Market grows to $172 billion! Online shopping in Southeast Asian countries is booming

The 2020 e-commerce year-end report released by iPrice Group in collaboration with SimilarWeb and AppsFlyer shows that website traffic for online shopping platforms in six major Southeast Asian countries has skyrocketed.

Singapore led the trend with a 35% increase compared to 2019, followed by the Philippines (21%), Vietnam (19%), Malaysia (17%), Thailand (15%) and Indonesia (6%). In particular, the average spending on online shopping increased by 19% in these six countries .

The e-commerce market in these six Southeast Asian markets could be worth $172 billion by 2025, according to an assessment by Temasek and Bain company.

iPrice Group data shows that web traffic to online stores has increased by an average of 52% compared to the first quarter of 2020. This could be a sign that most countries in the region are flocking to online stores instead of offline physical stores due to social distancing.

The COVID-19 pandemic has expanded Southeast Asian consumers’ online demand for non-essential products such as fashion, electronics, health and beauty, sports and outdoor activities, all of which are consumed online.

However, despite this, the web traffic of some e-commerce websites has been negatively impacted by the epidemic. For example, from the first quarter to the fourth quarter of 2020, the average web traffic of platforms providing travel services and cosmetics products fell by 35%. The traffic of fashion and electronic websites in these countries also fell slightly, by 14%.

Interestingly, while web traffic to these fashion and electronics sites has dropped slightly, the average purchase amount in these categories has increased significantly . Sports and outdoor products are no exception.

iPrice Group data shows that Southeast Asian consumers spent an average of US$32 per order in 2020, 19% higher than in 2019. In 2020, Singapore and Malaysia had the largest average purchase amounts, at US$61 and US$41, respectively.

These unprecedented shifts are signs of an accelerated digitization of online retail in Southeast Asia. As shopping behaviors continue to shift, the COVID-19 pandemic will further drive e-commerce growth in Southeast Asia.

For most e-commerce companies, strengthening relationships with consumers through relevant activities remains a top priority. And this is also what Southeast Asian sellers need to work hard on.

Southeast Asia

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