Brief Note About Dropshipping Business Model in ASIA

Current drop shipping market in Asia

In Asia South-East Asia, today’s dropshipping market saw unparalleled economic growth in 2017. As per the survey, users spend on the internet, which is much more than the established markets, an average of 3.6 hours per day.

Mobile internet is averaged 1.8 hours in the UK and 2 hours in the US in established markets.

According to a study published in Google and Temasek in December 2017, South East Asia has developed into a region which is growing enormously in nearly all sectors, including online traveling, online media, ecommerce, etc. Google and Temasek Holdings are estimating the growth from CAGR $5.5 billion in 2015 to $88 billion in 2025, with e-commerce in the region of Southeast Asia at 32 per cent.

Social shoppers are currently highly commercialized products in Southeast Asia. They are mainly relying in their purchase decisions on social media recommendations. 30 percent of e-commerce sales started on social media in Southeast Asia and were concluded with messaging applications (WARC, June 2017).

In order to sustain their interests, customers are offered more choices in retail outlets than ever before.

What about shipping declines in Singapore, Malaysia and other main South East Asian countries?

YES is the answer. As a lot of snorkeling companies in Malaysia and Singapore are now available in Southeast Asia, I will list some of the potential niches in both Singapore and Malaysia for the snorkeling business.

With the popularity of e-commerce companies worldwide, people have now begun to accept the fact that if they order on-line they can now obtain better products with a highly reasonable price.

Products Widely Purchased by South Asian People

In view of this, few products were found to be widely purchased by consumers through online purchases in Southeast Asian countries:

1. Cosmetics

Among Asian customers, the online cosmetics business is growing. Asians are more wary of their skin. Chinese women in particular care a lot about the facial and skin makeup. Secondly, a key element was also the success of the cross-border cosmetics business. Chinese people love South Korean brands like Etude House, Olay and Missha. Most of these companies focus their strategies on the convenient e-commerce platform and services.

2. Home décor

Asians were not so concerned with home decor and furniture long ago, but this trend is changing. They want trendy, comfortable and contemporary furnishings. Nowadays, few companies offer brand new and stylish mobilizes for rent rather than for sale.

Some companies even supply second-hand rental or sales furniture. Online customers can choose furniture, pay and have it delivered on-site.

3. Kids

Some of the television shows such as “Where’s Dad going? “The” China Children’s Voice, “children’s clothing has become a real trend in China. Parents pay more attention to the dress of their children and how they look.

This kind of upcoming market trend is being fulfilled by luxury brands such as Fendi, Burberry and Christian Dior. The new trend of fashion children today is brought about by new TV shows.

4. Jewelry

China, apart from India and the US, is becoming one of the biggest gold and gem consumers. In China there are a lot of gemstores. The demand for gold jewelry is suddenly rushing.

The use of jewelry and gold as people in Asia is a way to demonstrate wealth and prosperity in festivals and marriages. Few of the large corporations chose to start their business on the e-commerce platform.

However, because of its costly nature, the support of physical stores is still necessary.

List of available drop shipping suppliers in Southeast Asia

List of available drop shipping suppliers in Southeast Asia
Website Key products
Chinabrands Electronics, fashion clothing
Lazada Electronic devices
11 street Women & Men fashion
Qoo10 Women’s Fashion
Zalora Women clothing & accessories
Shopee Electronics
Goshop Baby products
Save Value Mart Suits
Happy2u Fashion
Dropship Malaysia Beauty
Cleocat Fashion Women’s clothing

Political factors in Southeast Asia

Southeast Asian political circumstances are changing in the majority of Asian countries. The top managers identify few economic risks.

Higher oil prices, job insufficiency etc. are few of the main concerns. These risks have been complemented by economic deceleration and uncertainty in international trade.

It seems that the reason for this is an increase in protectionist measures.

Asia will continue to be the world’s largest contributing contributor of global growth for 2017–18. Executive opinion survey of top risk in Asia-Pacific (15-2017) Growth in China is expected in the meantime to be moderate. In 2017, GdP growth will rise from 7% to 7.2% in 2018, led by India. South Asia is the fastest growing sub region in the region.

Based on the 7.1 per cent recorded prior fiscal year, the South Asian powerhouse grew by 7.4 percent in fiscal 2017 and 7.6 percent in the following financial year.

Drop shipping is one of the most promising business models today, due to its low level of risks and simplicity, thanks to its high level of political and economic instability.

This model already was adopted and worked successfully by some of the most popular online retailers such as, Amazon, ebay, etc.

Roughly 33% of the e-commerce retailers currently use the declining shipping business model and China is the leading supplier of goods. When you ship from China, the e-commerce website can be uploaded and operated quickly and you can reduce financial investment. As a market for online ecommerce leaders, China is rapidly developing.

Finally, they have found a cheap supply and an efficient shipping center. At the same time, Chinabrands also catches distributors ‘ attention. A profitable group has expertise like clothing in a Chinese manufacturer.

China is the cheapest clothing you find in drop shipment. On the other hand, Shopify has costs and payment problems, which has proven to be a major obstacle.

In their marketing operations, Chinabrands facilitate customers. They give professional text descriptions and clear, high-definition product photographs that provide the finished product with the most accurate information and representation.

More than 200 countries are on their platform. They partner with world’s leading couriers like DHL, EMS and Special Express to help shipping. Every item is thoroughly monitored for safe shipment, preventing damage during transit by trained staff.

As mentioned above, Asia will continue to play the largest role in global growth in 2017-2018, so the young population who love shopping could drive that growth.

There is an increasing young population in South-East Asia (SEA), which accounts for 70 percent of the population under 40 years of age. They don’t want to shop in big business any more.

SEA appears to have a huge potential with the increase in revenue and projected GDP of 5.3 percent in the coming ten years.

SEA has built the region to be one of the leading economies in online market, with rising international investments and advancing economic growth.