As the 2018 President of ASEAN, Singapore is seeking to sign an e-commerce agreement to help small and large businesses in this lucrative region by selling its services and products by easing more digital switches, simplified trading rules and business barriers. to establish easier and safer modes of digital payments in the region. According to a joint report by Google / Temasek, which manages the Singapore government’s assets and investments, the digital economy in Southeast Asia will reach $ 240 billion by 2025, $ 40 billion more than previously forecast.
The Internet economy has been linked to the world’s most active mobile internet, as well as the incredibly fast-growing online media, online travel, travel sharing and e-commerce. ASEAN’s internet economy could exceed $ 72 billion by 2018 and has doubled since 2015. Investors’ confidence in the region is growing as startups are able to raise $ 9.1 billion in investment in the first six months of 2018. The amount collected in 2017.
E-commerce trends in Southeast Asia
Trends popularizing among the masses;
- COD or cash delivery method, which accounts for 73% of the population as it does not cover banks or any third party payment method. Therefore, two-thirds of all processed transactions occur as COD orders. While there are other options available when it comes to financial technology, regoin is lagging behind in informing consumers about the convenience of paying online and will eventually increase sales.
- Emerging markets in countries like Myanmar have seen huge growth in the mobile phone marketing industry, growing through older mobile phones and more smartphones.
- There is a huge potential associated with people who go into a conversion rate or a particular website and buy any product or service from it and thus make a profit. Vietnamese websites have the highest conversion rates of 1.3%, each lagging behind Singapore and Indonesia by 1.1%.
- Participating in small business / startup e-commerce is made easier by many platforms like Shoptiq, offering tools for creating, developing and building an online business. Shoptig’s partners provide services such as store design personalization, product photography, copywriting, and allow SMEs to connect and sell through online markets such as Facebook and Lazada.
- Larger online purchases appear to be made on desktop computers rather than on mobile platforms during business hours in the Philippines, Indonesia, Vietnam, Malaysia and Thailand. The peak of online activity and sales will be seen in Singapore at 10:00. Mobile e-commerce transactions account for 72% of all online e-commerce traffic and are growing by almost 19% compared to 2017.
- Chinese internet marketers Alibaba and Tencentare are expected to invest more in local businesses in the region’s e-commerce market by investing in Southeast Asian e-commerce platforms.
As a result of this boom, 20 million people shopped in the region; On November 11, it was reviewed and purchased by makeup companies such as L’Oréal Paris and Maybelline, with the most sales made by RealMe and baby formula brand Enfa. Alibaba, the share of investment in Lazada, emphasizes confidence in the growth prospects of Southeast Asia, which is the key to growth worldwide, he said. With high mobile penetration, a young population, and only 3% of retail sales in the region are currently done online, Southeast Asia’s economic growth is guaranteed. These young consumers and growing mobile devices represent ASEAN’s regional economy.
While the adoption of e-commerce is still low, there is room for growth as challenges in logistics and digital payments are overcome. Various governments have intervened to promote trade, as in Malaysia, where the government wants to increase e-commerce, and in Thailand, where the government offers a currency exchange service called PromptPay. The Prime Minister of Vietnam has announced plans to increase e-commerce by 2020. However, logistics and infrastructure problems remain unresolved. Singaporean buyers can choose between an online marketplace called Amazon, Lazada and Qoo10, but e-commerce is not fully developed in Cambodia, Brunei, Timor-Leste, Laos and Myanmar. E-Commerce is growing due to the large number of consumers under the age of 35 in Cambodia and the fact that 40 million consumers in Myanmar use smartphones to make mobile payments.
The Southeast Asian region’s internet economy is growing rapidly, and industry experts predict that by 2025, e-commerce transactions and high mobile penetration, which will exceed $ 10 billion in 2017, will generate more than $ 200 billion in revenue. Card use among ASEAN countries is expected to increase by more than 10% in the next 3 years. With these incredible developments, small businesses need to step into the wave of e-commerce to increase sales and expand coverage. Platforms like Shopping allow entrepreneurs to easily sell directly in the markets and on Facebook, develop their customer base, and become regional giants by integrating with global delivery providers.