Li JimingDeputy Director General of Yunnan Department of Commerce PRC, June 2011

Source: comScore World Metrix, October 2010

Source: comScore e-Commerce Measurement

e-Commerce Sales by Income Segment ($ Billions)Growth vs. YA

Source: comScore e-Commerce Measurement

Source: comScore Media Metrix, December 2010

Source:comScore MobiLens, Dec-2009 -Dec-2010 (3 Month Average)

• South Korea is the third largest eCommerce market in the Asia-Pacific region, after Japan and China

• On the global stage, it has higher online penetration, broadband penetration, and mobile penetration than the United States – and is recognized as a leader in mobile payments and virtual goods

• The number of Internet users in South Korea reached 36 million in 2009, accounting for 74% of the total population

• E-Commerce growth in South Korea is higher than expected - projected to reach approximately USD 17 billion in 2009

• Payment cards are the dominant online payment tender in South Korea and are used for approximately two-thirds of online purchases

• Revenues from e-commerce in Japan have expanded every year by around 17% since 2005, and are expected to grow at nearly 10% a year for the next five years

Source: comScore Media Metrix, December 2009 to December 2010

Source: comScore Media Metrix, December 2009 to December 2010

Source: comScore Media Metrix, December 2009 to December 2010

Unique Visitors (000)Top 5 Retail Sites per Country

• Until the end of 2010, the number of internet users in China has taken up 23.2% of that in the world, and 55.4% of that in Asia

• Unlike in the US, the traditional retail market in China is highly fragmented

• E-commerce saves online retailers store operating costs, lowers their marketing expenses, and improves their inventory turnover, allowing them to offer competitive prices– Chinese consumers often enjoy 30-40%

discounts when shopping online, relative to shopping at the traditional retail stores

– Most online retailers offer free door-to-door delivery within days

• Internet is dramatically changing the way goods and services are produced, delivered, sold and purchased

• Internet technologies have the potential to empower SME

• Potential benefits of e-commerce for developing world are immense - any company can enter global markets where size and location become rather irrelevant

* Asavin Chintakananda, Senior Advisor, Asian Development Bank, Page 6 of “Financing E-Commerce While Fighting Poverty” Presentation

• Continuous price rise in China as well as the protectionist measures in the US and the EU are motivating Chinese firms to move into neighboring ASEAN region

Source: United Nations Commodity Trade Statistics Database and Author‟s Calculation.

• AMSs may consider to make reference and utilize ASEAN-China FTA B2B Platform

– Targeting lower entry costs and barriers for ASEAN enterprises

– Access exciting yet fragmented markets• B2B for ASEAN Member Countries and China to

promote inter-regional trade– More support coming targeting Cross-Border online

settlement and e-Port

• Currently running a trial with Malaysia – lesson learned: government support is critical to success

• Accelerate adoption of e-commerce trade

• Continuous building of infrastructure, legal framework and increase awareness in e-trade on costs and benefits

• Targeting trade opportunities between ASEAN Member Countries and China as a priority in the early trial – worth consideration

• Domestic B2C and C2C markets when ready

• Effective utilization of transportation infrastructure upgraded in recent years

• Utilize and make use of an established electronic shopping mall at Newegg and other established channels in the U.S.

– Leapfrog bypassing ground zero– Shorten learning curve– Access vast middle class consumer segment

• Accelerate trading with China through Newegg platform in China

• Currently running a trial with Malaysia

• Consider to utilize Newegg and other available Public e-Commerce Platforms

– Consider not to re-invent certain basics– Reduce learning curve– Lower start-up and entry costs– Tailor-made to specific needs

• Government support from each country is critical– Relevant ASEAN Secretariat involvement and coordination

very important– Comprehensive planning but small wins through trials

utilizing an established channel is recommended

• Global e-commerce spending is projected to increase more than 90% by 2014

• Majority of the growth will be in Asia Pacific region especially from China

• f

• Leverage on the existing platform for faster and easy entry into the e-commerce market

• Utilization of FTA B2B platform to increase inter-regional trades

• Adequate e-commerce infrastructure in place

• Policy and regulatory framework

• Common platform: wheels not made here

• B2B before B2C in certain countries

• International and local collaborators

JUNE 2011

Yunnan Department of Commerce PRC

http://www.asean-cn.org http://www.cn-asean.org