Core Insights - The global e-commerce application market is undergoing structural changes, with downloads increasing from 4.36 billion in 2019 to 6.35 billion in 2025, representing a growth of over 45% and a compound annual growth rate (CAGR) of approximately 6.5% [22][28] - Growth engines have shifted from mature markets to emerging regions such as Latin America, Africa, and the Middle East, with India leading in the Asia-Pacific region [22][28] - Major players in the market are experiencing significant reshuffling, with Temu leading globally in downloads and monthly active users, while local players like Douyin Mall and Naver Plus Store are also making strong impacts [22][32][34] E-commerce Application Market Overview - The e-commerce application download volume has seen a substantial increase, with a shift in focus from user acquisition to retention and experience enhancement as user bases become saturated [22][28] - Emerging markets are becoming the primary source of growth, driven by innovations such as AI recommendations and short video content [22][28] Digital Advertising Strategies - The U.S. remains the largest market for digital advertising, spending $19 billion, but Temu has strategically reduced its advertising in the U.S. and increased investments in Mexico, Brazil, and Turkey, where ad exposure has surged by 23%, 461%, and 925% respectively [2] - Social media continues to be a core platform for advertising, with Facebook and Instagram contributing over 70% of exposure, while localized channels like LINE in Japan are gaining importance [2] User Demographics and Consumption Trends - User profiles reveal deep consumption trends, with Blinkit attracting 60% male white-collar workers focused on efficiency, while Naver Plus Store appeals to 58% young and middle-aged women prioritizing family purchases and quality [2] - Future competition in e-commerce is expected to revolve around scenario-based experiences, instant fulfillment, and AI personalization, marking a new retail revolution driven by technology, speed, and local insights [2]

Core Viewpoint - The recent policy adjustments in Japan and the UK regarding low-value import exemptions reflect a global trend of tightening regulations in the cross-border e-commerce sector, driven by concerns over unfair competition and tax loopholes [2][3][8]. Group 1: Japan's Policy Changes - Japan's Ministry of Finance is considering imposing consumption tax on low-cost imports valued at 10,000 yen or less, which currently enjoy tax exemptions [2][3]. - The volume of low-cost imports to Japan is projected to reach 169.66 million items, valued at 425.8 billion yen by 2024, marking a fivefold increase over five years [3]. - The proposed changes aim to create a fairer competitive environment for domestic retailers against Chinese e-commerce platforms that leverage existing tax exemptions [3][8]. Group 2: UK's Policy Adjustments - The UK government plans to reassess the tax exemption for imports valued under £135 to address unfair competition between e-commerce platforms and traditional retailers [5][6]. - The current exemption has led to a surge in low-value imports, raising concerns among local retailers about their competitive viability [5][6]. - If the exemption is removed, imported low-cost goods may incur an additional 20% VAT and up to 25% customs duties, potentially increasing overall costs by 20%-30% [6][8]. Group 3: Global Trends in Cross-Border E-commerce - The tightening of low-value import exemptions is part of a broader global trend, with the US, Vietnam, and the EU also revising their tax policies [8]. - The US plans to eliminate the T86 exemption for low-value packages by May 2025, while Vietnam has already abolished its low-value exemption [8]. - The EU intends to remove exemptions for packages valued under €150 by 2028, with France proposing fees for similar packages starting in 2026 [8]. Group 4: Implications for the Industry - The adjustments in tax policies will significantly alter the cost structure for sellers, particularly those relying on low-price strategies, potentially leading to reduced profit margins or losses [8][11]. - Increased compliance requirements will necessitate enhanced tax management, complicating operations and raising costs for sellers [8][11]. - The industry may undergo a reshuffle, favoring companies with strong supply chain capabilities and compliance operations, while those relying solely on low prices may be pushed out of the market [8][11]. Group 5: Future Trends in Cross-Border E-commerce - The industry is expected to see a normalization of tax compliance costs, with mandatory registration and data transparency becoming standard practices [11]. - Brand value is anticipated to replace price competition, as mid-sized and large enterprises leverage technology to build brand loyalty [11]. - The integration of online and offline channels will deepen, with social media platforms driving content-based sales [11].