Strategies for Expanding into Emerging Markets with E-Commerce

October 2023

E-commerce growth in emerging markets is set to outpace growth in developed markets as wider digitisation and access to technology facilitates structural shifts, addressing traditional challenges. Locally-driven innovation and new consumer profiles are resulting in these markets leapfrogging e-commerce development. As companies look to establish and expand in emerging markets, having a localised strategy that encompasses technology leadership, consumer centricity and talent development is key.

USD 1,475
Request More Information


This report comes in PPT.

Key Findings

Emerging markets are the new frontiers of e-commerce boom

Global retail e-commerce is expected to see absolute value growth of USD1.4 trillion over 2022-2027. Over 64% of this opportunity is expected to come from emerging markets as growth of retail e-commerce in these markets will outpace that of developed markets.

Digitisation and leapfrogging trends make emerging markets a strong case for investment

Wider digitisation and technological leapfrogging have empowered emerging markets, making them attractive for investment by venture capital firms. Fintech and e-commerce verticals form a great share of these investments. Wider e-commerce development is also supported by governments focusing on digital ecosystems to further growth of the digital economy.

China crowns the promise of growth in emerging markets though need for innovation remains in other markets

Despite being an emerging market, China holds the dominant place in the global e-commerce landscape, surpassing the US. However, the gap between China and the next top emerging market remains significant - reflecting the untapped opportunity that remains to be explored through market development and innovation.

Developing a locally relevant strategic playbook is key to unlocking e-commerce growth in emerging markets

Understanding market intricacies is vital given no one-size-fits-all strategy to establish and expand presence in emerging markets. E-commerce players require active participation in the overall digital ecosystem, with high levels of investment, building supporting services and partnerships with governments and local partners.

Regulatory aspects around financing, operations and ownership govern key dynamics

Regulations around foreign direct investment (FDI), profit repatriation, ownership rights and structures are some of the key challenges hindering investment and expansion by foreign players into e-commerce in the emerging markets. Meanwhile local players often face constraints around needed funds and investment to tackle challenges around last mile delivery and scaling up technologies for growth.


Key findings
E-commerce growth in emerging markets expected to outpace developed markets
Digitisation has facilitated structural shifts to break barriers and drive local market innovation
Technology leapfrogging playing a key role in expediting e-commerce in emerging markets
Millennials and Gen Z to create a domino effect for e-commerce adoption
Harnessing the potential of women in emerging markets through e-commerce
Increasing disposable incomes to support growth of wider e-commerce industries
Leading emerging markets for e-commerce
Leading forecast emerging markets for e-commerce
New frontiers of e-commerce growth poised for expansion in infrastructure and technology
Key developments driving e-commerce in emerging markets
Digital payment adoption
Social commerce
Community group buying
Alternate forms of financing
Developing locally relevant strategic playbook is key
Choosing when and where: the risk and reward of early and late movers
The three Ts for successful e-commerce operations in emerging markets
Most e-commerce players emerge as start-ups leading to acquisitions by global players
Company spotlight: Amazon
Company spotlight: Alibaba
Company spotlight: Mercado Libre Inc
Company spotlight: jumia
Company spotlight: Uber Technologies Inc
FDI regulations challenge investing and expanding into e-commerce in emerging markets
Last mile delivery challenges call for greater investment and asset management
Weak bilateral pacts, freight services and import restrictions limit cross-border e-commerce
Addressing digital divide remains key to sustainable e-commerce growth
What will it take to win
Key findings
About Euromonitor International’s Syndicated Channels Research


If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!