Global Business

Assignment 1
Name : Mohammad Imran Hossain
Khandaker
ID: 2018511080043 (IBM spring
batch, 2018)

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1. What’s the unique market environment for e-commerce in emerging

markets?

ANS: E-commerce is the technology which is expected to become more popular in the future. While e-
commerce is the maturing market, emerging economies are poised to become the next mega market as the
adoption of internet rises gradually. In emerging markets, the e-commerce has been growing
exponentially, and at a rate may soon surpass the developed countries,
Choice and range enhanced by global shipping
Retailers in many developing countries have limited stocks of goods, and domestic e-commerce in these
regions can therefore be limited in terms of international products. For example, China has a wealth of
low-cost fashion and electronics products but searching out specific types of authentic, branded goods –
such as a real Gucci handbag or an Alienware gaming computer – can be difficult. Even if these products
are available, they come with a price premium due to their rarity on the marketplace,
Emerging consumers more active in mobile and social media shopping
Although advanced economies boast much higher smartphone and mobile Internet penetration rates,
emerging market consumers are well ahead of their wealthier counterparts in using their handset to shop,
the importance of the mobile is often a necessity rather than a choice. Many emerging markets in Asia
Pacific, Latin America and Africa are mobile-first, meaning the mobile handset is the first web-enabled
device accessed by consumers.
In-market customer support
Companies keen to expand their business in international markets, but they must not forget that customer
support is the most vital aspect of their business. If your business provides customer support to your
customers through email or phone call or live chat, etc.

2. What lessons can other emerging countries learn?

When historians look back on this period of history, they will likely identify China's reform and opening
to the global economy as the single most important event. China's reform has propelled the country from
a poor, backward status to a rank as one of the largest and most important economies in the world, I am
writing what lesson can other emerging countries need to learn .,
labor market policy
Labor market peculiarities are key in understanding how economic growth has led to absorption of
surplus labor in these economies — particularly in China. Here surplus labor from the traditional
agricultural sector has shifted to the progressive industrial sector, thus promoting industrialization.
Characteristics of China’s labor market include an extensive rural-urban inequity, rapid rural-urban
migration (despite various restrictions) and high and rising real wages in the formal sectors. In this
respect, it has much in common with other emerging economies,

A mobile first market development,

In China, the evolution happened much more quickly, essentially bound the PC to move straight to mobile.
Thus, the marketing theory, principles, and methods developed in China were built on the assumption that
mobile devices are the primary way to reach consumers. Western marketers have had multiple open channels
through which to reach consumers: TV, direct mail, magazines, radio, billboards, newspapers, email,
websites, and so forth.  In contrast, China’s mobile-centric platform has enabled marketers to focus on
content-based experiences that will connect with consumers and change behavior quickly.
Open to imports and direct/ good investment 

 open to imports and direct investment will not have much effect on the economy unless there is a good
investment climate. It is striking that China has many cities - especially on the coast, but also some inland
now - that have very good investment climates in terms of infrastructure, logistics, and regulation.

It is relatively easy to set up firms, move goods through ports and customs, get access to power and
telecom. When we compare measures such as reliability of power supply, days to move goods through
customs, and transportation times and costs, China's coastal cities compare well to cities in other
developing countries.

How did these good investment climates develop? Partly it is a natural response to the powerful
incentives coming from connection to the global market. But I also think that competition among cities
has been a healthy thing in China. China has a very decentralized fiscal system. This has some
disadvantages in that it can allow a high degree of inequality to develop. But it also has the advantage that
it provides local government strong incentives to create a good investment climate. Cities that succeed
attract investment and labor and grow extremely rapidly. Other cities are then inspired to learn from the
leaders.
Focusing on More Than Just Price:
the biggest e-commerce lesson to come out of China may be the paradox of price. 25% of Chinese
consumers say low prices are a motivation to shop online, but that’s actually the second-most popular
reason after the ability to shop anytime (28%). Other key motivations are convenience (18%) and easy
comparison shopping (7%). In other words, price is important but it’s not necessarily the be-all, end-all.
Online commerce is hugely popular in China not only because it is cheaper, but because it’s easier.

2. As an emerging market, why can China become the global leader in E-

commerce market over a decade?

Every way and paves the way for exciting developments in industries like robotics, AI and
health
care.
To begin with, the fact that China’s business infrastructure was initially not as developed as the
West’s actually proved to be an asset. Because of this, technology and e-commerce firms have
been able to leapfrog certain developments, to the dismay of their Western counterparts,
creating an infrastructure that is more ready to embrace the future. Other emerging nations
share this “direct to mobile digital” consumer characteristic, skipping over the desktop and
laptop generations of internet connectivity.
 Secondly, the new wave of digital – where everything is in the cloud and mobile – further
plays to the strengths of emerging market players and their young populations. About 90 per
cent of the world’s population who are under 30 live in an economy that is developing or
“transitioning”. This represents a very high percentage of the economy that can adapt to
technology a lot faster on average when compared to the West.

Thirdly, China is actively exporting its internet successes, particularly in Southeast Asia –
empowering businesses there to transact online through the same tools developed in China. As
a component of the “Belt and Road Initiative”, investing in infrastructure across 65 mostly
emerging and transitioning nations around the world, the “Information Silk Road” combines
internet corridors in many of those countries into a secure internet infrastructure.
Here are the areas in e-commerce where China is leading:
Mobile commerce:
Four out of five e-commerce dollars are being generated from mobile devices in the country in
2019 – or 80% – versus the 64.4% global average.
Mobile payments:
Chinese consumers rely on apps, such as Alipay, WeChat for both online shopping and payments
at physical stores. About 81% of smartphone users in China will use mobile payments this year,
compared to just 27% in the U.S.
Cross-border e-commerce:
As global infrastructure improves and small businesses are able to better access to global
markets. In China, demand for high-quality household products and luxury goods and high-
fashion apparel will drive the trend.
China is the largest Internet market in the world and it has the greatest number of people using
internet. Having easy transaction system, delivery system and purchasing platforms In china, and
they have world’s biggest railway and highway system. These are few factors why China is a
global leader in E-commerce.