Large emerging markets with an active online user base and solid infrastructure offer online retailers the greatest ecommerce potential in the near-term. That’s the view from AT Kearney, which recently released its first Retail e-Commerce Index. The study, which examines the top 30 countries in the 2012 AT Kearney Global retail Development Index and ranks the top 10 based on retail ecommerce potential, concluded that China was this year’s top destination.
China’s current online retail market size of $23 billion is second only to the USA and is expected to increase over the next five years growing at 29 percent a year with the consumer electronics and apparel sectors being highlighted as the two largest categories in the country.
Brazil came out as the second biggest emerging market with the country’s active online user base commanding $10.6 billion in online retail sales, the largest in Latin America. Brazil’s online market is predicted to expand 12 percent a year over the next five years, with appliance and consumer electronics being the most common products sold online in Brazil, while online apparel sales in the country were marginal as the Brazilian consumer values the social experience that comes with in-store shopping.
In third place was Russia, driven by 60 million internet users—the largest online population in Europe—which includes 15 million online shoppers. Russia’s current online retail market size of $9.1 billion is projected to grow 12 percent a year over the next five years. Chile and Mexico rounded off the top five emerging ecommerce markets, followed by United Arab Emirates, Malaysia, Uruguay, Turkey and Oman.
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