The BRIC countries are predicted to stay ahead of the major advanced ecommerce markets in terms of sales growth through 2019, a new recent report reveals.
In China, the online share of total retail sales is larger by international standards than in Brazil, India and Russia, where it remains below 5%, indicating high potential for further growth. India is projected to become the growth champion among the BRIC market through 2019, with its high double-digit growth rate overtaking the lead position from China, according to BRIC B2C E-Commerce Markets 2016 report issued by yStats, a research agency.
China is the largest of the four markets both in B2C ecommerce sales and number of online shoppers. Though sales growth in China has decelerated from the triple-digit rates a few years ago, the country is still predicted to grow faster than Brazil or Russia. Internet penetration on the country’s gigantic population was just above 50% in 2015 and only about half of internet users made purchases online. India has even smaller internet and online shopper penetration rates, approximately half of that of China’s.
Online shoppers in these countries are showing an increasing interest in cross-border purchases on Asian ecommerce platforms, especially those of China, thus connecting the BRIC online markets not only by growth, but also by cross-border sales flow. Another market trend across all four countries is the rising share of m-commerce.
The competition in BRIC B2C ecommerce markets features both local and international companies. China’s Alibaba Group continues to lead online retail in China with its Tmall brand, while its AliExpress cross-border platform is also popular in Brazil and Russia. Home-grown companies Flipkart and Snapdeal hold strong positions in India’s market, while in Brazil the major local player is B2W Digital and in Russia the largest online mass merchant is Ulmart.