Retail E-Commerce Market Analysis Based on Consumer,Government and Industry Levels:A Case of Kazakhs

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While electronic commerce is not a new phenomenon in many countries and has developed quite aggressively reaching its maturity in the markets such as the USA or China,it is still emerging and rising in some developing countries such as Kazakhstan.Nowadays,retail e-commerce in Kazakhstan is growing rapidly attracting the attention of possible stakeholders.As such,there is a need for a comprehensive study about the business-to-consumers(B2C)retail ecommerce in the region as there is a lack of comprehensive academic research in this field.This study investigates Kazakhstani retail e-commerce focused on three key levels.The three aspects are factors influencing consumer e-commerce adoption,the role of government in e-commerce development as well as overall retail e-commerce industry evolution.Based on a review of the literature,an online questionnaire about consumer adoption factors was distributed among consumers and non-consumers of online shopping.As a result,205 respondents participated in the questionnaire.The analysis of survey findings shows that Perceived Usefulness(PU)and Delivery Time and Fee(DTF)are the two factors among the six(Perceived Usefulness(PU),Perceived Ease of Use(PEOU),Perceived Risk(PR),Economic Benefit(EB),Customer Service(CS),and Delivery Time and Fee(DTF))mattering in consumer e-commerce adoption.Meanwhile,Perceived Usefulness(PU)has a positive relationship with consumer e-commerce adoption in terms of monthly shopping frequency,Delivery Time and Fee(DTF)is negatively related to the dependent variable.To detect the government role in retail e-commerce development,a semistructured interview was conducted.The interview participants were middle and senior positioned professionals in e-commerce giant firms and SMEs.Among the five selected success factors,the Kazakhstani government is found to play a significant role in fostering e-commerce through the three determinants: e-commerce infrastructure,awareness and literacy,and business support.However,it had little importance in developing e-commerce through digital payments and data protection.Along with the interview,“Digital Kazakhstan” national program activities related to the five factors were observed.As a result,the importance of government in developing ecommerce was evident through e-commerce determinants.Industry evolution analysis based on a shift to m-commerce and Industry Lifecycle(ILC)theory revealed that retail e-commerce industry has already transitioned towards m-commerce and is booming at the Growth stage.The former is explained by the primary data collected from the survey and secondary data such as interview and official data,whereas the latter is observed through the ILC framework analysis.Also,the Kazakhstani retail ecommerce is predicted to stay at the Growth stage in the near future based on the market size estimations from the “Digital Kazakhstan” national program.In conclusion,the Kazakhstani retail e-commerce market presents vast opportunities for stakeholders due to the Growth stage of industry lifecycle where there is a low entrance barrier and the growing market share and the local government support within the “Digital Kazakhstan” national program.However,interested firms and government since the latter plays a great role in boosting e-commerce development through logistics infrastructure should keep in mind that delivery speed and fee(DTF)and perceived usefulness(PU)are the important factors for consumer e-commerce adoption.Since most of consumers use mobile devices to shop online,market entrants should also develop mobile-based e-commerce solutions to succeed.
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