The e-commerce sector in Southeast Asia is rapidly expanding. In 2022, e-commerce sales in Southeast Asia will total $89.67 billion, up to $15.31 billion from the previous year. The region’s GDP will surpass $100 billion next year, up from $37.22 billion this year. Moreover, Southeast Asia’s online shoppers are growing at a 13% annual rate, with 350 million expected in the first half of 2021. The average amount spent on e-commerce will increase from $238 to $381 in 2022, and this trend is expected to continue. Here are the incredible key factors of the growth of e-commerce in Southeast Asia.
Southeast Asia’s top e-commerce trends for 2022 include:
No doubt the pandemic has altered the buyer’s journey and increased the use of online channels, which now play a primary role in brand discovery and evaluation, replacing offline channels. As a result, the e-commerce industry is exploding.
Mobile-commerce:
According to research, 70 million online shoppers use mobile devices to shop on popular platforms like Shopee, Lazada, and Tiki. Despite a 2.05 percent drop in global in-app spend, the six SEA markets examined in this study (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) saw a 13 percent to 35 percent increase in in-app revenue from March to July 2021, according to AppsFlyer’s State of eCommerce App Marketing Report 2021.
Commerce in the social sphere:
Purchasing and selling goods and services directly through social media is gaining traction and will continue to do so. According to projections, by 2026, the value of social commerce sales will be around US$ 2.9 trillion.
Three main types of social commerce have emerged in the Southeast Asian market. Peer-to-peer sales platforms, for starters, are community-based marketplaces where people sell and buy from one another. The second type is group buying, which is defined as “offering products and services at significantly reduced prices in exchange for a minimum number of buyers making the purchase.”
Payments via the internet:
According to a “SYNC Southeast Asia report,” 37 percent of consumers prefer to pay with e-wallets, while 28 percent prefer to pay with cash. On the other hand, according to the Google report, 75% of digital merchants believe that digital payments are more convenient.
The Buy Now Pay Later (BNPL) trend, which is based on a type of short-term financing that allows customers to buy now and pay later, has grown in popularity around the world, with the global market for BNPL platforms expected to reach $12,969.0 million by 2022. Although the trend is still relatively new in Southeast Asia, major players such as Reepay, Akulaku, Hoolah, Cashalo, and Atoms are leading the way.
Shopping Online trend:
Southeast Asians are also shopping online, and there are more categories and industries to choose from. According to survey respondents, they now shop online for an average of 8.1 categories, up from 5.1 in 2020.
During this period of social isolation, seven out of ten online shoppers purchase home decor and personal care items to make life at home more convenient.
During the complicated pandemic, one of the most searched categories has been online grocery stores.
South Malaysians, Vietnamese, and Indonesians who shop online tend to buy in bulk.
Online shopping is attracting an increasing number of new customers.
Southeast Asian countries that are on the rise in terms of e-commerce are:
Indonesia:
Indonesia has 44 million online buyers, and the country’s e-commerce market doubles every year. As a result, this nation of over 17,000 islands will be an ideal location for e-commerce sellers by 2022. E-commerce growth is increasing in markets such as functional foods, convenience devices, and mother and baby products.
Malaysia:
The Malaysian e-commerce market is expected to reach $13 billion by 2025. The four main categories that will attract potential customers are Travel accessories, Electronic devices, Fashion & Beauty, and Personal care.