Interviews
SE Asia digital economy to multiply more than thrice by 2025: RedSeer
30 Jul '21
2 min read
Pic: Shutterstock
Southeast Asia’s $114-billion digital economy market across six big countries in the region is expected to multiply more than three times in five years, reaching $365 billion by 2025, according to takeaways from Indian management consulting firm Redseer’s Ground Zero 5.0 event held on June 30.
With the theme ‘Internet Economy Coming of Age’, the gathering was informed that e-health, education technology (EdTech) and business-to-business digital commerce (eB2B) will witness stronger growth.
All sectors show robust growth prospects over the five-year horizon.
Vertical play will evolve into specialisation in specific categories with supporting experiences as horizontals dominate the generic categories already, RedSeer said in its newsletter.
Omni-channel will drive growth in categories where touch and feel is important by offering various types of consumer experiences.
Democratisation of financial services will play out, offering tremendous opportunity to drive customers up the affordability ladder and provide working capital support to small and medium enterprises (SMEs).
There are over 150 million unbanked adult consumers in Southeast Asia and another more than 70 million underbanked consumers. These users are digitally active as evident from active Internet usage levels.
Financial technology players who started off with payments are now extending their offerings towards credit and other financial services to help these consumers move up the affordability ladder, the newsletter said.
SMEs contribute a significant portion of gross domestic product (GDP) in countries like Indonesia, the Philippines and Vietnam. They also typically operate in cash flow-intensive sectors and need working capital support. Traditional financial institutions weren’t able to effectively tap into this need due to challenges around process, no credit history and lack of customisation.
Circular economy approach as opposed to a linear approach is making waves among influential consumer cohorts in the region. There is an increasing focus on ‘use and recycle’.
Sustainability investments are picking up in the region and some sectors to watch out for include alternative meat and fashion for good, the newsletter added.
With the theme ‘Internet Economy Coming of Age’, the gathering was informed that e-health, education technology (EdTech) and business-to-business digital commerce (eB2B) will witness stronger growth.
All sectors show robust growth prospects over the five-year horizon.
Vertical play will evolve into specialisation in specific categories with supporting experiences as horizontals dominate the generic categories already, RedSeer said in its newsletter.
Omni-channel will drive growth in categories where touch and feel is important by offering various types of consumer experiences.
Democratisation of financial services will play out, offering tremendous opportunity to drive customers up the affordability ladder and provide working capital support to small and medium enterprises (SMEs).
There are over 150 million unbanked adult consumers in Southeast Asia and another more than 70 million underbanked consumers. These users are digitally active as evident from active Internet usage levels.
Financial technology players who started off with payments are now extending their offerings towards credit and other financial services to help these consumers move up the affordability ladder, the newsletter said.
SMEs contribute a significant portion of gross domestic product (GDP) in countries like Indonesia, the Philippines and Vietnam. They also typically operate in cash flow-intensive sectors and need working capital support. Traditional financial institutions weren’t able to effectively tap into this need due to challenges around process, no credit history and lack of customisation.
Circular economy approach as opposed to a linear approach is making waves among influential consumer cohorts in the region. There is an increasing focus on ‘use and recycle’.
Sustainability investments are picking up in the region and some sectors to watch out for include alternative meat and fashion for good, the newsletter added.
Fibre2Fashion News Desk (DS)
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