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

Pic: Shutterstock

Apparel/Garments | On 28th Nov 2020

3 Bangla RMG firms present energy efficiency action plans

Small energy efficiency working groups (SEEWGs) of three top tier...

Pic: Shutterstock

Textiles | On 28th Nov 2020

Pak PM asks ministries to help textile sector meet demand

Pakistani Prime Minister Imran Khan recently directed the commerce...

Pic: Shutterstock

Apparel/Garments | On 28th Nov 2020

Rwanda's garment-textile exports grow by 83% in 2 years

Rwanda's textile and garment sector grew 83 per cent in value between ...

Interviews View All

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Aaron Spivak,

Aaron Spivak

Canada-based Hush Blankets was founded by Lior Ohayon and Aaron Spivak to...

Deepak Mundra,

Deepak Mundra

Surat-based Madhusudan Group is a vertically integrated textile...

P V Kadole,

P V Kadole

Nine co-operative organisations from Ichalkaranji came together to form an ...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

<span style="font-size: 12px;">Designer Suman Nathwani talks about her...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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


November 2020

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


Advanced Search