How are the top six Southeast Asia e-commerce markets performing at the moment?
Singapore, TechnoBusiness Insights (English Edition) ● In February, China became the first country in the world to record e-commerce market transactions beyond its offline retail.
This means that consumers in the Panda Country are already preferring to shop online rather than conventional patterns, a percentage that has not been felt by the market from any other country.
The question is, what about the Southeast Asia e-commerce market? The e-commerce market in the United States alone is only 15%, South Korea 28.9%, compared to their total national retail market, especially Southeast Asia.
According to eMarketer, Southeast Asia’s e-commerce market is indeed growing, but it is still far from being able to match China’s: surpassing its traditional retail market.
In 2020, the six main e-commerce markets in Southeast Asia, namely Indonesia, Thailand, Malaysia, Vietnam, Singapore, and the Philippines, collectively grew 35.2% and this year is estimated to grow 14.3%.
Of the US$970.83 billion that is likely to be transacted in the retail market this year, only 4.6% or around US$45.07 billion will be contributed by the e-commerce market.
Not only far from China, the share of Southeast Asia e-commerce market compared to its total retail market is also still the lowest in the world. So, the traditional retail market in this region is still very dominant.
However, this percentage actually shows a huge opportunity for the e-commerce market in the region, especially in Indonesia. Indonesia accounts for nearly half of Southeast Asia e-commerce market.
eMarketer estimates that the Indonesia e-commerce market will reach US$20.21 billion this year, up 15 percent compared to last year. Indonesia e-commerce market is large because of its population.
Last year, every Southeast Asia e-commerce market experienced an acceleration of growth compared to 2019 because it was driven by a wave of restrictions on community activities due to the pandemic. (See graph).●
Text: TechnoBusiness Insights
Data: eMarketer, July 2021
Photo: Pixabay, eMarketer
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