Our Asia Pacific research analysts recommend investing in leading e-commerce platforms amid strong market growth.
Our analysts recommend investing in leading e-commerce platforms which control traffic and provide end-to-end ecosystems. Internet tends to be a winner-takes-all industry, and we believe that e-commerce is similar given the networking effect. Leading platforms will have the most buyers and sellers, and the platforms will continue to enjoy the virtuous cycle.
We expect market leaders to see an improving blended take-rate through targeted ads. With resilient MV growth and advertising efficiency such as rising click-through rates and conversion ratios helped by big data, we expect the blended take-rates of leading platforms such as Alibaba, Yahoo Japan and Naver to gradually improve.
On the margin front, Japanese players are likely to turn profitable driven by stabilizing competition as well as Yahoo Japan’s initiative to focus on profitability by pursuing more efficient promotions, through collaboration with Softbank Group. For major China e-commerce players, we expect to witness further margin expansion for the core e-commerce business, but consolidated margin will likely contract owing to new business investment. In Korea, losses of the big-3 social commerce players and 11st are likely to continue owing to a fierce market share battle. In this environment, we think the winner will continue to be Naver, whose position as a traffic gateway will further strengthen if consumers prefer to shop on price comparison platforms.
Click here to view the full report to learn more about our views on who the winners in the e-commerce market will be, outlook on the competitive environment and market share, in-depth analysis of the different e-commerce business models, and financial analysis of Asia e-commerce companies and share opportunities for improving blended take-rates.Read more