E-commerce in Southeast Asia market is in full swing (I)

At present, the pattern of mature cross-border E-commerce markets in Europe and the United States tends to be stable, and Southeast Asia with high growth has become an important target market for the diversified layout of many Chinese cross-border e-commerce export enterprises.

100 billion dollar incremental dividend

ASEAN is China’s largest trading partner, and cross-border e-commerce B2B accounts for more than 70% of the total scale of China’s cross-border e-commerce business. The digital transformation of trade provides an important support for the development of bilateral cross-border e-commerce business.

Beyond the existing scale, the 100 billion dollar increment of the Southeast Asian e-commerce market is opening up greater imagination.

According to the report released by Google, Temasek and Bain in 2021, the scale of e-commerce market in Southeast Asia will double in four years, from $120billion in 2021 to $234billion in 2025. The local e-commerce market will lead global growth. The Research Institute e-conamy predicts that in 2022, five Southeast Asian countries will rank among the top ten in the global e-commerce growth rate.

The expected GDP growth rate higher than the global average and the great leap in the scale of the digital economy have laid a solid foundation for the continued volume of the e-commerce market in Southeast Asia. Demographic dividend is the key factor. At the beginning of 2022, the total population of Singapore, Indonesia, Malaysia, the Philippines, Thailand and Vietnam reached about 600million, and the population structure was younger. The market growth potential dominated by young consumers was extremely considerable.

The contrast between large online shopping users and low e-commerce penetration (e-commerce transactions account for the proportion of total retail sales) also contains market potential to be tapped. According to Zheng Min, chairman of Yibang power, in 2021, 30million new online shopping users were added in Southeast Asia, while the local e-commerce penetration rate was only 5%. Compared with mature E-commerce markets such as China (31%) and the United States (21.3%), e-commerce penetration in Southeast Asia has an incremental space of 4-6 times.

In fact, the booming e-commerce market in Southeast Asia has benefited many overseas enterprises. According to a recent survey of 196 Chinese cross-border e-commerce export enterprises, in 2021, 80% of the surveyed enterprises’ sales in the Southeast Asian market increased by more than 40% year-on-year; About 7% of the surveyed enterprises achieved a year-on-year growth of more than 100% in sales in the Southeast Asian market. In the survey, 50% of the enterprises’ Southeast Asian market sales have accounted for more than 1/3 of their total overseas market sales, and 15.8% of the enterprises regard Southeast Asia as the largest target market for cross-border e-commerce exports.


Post time: Jul-20-2022