How E-tailers Can Succeed In The Intensified Competition For Tier II, III Consumer Base

The Asia Pacific, Middle East and Africa (AMEA) region will be at the forefront of e-commerce growth for many years to come
How E-tailers Can Succeed In The Intensified Competition For Tier II, III Consumer Base

As some areas of the globe become over-farmed, over-populated, or otherwise reach their maximum potential, opportunities in Tier II, III cities, and rural areas emerge for brands to explore. Cross-border logistics, broader network coverage, and ease of connectivity will further support the increasing penetration of e-commerce players across untapped regions. 

Winners will be those who move first and build a deep-rooted, broad reach across customers, experts believe. In fact, to face the increasing competition, conventional retailers and mom-and-pop stores are now connecting with customers via business-to-business (B2B) e-commerce platforms and selling products online both domestically and internationally. 

Benefiting from advanced digital and transportation infrastructure, together with the rising middle classes in tier-II cities, China, Asia-Pacific (APAC) and the Middle East are spearheading a revival in conventional retail and mom-and-pop stores through digital commerce, according to a recent study 'E-commerce megatrends to watch’ by transportation firm FedEx Express. 

“The Asia Pacific, Middle East, and Africa (AMEA) region will be at the forefront of e-commerce growth for many years to come. With rising disposable incomes, growing internet penetration, and emerging cross-border e-commerce markets, there is a huge amount of growth yet to be realized here,” said Kawal Preet, President of the Asia Pacific, Middle East, and Africa (AMEA) region, FedEx Express.

“Logistics is the backbone of the e-commerce ecosystem. The simplicity of click to buy must be matched by the speed and convenience of delivery. We continue to build robust networks that offer smart supply chain solutions as well as highly personalized delivery services to help businesses unlock new opportunities as the frontiers of e-commerce advance,” Preet further added. 

Reportedly, e-commerce is expected to grow at an average of 47 percent in the next five years globally. The Asian market leads the field at 51 percent, followed by Europe (42 percent) and North America (35 percent). 

In the Middle East and Africa, the combined e-commerce market value is expected to reach $73 billion by 2025. However, growth in China, in particular, has eclipsed the rest of Asia, with e-commerce sales in 2020 that reached $1.3 trillion with a projected increase to nearly $2 trillion by 2025. 

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