The rise of eCommerce has undoubtedly penetrated the APAC market, and grocery stores are no exception. While there has been success in the market for grocery eCommerce, this level of growth is not the case for everyone.
The variation across APAC markets isn’t difficult to observe. South Korea leads the pack with eight percent market share of online grocery, while Japan and China follow close behind with market shares of seven percent and five percent, respectively. Other countries in Asia, however, face much lower market penetration. Hong Kong, India, and Malaysia, for example, have market penetration rates of less than two percent.
To understand this variation, it’s important to consider the various barriers in the market for e-grocery businesses—from infrastructure to labor costs and logistics but, most important, shopper sentiment, behavior, and accessibility.