This is the third business-related post. You could read the first and second ones by clicking on two titles below:
In this post, I will cover two things below:
- Why should you be aware of E-Commerce?
- Some ideas that help you start your business.
1. Why should you be aware of E-Commerce?
It is an undoubted fact that the Internet and the advanced technology are more and more universal – which means more and more people own the smartphones with WiFi, 3G or 4G connection. Not only that, most people tend to buy and sell things online from websites and applications. Therefore, the e-commerce market has become one of the most popular markets which keep those ongoing business to keep their close eyes on.
According to Sathirathai (cited Fujita 2018), not only companies like tech giant Alibaba invested in the e-commerce market in the 10-member Association of Southeast Asian (ASEAN) but Internet company Tencent also brought their technology to the region. In addition to that, “Now it will be interesting because the change is coming, the wave of investments at Alibaba, Tencent, is coming in a big way, could be the tech dragons waking up the hidden tiger. From here on it could reach a tipping point where you have an explosion in the e-commerce activities”, Sathirathai said in the interview with CNBC at the Credit Suisse Asian Investment Conference in Hong Kong.
Why do current businesses focus too much on E-Commerce?
- Ability to expand global reach: With an e-commerce website or application, there are no geographical limitations for business to reach their customers around the world. Not only that, businesses are able to use a tool like Search Engine Optimization (SEO) to drive consumers to their sites.
- Convenience for customers leading to more profits: Customers are able to order things whenever they want because e-commerce websites can run all the time. Not only that, consumers can eliminate travel time and cost because it is possible for them to purchase things online by a few mouse clicks.
- Reducing cost: E-commerce can lead to the disintermediation – which means customers are able to buy high-quality products at lower prices while businesses seem to remain their competitive advantages.
- Improving effectiveness: It possible for businesses that they will reach customer satisfaction by using chatbot or personalized emails and websites.
So, E-commerce is progressively dominating the market. Not only should customers understand the concept of E-commerce for the sake of themselves but businesses, especially startup companies, also need to be aware of this business model in order to grow their business.
2. Some ideas that help you start your business
As you know, start-up is one of the most popular phenomena for today’s millennials. It means they prefer to open their own company by using their strengths rather than to get a stable job. So, if you would like to start your own business, there are three things that you need to consider:
- Let’s think of creating the application as well as the website at first: As I have mentioned above, E-commerce has become more popular nowadays. So, it is necessary to consider carefully about building the website or the application at first if you want your business to have a spot in the e-commerce market. In addition, it is important that there are not only apps for transactions or social networking but also for games. There is the growth of the game industry – especially mobile games and E-sports – since most people who are under 20 tend to use their smartphones for playing games. Moreover, the application and the website are two things that can drive customers to your business as fast as possible.
- Remote areas are also your potential market: I know that most entrepreneurs tend to identify the potential market that needs to be located in popular places such as big cities. However, they could have a low competitive advantage if they just focus on those market. Why don’t you think of the market in remote areas? In regard to Pinduoduo, the $1.5B startup challenging e-commerce giant Alibaba in China’s towns and villages, the company started up with the idea selling cheap household products, and they then raised $110 million at a valuation north of $1.5 billion in 2016 (reported by Forbes). While Alibaba and Tencent focus on wealthy customers in China’s big cities, Pinduoduo has been paying their attention to people who have low income from lower-tier cities and towns.
- The seniors market is also a good idea for starting your business: When you desire to launch your own business, the elderly people are also your potential customers. It is projected that there is an increase in the elderly population. Therefore, it may be an opportunity for some entrepreneurs who want to capture this growing segment of consumers. There are four niche business ideas related to this market, including house sitting, financial planning, in-home care and selling or storing possessions.
The e-commerce market has currently become one of the most potential markets, just as “start-up” is the hot topic of conversation for today’s millennials. There are four reasons for being aware of E-Commerce as well as three ideas that would help you start your own business. Hopefully, you could find values out of this post.