Home / Knowledge / News / Apparel/Garments / SE Asia e-retail market to surpass $25 billion by 2020
SE Asia e-retail market to surpass $25 billion by 2020
07
Sep '16
Southeast Asia is expected to become one of the world’s fastest-growing regions for e-commerce revenues, exceeding $25 billion by 2020, predicts a recent report. The collective revenue from business-to-consumer (B2C) e-commerce in countries like Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam will increase at a CAGR of 17.7 per cent.

Frost & Sullivan’s telecommunications and digital services (digital transformation) growth partnership service program carried out the ‘Analysis of the Southeast Asian E-commerce Market’ research to examine market trends and opportunities in the aforementioned countries.

The e-commerce market in Southeast Asia earned $11 billion despite several acquisitions, market exits, and many online retailers struggling to achieve profitability in 2015, according to the research. Malaysia and Thailand were the largest e-commerce markets in the region in 2015, generating revenues of $2.3 billion and $2.1 billion respectively. However, by 2020, both of these markets are expected to be eclipsed by emerging economies including Vietnam and Indonesia.

The research has also identified certain challenges and key factors that are inhibiting growth in the region. These include low credit card ownership that is less than 7 per cent in all SE Asian markets except Malaysia and Singapore as well as logistics in areas with complex geographies such as Indonesia and the Philippines. Additionally, over 50 per cent of the population in SE Asia does not have bank account, thus making payment the biggest challenge for e-retail companies.

“Despite being relatively young, the e-commerce market in Southeast Asia is developing quickly, thanks to the astounding rate of digital adoption in the region. However, companies pursuing an Amazon-style B2C mass market business model are struggling to turn a profit and there have been several mergers and acquisitions and market exits in 2015,” said Cris Duy Tran, lead consultant in e-commerce and digital transformation, Frost & Sullivan Asia-Pacific.

The mass marketing approach has not worked so far in Southeast Asia, but there are many opportunities in specialised e-commerce and peer-to-peer (P2P) e-commerce. The report predicts a growth in sector-specific services in areas such as luxury goods. Moreover, the rapid expansion of the Chinese e-commerce market is providing further impetus for online retail growth in Southeast Asia.

“In 2015, the e-commerce revenue in China represented 12.1 per cent of all retail sales, surpassing the US, Europe and Japan. Given the massive adoption of e-commerce in China, Southeast Asia is set to follow a similar upward trajectory; even though at present, e-commerce only represents less than 2.5 per cent of all retail sales,” added Tran. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Nine West

Fashion | On 17th Jun 2018

ABG wins bid in Nine West Holdings auction

Authentic Brands Group (ABG), owner of a global portfolio of...

Courtesy: Kreussler

Textiles | On 17th Jun 2018

USDA certifies Kreussler's solvent as biobased

The US Department of Agriculture (USDA) has certified Kreussler's...

Courtesy: ITUC

Textiles | On 17th Jun 2018

Democratic space shrink & corporate greed are rising: ITUC

Shrinking democratic space for working people and unchecked corporate ...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search