Improve The Quality of E-Commerce
Strategy 2: Improve The Quality of E-Commerce
According to statistics , revenue from retail E-commerce in Taiwan reached NT$221.2 billion in 2016 and the annual growth rate was 12.3%. Although the usage rate is not considered low, there remains room for growth in the overall consumption for the retail industry.
Active E-commerce and Digital Economy with Room for Qualitative and Quantitative Improvement
In Taiwan, 64.2% of Internet users shop online. It is a relatively active economic application compared to other online services and applications. Although the usage rate is not considered low, there remains room for growth in the overall consumption for the retail industry. According to statistics, revenue from retail E-commerce in Taiwan reached NT$221.2 billion in 2016 and the annual growth rate was 12.3%. However, it only accounted for 5.4% of the retail industry (Department of Statistics of the Ministry of Economic Affairs) and it remains lower than China (15%), the United States (8%), and Japan (5.8%).
E-Commerce Usage Rate
E-Commerce User Profile
Among interviewees who buy or sell products online, 64.2% conducted online transactions. Separately, 49.8% "buy products online" and 14.2% "sell products online." Average monthly expenses amounted to NT$2,418.
Avg. Cost per Month
E-commerce is One of the Few Industries with Strong Domestic Firms That Also Require the Government's Continuous Support
Taiwan has diverse E-commerce brands and categories as well as operators in different sectors, and Taiwan's online environment is filled with foreign capital and foreign companies. Services with more active applications such as social media and communication consist mostly of international brands. E-commerce is one of the few industries with strong domestic firms.
Market Overview of E-commerce Brands In Taiwan
|Operating Model||Definition||Representative Businesses|
|B2B||Transactions between businesses||Taiwantrade|
|C2C||Transactions between consumers||Yahoo! Auction, Ruten, Shopee, PChome personal stores|
|B2C||Businesses offer goods or services to consumers||Yahoo! Shopping, Momo Shopping, PChome Shopping/24H|
|B2B2C||Businesses offer goods or services to consumers on online platforms||Yahoo! Mall, momo Mall, PChome Mall, Shopee Mall, Pcone|
|O2O||Use of online marketing to guide customers to offline consumption||17 Life、Gomaji|
|Operator Type||Representative Businesses|
|Taiwanese E-Commerce Operators||
|Online shopping platforms of foreign companies||Yahoo! Auction, Yahoo! Shopping, Yahoo! Mall, Ruten (Taiwanese and Japanese joint venture), Carousell (Singapore), Shopee (Singapore)|
|Platforms with investment from finance and media operators||momo Shopping, udn Shopping, Treemall, Orenda|
|Platforms operated by retailers with physical stores||ibon mart, Tsann Kuen Quick 3, EcLife Shopping, Carrefour Online Shopping|
|Platforms with investment from telecom operator||Myfone Shopping, friDay Shopping|
New High-Tech Applications Integrate Social Networks and The Media to Achieve Swifter Communication
Even as E-commerce generates impressive revenue, the actual profits have gradually shrunk (DigiTimes). Integration of new technologies and cross-sector collaboration have become necessary for consolidating the benefits of the digital economy. New technologies such as AR and VR have been integrated to improve the shopping experience. Operators also leverage the rapid development of social media and content media to promote products in social groups or content. Examples include online word-of-mouth in the past and the current fan economy.
For the industry, it needs to employ new technologies and algorithms to produce more instantaneous feedback such as monitoring the products browsed or selling big data in order to market or remove popular or unpopular products and to adjust the sales strategy or marketing activities
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