B2B E-Commerce Trends in Asia-Pacific in 2023
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Of recent, Asia Pacific region has emerged as a leader in B2B E-Commerce. With the rapid growth of the digital economy, businesses in the region are taking advantage of new opportunities to connect with buyers, streamline their operations, and expand their reach to new markets with digital commerce. As per Report Ocean, Asia Pacific B2B E-commerce market will grow by 12.6% annually with a total addressable market capitalisation of US$216,568.4 billion over 2022 – 2030.
The drivers for this growth are enhanced efficiencies in large scale business transactions, growing mobile devices and internet penetration, and advancing digital technology for commerce such as Cloud, Big Data, AI (artificial intelligence), IOT (internet of things), and online payment.
Let’s explore some of the key trends in B2B E-Commerce in Asia Pacific in 2023 and what they mean for businesses looking to grow in this market.
1. Rise of mobile commerce and internet penetration
One of the biggest trends in B2B E-Commerce in Asia Pacific is the rise of mobile commerce. As more people in the region use smartphones and tablets to access the internet, businesses are adapting to this new reality by creating mobile-friendly B2B E-Commerce platforms. A study by Wunderman Thompson shows that 49% of buyers prefer shopping online on B2B E-Commerce platform, and out of those, 95% they will retain their buying behaviour in the post pandemic world. This has led to a shift in the way sales reps interact with the buyers in B2B scenarios.
2. Expansion of marketplaces
Another trend in B2B E-Commerce in Asia Pacific is the expansion of online marketplaces. These platforms allow businesses to reach a wider audience and sell their products and services to buyers who may not have been accessible before. Marketplaces like Alibaba, Udaan, Bukalapak, Lazada, Zilingo, Joor and EC21, are particularly popular in the region, providing businesses with a way to connect with other businesses across different regions, countries and languages. Therefore, adopting an omnichannel strategy is critical for market reach for B2B businesses.
3. Adoption of AI and automation
As businesses in Asia Pacific look to streamline their operations and increase efficiency, many are turning to artificial intelligence (AI) and automation. These technologies can help businesses automate routine tasks, optimise costs, and improve customer service. For example, chatbots can be used to answer customer queries, while AI-powered analytics can provide insights into buyers’ behaviour and preferences, AI can help optimise route to deliver products to customers, and AI-powered personalisation and recommendation engine can help personalise buyers’ experience on B2B E-Commerce platform, resulting in higher conversation rate, improved customer satisfaction and building loyalty.
4. Emphasis on personalised experiences
Another trend in B2B E-Commerce in Asia Pacific is an emphasis on personalised experiences. As businesses look to stand out in a crowded marketplace, they are investing in technologies that allow them to create tailored experiences for buyers on their own B2B E-Commerce platform. A study from Wunderman Thompson shows that 92% of global B2B buyers want a similar experience on B2B sites as they get on B2C sites. This includes using data analytics to personalize product recommendations, providing customized pricing and discounts, and creating targeted marketing campaigns.
5. Greater focus on sustainability
Finally, businesses in Asia Pacific are increasingly focused on sustainability. This means taking steps to reduce their environmental impact and promote social responsibility. Many businesses are now offering eco-friendly products and packaging, and optimising their supply-chains. According to McKinsey & Co, supply-chain operations contribute up-to 80% of greenhouse gas emissions within the consumer sector. By allowing buyers to engage with the business online via B2B E-Commerce and giving sales reps the tools to be able to connect over video conferencing and masquerading on behalf of buyers can help reduce greenhouse gas emission significantly. This trend is expected to continue as businesses become more aware of the importance of sustainability in the region.
In summary, the B2B E-Commerce landscape in Asia Pacific is rapidly evolving, with businesses adopting new technologies and strategies to stay competitive. A study from McKinsey & Co, shows that nearly two-thirds (65%) of B2B companies across industry sectors now offer B2B E-Commerce capabilities, defined as fully executing a sales transaction online. This is up from 53% in early 2021. By putting in the right strategy and investing in the right tools and platforms, businesses can take advantage of new opportunities and grow their presence in the existing and new markets.
Sources: Ocean Report | Wunderman Thompson | McKinsey & Co – Sustainability | McKinsey & Co – B2B E-Commerce