"The number of online shoppers has hit a new high (during the pandemic)," she said. With details on the latest developments of start-ups, companies, and investors until 2015, this presentation lists the key players of the region and how the business is evolving in the US and other more mature markets. We use cookies to ensure that we give you the best experience on our website. $(document).ready(function () { "The significant spike in online traffic and e-commerce continues. With less than 1% of the total retail market currently happening online (except in Singapore), if it were to reach 5% of total retail, the Southeast Asian e-commerce market could be worth more than 20 Billion USD. }) The biggest gains - 57 per cent and 51 per cent respectively - were made in the Philippines and Singapore, according to the report, which was produced in collaboration with SimilarWeb and App Annie. Liu said,"E-commerce is projected to grow to $300 billion by 2025, but has a penetration rate of less than 5 per cent among the 650 million people living in Southeast Asia." The extention is available just for browser chrome for now! As of Q2, 2020, the top e-commerce platforms in Southeast Asia are Shopee and Lazada.. On its way to becoming Thailand's first unicorn - a startup valued at more than $1 billion- aCommerce operates across Southeast Asia in markets such as Indonesia, Malaysia and Singapore. With the world’s third-largest population and a comparatively low, but growing, Internet connectivity, Southeast Asia is an upcoming market of interest for e-commerce. People in secondary cities of countries like Indonesia, the Philippines, Vietnam or Thailand do not have the same access to fashion as in the larger and more connected cities like Singapore. Our goal is to enable brands to transition and fully expand their reach limitlessly in the fast-developing e-commerce industry. Shopee, which is based in Singapore, was the most-visited e-commerce platform in the city-state as of the second quarter, the report said. In order to cope with different fashion tastes across the region, Zalora customizes certain areas of its business while other parts are standardized. Products such as devices and furniture amongst lots of others can be discovered available for sale on these websites and their particular apps only by clicking on the Search bar. Jessica Liu, co-president and regional head of commercial at Lazada Group, said that in the second quarter of this year, orders on Laz-Mall, Lazada's business-to-customer virtual shopping platform, more than tripled year-on-year. Presentations respectively from November 2015 by Dr. Adrian Vanzyl and from March 2015 by Nittin Mittal. Zalora Group, a pioneering company in Southeast Asia’s online fashion retail, has been moving fast to grab a big portion of the fashion e-commerce market in ASEAN. However, Zalora faces fierce competition from global heavyweights like Amazon, ASOS, Alibaba, and Rakuten. Both e-commerce companies’ mobile app ranked 3rd & 4th respectively with the highest monthly active users (MAU) and highest number of total downloads in SEA, Q2 2019. The broadcast attracted nearly 10,000 views in Southeast Asia. Lazada, the dominant ecommerce platform in Southeast Asia, is both an Amazon and a Tmall. Southeast Asia, like the other parts of the world, had the public sitting packed in their homes looking for the essentials and other necessities over the internet. The platform now has a team of 30 livestream hosts. According to a report by Google & Temasek, there are more than 350 million internet users in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam).. More importantly, more than 90% of Southeast Asians connects to the internet primarily through mobile devices. Srivorakul, from aCommerce, said logistics infrastructure in markets such as the Philippines and Indonesia is still in its infancy and is expensive. The number of Internet users in Southeast Asia, and particularly in the 6 largest ASEAN countries, add up to create a largely untapped market. https://chrome.google.com/webstore/detail/lazada-price-tracker/hbffioiakemflkglioiijpfddgahchaf?gl=SG.  {{item['V1 Body']}} E-commerce Platforms A Big Money Game. "In the past six months, we have seen an increase in new brands and sellers adopting an online retail approach, from food and beverages, to hospitality, recreation and personal services, as leading global and regional brands give their retail mix a digital overhaul," Liu said. The number of Internet users in Southeast Asia, and particularly in the 6 largest ASEA… During its first livestreaming session with a crab farm in Singapore, Pang said the portal helped sell live seafood on the spot, registering sales totalling $6,000 in just two hours, in addition to providing an educative and experiential tour of the farm. Though the Singaporean e-commerce market is more mature and the Malaysian market is more dynamic, in Indonesia, Thailand, the Philippines, and Vietnam, e-commerce is still at a very early stage and remains an important reservoir of growth for ASEAN. Answering to Bloomberg TV Malaysia’s Sophie Kamaruddin, Olivier Gergele, Principal at ATKerney, explains how the offering of online shops is critical for success in the region while presenting the findings of the report. The region's e-commerce GMV grew by 23 per cent annually from 2018 to this year, faster than China's compound annual growth rate during the same period, the report said. $('#spanCopyright').text(theDate.getFullYear()) For Rachel Pang, the founder and CEO of online shopping portal Shopavision, increased digital consumption triggered by Covid-19 resulted in a "surprising opportunity" for her startup, which aims to be Singapore's first and only livestream-focused shopping site. The most visited e-commerce platforms on desktop and mobile web in Malaysia and Southeast Asia in 2018 was Lazada, commanding the largest … var theDate = new Date(); For example, when Singapore raised its Disease Outbreak Response System Condition to the second-highest level of "orange" on Feb 7, that weekend, Lazada's grocery arm RedMart saw a three-fold rise in the average number of weekly orders. They have hired new talents as the company developed later on, but the company does not face a big staff turnover problem, as Zalora employees share a common company culture. - China Daily/Asia News Network, Tags / Keywords: These retailing challenges are however transferred to the sellers who need to find new solutions to collect payments and deliver products. How Southeast Asia ecommerce is different Southeast Asia is a hybrid between US and China. The concept of the Singles Day online shopping festival was first promoted by Chinese e-commerce platforms and was introduced to Southeast Asian markets by Lazada in 2012. Srivorakul added that social commerce is another growth channel, with brands offering their employees, influencers and store associates incentives such as commission to sell to their social networks. Zalora has therefore developed its own infrastructure to satisfy its customers’ needs. Singapore is the major player among the ASEAN countries, in cross-border e-commerce, with almost 55% of the online transactions that take place corresponding to cross-border transactions. See below for more details on the challenges of e-commerce in Southeast Asia. To reach its present size, Zalora has moved very fast: they opened in six markets in the first six months, with warehouses in each country, and hired 1000 staff. These practices reached Southeast Asia during the dot-com mania in the 1990s. In this video, he also highlights the report’s main points and how the market could grow by 25% a year. This second slideshow provides a lot of detailed information, facts and figures on e-commerce in Southeast Asia in general, as well as its major markets: Singapore, Thailand, Malaysia, Indonesia, the Philippines, and Vietnam. In some countries, consumers still face difficulties to reach traditional shops. But until last year, Pang said nine out of 10 people she spoke to in Singapore were still unfamiliar with livestreaming. It also needs to address local infrastructure challenges for effective cash collection and merchandise delivery in each country. In April, the Guangxi Zhuang autonomous region website reported that Guangxi TUS-Innovation Cross-border E-commerce Co held a livestreaming session on Lazada to sell anti-pandemic products such as face masks and goggles. Zalora focuses on delivering great customer experience, while also learning about the local markets and habits and sharing global best practices. From the first quarter to the second, the company saw an 82 per cent rise in the number of users, garnering close to an additional 5 million visitors on average in the second quarter alone. Pang, from Shopavision, who is eager to expand to other Southeast Asian markets such as Malaysia, Indonesia and Thailand, said she hopes to make livestream commerce an integral part of people's lifestyles in the region, as is the case in China. This is in sharp contrast to many other industries, which are reeling from the unprecedented economic pressure caused by Covid-19. The global average is 42 per cent. "Brands are not only doing it on e-marketplaces, but on 'brand.com'as well, where we can see volume growing two to three times faster than on e-marketplaces," he said. In Indonesia, management consultancy RedSeer forecast that the gross merchandise value, or GMV, of the country's e-commerce sector would grow by 50 per cent year-on-year to reach $35 billion this year and would rise to $101 billion by 2025. As digital marketing is a large part of e-commerce, he said surging demand for online shopping has created several opportunities for such businesses to acquire new customers more easily. Mobile applications today play a vital role in the development of e-commerce. You can see how the price changed before and if it’s up you can wait until it will go down or you can ask the seller for a discount! Liu said,"E-commerce is projected to grow to $300 billion by 2025, but has a penetration rate of less than 5 per cent among the 650 million people living in Southeast Asia.". Many well-known department stores and malls, including Metro and Robinsons in Singapore and the Siam Center in Thailand, have also hopped on the digital bandwagon to help their tenants set up virtual storefronts through Lazada's platform. In the first half of this year, the average value of an order throughout the region rose by 23 per cent year-on-year to US$28.50, according to a report by e-commerce aggregator iPrice, which is based in Malaysia. JD Worldwide (China) Launched in 2015, JD Worldwide brings many similarities to Tmall Global. It also helps that the average age of employees is below 30 years old, with many of these young people holding important responsibilities. Southeast Asia is currently a very attractive market for companies involved globally in the e-commerce sector and smaller local players. They have created warehouses in each country and partnered with local delivery companies in every country to ensure fast delivery. … The critical elements to conquering the Southeast Asian market have been scale, speed and customer satisfaction. Your email address will not be published. Zalora’s core team was built in the first year of existence and it has stood together since then. It is summarized in 5 key guidelines to help companies and authorities develop the e-commerce business in Southeast Asia. For Singapore’s Shopee, Being ‘late’ to the E-commerce Game has Helped its Rise in Southeast Asia. The e-commerce market in Southeast Asia (SEA) is poised for a boom, and its internet economy is expected to burgeon to more than $200 billion within a decade, a new report has found. In Vietnam, the Philippines, Indonesia and Malaysia, nearly 60 per cent of internet users turn to social media for more information about brands. HONG KONG (China Daily/ANN): Leading international online marketplace Lazada made the most of the Singles Day shopping extravaganza this month, cashing in on the e-commerce boom in Southeast Asia during the pandemic. Star Media Group Berhad (10894D), {{item['V1 Header']}} Southeast Asia saw a surge in the use of digital services like e-commerce, food delivery and online payment due to the coronavirus pandemic, according to … , More than 40 livestreaming shows were held during the three-month pre-launch marketing period, Pang said, generating over 400,000 views, more than $50,000 in sales and reaching 2 million people. Business across the entire value chain, from supply chain, logistics, marketing and customer service to e-commerce enablers, is growing significantly," Srivorakul said. She added that this presents huge opportunities for e-commerce companies. Launched in late 2011 by the German startup incubator Rocket Internet, Zalora is based in Singapore and regroups more than 2000 staff across Southeast Asia and beyond. Despite these difficulties, big and small companies are rushing to move and sell online, as many analysts expect the market to boom in the coming years. Electronic commerce or e-commerce in Southeast Asia is the buying and selling of products and services over the internet in the countries of Southeast Asia. In Vietnam, 76 per cent of consumers said they had done more shopping online in recent months, according to a survey by digital marketing company Criteo. In particular, Liu said the grocery sector has experienced exponential growth since the start of the pandemic. Commerce.Asia integrates best of breed technology solutions, talent development programmes and big data insights for South East Asian businesses to succeed online. E-commerce in Southeast Asia rides high on pandemic boom This year's net novices made up almost one-third of the region's 140 million new … Tokopedia, based in Jakarta, the Indonesian capital, and also backed by Alibaba, said in a statement early last month that food and beverage sales have nearly tripled during the pandemic. (The new customers) are not only limited to the tech-savvy generation, but also comprise the older generation, which you would not have targeted as a customer base as recently as last year," said aCommerce co-founder and group CEO Paul Srivorakul. Arriva is the leading e-commerce service provider for international brands in Southeast Asia's top marketplaces like Lazada, Shopee and etc. Shopee has come out on top as the most visited eCommerce platform in Southeast Asia, beating Lazada (#2) and Tokopedia (#3) with a total average of … According to a report by Facebook and the global consultancy Bain & Co, 70 per cent of consumers, or 310 million people, in the region are expected to have gone digital by the end of this year - a figure previously forecast for 2025. Top 10 e-commerce sites in the Philippines, https://chrome.google.com/webstore/detail/lazada-price-tracker/hbffioiakemflkglioiijpfddgahchaf?gl=SG, Southeast Asia digital, social and mobile 2019, Top 10 e-commerce sites in Indonesia 2019, Top 10 e-commerce sites in the Philippines 2019, Insights and trends of e-commerce in the Philippines [market analysis], A young population, 67% under 35 years old –, Structural shift in the use of Internet in Southeast Asia –, Comparing Southeast Asia’s online landscape –, More time spent on Internet in Southeast Asia than in East Asia –, Social media drives internet penetration in Southeast Asia –, Facebook, some interesting stats from Thailand –, Southeast Asia has a very low e-commerce penetration –, Digital development in a global perspective –, Major activities of listed players in Southeast Asia –, Thailand – listed players are paving the way –, Southeast Asia tech funding at an inflection point –, Most funds flow in Southeast Asia to e-commerce and marketplace –, Southeast Asia’s recent sizable e-commerce deals –, Southeast Asia’s companies recently raised over $ 100 M –, Several notable exits in Southeast Asia –, What’s coming next for e-commerce in Southeast Asia until 2020 –, Theme’s shaping e-commerce in Southeast Asia until 2020 –, 2015 largest deal goes into mobile commerce –, Social and mobile commerce in Southeast Asia –, Public internet companies capitalization 1995-2015 –, Management of customer expectations and perception, High customer service needs for small purchases, Logistics, taxes, customs clearance, payment methods, Lack of reliable, low-cost logistics infrastructure, Local contracts, deals, localization for each ASEAN country, Fulfillment infrastructure not built to serve the scale of e-commerce scale, ASEAN shopping websites traffic comparison –, Greater Internet penetration: ASEAN 2011-2016 –, Increasing supply of e-commerce & logistics players –, E-commerce market size (2013) and potential –, Foreign ownership regulation for e-commerce –, E-commerce market size – ASEAN 7 Billion USD in 2013 –, Preferred e-commerce channels in Indonesia –, Preferred e-commerce payment methods (2013) –, Innovative Indonesian payment methods (2013) –, Indonesia Top Shopping websites by monthly traffic (March 2014) –, Philippines Top Shopping websites by monthly traffic (March 2014) –, Thailand Top Shopping websites by monthly traffic (March 2014) –, Example of US import tax calculation in Thailand –, Malaysia Top Shopping websites by monthly traffic (March 2014) –, The fashion market in Southeast Asia is expected to reach 100 Billion USD by 2018, About 20% of fashion retailing is now done online in the US and Europe, while a fraction of this is currently happening in Southeast Asia, Zalora hopes to capture close to 50% of the online fashion market of Southeast Asia. Since the pandemic emerged, the number of brands handled by Laz-Mall has tripled to more than 18,000 international and local names across the region, according to the company. Your email address will not be published. With livestreaming on social media platforms such as Facebook becoming more common, she added that such broadcasts have the potential to drive marketing and sales. "Offline shopping will definitely grow back when the pandemic ends, but consumers will not forget the experience they have when doing their shopping online," Srivorakul said. A study conducted by PayVision shows that “an estimated 55% of all e-commerce in Singapore and 40% of all Malaysian e-commerce is cross-border, an extremely high percentage compared to cross-border e-commerce figures for Japan (18%) and South Korea (25%)”. The company also found that the "new normal" of working and learning from home triggered a significant rise in sales of books and computers. At a turning point in terms of Internet and mobile penetration, the population of Southeast Asia is quickly adapting its behaviors to take advantage of new opportunities available in purchasing products and services online. In these countries,  the rapid development of technological infrastructures and growing levels of income ensure that the market’s expansion provides room for growth of existing players or newcomers, be they local or foreign companies. To ensure customer satisfaction, Zalora has hired a dedicated team to implement best practices and learn from negative feedback. Integrating Philippine e-commerce in ASEAN, Insights and trends of e-commerce in Indonesia…, Philippines tech startup ecosystem [list-tips], Vietnam's online mobile game market overview. The way in which e-commerce is conducted has also diversified, Srivorakul said. Businesses ready to face its challenges 17 times the total GMV generated through,! 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