S.E.A. (South East Asia) eCommerce Marketplaces like Lazada, Shopee, Tokopedia, Qoo10 are booming and there must be reasons why, share with everyone a few reasons.
The countries comprises of Brunei, Cambodia, Indonesia, Laos, Myanmar, Malaysia, Philippines, Singapore, Thailand and Vietnam with an aggregate population of 640 million and a GDP of US$ 2.55 Trillion, and its on its way to become the 4th largest single market, just behind USA, China and European Union. The region’s steady growth is fuelled by an increasingly well educated work force, rapid urbanisation and growing infrastructure spending.
With this in mind, Digital Payments and E-commerce is booming in S.E.A as this region holds a huge and young population where smartphone and digital payment systems are there to help access financial services and shopping quickly and conveniently, reducing the time and cost of transactions.
This boom is due to the following factors:
- The rise of Social Media
With China’s influence (SEA’s stocks are mainly from China), social media apps like TikTok or Douyin are rising. Everyone is learning how to monetise their physical products from these platforms by linking them to their offer.
From simple video introduction to complex unboxing videos, everyone has creative ways to get the people’s eyeballs to generate the traffic to their page.
- “Live” Selling
Many “live” selling Influencers or Sellers are selling like crazy in China for the last 5 years and this has led to Lazada, Shopee and many platforms to integrate this method of selling on their platforms as well. From selling of Clothes, Watches to Food, everyone is jumping in this bandwagon enthusiastically.
USA platforms like Amazon has just started their Live Apps (Apple only) and is gaining slow traction but is growing.
- Grey Area
In general, S.E.A. platforms are less stringent in the things they sell as long as it is not illegal. I have seen a uptrend in people selling supplements which are not even approved by the local health authorities or even products that could be about 90% similar to a branded product.
- Smartphone Penetration
People in S.E.A. loves to use their handphone, smartphone in particular. Many carries at least 1 smartphone with them. M-Commerce (Mobile Commerce) is extraordinarily strong here and everyone use the phones to purchase air ticket, booking of train tickets, buying of products etc.
Ecommerce Revenue is expected to reach USD 6.76 Billion in 2021, with an annual growth of 10.3%, it will result in a projected market volume of USD 10 Billion by 2025. The Ecommerce User penetration will be 48.8% in 2021 and is expected to hit 63.3% by 2025 which is about 443 million users.
- Better Logistics
The logistics in S.E.A. is getting better and better. Especially after the pandemic, many people lost their jobs and became food delivery personnel or dispatch drivers. Hence pushing the logistics network even stronger now.
We can basically get many things within 2 hours in S.E.A.
Find out more about our S.E.A. Selling Courses at http://www.LSMtraining.com