet sales with revenue of more than 11 billion euros. Consumer electronics and books came in second and third with sales worth 4 and 2.6 billion euros respectively. postulates that in Western Europe, about 179 million people aged fourteen and above will buy via digital channels in 2013. Around one in four of these will be German residents. This is good news for  the German eCommerce sector and will be one of the contributing factors as to why the German economy will likely remain one of the most stable in Europe. On the contrary, German brick and mortar retailers will continue to feel the pinch of this expanding eBusiness, as one out of ten purchases is expected to be done via e-commerce platforms creating a need for them to make online ventures.

ECO, the association of German Internet Industry, estimates that Germany's Gross National Product, GNP, will be related to e-commerce by 2017. This is one of the findings of a survey carried out by eco. The association defines e-commerce as any online activity having to do with business procedures such as ordering, paying, or complaining, online retail, cloud computing, or electronic administration – regardless of the technical platform the transaction is performed on (PC, tablet, or smartphone).
This means that e-commerce already contributes to the GNP with 37 percent, a significant contribution that is set to increase as mCommerce will increase with increased spread in mobile technology.

Monday, 13 May 2013

Emerging eCommmerce hubs; India and Kenya

eCommerce is evolving every day and new eCommerce hubs are being created every day. In this post, I will be reviewing the latest hubs in Asia and one in Africa, considering that this is the future of the world.

The first one will be India in Asia. India is a sleeping giant with one of the largest potential markets in the world. The emergence of India as a top eCommerce hub is driven by a traditional brand loyalty considering that Indians are quite conservative. What this means is that Indians have started gaining trust in eCommerce and those brands that win their trust will be reaping benefits for a long period to come. According to the The Economic Times, rural India has climbed on to the e-commerce bandwagon and are competing with its urban counterpart to shop or sell smart gadgets. Be it GPS holders, smart phones, laptops or tablets, netizens in smaller villagers are trading in electronics on just like any suave urban consumer. This is a clear indication of continued penetration of eCommerce into the Indian market as rural India continues ti borrow a leaf from the suave Urban India. The Economic times continues to state that Guntur in Andhra Pradesh, Choryasi in Gujarat, Kartikapall in Kerala, Villupuram in Tamil Nadu and Dindori in Madhya Pradesh have emerged as top five rural hubs for e-commerce. According to eBay Census 2012. "E-commerce is no longer a metro-phenomenon," said Shivani Suri Dhanda, head (brand and acquisition marketing), eBay India while unveiling the eBay Census 2012. Choryasi emerged as the top rural export hub in the country.

The second one is Kenya in Africa. Though the country has a relatively small population, it is becoming an ecommerce hub due to a market that, just like the one in India, is very loyal. This can be observed in the growth of the dominant  communications provider- Safaricom and it's M-PESA mobile commerce success. At the same time, Kenyans are very hardworking and innovative which has led to countless ventures by individuals into eCommerce. Some of the rising brands are rupu, bid or buy and olx. Any serious eCommerce specialist with a goal to make good money online should consider targetting the Kenyan market.

In my opinion, those eBusinesses that will get to penetrate these two eMarkets early enough will have a high probability of gaining trust and recognition and will end up reaping great benefits for a number of years to come.