Southeast Asia's e-commerce industry is growing rapidly, with a surge of 70 million online consumers

Southeast Asia, led by Indonesia, added 70 million online consumers during the coronavirus pandemic , according to an annual report released by Facebook Inc and Bain & Co.

Researchers surveyed more than 16,000 people in Singapore, Malaysia, the Philippines, Indonesia, Thailand and Vietnam and found that the proportion of digital consumption by residents continued to rise during the COVID-19 pandemic and its related lockdowns . It is expected that by the end of 2021, 70% or more of residents in these countries will be converted into digital consumers. Southeast Asia's online retail penetration rate has jumped from 5% to 9% , and its growth rate has exceeded that of India, Brazil and China.

According to the survey report, the average online spending per capita in Southeast Asia in 2020 was US$238 (RM989), exceeding last year's forecast and is expected to increase to US$381 (RM1,583) by the end of 2021. In addition, the importance of social video for online shopping has tripled, with 22% of respondents saying that social video is their main channel for discovering consumer products. The study also found that online retail groceries are the fastest growing segment, with most consumers indicating that they will maintain or increase their household online consumer spending.

“In China and the U.S., consumption patterns have shifted from offline to online channels, while in Southeast Asia, online channels have driven consumer spending and retail sales growth,” Magnus Ekbom, Alibaba’s chief strategy officer , said in the annual report of Singapore-based unit Lazada Group SA.

According to data from Facebook Inc , as of the second quarter of this year, about 346 million people in Southeast Asia visit Facebook every day. As a result, Facebook Inc predicts that 350 million residents will be converted into digital consumers by the end of 2021, and this growth will gradually slow down after the COVID-19 pandemic. In addition, 95% of digital consumers access the Internet and purchase goods through smartphones.

"If we go back three years ago, Southeast Asia was still lagging behind in online consumption, but now it is leading," Benjamin Cho, Facebook's vice president for Southeast Asia and emerging markets, said in a virtual briefing on Tuesday. With the surge in Indian consumers and good market development prospects, it seems that the Indian e-commerce market is about to rise.

Southeast Asia

E-commerce

Consumption