AnyMind Group has released the “East Asia E-commerce Market Report,” compiling insights from its e-commerce market operations experts in Japan, South Korea, Mainland China, Hong Kong, and Taiwan. The report provides an in-depth analysis of consumer behavior trends and the current state of e-commerce in East Asia. It aims to assist brands and businesses looking to expand into East Asia to better understand local market infrastructures and consumer preferences in order to plan the best market entry strategies. This is AnyMind Group’s second e-commerce market report, following the “Southeast Asia E-commerce Market Report.”
As a region, East Asia possesses immense advancement and future potential in the Asian e-commerce landscape. In 2023, China, Japan, and South Korea accounted for 87% of e-commerce sales in the Asia-Pacific region and 40% of global e-commerce sales. By 2024, the East Asian e-commerce market is estimated to reach $4.20 trillion, indicating significant growth momentum and making it a popular choice for brands expanding internationally. This report further reveals insights into consumer behavior and e-commerce development trends in East Asia.
Differences in Consumer Behavior Affect Shopping Decisions
Compared to Southeast Asia, consumer behavior in East Asian markets shows significant variations, leading to different e-commerce promotion strategies to drive purchases:
- China: Due to the highly competitive e-commerce environment, consumers in China are price-sensitive and accustomed to price comparisons. Low free shipping thresholds and inclusive pricing are incentives for Chinese consumers to make immediate purchases.
- Japan: Japanese consumers love accumulating points, making “points accumulation” a strong purchasing driver. For instance, the Rakuten Group has created a loyalty program: the “Rakuten ecosystem,” where consumers can accumulate points through its credit card, stock trading, shopping, and other services.
- South Korea: The e-commerce market is dominated by local platforms. South Korean consumers show strong loyalty to trusted e-commerce platforms, preferring to shop on well-known local platforms that offer completely localized services.
- Taiwan: Taiwanese consumers highly value “free shipping” and are willing to purchase additional items to meet the free shipping threshold. Influenced by social media, they also prefer product descriptions with images and minimal text.
- Hong Kong: Convenience is key, with digital payment methods like PayMe, FPS, and Alipay becoming increasingly popular. Consumers are shifting toward mobile-first shopping preferences and expect seamless online and offline shopping experiences.
Omnichannel and Social Commerce as Key Development Focuses
E-commerce technology varies according to each market’s development stage, but overall, the focus remains on omnichannel strategies, mobile-first approaches, and social commerce:
- Retail Background Influences Platform Preference: In markets like Japan and Taiwan, where physical retail is dominant, brands often plan online channels through “official brand shopping websites + e-commerce marketplace listings,” emphasizing the omnichannel shopping experience. In contrast, in China, where e-commerce is highly developed, there is no culture of creating “official shopping websites”; brands establish stores directly on popular e-commerce platforms, with a preference for shopping on mobile devices.
- Social Commerce Has Tremendous Potential: Social commerce has spread across Asia, with China leading in social commerce development. Consumers can shop on social platforms without leaving the page, supported by comprehensive technical infrastructure. In markets like Japan, Hong Kong, and Taiwan, social commerce focuses mainly on influencer marketing, while exploring different social commerce applications, promising significant growth potential in the future.
On the launch of this report, Akinori Kubo, Managing Director of Global E-commerce at AnyMind Group, stated: “The East and Southeast Asian markets hold significant e-commerce potential, making them prime choices for cross-border brands. We are dedicated to providing brands with the most effective and sustainable growth methods. Given the diverse e-commerce landscapes and consumer preferences across markets, our BPaaS (Business-Process-as-a-Service) model allows brands to leverage our in-market teams in Asia and e-commerce data platform to deeply understand different market demands and easily expand across borders, fulfilling our company mission to Make Every Business Borderless.”
