Where does Rocket and other pure-play’s go after saturation?

One could look at Rocket Internet – the maligned German startup incubator – and be impressed that it’s only second to Alibaba in Asia’s fast growing ecommerce market. In Asia, Rocket Internet’s data shows strong growth including such as Zalora and Foodpanda – aimed at emerging nations where ecommerce is nascent.

Rocket’s Lazada which runs in seven Asian nations, saw its shoppers spend EUR 71 million (US$91.4 million) in the six months that make up H1 2014. That’s a modest average of US$500,000 per day according to their IPO document.

Regardless of which ecommerce operations last the course, Rocket’s expertise gained from these plus their more established investments like Zalando positions them right up there with the best operators in all ecommerce.

But the question for rocket is and the question many pure play ecommerce outfits must consider is; what happens when you saturate market? Where does the growth from? That’s where physical bricks and mortar have the edge and it’s perhaps why we will see more than just perhaps Amazon following up with their physical stores.

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