Understanding how different markets operate can provide crucial insights for businesses aiming to expand internationally.

This article explores the current state of e-commerce in key Asian markets and compares it with the UK market, highlighting how European and Asian SMEs can leverage these insights and ensure their growth potential.

At Northstar, we are working on an in-depth report titled “The Future of E-Commerce Trends and Insights,” which focuses on how SMEs can maximise the current platforms and the technological advancements shaping the industry today.

It is no wonder that the key market for e-commerce continues to be China. However, let’s examine the numbers, gathered from a vast and diverse array of sources.

China: The Titan of E-Commerce

China stands as the undisputed leader in the global e-commerce arena.

With online retail sales reaching nearly $2.2 trillion in 2022, the country’s e-commerce market is not only massive but also growing at an impressive rate.

Projections, in fact, indicate that China’s e-commerce sector will hit $2.14 trillion by 2028, driven by a rapidly expanding base of online shoppers, expected to reach 2.77 billion by 2025.

Key Trends and Platforms:

• Social and Mobile Integration: Platforms like Taobao, Tmall, and Pinduoduo dominate, integrating social shopping, group buying, and mobile payments. Consumers are highly appreciating voice commerce, with nearly half of Chinese consumers appreciating its convenience.
• Popular Categories: Electronics, travel, and unique items are top choices among Chinese consumers, who are increasingly leaning towards domestic brands.

For SMEs in China, platforms like Tmall and JD.com offer robust channels for reaching consumers, while Xiaohongshu and Pinduoduo are ideal for social commerce and agricultural products, respectively.

Vietnam: A Growing Digital Market

Vietnam’s e-commerce market, valued at $13.9 billion in 2024, is on a steep growth trajectory, with an expected CAGR of 11.21% through 2029. The market is further experiencing a surge in tech-savvy consumers and a vibrant SME sector.

Key Trends and Platforms:

• Rising Stars: Shopee, Lazada, and TikTok are leading platforms. TikTok, in particular, has become a major player in livestreaming sales, attracting a significant number of SMEs.
• Popular Categories: Beauty, fashion, and home products are favored, with tourism and sports items also experiencing growth.

Vietnamese SMEs are increasingly investing in an online presence, with cashless payments and e-invoicing becoming more prevalent, especially in cities like Hanoi, which leads with a 33% e-commerce market share.

Hong Kong: A Hub of Technological Advancement

Hong Kong’s e-commerce market, valued at $3.7 billion, will grow at a CAGR of 7.4%, reaching $5.4 billion by 2029.

Advanced digital infrastructure and high internet penetration characterise the region, making Hong Kong a market worth watching.

The rapid evolution of the city-state and the increasing Chinese influence are more evident than ever.

Mandarin and Cantonese are the most preferred languages, thus surpassing English which was once the most spoken language. While English remains prevalent, this linguistic shift may impact how consumers experience online shopping, presenting a significant opportunity for SMEs.

Key Trends and Platforms:

• Technological Edge: Hong Kong boasts a high level of digital payment adoption, with credit cards and digital wallets dominating transactions.
• Popular Categories: Travel, electronics, and beauty products are top online purchases. Price comparison is crucial for Hong Kong shoppers.

Despite the SME sector’s dominance, challenges remain in e-commerce adoption, with limited resources for many small businesses. However, governmental support is available to help SMEs maximise online opportunities.

Singapore: A Robust Digital Economy

Singapore’s e-commerce market, valued at $5.21 billion in 2023, is projected to grow to $9.58 billion by 2029, driven by strong digital infrastructure and government initiatives aimed at fostering a tech-savvy workforce.

Key Trends and Platforms:

• Growth Drivers: Singapore’s robust digital economy is buoyed by continuous technological advancements and support for SMEs transitioning to digital platforms.
• Popular Categories: While specific product categories are less detailed, the general trend reflects a strong inclination towards digital solutions and efficient online transactions.

The UK: A Mature E-Commerce Market

While in Asia we see very consistent growth, with numbers and statistics that are in the billions and trillions, Europe is starting to lag behind. Being a UK-based company, we have analysed the growth of the Asian markets, even small in size like Singapore or Hong Kong, with our own: the UK. The UK’s e-commerce market, valued at $124 billion in 2024, is characterized by its maturity and high mobile shopping adoption, accounting for 71% of online purchases. The market is expected to grow steadily, reaching $152 billion by 2025.

Key Trends and Platforms:

• Market Leaders: Amazon and Very.co.uk are major players. The use of credit/debit cards and PayPal remains dominant, with a growing interest in local shopping.
• Popular Categories: Over-the-counter medication, fashion, and electronics are top categories.

Platforms like WooCommerce and Shopify are popular among SMEs for their flexibility and user-friendliness, supporting a significant portion of the online retail market.

Bridging Markets: Opportunities for SMEs

For European companies looking to enter the Asian market, and for Asian SMEs aiming to expand globally, understanding these regional e-commerce dynamics is crucial. Tailoring strategies to leverage local platforms, consumer preferences, and payment methods can unlock significant growth potential.

At Northstar, we bring deep expertise and insights into the Asian e-commerce landscape, helping European companies navigate the complexities of international expansion.

By embracing the unique opportunities in each market and leveraging the right platforms, SMEs can position themselves for success in an increasingly interconnected global economy.