India and the Association of Southeast Asian Nations (ASEAN) are among the fastest growing nations with even faster growth rates for e-commerce and digital trade sectors, says a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and consulting firm KPMG. Global e-commerce sales are likely to reach $4.5 trillion from $1.3 trillion in 2014, it says.
While China dominates the global e-commerce sector, India and ASEAN are making investments to develop an ecosystem that can sustain and promote increasing digital trade, it says.India and the Association of Southeast Asian Nations are among the fastest growing nations with even faster growth rates for e-commerce and digital trade sectors, says a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and consulting firm KPMG. Global e-commerce sales are likely to reach $4.5 trillion from $1.3 trillion it says.#
The e-commerce market in India is projected to reach $165.5 billion by 2025 while the ASEAN is estimated to reach a volume of $90 billion, says the report titled 'India and ASEAN: Co-creating the Future.'
ASEAN comprises Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Cambodia, Myanmar, Brunei and Laos.
Within ASEAN, Indonesia's e-commerce market is expected to rise to $46 billion by 2025 (from $1.7 billion in 2015), Thailand to $11 billion ($0.9 billion), Philippines to $9.7 billion ($0.5 billion), Malaysia $8.2 billion ($1 billion), Vietnam $7.5 billion ($0.4 billion) and Singapore $5.4 billion ($1 billion dollars).
By 2025, China's e-commerce market will expand to a whopping $672 billion, says the report.
The fast growth everywhere is led by rising internet penetration and smartphone use, a young population and an expanding middle class.
Cross-border e-commerce is likely to play a major role in supporting e-commerce expansion, with the sub-segment expected to reach $1 trillion by 2020. This is driven by customers seeking lower prices and accessing unique or speciality products or brands not available in their home country.
The rapid adoption of e-commerce and digital platforms presents a new set of security challenges, the report cautions. (DS)
Fibre2Fashion News Desk – India