“Southeast Asia B2C E-Commerce Market 2018” is a new publication released by secondary market research company yStats.com, based in Hamburg, Germany. According to the CEO & Founder of yStats.com, Yücel Yelken: “Our report points to strong growth in online retail sales across the region, driven by higher connectivity rates, mobile technology, infrastructure development projects and investments.” According to one forecast cited in the report, B2C E-Commerce sales in Southeast Asia could grow eight-fold between 2017 and 2025.
The online shopping sector is in early stages of development in most Southeast Asian nations, accounting for a small single-digit share of total retail sales. However, the yStats.com report shows that this region harbors tremendous potential for expansion of B2C E-Commerce, with a projection of an eight-fold increase in online sales between 2017 and 2025. With a total of over half a billion people living the six countries covered in the report, higher Internet and online shopper penetration rates are bound to result in robust E-Commerce growth. In Indonesia alone, Internet access is expected to nearly double by 2025, strengthening its position as the region’s largest online retail market.
The top reasons why connected consumers in Southeast Asia are increasingly adopting online shopping include the convenience of this method, allowing to shop at any time, along with the opportunity to compare prices and read product reviews, according to a recent survey included in the yStats.com report. Electronics, fashion and beauty products are among the most popular categories purchased online in countries including Thailand, Vietnam and Singapore. On the other hand, low levels of consumer trust and high delivery fees are cited among the main barriers to more digital purchases. In order to address these challenges, national governments, such as in Malaysia, pursue initiatives aimed at boosting infrastructure development and enhancing the regulatory framework for E-Commerce.
Online marketplace is becoming a major mode of conducting E-Commerce in Southeast Asia, although accepting orders through social media channels is still very popular, especially in Vietnam, Indonesia, Thailand and the Philippines. Singapore-based Lazada has emerged as the top online retailer and marketplace in the region, backed by support and investment from Alibaba Group, its main stakeholder. Other international E-Commerce leaders, including JD.com and Amazon are also taking interest in the region, challenging local pure-play and omnichannel retailers for a share of these fast growing B2C E-Commerce markets.