Is cross-border e-commerce worth doing in Southeast Asia? What are the advantages of the e-commerce market in Southeast Asia?
Advantages of cross-border e-commerce market in Southeast Asia?
Southeast Asia is one of the most dynamic and promising regions in the world in terms of economic development, and it has close cooperation with China in terms of trade. Therefore, the Southeast Asian market has always been favored by many domestic cross-border e-commerce sellers. Let’s take a look at what advantages the Southeast Asian market has.
1. Southeast Asian e-commerce market has a huge consumer capacity
The Southeast Asian market has a very large consumer capacity. When the per capita GDP exceeds US$4,000, it marks that a market has entered a consumer society. The six countries in Southeast Asia have all reached this standard, and Thailand and Indonesia have the fastest development speed.
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In terms of population, Southeast Asia has a higher proportion of young consumers, especially in countries like Vietnam where over 60% of the population is under 30 years old. The consumer group is large and their consumption power is sufficient.
2. Southeast Asia has a fast internet development rate
The internet development rate in Southeast Asia is very fast. In terms of global internet users, Southeast Asia ranks third in the world, second only to East Asia and South Asia. The internet development in Southeast Asia has almost skipped the PC era and directly entered the mobile era. Thanks to this, the development speed and demand growth of mobile shopping applications are also very fast.
3. Southeast Asians spend a long time shopping online
By the end of 2021, the proportion of digital consumers among the population aged 15 and above in Southeast Asia will be close to 80%. It is expected that 70 million new digital consumers will be added this year, equivalent to the entire population of the UK. By 2026, the number of digital consumers in Southeast Asia is expected to grow to 380 million, an increase of 36% compared to 2019. In terms of online shopping time, Southeast Asia ranks first in the world, with an average online shopping time of up to 3.6 hours per person.
4. The Southeast Asian e-commerce market is currently in a period of growth.
Whether it’s Lazada, Shopee, or TikTok, which exploded in Southeast Asia last year, they are all developing rapidly. Shopee is currently the largest e-commerce platform in Southeast Asia with 198 million monthly visits. In 2021, its annual GMV reached 62.5 billion US dollars, a year-on-year increase of 76.8%, and the total number of orders reached 6.1 billion, a year-on-year increase of 116.5%.
Moreover, TikTok has launched various types of subsidy policies, including shipping subsidies, traffic subsidies, free advertising vouchers, and so on. For example, in the Philippines, each new user can receive a shipping subsidy of 150 pesos. Although TikTok’s scale is not as large as Lazada and Shopee, its development speed is already very rapid.
Overall, considering the launching situation of various e-commerce platforms, it can be judged that the Southeast Asian e-commerce market is still in a period of growth and has huge development potential.
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