Southeast Asia is a tempting market for eCommerce. Two of the six startups that have become unicorns in Southeast Asia are eCommerce companies: Lazada and Tokopedia.
Then, how big is eCommerce potential in Southeast Asia? Tech in Asia reveals important numbers regarding eCommerce growth along with increasing access to internet connections and increasing GDP in the region.
It is estimated that there are 330 million internet users in Southeast Asia. No wonder if in 2017, eCommerce market worth US$ 26 billion. Combined with online media shopping, ride-hailing, online travel, and others, that number could spike to 50 billion USD.
The volume of online shopping projected to reach US$ 200 billion by 2025. Where the value of eCommerce alone will be at US$ 88 billion.
Uniquely, Southeast Asia’s eshopper prefer to buy online through their mobile devices. 72% of eCommerce traffic comes from mobile devices. In fact, 87% of online buyers in Indonesia shopping via mobile phones.
According to We Are Social in early 2018, Indonesia’s eCommerce spending in fashion and beauty worth US$ 2.46 billion, travel and accommodation of US$ 2.42 billion, toys and hobbies of US$ 1.43 billion, electronics and physical devices of US$ 1, 27 billion USD, while furniture and appliances amounting to US$ 1.28 billion.
Tokopedia operates in Indonesia, while Lazada operates in Indonesia, Singapore, Malaysia, Philippines, Thailand and Vietnam. Alibaba acquired Lazada Group in 2016, and invested US$ 1.1 billion in Tokopedia last year.