Report: While Broader Economies Struggle, B2C E-Commerce in BRIC Countries Still Ascendant
April 4, 2016
The emphasis on BRIC countries as a target for expanding e-commerce businesses has waned a bit as Brazil and Russia experience hiccups in their broader economies and even China is showing some weakness in growth. Retail e-commerce still will fly high in these regions, however, according to a report from German market research firm yStats. Through 2019, the report said, B2C e-commerce sales will grow faster in Brazil, Russia, India and China than in more advanced e-commerce markets including the U.S., U.K. and Germany.
“BRIC will remain among the leading B2C e-commerce markets worldwide in terms of growth rates,” said yStats.com’s CEO and Founder Yücel Yelken, “as the online share of retail in the majority of these countries remains low.”
In Brazil, Russia and India, online sales as a percentage of total sales remain under 5 percent, Yelken pointed out, indicating much room for growth. Growth in China has decelerated, but it was astronomically high in the recent past, so yStats predicts growth rates in China will remain ahead of Brazil and Russia. India, however, is poised to grow faster than the other three. Internet penetration is low, but rising quickly, and just last week the Indian government paved the way for even more growth when it loosened its rules prohibiting foreign direct investment in e-commerce companies.