The e-commerce industry in Southeast Asia is expected to exceed 102 billion dollars, by 2025, according to a Google-Temasek study. This year, the industry is expected to grow by nearly 5.5%, as per PPRO statistics.
The growing e-commerce industry is aligned with the growing investor confidence in the region. Singapore, Malaysia, Indonesia, Vietnam, and the Philippines are the largest markets leading in market growth and expected to continue that trend in the coming years.
Here are the top trends expected for Southeast Asia E-commerce in 2021
1.Brands Now Focusing on Data Optimization and Utilization
Online businesses in the region are now focusing on prompt tracking, collecting, and monitoring of information, in real-time to stay in front of the curve.
They are able to access data related to their targeted audience through social media channels and messenger chats to identify interests and devise online strategies to rope in new customers. 3 out of 4 brands are now keen to allocate their budget on analytics in recent times. As they gear up to enable data analysis in their organizations, they are also keen to use the information for retargeting prospects with relevant products and services. Brands now have to focus on an economical way for data utilization in some way or the other, to gain an edge over their competition.
2.E-Marketplaces Offer New Differentiators
The most successful ecommerce players have relied on their services that they have rolled out through their streamlined supply chain.Alibaba for example has banked on its extensive ecosystem that includes their portal, a comprehensive logistics network Cainiao, payment firm named Ant Financial and other entities.
Singapore’s Qoo10 with its blockchain-based ecommerce site, QuuBee, has eliminated transaction feesto boost profit margin for retailers on a sustainable basis. Fashion e-marketplace Zilingo’s focus on a strong supply chain network of fashionhas resulted in a staggering funding round of $226 million. One can expect e-marketplaces to introduce new services and partnerships to boost their e-commerce efforts in the coming months.
3.Regulations will increase in Ecommerce across the region
Ecommerce has remained unregulated in many countries in this region but with time, governments are expected to step up regulations to encourage digital services and trading of goods locally. Ministers who were part of the Association of Southeast Asian Nations (ASEAN) had signed an agreement for increased cross-border ecommerce transactions and there have been talks about ecommerce tax on imported goods but largely uncontrolled in various marketplaces.Currently, Singapore accounts for 89% of cross-border transactions in the region, and expected to rule the roost.
4.Brands and Retailers Vouch for Enhancing OmnichannelShopping Experience
South-east Asian countries now increasingly vouch for omnichannel shopping experience enabling te seamless connection of individual customer touch points on diverse channels. The enhanced omnichannel shopping experience allows customers to pick up their shopping activity across diverse channels, with harmony, and without hassles.
Pure-play ecommerce brands understand the issues associated with fragmented infrastructure and opt for offline growth to drive an increase in sales. Customers continue to visit shopping malls, hence online brands are keen to leverage their online presence with offline stores, now expecting a flurry of activity post-COVID-19.
To identify these trends and understand how online retailers can retain a competitive edge in the region, attend the Future Internet Summit SouthEast Asia 2021 event. This summit will outline the top eCommerce trends you need to follow in 2021 that will drive high ROI, while introducing the newest innovations in the eCommerce world.
Event by: Exito Media Concepts