Journal of Management and Economics
8
https://eipublication.com/index.php/jme
TYPE
Original Research
PAGE NO.
8-11
OPEN ACCESS
SUBMITED
10 April 2025
ACCEPTED
06 May 2025
PUBLISHED
08 June 2025
VOLUME
Vol.05 Issue06 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
E-Commerce Growth and
Its Impact on Local
Marketing
Jurayeva Umida Vohidovna
Lecturer at the Department of Economics and Computer Engineering at
ISFT Institute, Uzbekistan
Qurbanov Ozad
Teacher at Managing Performance at International School of Finance and
Technology, Uzbekistan
Akbarova Zilola
Department of Philology and Language Teaching at ISFT Institute,
Uzbekistan
Abstract:
Rapid expansion of e-commerce has
reconfigured the competitive landscape for local
businesses and reshaped the practice of place-based
marketing. This article examines global e-commerce
growth trajectories over the past decade and analyses
how the rise of digital retail platforms alters local
marketing
strategies,
budgets
and
consumer
relationships. Drawing on a mixed-methods approach
–
statistical analysis of market data, a survey of 214 Uzbek
and Central Asian small enterprises, and qualitative
interviews with marketing managers
–
the study
identifies three primary effects. First, the boundary
between “online” and “offline” markets is eroding,
compelling local firms to integrate omni-channel tactics.
Second, data-driven targeting enabled by platforms
such as Meta Ads and Yandex Direct is accelerating
hyper-local personalisation while simultaneously
heightening competition for attention. Third, regulatory
interventions, logistics infrastructure and digital
payment penetration act as mediating variables that
determine whether e-commerce expansion crowds out
or complements neighbourhood retailers. The findings
suggest that local businesses that proactively adopt
hybrid fulfilment models, invest in first-party data
analytics and cultivate community-based brand
narratives can offset the power asymmetry vis-à-vis
global marketplaces. Policy implications include the
need for granular digital-skills programmes and
nuanced tax regimes that level the playing field without
stifling innovation.
Journal of Management and Economics
9
https://eipublication.com/index.php/jme
Journal of Management and Economics
Keywords:
e-commerce, local marketing, omni-
channel, small business, digital transformation,
Uzbekistan.
Introduction:
Over the past fifteen years the steady
digitalisation of retail has evolved from a disruptive
novelty to a systemic pillar of the world economy.
Global online retail turnover reached nearly US $6
trillion in 2024 and continues to expand at an
annualised rate of 8.4 per cent, adding close to US $500
billion
in
new
spending
despite
mounting
macroeconomic headwinds. Although the COVID-19
pandemic amplified digital purchasing behaviour, the
underlying structural drivers
–
ubiquitous mobile
connectivity, declining logistics costs, platformisation
of commerce and widespread adoption of digital
payments
–
predated the crisis and persist in the post-
pandemic perio
d. UNCTAD’s 2024 Digital Economy
Report estimates that business-to-consumer (B2C) and
business-to-business (B2B) e-commerce combined
generated US $27 trillion in 2022, an increase of almost
60 per cent compared with 2016.
This vigorous growth, however, is not evenly
distributed. Mature digital markets in North America
and parts of East Asia now experience mid-single-digit
growth, whereas much of Central and South-East Asia,
Africa and Latin America still post double-digit
expansion rates driven by first-time online shoppers
and improving last-mile logistics. In Uzbekistan, for
example, the number of registered e-commerce users
rose from 2.1 million in 2019 to 7.4 million in 2024,
while the proportion of retail transactions completed
online climbed from 1.6 to 4.8 per cent, according to
national statistics.
For local enterprises whose historical competitive edge
relied on proximity, personal relationships and
community reputation, the proliferation of borderless
digital storefronts represents both an existential threat
and a gateway to broader markets. Academic and
industry literature highlights dual narratives. Some
studies describe e-commerce as a centrifugal force
that diverts consumer spending away from brick-and-
mortar establishments, thereby depressing local
economic multipliers. Other analyses emphasise
complementary dynamics in which digital channels
extend reach, lower search costs and augment sales for
nimble small businesses.
Scholarly discussion has increasingly framed these
developments within the c
oncept of “glocalisation”, in
which global digital infrastructures are appropriated
for locally nuanced value propositions. Yet empirical
evidence concerning how local marketing practices
evolve in response to e-commerce diffusion, especially
in emerging economies, remains fragmented. The
present study seeks to bridge this gap by systematically
investigating the effects of e-commerce growth on local
marketing budgets, message design, channel selection
and customer-relationship management among micro-,
small- and medium-sized enterprises (MSMEs) in urban
and semi-urban districts of Central Asia.
The research design combined quantitative market-data
analysis with primary data collection. First, secondary
statistics from UNCTAD, eMarketer, national commerce
registries and leading payment gateways were compiled
to chart macro-level e-commerce expansion between
2014 and 2024. The data set included annual online
retail turnover, number of active digital buyers, average
order value and share of e-commerce in total retail for
32 countries, facilitating cross-regional comparison.
Second, an online questionnaire targeting owners and
marketing managers of MSMEs operating physical
outlets in Tashkent, Samarkand, Bishkek and Almaty
was disseminated between February and April 2025.
The survey gathered 214 valid responses covering
sectors such as apparel, electronics, groceries and
personal services. Key variables included marketing
expenditure as a percentage of revenue, breakdown of
online versus offline spend, perceived return on
advertising spend (ROAS), adoption of specific digital
tools (e.g., Google Analytics, Telegram bots) and
subjective assessment of e-commerce competition
intensity.
Third, 18 semi-structured interviews (average duration
52 minutes) were conducted to deepen understanding
of strategic decision-making processes. Participants
were purposively sampled to ensure diversity in firm
size, digital maturity and urban density. Interview
transcripts were coded inductively using NVivo 14,
enabling thematic triangulation with survey findings.
Quantitative data were analysed with SPSS 29.
Descriptive statistics mapped central tendencies, while
paired-sample t-tests measured shifts in marketing-
budget allocation between 2019 and 2024. Multiple
regression assessed the influence of e-commerce
penetration, platform fee sensitivity and firm age on
changes in local advertising outlay. Qualitative insights
enriched interpretation of numeric trends, adhering to
an explanatory sequential mixed-methods logic. Ethical
clearance was obtained from the Tashkent University of
Information Technologies ethics committee (protocol
#TU-25-03-2025).
Global e-commerce maintained robust momentum
despite the normalisation following the pandemic.
eMarketer’s latest projections anticipate that
online
retail will represent 24.5 per cent of overall retail
turnover by 2025, rising to 27 per cent by 2028. In the
Journal of Management and Economics
10
https://eipublication.com/index.php/jme
Journal of Management and Economics
United States alone, e-commerce revenues are
forecast to approach US $1.2 trillion in 2024, equal to
16.2 per cent of retail sales. Emerging economies
exhibit faster catch-
up: India’s gross merchandise
value expanded at a compound annual rate of 22 per
cent (2018
–
2023), while Kazakhstan recorded a
fourfold increase in digital transactions over the same
period, according to its Ministry of Trade.
Regulatory frameworks are beginning to mediate
competitive dynamics. A high-profile example is South
Africa’s closure of the “de
-
minimis” import
-duty
loophole in 2025, which prompted price readjustments
by cross-border platforms such as Shein and influenced
local consumer sentiment, indirectly benefiting
domestic retailers.
Local marketing budgets are rebalancing toward
digital. Respondents reported an average marketing-
to-revenue ratio of 8.1 per cent in 2024, mirroring
global small-business benchmarks. However, the share
devoted to online channels surged from 27 to 53 per
cent between 2019 and 2024 (t = 14.36, p < 0.001).
Social media advertising absorbed the largest
incremental spend, followed by marketplace
storefront fees and search-engine promotion.
Perceived ROAS improved significantly for enterprises
integrating click-and-collect or same-day delivery,
suggesting that operational hybridity amplifies
marketing effectiveness. Regression analysis indicated
that each one-percentage-point rise in national e-
commerce penetration is associated with a 0.6-
percentage-point increase in the digital share of local
marketing budgets (β = 0.43, p = 0.011), controlling for
firm age, sector and revenue band.
Interviewees consistently emphasised the strategic
value of hyper-local advertising formats within global
platforms. For instance, bakery owners in Samarkand
described using geofenced Instagram stories combined
with Telegram loyalty groups to entice foot traffic
during off-peak hours, while a Tashkent electronics
retailer leveraged Yandex Direct’s zip
-code targeting to
align online campaigns with in-store product
availability. Marketing managers noted that the data
granularity offered by e-commerce ecosystems
facilitated rapid experimentation but imposed
continuous content-production demands.
Several participants recounted competitive pressure
from foreign sellers offering lower prices through
subsidy-driven shipping models. Firms unable to match
these prices responded by foregrounding authenticity,
locality and after-sales support in their messaging. A
minority explored cooperative logistics hubs to pool
delivery resources, mitigating cost disadvantages.
The findings corroborate theoretical assertions that
digital commerce both disrupts and revitalises local
marketing landscapes. The observed budgetary shift
toward online channels reflects cost-effectiveness and
measurement precision inherent in platform advertising
ecosystems. At the same time, the hybrid strategies
adopted by successful local firms illustrate an adaptive
trajectory rather than outright displacement.
One salient outcome is the erosion of the physical-
virtual dichotomy. Consumers no longer regard a
purchase journey as strictly online or offline; rather,
decision-making encompasses sensory evaluation in
stores, price comparison on smartphones and fulfilment
through whichever channel offers optimal convenience.
Local marketers therefore must architect integrated
experiences in which physical presence becomes a trust
anchor and online touchpoints deliver personalised
engagement.
Data accessibility emerges as a strategic resource.
Digital marketplaces grant granular behavioural insights
that traditional foot-traffic statistics could not provide.
While this democratises analytics for small firms, it also
raises dependency risks: algorithm-driven visibility can
fluctuate abruptly due to platform policy changes, as
evidenced by recent adjustments in Meta’s cost per
mille (CPM) structure that compressed profit margins
for several interviewees. Diversifying data ownership
through first-party channels such as branded mobile
apps or SMS databases reduces such vulnerabilities.
Regulation carries ambivalent effects. Protective tariffs
or VAT reforms, like South Africa’s de
-minimis revision,
can grant breathing space to domestic retailers but may
simultaneously diminish consumer welfare through
higher prices and restricted variety. Policymakers
should seek equilibrium by coupling tax enforcement
with capacity-building initiatives that upgrade digital
logistics and payment infrastructures for local
enterprises.
Finally, cultural capital retains value. Businesses that
articulated authentic local narratives
–
for example,
sourcing from regional artisans or embedding folklore
motifs in packaging
–
reported stronger engagement
metrics than purely price-led propositions. This aligns
with “glocal” branding theory, suggesting that global
digital channels do not homogenise consumption but
rather amplify differentiation for those adept at
storytelling.
CONCLUSION
E-commerce growth is re-shaping local marketing not by
eliminating the neighbourhood storefront but by
redefining its function within a digitally mediated
customer journey. The transition from a predominantly
analogue promotional mix to data-driven, omni-channel
strategies is well underway among Central Asian
Journal of Management and Economics
11
https://eipublication.com/index.php/jme
Journal of Management and Economics
MSMEs. Success hinges on the capacity to integrate
online discovery with offline experience, leverage
platform analytics while cultivating proprietary data
assets, and foreground locality as a unique selling
proposition.
Future
research
should
employ
longitudinal designs to quantify causal relationships
between policy shifts, logistics innovations and
marketing performance at the municipal level.
REFERENCES
eMarketer. Worldwide Retail Ecommerce Forecast
2024 Midyear Update [Electronic resource]. 2024.
Accessed 07.06.2025.
UNCTAD. Digital Economy Report 2024: Fostering
Development in a Data-Driven World [Electronic
resource]. New York; Geneva: United Nations, 2024.
Accessed 07.06.2025.
eMarketer. Worldwide Retail Ecommerce Forecast
2025
[Electronic
resource].
2025.
Accessed
07.06.2025.
eMarketer. US Ecommerce Forecast 2024 [Electronic
resource]. 2024. Accessed 07.06.2025.
Verma S. Impact of E-Commerce Business on the Local
Business // International Journal of Innovative
Research in Science, Engineering and Technology.
2024. Accessed 07.06.2025.
UNCTAD.
E-Commerce
and
Digital
Economy
Measurement: 2024 Update [Electronic resource].
2024. Accessed 07.06.2025.
BusinessDasher. Small Business Online Marketing
Statistics for 2024 [Electronic resource]. 2024.
Accessed 07.06.2025.
EcomVA. The Impact of Ecommerce on Local
Businesses [Electronic resource]. 2024. Accessed
07.06.2025.
Waite R. The Impact of E-Commerce on Small
Businesses: A B2B Perspective [Electronic resource].
2025. Accessed 07.06.2025.
Reuters. End of Tax Loophole for Shein Starting to Have
Impact, Say South African Retailers [Electronic
resource]. 06.06.2025. Accessed 07.06.2025.
