E-commerce and

Convergence in
Canada, Korea,
China, Singapore
Paul Brian Pioquinto
MIT 207-Specialization Course 1
(System Development)
Objectives
Discussion on Canada, Korea, China and Singapores
● Origin of e-Commerce
● Statistics in e-Commerce
● What are then well-known e-Commerce site in recent years
● What are their Main E-commerce Export (Products and Services)
● How is e-commerce done in their country
● What are the types of e-commerce
● What are the top sale season
● What are the legislation and government support on e-Commerce
What are the advantages and disadvantages of e-commerce
Bonus topics
The future of e-commerce
Ecommerce challenges faced by business
01
Canada
Origin
• 1987 – First Online Merchant Account.
• 1992 – Compuserve Goes B2C.
• 1995 – Amazon and Ebay enters the market.
• 1996 – E-Commerce Comes to Canada.
Statistics
• In 2019, retail e-commerce sales of physical goods
amounted to almost 25.4 billion U.S. dollars.
• Total e-commerce sales for 2020 were estimated at
$791.7 billion, an increase of 32.4 percent (±1.8%) from
2019.
• Projected to increase to 33.3 billion U.S. dollars in 2024.
• Approximately 28.1 million Canadians having made
purchases online.
Statistics-cont
Well known e-commerce in recent years
• Amazon.ca - Revenue of US$7.1 billion in 2020
• Walmart.ca - Revenue of US$1.6 billion in 2020
• Costco.ca - Revenue of US$1.6 billion in 2020

Altogether, the top three stores account for 35% of online

revenue in Canada.

One of the fastest-growing stores in the Canadian market is

ilookglasses.ca. The store achieved sales of about US$3.4 million
in 2020. Its revenue growth amounted to 24% in the previous
year.
E-commerce website in Canada - Top 10
1. Amazon Canada - https://www.amazon.ca/
2. Kijiji - https://www.kijiji.ca/
3. Walmart - https://www.walmart.ca/en
4. Ebay - https://www.ebay.ca/
5. Best Buy - https://www.bestbuy.ca/en-ca
6. Canadian Tire - https://www.canadiantire.ca/en.html
7. Costco - https://www.costco.ca/
8. Hudson’s Bay - https://www.thebay.com/
9. Home Depo CA - https://www.homedepot.ca/en/home.html
10. Newegg - https://www.newegg.ca/
E-commerce website – Canada - Home Pages-01
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Top 10 Export - Canada
1. Mineral fuels including oil: US$69.1 billion (17.7% of total exports)
2. Vehicles: $46.5 billion (11.9%)
3. Machinery including computers: $28.9 billion (7.4%)
4. Gems, precious metals: $23 billion (5.9%)
5. Wood: $13.5 billion (3.4%)
6. Plastics, plastic articles: $12.4 billion (3.2%)
7. Electrical machinery, equipment: $11 billion (2.8%)
8. Ores, slag, ash: $9.9 billion (2.5%)
9. Aircraft, spacecraft: $9.7 billion (2.5%)
10.Pharmaceuticals: $8.5 billion (2.2%)
Main E-commerce Export (Products and Services)
Products
● Fashion
● Electronics
● Media
59% of Canadian shoppers use credit card when shopping online
and a further 20% prefer PayPal. Canadian consumers
increasingly rely upon the Internet to place orders.
Services
● software as a service (SaaS) – Global Relay email archiving
● tourist destinations
● education and training courses
● International consulting
● installation and maintenance
How is e-commerce done in their country?
• Create your own website with order page.
• Online marketplaces
• Template-based storefronts
• Retailer websites
• Custom in-house solution
Top Sales Season
• Christmas (December 25)
• Back-to-School (August)
• Mother’s Day (May)
• Valentine’s Day (February 14)
• Easter (March/April)
• Father’s Day (June)
• Canada Day (July 1)
• Halloween (October 31)
• Black Friday (the fourth Thursday of November)
• Cyber Monday (the first Monday after Black Friday)
Legislations and Government Support
Legislations
• The Canadian Trade Commissioner Service (TCS)
• Electronic Commerce Law
• Ontario Consumer Protection Act
• Ontario Electronic Commerce Act
• The Canadian Code of Practice for Consumer Protection in
Electronic Commerce
• Taxation
• Personal Information Protection and Electronic Documents Act
• Intellectual Property
• Copyright
• Trademarks
• Domain names
• Other applicable laws relating to business operations.
Legislations and Government Support cont
Government support
• Government grants
• Government loans
• Government tax breaks and tax credits
• Small Business Startup Platform
• Canada United Small Business Relief Fund during Covid 19
• Go Digital Canada offers free resources to help save
businesses with their transition into the digital economy
quickly and efficiently.
Advantages Disadvantages
• Lower operating costs • Selection is better in the United
• Track your customers States.
• Available round the clock • Can’t touch or feel the product.
• Affordable advertising and • Internet connection is needed.
marketing. • Issues with warranties
• Simple and fast method to do price • Some do not accept cash or cheques.
comparison • Prone to billing mistakes
• Avail discount coupons and receive • Credit card security issues.
an item.
• Send gifts remotely to family and
friends
• Free shipping
 02
Korea
Origin
• Korea’s B-to-B e-commerce began in 1987 with Pohang Steel
Company.
• However, as the spread of the Internet is gradually
accelerated, most companies show the tendency to change a
proprietary EDI system to a web-based system.
Statistics
• Korea is the third largest retail e-commerce market in the Asia-
Pacific region after China and Japan.
• 7th largest worldwide in terms of transaction volume.
• E-commerce is growing at a rate of around 15% every year.
• World’s highest average internet connection speed: 24.6 Mbps
• Online retailing has grown significantly in South Korea in recent
years, and is now a market worth over $60 billion.
Statistics-cont
Well known e-commerce in recent years
• Coupang - Revenue of US1.0 billion in 2020
• Ssg.com – Revenue of USD 483 million in 2020
• Yes24.com - Revenue of US$401 million in 2020

In 2021, the eCommerce market is expected to become the third-

biggest in the world, just behind China and the US.

With a strong purchasing power and a population of around 60

million, it’s not strange that many foreign brands want to enter
the market.

Entering the Korean eCommerce market can be challenging due

to language issues and the limited information available about
marketplaces.
Main E-commerce Export (Products and Services)
Products
● travel & reservation services (17.4%)
● Home appliances & electronics (11%)
● Clothing (10.6%),
● Home & car accessories (10.2%),
● Cosmetics (7.9%) and
● Computers (6.2%).
Services
● Mobile payment services
● Digital marketing
● Digital advertising
● Consulting services
E-commerce website in Korea - Top 10
1. Gmarket G마켓 - http://global.gmarket.co.kr/Home/Main
2. Coupang 쿠팡 - https://www.coupang.com/
3. 11Street 11번가 - https://www.11st.co.kr/main
4. NAVER Shopping 네이버쇼핑 - https://shopping.naver.com/
5. Auction 옥션 - http://www.auction.co.kr/
6. WeMakePrice 위메프 - https://front.wemakeprice.com/main
7. TMON 티몬 - https://www.tmon.co.kr/
8. Interpark 인터파크 - http://www.interpark.com/malls/index.html?gateTp=1
9. Shinsegae Mall 신세계몰- http://shinsegaemall.ssg.com/?locale=en-US
10. Danawa 다나와 - http://www.danawa.com/
E-commerce website – Korea - Home Pages-01
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Top 10 Export - Korea
1. Electrical machinery, equipment: US$159.7 billion (31.1% of total exports)
2. Machinery including computers: $67.9 billion (13.2%)
3. Vehicles: $54.2 billion (10.6%)
4. Plastics, plastic articles: $31.6 billion (6.2%)
5. Mineral fuels including oil: $25.4 billion (5%)
6. Optical, technical, medical apparatus: $20.1 billion (3.9%)
7. Iron, steel: $19.7 billion (3.9%)
8. Ships, boats: $18.7 billion (3.7%)
9. Organic chemicals: $15.4 billion (3%)
10.Articles of iron or steel: $7.9 billion (1.5%)
How is e-commerce done in their country?
• Create your own website with order page.
• Online marketplaces
• Mobile shopping sites through apps
• Retailer websites
• Custom in-house solution
Top Sales Season
• Seollal
• Chuseok
• Christmas
Legislations and Government Support
Legislations
• Copyright Act
• Computer Program Protection Act
• Patent Act
• Design Act
• Utility Models Act
• Trademark Act
• Unfair Competition Prevention and Trade Secret Protection
Act.
• The Framework Act on Electronic Message and Electronic
Commerce (1999)
• Electronic Signature Act (1999)
• Customs taxes , Import Taxes, and Duties
• Other applicable laws relating to business operations.
Legislations and Government Support cont
Government support
• Korean government has encouraged cross border e-Commerce
by simplifying and expediting customs procedures to let
Korean consumers benefit from the low-priced goods from
overseas.
• Automate e-clearance system called UNI-PASS to expedite the
customs clearance process.
• Tax holidays/break and incentives.
• Local market support.
Advantages Disadvantages
• Provides job opportunities • Long process of verification in e-
• Provides a wealth of information commerce.
• Promotes cordial relationship • No control of establishment of firms.
• Provides entertainment • No regulations for effective
• Less pollution electronic contracts
• Economic development • Protection of consumer privacy is
• Availability of goods limited with respect to applicable
laws.
• Payment systems
• Electronic currency
• Consumer protection
03
China
Origin
• History of e-commerce in China dates back to 1990.
• China's e-commerce boom started with the establishment of
Alibaba in 1999, which then launched its Taobao platform in
2003. The way Chinese people shop has changed dramatically
since.
Statistics
• E-commerce in China accounts for more than 50 percent of
worldwide retail sales on the internet.
• Furthermore, China's expansion of e-commerce is happening at
a rate faster than anywhere else in the world.
• Whilst the UK and USA's have reached 27.7% and 14.5%
respectively, China's was predicted to reach 44% and beyond.
• China is the world’s largest ecommerce market in terms of
buying market.
Statistics-cont
Well known e-commerce in recent years
• Alibaba – 28.2% total retail ecommerce sales in 2018
• JD.com – 16.3% total retail ecommerce sales in 2018
• Pinduoduo – 5.2% total retail ecommerce sales in 2018

In 2020, Alibaba remained the most valuable e-commerce

company in China, with an estimated company value of
about 4.1 trillion yuan. Its three main sites — Taobao, Tmall
and Alibaba.com — have hundreds of millions of users, and
host millions of merchants and businesses. Alibaba handles
more business than any other e-commerce company.
E-commerce website in China - Top 10
1. Taobao - https://taobao.com/
2. JD.com - https://jd.com/
3. Tmall - https://www.tmall.com/
4. Alibaba1688 - https://www.1688.com/
5. Suning.com - https://www.suning.com/
6. Xiaohongshu - https://www.xiaohongshu.com/
7. Amazon China - https://www.amazon.cn/
8. Vipshop - https://www.vip.com/
9. Dangdang - http://www.dangdang.com/
10. Kongfz.com- https://www.kongfz.com/
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Top 10 Export - China
1. Electrical machinery, equipment: US$671 billion (26.9% of total exports)
2. Machinery including computers: $417 billion (16.7%)
3. Furniture, bedding, lighting, signs, prefab buildings: $99.5 billion (4%)
4. Plastics, plastic articles: $84.4 billion (3.4%)
5. Vehicles: $74.4 billion (3%)
6. Optical, technical, medical apparatus: $73 billion (2.9%)
7. Knit or crochet clothing, accessories: $71.4 billion (2.9%)
8. Articles of iron or steel: $69.6 billion (2.8%)
9. Clothing, accessories (not knit or crochet): $66.8 billion (2.7%)
10.Toys, games: $62.8 billion (2.5%)
Main E-commerce Export (Products and Services)
Products
● Travel & reservation services (17.4%)
● Home appliances & electronics (11%)
● Clothing (10.6%),
● Home & car accessories (10.2%),
● Cosmetics (7.9%) and
● Computers (6.2%).
Services
● Domestic and Overseas bookings.
● Hotel bookings.
How is e-commerce done in their country?
• Create your own website with order page.
• Online marketplaces
• Mobile shopping sites through apps
• Retailer websites
• Custom in-house solution
Top Sales Season
• Spring Festival/Chinese New Year: February
• Valentine’s Day: February 14
• International Women’s Day/ Queen’s Day: March 8
• Mother’s Day: 12 May
• School Day Promotion: Mid-August
• Singles’ Day: 11 November
• Black Friday: 23 November
• Christmas and New Year: December – January
• Children's Day: 1 June
• Father’s Day: 17 June
• December 12: 12/12
Legislations and Government Support
Legislations
• Helping to resolve financial and factory difficulties
• Funding the training of e-commerce talent
• Intellectual property
• Taxes and duties
• Customs tariffs
• Value added tax
• Consumption tax
• Other applicable laws relating to business operations.
Legislations and Government Support cont
Government support
• China Hangzhou Cross-border E-commerce Comprehensive
Pilot Area .
• General Administration of Customs issued a State Council
Notice
• Financial support on smaller start-ups such as Xiaohongshu
and Ymatou
• The Chinese Government promulgates policies to expand
Internet usage in rural communities. National and local
governments have also played a critical role in expanding e-
commerce in rural areas.
Advantages Disadvantages
• Customized shopping cart applications • Fierce competition. (more than you
• Virtual store fronts with searchable may think).
online catalog. • Platforms are not for small players.
• Lowers the business costs of labor, • ROI (return on investment) is small.
storage, etc. which leads to an • Discounts are the “cancer” of
increase in profits. Chinese E-Commerce.
• Secure and customized administrative • Poor advertising will result to
interfaces. catastrophic sales.
• Online customer support services and
call centers.
• Fully integrated E-commerce data
marts for customer profiling,
relationship management, and to
facilitate marketing decision process.
 04
Singapore
Origin
• E-commerce has come a long way in Singapore and the
Southeast Asian region. Let's take a look at some of
Singapore's most significant developments in the e-commerce
space:
• 2004: Ebay launches in Singapore.
Statistics
• Revenue in the eCommerce market is projected to reach
US$2,793m in 2021.
• Revenue is expected to show an annual growth rate (CAGR
2021-2025) of 9.93%, resulting in a projected market volume of
US$4,079m by 2025.
• The market's largest segment is Electronics & Media with a
projected market volume of US$668m in 2021.
Statistics-cont
• User penetration will be 55.9% in 2021 and is expected to hit
67.2% by 2025.
• The average revenue per user (ARPU) is expected to amount to
US$846.96.
• Expected Revenue (2021) - US $2,793m
• Number of Users - 3.3m
• By 2025, e-commerce is forecasted to make up break US$5.4
billion.
• Singapore is still a tech
infrastructure leader and has
been ranked 2nd globally in the
Smart Cities Index
• Singapore is the top cashless
country according to MasterCard
Well known e-commerce in recent years
• Shopee – 10.88 million visits in 2020
• Lazada – 8.57 million visits in 2020
• Qoo10 – 7.45 million visits in 2020

Shopee was launched in 2015, and Lazada was already a leading

e-commerce platform in the region when Shopee first entered
the market. However, Shopee quickly went from being a new
entrant to taking the crown as the most-visited e-commerce
platform in Singapore by the second quarter of 2020.

The surge in the number of visits was also potentially driven by its
strong promotional efforts through initiatives such as the 4.4
flash sale and Super Mart Month during the circuit breaker.
period.
E-commerce website in Singapore - Top 10
1. Shopee - https://shopee.sg/
2. Lazada - https://www.lazada.sg/
3. Qoo20 - http://www.qoo10.sg/
4. Amazon - https://www.amazon.sg/
5. EZBuy - https://ezbuy.sg/
6. Courts Singapore - https://www.courts.com.sg/
7. Zalora - https://www.zalora.sg/
8. eBay- https://www.ebay.com.sg/
9. Forty Two - https://www.fortytwo.sg/
10. Reebonz - https://www.reebonz.com/sg
E-commerce website – Singapore - Home Pages-01
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Top Export - Singapore
1. Electrical machinery, equipment: US$132.2 billion (35.3% of total exports)
2. Machinery including computers: $58.2 billion (15.5%)
3. Mineral fuels including oil: $30.3 billion (8.1%)
4. Optical, technical, medical apparatus: $20.8 billion (5.6%)
5. Gems, precious metals: $20.3 billion (5.4%)
6. Plastics, plastic articles: $12.9 billion (3.5%)
7. Organic chemicals: $11.4 billion (3%)
8. Perfumes, cosmetics: $9.6 billion (2.6%)
9. Pharmaceuticals: $8.9 billion (2.4%)
10.Miscellaneous food preparations: $6 billion (1.6%)
Main E-commerce Export (Products and Services)
Products
● Consumer electronics
● Clothes and apparel
● Household goods
● Groceries
● Health and beauty
Services
● Travel
● Financial services and consulting
● Digital marketing and promotions
● Payment gateway and rewards program integration
● Content creation
● Data mining and analytics
How is e-commerce done in their country?
• What to sell. ...
• Incorporate the business. ...
• Choose vendors wisely. ...
• Choose a domain name & design your store. ...
• Get the TrustSg mark. ...
• Create a buzz before official inauguration. ...
• Try out different marketing channels. ...
• Have a flexible payment system.
Top Sales Season
Legislations and Government Support
Legislations
• Electronic Transactions Act.
• The Singapore E-Commerce 'Code’
• Intellectual property
• Taxes and duties
• Customs tariffs
• Other applicable laws relating to business operations.
Legislations and Government Support cont
Government support
• Productivity Solution Grant (PSG)
• SkillsFuture Enterprise Credit (SFEC)
• E-Commerce Booster Package
• Start Digital Pack
• Digital Resilience Bonus (DRB)
Advantages Disadvantages
• Save on time and effort • Data security/Security issues
• Convenient and discreet • Lack of Personal Touch
• Offers, discounts and deals • Delivery time
• Shrinking of boundaries • Fraud
• Mobile-friendly • Customer relations problems
The Future of E-commerce
Ecommerce is growing quickly, as customer demands keep growing and
technological innovations in AI, machine learning, the Internet of Things (IoT), and
more enable businesses to meet those demands in new ways.
● Expansion to more markets
● Greater personalization
● Faster deliveries
● Subscription-based purchasing
● More touchpoints
● Better chatbots
● Experiential stores
● Enhanced visualization
eCommerce Challenges Faced by Businesses
● Agility Challenge. ...
● Personalization Approach. ...
● Being Consistent. ...
● Facing Competition. ...
● Data Security. ...
● Technology Partnerships. ...
● Customer Retention. ...
● Relevant Leads.
Resources
● https://www.oberlo.com/blog/20-ecommerce-advantages-and-disadvantages
● https://www.netsolutions.com/insights/ecommerce-business-challenges-and-solutions/
● https://blog.htc.ca/2014/10/23/the-history-of-e-commerce/
● https://www.statista.com/topics/2728/e-commerce-in-
canada/#:~:text=In%20late%202019%2C%20e%2Dcommerce,from%2025.4%20billion%20in%202019.
● https://www.oracle.com/ca-en/cx/ecommerce/what-is-ecommerce/
● https://blog.htc.ca/2014/10/23/the-history-of-e-commerce/
● https://www.statista.com/statistics/289741/canada-retail-e-commerce-sales/
● https://www.tradecommissioner.gc.ca/guides/e-commerce-electronique.aspx?lang=eng
● https://retail-insider.com/retail-insider/2020/07/shopify-go-digital-canada-government-save-small-
business/
● https://www.forbes.com/sites/ginaheeb/2021/03/11/coupang-the-amazon-of-south-korea-just-
became-the-largest-foreign-ipo-on-wall-street-since-alibaba-heres-what-you-need-to-
know/?sh=110477c12b0a
● https://www.asiapacific.ca/sites/default/files/filefield/south_korea_e-commerce_report.pdf
● https://www.1421.consulting/2017/08/how-china-takes-over-world-e-commerce/
● https://www.weforum.org/agenda/2021/01/ecommerce-sales-china-global-growth/
● https://disfold.com/top-e-commerce-sites-china/
“Ecommerce isn't the cherry on the cake, it's the
new cake

—Jean Paul Ago CEO L’Oreal

Thank you.
Questions, comments, suggestions, reactions.