In this release of Weekly Focus APAC: digital banks regain strength against APAC's traditional rivals; India's social business market rises to £ 103m; Alibaba is expected to take 32.6% of China's online advertising; grab among the top four Companies involved in horse riding.
Digital banks make gains against traditional competitors in APAC
Digital banks and insurance companies in the Asia-Pacific region are expected to make gains over their traditional competitors over the next two years as consumers increasingly want to do banking on their mobile phones.
In fact, 73% of consumers in the region said they should be able to accomplish any financial activity on a mobile device, a study by Forrester revealed.
The study also found that 77% of Asia Pacific bank customers prefer digital channels, a view echoed by life insurance clients in markets such as China, India, Australia and Thailand.
Forrester added that customers trust the payment and technology companies of traditional financial service providers to help them manage their money.
"Global technology giants, payment providers, e-commerce players and even horse-riding leaders are already threatening existing companies by offering simple, convenient and more personalized digital experiences," the research firm said.
She pointed out that Google in India has outperformed banks as the most confident company to act in the best financial interests of consumers.
“Consumers are likely to engage with companies that prioritize helping them improve their financial well-being,” said Forrester Vice President, Research Director and Area Manager Dane Anderson. “We expect customers to dynamically dismantle and regroup personal financial services ecosystems with new and better players. "But they will be left behind if they do not turn faster to meet the challenge."
India's social trade market rises to £ 103 million
The Indian social commerce market Meesho won US $ 125 million (£ 103.86 million) as part of the D series tour led by Naspers and saw the participation of investors such as Facebook and Sequoia.
The company said the new funds will help Meesho empower new entrepreneurs in areas outside India's major metro areas, thereby reaching customers currently not served by traditional e-commerce platforms.
She also hopes to increase her goal of nurturing a community of female entrepreneurs in India who lack the funds and expertise to run their own businesses.
In addition, Meesho said it would benefit from the funds to strengthen its technology platform to support new product lines as well as expand analysis and machine learning platforms for national processing management.
The company will also look to expand its network coverage and enhance its operations in existing geographic areas.
Meesho has a network of over 2 million vendors focused on social media in 700 towns across India, and operates a distribution channel for 15,000 suppliers in traditional manufacturing centers. Its product categories currently include clothing, home, wellness and electronics.
The online social commerce market helps connect independent distributors with suppliers to organize a catalog of goods and services for trading, and provides logistical and payment tools on its platform. These vendors roam their products through their social networks on WhatsApp, Facebook and Instagram.
Meesho said it aims to create 20 million entrepreneurs by 2020.
Co-founder and CEO of Vidit Aatrey said: “The exciting growth of e-commerce in India has masked the fact that more than 90% of Indians either cannot or will not use it in its current form. Small businesses they trust, adding that Meesho believes that social commerce is the future of online shopping for 500 million consumers.
Alibaba is expected to take 32.6% of China's online advertising
China's e-commerce giant is expected to capture 32.6 per cent of China's online advertising market of $ 79.82 billion (£ 66.32 billion) this year and this figure is likely to continue to grow.
Alibaba is also expected to take 38.1% of the country's mobile advertising market, valued at around $ 64.81 billion (£ 53.85 billion) this year, according to eMarketer.
This year, market analyst said in a statement ahead of the expected Alibaba earnings report, that Alibaba's electronic retail sales will exceed this year $ 1 trillion (£ 830.9 billion) for the first time, registering a growth of 11.9% compared to 2018.
The China e-commerce company will grow 19.2 percent this year, accounting for 55.9 percent of China's total e-commerce sales, although its market share has declined as its smaller competitors gain a share, eMarketer said.
Worldwide, Alibaba will increase its share from 8.4% in 2018 to 8.8% of the total digital advertising market this year, valued at US $ 33.25 billion (£ 276.9 billion). Baidu was expected to seize 4% of the global share.
Alibaba will also slightly increase its global mobile advertising market share from 11.9% last year to 12% in 2019, with the sector reaching US $ 231.12 billion (£ 192.04 billion).
The Chinese company was expected to receive US $ 23.73 billion (£ 19.72 billion) in image advertising revenue, representing 13.8 per cent, while Facebook will remain the top 41.3 per cent this year.
Get one of the top four companies involved in horseback riding
Southeast Asia's riding operator, Grab, is among the top four players in the world in its industry, with a combined value of US $ 166 billion (£ 137.93 billion).
The report of her Chinese counterpart Didi Choksing and her US counterparts Uber and Left is part of the leading group.
“These companies are no longer focused on expanding into new markets with welcoming services; most markets are already saturated with these options. Instead, they are multi-media – providing access to different modes of transport such as bicycles and cars on their platforms,” said Chris Robinson, lead author and analyst. A key focus now. "
According to the report, the autonomy of public transport and its integration with shared mobility platforms were among the most important divisions in the future of shared mobility, which could drive these business models to profitability.
"Despite the subversive promises of the joint movement, no company has been able to maintain profitability," said Robinson, referring to autonomous vehicles as the most important technical development affecting the future of joint mobility.