The huge population, high internet penetration rate, growing GDP and huge e-commerce market size all indicate a bright growth prospect for the Southeast Asian consumer market. Many cross-border sellers regard this land as a must-fight place.
As more and more brands begin to deploy in the Southeast Asian e-commerce market, "going to Southeast Asia" has become a consensus among many cross-border sellers, and those sellers who have settled in this fertile land early on have also reaped great rewards, with 100,000 orders sold in one day and a 7-fold increase in order volume...
Southeast Asian market becomes a must-fight place, sellers are scrambling to make layout
As the fastest growing region in e-commerce in the world, Southeast Asia 's e-commerce GMV reached US$120 billion in 2021, and is expected to reach US$360 billion in 2025. The continuous growth of Southeast Asia's e-commerce market size is inseparable from its own strong e-commerce genes.
Unlike other regions, Southeast Asia is dominated by a young population. Among the total population of over 600 million, the average age is only 28.8 years old, and the potential for consumption growth is obviously considerable. At the same time, affected by the epidemic, Southeast Asia added 40 million Internet users in 2021, so the total number of Internet users in Southeast Asia has reached 440 million , and the Internet penetration rate has reached 75%, which is higher than that of China.
Although Southeast Asia has a strong Internet consumer group, the online e-commerce penetration rate is not high. It is reported that the e-commerce penetration rate in Southeast Asia (except Singapore) is generally less than 5%. Compared with mature e-commerce markets such as China (24.9%) and the United Kingdom (19.3%), the Southeast Asian e-commerce market still has a lot of room for growth.
In terms of traffic, compared with the high advertising costs in developed countries such as the United States and Europe , the advertising display costs in Southeast Asia are about 30% to 40% of those in Europe and the United States, which means there is a large traffic dividend. At the same time, Southeast Asian countries are relatively close to China in terms of geographical location and cultural background, so cheap and high-quality Chinese products are very popular among local people.
There is no doubt that with the advantages of demographic dividend and Internet dividend , the Southeast Asian e-commerce market is accelerating its potential. It is precisely this potential that has attracted many sellers to Southeast Asia to start their gold rush.
Selling 100,000 orders a day , Shopee sellers are making a fortune
In September, when some American sellers reported that their orders had declined or even been halved, most Shopee sellers with deep roots in the Southeast Asian market successfully welcomed a surge in orders, with the number of orders for big promotions frequently reaching the top.
The well-known cross-border beauty brand Filure received nearly 100,000 orders on the platform’s 9.9 promotion day , with 80,000 orders from key markets Vietnam and the Philippines . One month later, during the 10.10 brand promotion, through in-depth cooperation with the platform, the efficient traffic conversion of Shopee x Facebook (CPAS), and the platform’s affiliate marketing (AMS) target alliance function to match specific KOLs, Filure again achieved sales of over 80,000 in various markets on the promotion day .
As a seller who has been on the platform since 2017 , Feiluer focuses on the Vietnamese and Philippine markets, mainly providing cost-effective beauty products for young people aged 18-24. Considering that the local environment in Southeast Asia is relatively hot and humid, in order to meet the needs of local consumers, Feiluer also adds oil control, waterproof and sweat-proof features to its makeup products, which also makes their products popular among local young people.
Coincidentally, another Guangzhou women's clothing seller, Haiderui, also performed very well on the day of the promotion. Although the team responsible for the platform, including operations and customer service, only had three people, they sold nearly 2,000 orders on the 9.9 promotion day, a 7-fold increase compared to normal days. After continuously launching Shopee Affiliate Marketing (AMS), relying on the precise launch strategy during the promotion period and setting a higher commission rate, they once again achieved a 5-fold increase in orders on the 10.10 brand promotion day a month later.
Unlike Feiluer, Haiderui currently focuses on the markets of Thailand and the Philippines, with the consumer groups mainly being students and office workers aged between 18 and 30. Since the local people's aesthetics, clothing trends and body shapes are similar to those of Chinese people, the seller relied on the Guangzhou clothing wholesale market, which has one of the most powerful clothing supply chains in the country, and quickly opened up the market in Southeast Asia with its unique product selection style and in-depth insight into local trends.
Want to conquer the Southeast Asian market? Platform support is very important
In fact, the outstanding results achieved by the above-mentioned sellers are inseparable from their marketing strategies.
“The platform’s off-site marketing tools provided us with great help. CPAS (Shopee x Facebook advertising) and AMS (Shopee affiliate marketing) each placed 20,000 orders on the same day , ” said Kason, head of cross-border marketing at Feiluer.
In Kason's opinion, off-site marketing is the company's focus. CPAS can bring better traffic and conversion effects to the company's products, help the store increase its popularity, and do new customer acquisition and remarketing for a wide range of people. Therefore, 90% of the company's off-site advertising budget will be placed on CPAS, and it is expected to increase the budget in the future. At the same time, AMS is also a function that the company has been working on. Since September, they have enabled the function of locking KOLs and are now observing the growth of data.
Regarding the question of how to set up CPAS ads , Kason also shared his own experience: brands need to start setting up advertising campaigns at least one month in advance to accumulate knowledge and conduct testing; start to gradually increase the budget one week before the big promotion, and on the day of the big promotion, you can boldly increase it to 4-6 times the usual amount; during the big promotion, pay close attention to data performance, and adjust the budget allocation of the population and optimize events in a timely manner.
Regarding the upcoming 11.11 promotion, Kason said that we must not slack off. It is best to sort out all the expenses and try to make a larger investment than 10.10 to make the biggest increment and prepare for the subsequent 12.12.
The head of corporate marketing at Haiderui also said: "The AMS recently launched on the platform is very easy to use and has a high input-output ratio, basically reaching more than 18." On the day of the 9.9 promotion, the company's AMS channel placed more than 500 orders, accounting for 30% of the store's orders.
The company also has its own methodology on how to achieve a higher output ratio through marketing. The marketing manager mainly shared the following points:
First, the operation of AMS is very simple. You can set the commission rate for the whole store or a single product. The company usually sets a commission rate of 4-6% two weeks before the big promotion , which is higher than the normal promotion period ; Secondly, during the promotion period , the platform has subsidies for AMS, so that merchants can increase their commission ratio and improve order conversion . In addition, the strong competitiveness of the promotion activities makes it more attractive for buyers to place orders . Finally , the company will make a poster for the entire store activity, with high commissions for high-order products and KOL locking functions , so as to achieve more exposure and more accurate delivery.
For sellers who want to conquer the Southeast Asian market, the right marketing strategy is undoubtedly a sharp weapon, and CPAS and AMS are just that.
However, in the Southeast Asian market, its marketing ecology is not as sound as that in China. Doing off-site marketing alone is generally limited in effect, and sellers still need to rely on e-commerce platforms such as Shopee to attract traffic. With the help of appropriate off-site marketing tools, combined with on-site placement and promotional activities within the platform, you can achieve a super high overall investment-output ratio and a real sales share, which is unattainable on other platforms.
With the arrival of another major promotion in the second half of the year , 11.11 , a wave of traffic peaks is coming. If cross-border sellers want to conquer the Southeast Asian market, they also need to know more about the key points of local marketing. Shopee, which has been deeply involved in the Southeast Asian market for many years, understands the preferences of local consumers, and cooperates with well-known third-party partners to attract traffic for sellers, is the best choice for layout.
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