sia is a large and rapidly growing region with a rising middle class, accelerating
internet access and a staggering penetration of mobile phones.As northAmeri- can
and European markets mature, Asia is becoming increasingly attractive to
businesses, especially to e-commerce firms that thrive on global and scalable
business models. Yet, barring marketslike Japan, most global e-commerce playerslikeAmazon,
eBay and Expedia have yet to find in Asia the kind of success that they have enjoyed in
their home markets. While late entry and local regulations partly explain their low market
share in the region, these firms also face unique challenges in Asia due to diverse cultures,
multiple languages and poor infrastructure. And it’s not only the big guns that are struggling to
get a handle on Asia: local entrepreneurs who clone global e-commerce firms are facing
similar challenges, and some have turned these into opportunities by innovating in unusual
ways. So the real question is this: can e-commerce firms be profitable in emerging Asian
markets, and what are the critical factors that determine their success?