In recent years, we have seen strong growth in the economy of the Asia Pacific region. Experts say that the region will be the place that big coming-up economic events happen. And in this article, we will cover the three sectors, which are the hottest in Asian right now.
Strong Growth Ahead in Asia’s Economies
Recently, the Asia Pacific region has been considered as the fastest growing economy in the world, with investment opportunities across the public and private sectors. IMF (International Monetary Fund) estimates growth for Asia and the Pacific to increase this year to 5.5 percent from 5.3 percent in 2016. Growth will remain strong at 5.4 percent in 2018, as the region continues to be the leader of global growth.
People call the Asia Pacific region with a special name, which is “emerging economy”. The region attracts a massive inflow of not only foreign funds but also domestic, as Asians become more financially prudent. A recent study by Swiss Re institute points out that it is expected in 10 years’ time, emerging economies will cover 60 percent of global growth. Within this 60 percent, just China only contributes 27 percent. But now China is in the trade war with the U.S. That may be the challenge for China but it also is an opportunity for this country in some aspects.
The Region Captures The Most Funding
Besides the economic giant China, countries such as Vietnam, Indonesia, and Singapore are ahead in tech innovations and homegrown solutions to problems. Also, startups in these three countries captured the most funding from venture capitalists in 2019 thus far.
A CBInsights study reported since 2012 over $285 billion has been invested across over 11,000 equity deals. These deals are in tech startups in Asia and the Pacific region, which stretches from China to New Zealand. The companies raising the most funding in the region included payments giant Ant Financial Services Group in China, on-demand logistics company Gojek in Indonesia, and Preferred Networks in Japan.
Also, the region is where most of the tech innovation is happening, especially in the artificial intelligence and virtual reality world. The leading countries are Japan, Taiwan, South Korea, Singapore, India, and Indonesia. In addition to Ai and virtual reality, in other sectors, such as consumer and retail, the region is not very far behind other regions.
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The Most Hottest Start-up Sectors in Asia
It can be said that the scale and growth rate of ecommerce in Asia really sets it apart from other parts of the globe. Now, China is the largest ecommerce market in the world. By 2020, this country is expected to be larger than the USA, Japan, the UK, Germany, and France combined.
Follow China, India’s ecommerce market also is strong. It is expected to grow from $38.5 billion in 2017 to $200 billion by 2026. India’s ecommerce revenue is growing at an annual rate of 51%, which makes it the highest in the world. Also, thanks to digital transformation, ecommerce in other Asian countries such as Indonesia, Malaysia, Philippines, Singapore, Thailand, or Vietnam is growing exponentially.
Again, China Victor Orlovski, managing partner and founder of Fort Ross Ventures says that China is a leader in online-to-offline business models. He also predicts that the country will continue to evolve. O2O business is a kind of using digital platforms to purchase from physical businesses.
Let see the example of Alibaba. The company has a website for its 7Fresh stores, which is JD.com. Alibaba also applies digital in its Hema stores. Specifically, customers use Hema’s mobile app, using it to scan barcodes throughout the store to find out things such as product information and recipe ideas.
Delivery and Logistics
India is really a giant in this sector. Some big names areYou Gojek, Lazada, Zalora, Bhinneka, Tokopedia, and Blibli. According to a Statista report, the industry is poised to grow annually at a rate of 9.3 percent, valued at $16.34 billion by 2023. The Statista also gives an impressive number of expected online shoppers is 43.89 million by 2022. And the average online spend is seen going up to $375 million.
The above three sectors are now the most attractive sector in Asia. If you are looking for a job or want to start a new business, you can consider starting in these sectors.