Ecommerce Boom in SEA – Carving the Way to a Powerful Future
The eCommerce market in Southeast Asia (SEA) has become a booming industry, with its most engaged mobile users.
According to the reports by Google and Singapore investment firm Temasek, the internet economy of SEA markets-Indonesia, Singapore, Malaysia, Philippines, Thailand, and Vietnam is to grow 300 billion dollars by 2025, with millions of users shopping online, and more countries joining in.
The Forrester research report states that there are about 294 million consumers in SEA countries, out of which 164 million people made online purchases.
The cross-border has introduced a momentum to the sales growth of eCommerce globally. Countries like Singapore, Malaysia, Indonesia, and more are the fastest growing online retail market with high internet penetration and growing middle class.
The current landscape
The COVID-19 pandemic has brought a transition phase to the eCommerce industry. The consumer’s shopping behavior of the SEA region has changed drastically, and they seem to buy online and depend on deliveries for essential items.
Shopee, a Singaporean eCommerce platform, reaped the pandemic’s benefits, with its goods value rising to gross 74.3%, touching 6.2 billion dollars for the first quarter.
It is to introduce items for cooking, entertainment, and work with free shipping for their consumers. Sea Group, the parent company of Shopee, is planning to expand its business and acquire potential brands.
Shopee’s Zhou said, “The coronavirus situation has materially accelerated a shift to online lifestyles that is broad, deep, and we believe, irreversible.”
Industry players are quick enough to understand this shift and ready to grow sales worldwide. Hence, the pandemic and increasing demands of online consumers are thereby drawing significant notice to the digital eCommerce industry and implementation of technology-driven solutions for the progress and solidity of business.
How is SEA craving it’s way to a powerful tomorrow?
The recent developments in the SEA market are becoming the trader’s choice globally. But what are the factors that are making it a magnetic market today? Let us see below.
Data analysis is a game-changer in the eCommerce industry. Access to data report is what makes it different from the brick-and-mortar store. The brands generate data through online channels, chats, and websites.
The data gathered are used to devise online business strategies. It helps target your potential customers, the specific product they are looking for, and how they interact with your brand.
Several brands like Shopee, ZALORA, Amazon, and more are using this technique and continuously searching for data aggregators to consolidate information into one place for easy retrieval to target, retarget, and customize products and services.
Use an analytical data platform that can help your map your business growth, track competitors’ brand, take actions on customer’s feedback etc. to help build you an eCommerce leader.
Southeast Asia has rapid social media growth driven by faster and cheaper mobile connectivity, where more than 90% of people access the internet through smartphones.
Facebook, Instagram, WhatsApp, Facebook Messenger, LINE, and YouTube are the most used social media platforms in Southeast Asia.
The Philippines is the world’s social media capital, with its 99%of users are present on social media.
Econsultancy’s latest reports reveal that more than 85% of users find it convenient to shop and sell on social media.
Ecommerce retailers feel that social commerce has a bright future, and 76% of them have decided to grow their budget for social marketing technology.
For example, Loreal Thailand has enabled “Shop” on its social media page from where the customers can buy directly.
Focussing on Omnichannel experience
Omnichannel integrates distribution, promotion, and communication channels, providing a seamless shopping experience to its customers.
The regional online retailer adopting this technique is pushing the retail behemoth to a corner. Thus, eCommerce giants like Amazon and Alibaba have decided to put their physical store to solve the dispersed operations and improve payment transparency.
JD.com collaborated with Alibaba and opened a first unnamed store in Indonesia to utilize the broad database by providing useful insights to the brand about the best product to advertise and stock to push sales growth.
More Southeast Asian companies are gradually implementing this strategy. Thailand’s eCommerce fashion players like Pomelo and Singapore’s Love, Bonito, have opened their physical stores across countries.
Besides, Southeast Asians love visiting shopping malls, and this trend is not going to fade anytime soon.
eCommerce potential in South East Asian countries is huge. To learn how Vinculum can help brands and retailers in Singapore, Indonesia, Thailand, Philippines, Malaysia, Vietnam, and Hong Kong scale and sell anywhere faster, talk to our experts today.
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