JAKARTA – There is no other region in the world is harder crashed wave of global e-commerce business, in addition to Asia.
As is known, the growing middle class Asian people are switching from the conventional market to the online market.
A number of companies are trying to meet the variety of requests by opening new businesses or making acquisitions.
Based on data from eMarketer, e-commerce revenue is expected to reach US $ 1.74 trillion this year across the Asia-Pacific region, or about 18% of all retail sales.
Online purchases are projected to double to US $ 3.3 trillion by 2021.
As for the process, the old method of calculating the consumer price index based on the selling price of goods in the conventional market is considered to be more outdated.
To keep abreast, the Ministry of Finance, the Central Bank and the Statistical Agency from Mumbai to Manila are preparing an army of economists to improve how they measure inflation.
Quoting from Bloomberg, here’s how some countries in the region are facing an e-commerce boom in their country:
The Indian Statistical Office is considering putting e-commerce into retail inflation data earlier this year. According to senior Indian officials, it is expected to suppress inflation in the short term.
General Director of Indian Statistical Office M.V.S. Ranganadham said there was a thought to include online sales into the calculation of the inflation component.
“We do not have any relevant streams of data at this time. We are looking for it because now it becomes a very important thing, “he said, as quoted from Bloomberg.
Research firm Crisil, part of Standard and Poor’s (S & P), noted e-commerce in India accounted for 1.5% of total sales worth 49 trillion rupees (US $ 752 billion) in the fiscal year through March 2017.
Referring to Crisil’s research, e-commerce may grow 2.5 times by 2020 to 1.8 trillion rupees supported by the online grocery segment.
2Japan and China
Government task force for companies in Japan, including Visa Inc., Money Forward Inc. are brainstorming on how to improve household data that records online spending.
Tajiro Ako, Director of the Consumer Statistics Division of Japan’s Ministry of Internal Affairs and Communications Bureau of Statistics, said that making better data in the midst of economic change is not just about the number of head counts in the bureau.
“It requires statisticians who are knowledgeable and knowledgeable,” he said.
The Ako step will make great progress in the index of Japanese consumption trends, a measure that is expected to better obtain individual spending data through larger sample sizes and data collection through mobile applications.
Meanwhile, the Chinese Government has conducted a price survey including for online sales. In addition, the Ministry of Commerce of China also uses income and big data to measure the impact of e-commerce.
To be known, a division of the Ministry of Commerce of China in cooperation with e-commerce businessmen conducted research with research institutions on e-commerce sales, amounting to 31 trillion yuan (or equivalent to US $ 4.9 trillion) last year.
According to the Ministry of Commerce of China, the figure will grow about 30% on an annual basis.
3South Korea and Malaysia
The South Korean statistical office has doubled the number of online products surveyed for the consumer price index to 109 products from December 2016 to reflect online retail growth.
The Central Bank of Korea said it is considering entering online trading transactions as they will decide on a new inflation target this year that will be used for 2019.
The Malaysian Statistics Department estimates that 87% of internet users are daily, while 80% of them use the internet to find information on goods.
Therefore, the initiation of the big data service is made to know more about pricing in e-commerce and the Department of Inflation Statistics has also created a unit that will measure indicators for e-commerce.
4Thailand and Philippines
The Central Bank of Thailand is working with the Ministry of Commerce to include online pricing into the consumer price index. Lower operating funds among online vendors, strong transparency contribute to lower inflationary pressures.
“The Amazon effect is well documented in the US, but we will also play a substantial role in keeping inflation low in Thailand,” the BoT said in a statement.
The Central Philippine Army sees the growing popularity of e-commerce in the Philippines and joins the Philippine Statistical Authority using big data to assess the impact of e-commerce.
Based on an e-mail statement, the central bank’s statistics team will track the pricing, credit and payment data of wholesale and retail trade through online transactions.
The central bank is also looking for the latest data to improve the previous model, which sees the potential of e-commerce to suppress inflation with ease of doing business against the conventional market.
Banks will hire and convince staff to quickly perform big data and science data analysis.