AEC e marketplace
With ASEAN implementing AEC (ASEAN Economic Community) at the end of 2015, there has been ease in trade regulations between ASEAN countries, increasing the attractiveness of the region for potential investments and trading partners. According to the publication “East Asia and Pacific Economic Update” released by World Bank, the South East Asian region is predicted to have stable economic growth rate for the years 2016 to 2018, with some countries such as the Philippines and Indonesia to encounter positive growth rate between 2016 to 2018.
Along with the positive growth outlook in ASEAN, there has also been a rise in small and middle-sized enterprises (SMEs) in the region. Internet penetration has also been rapidly increasing, along with higher disposable income, resulting in a growing percentage of the population using Global and Asian e portal sites to purchase items desired. According to the 2016 report "e-conomy SEA (Southeast Asia)" by Google and Temasek, by 2020, the average annual growth of Internet users is forecasted to be at 14%, higher than China and the US by 4% and 1% respectively.
Countries such as Vietnam, Thailand, Indonesia, Malaysia, Singapore, and the Philippines itself are seeing a boost in the e-trading sector. With various Asian e portal sites available, this has increased the usage of e marketplace alternatives as a means of shopping. Consequently, this has allowed ASEAN has become a lucrative place for businesses to invest in, especially in the area of e marketplace platforms.
The eWTP initiative
In the global market itself, B2B and B2C e marketplace trading is becoming a lucrative business, with the increase in global connectivity resulted from higher Internet usage. To address to potential of e marketplace and global economic growth, Jack Ma proposed the eWTP initiative (electronic world trade platform). The eWTP initiative aims for SMEs to have lower barriers whilst trading, inducing greater trade and allowing SMEs to have it easier to expand. By creating a global e marketplace network, it becomes possible for SMEs to trade with potential customers from countries abroad, decreasing trading barriers considerably. With the potential increase in global trade, as the result of booming e marketplace hubs for SMEs and other businesses, this also positively impacts the global economy growth.
With the availability Global and Asian e portal increasing, trading and purchasing habits have evolved and become more convenient than the past. Below are some of the top e marketplace markets in the world:
1) AEC (ASEAN Economic Community)
4) United Kingdom
8) South Korea
Implications for Asian e portal trading platform
With a positive economic outlook, and thus an increase in SMEs and higher consumer purchasing power, online trading platforms are expected to become crucial for business growth. Along with the increasing possibility to trade with various potential customers located worldwide at a lower cost, as a result of lower trade barriers and lower cost, trades with and among AEC markets through Asian e portal trading sites are expected to increase.