Financial vanguard 02032015

Page 1

MARCH 2, 2015

Why local investors shun e-commerce sector— REPORT •Nigeria loses 40% of stake to foreign investors, say operators is second only to the US, but this is not expected to last much longer. Beginning in 2016, China will overtake igerian operators in the ethe US in spending. Massive gains in commerce ecosystem have China, as well as in India and attributed the apathy of local Indonesia, will push Asia-Pacific’s investors to the lucrative and booming growth ahead. These countries, along e-commerce sector to high failure rates with Argentina, Mexico, Brazil, Russia, of tech start-ups as well as fear and Italy and Canada, will drive edoubts about the viability and commerce sales growth worldwide. Einvestment value of the sector. commerce markets in other countries According to e-Marketer’s 2014 included in eMarketer’s forecast are forecasts, worldwide business-tonearing maturity. The strength of sales consumer e-commerce sales will in emerging markets is largely due to increase by 20.1 per cent to reach their large populations coming online $1.500 trillion. Growth will come and buying there for the first time. primarily from the Asia-Pacific will claim According to erapidly expanding more than 46% of digital online and mobile user buyers worldwide in Marketer’s bases in emerging 2014, though these users 2014 forecasts, markets, increases in will only account for 16.9 m-commerce sales, worldwide per cent of the region’s advancing shipping population. Penetration business-toand payment options, will also be low in Central consumer eand the push into new and Eastern Europe, international markets commerce sales Latin America, and the by major brands. East and Africa. will increase by Middle Last year, for the first For now, North America 20.1 per cent to time, consumers in and Western Europe are Asia-Pacific spent more the only regions where a reach $1.500 on e-commerce majority of residents will trillion purchases than those in make purchases via North America, making digital channels. it the largest regional e-commerce In Nigeria although, the market is market in the world. This year alone, gradually picking up, local investors B2C e-commerce sales are expected have about 20 percent investment in to reach $525.2 billion in the region, the internet business against the 60 per compared with $482.6 billion in North cent which should be the ideal had America. they decided to invest earlier in the China will take in more than six of sector to grow the e-commerce every 10 dollars spent on e-commerce platform. in Asia-Pacific this year and nearly Operators, who spoke to Financial three-quarters of regional spending by Vanguard, said that at the moment, 2017. The country’s ecommerce market Continues on page 22 By JONAH NWOKPOKU

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