B2C e-commerce booming in ASEAN, Indonesia set to lead: yStats Report
Author: Shiwen Yap
Indonesia is poised to displace Singapore to take a leading regional position in B2C e-commerce riding on increasing Internet and online shopper penetration, as well as a larger population base.
In a report by secondary market research firm yStats.com, titled “Southeast Asia B2C E-Commerce Market 2015“, Indonesia is predicted to account for more than a third of overall B2C E-Commerce sales in the next three years within Southeast Asia.
Home to five of the top 10 countries in the Asia-Pacific (APAC) region in terms of number of Internet users, to date only Singapore’s online market can be perceived as relatively advanced, with well-developed infrastructure and high Internet penetration.
B2C E-Commerce in Southeast Asia has seen rapid growth and is predicted to maintain double-digit growth rates for the next several years.
While Singapore established itself as the leading country by B2C e-Commerce sales in Southeast Asia, given its small internal market and relative maturity, further growth is unlikely to occur except in specialist niches. Other Southeast Asian markets can still expect robust growth through new Internet users and online shoppers, as well as infrastructure improvement.
The other significant B2C e-Commerce markets in Southeast Asia – Thailand, Vietnam and the Philippines – currently account for less than 1 per cent of domestic retail sales and thus have greater room for growth.
Along with an increase in Internet penetration, growing trust in online payments, development of delivery infrastructure and e-commerce regulation will boost B2C e-Commerce growth. The leading trends in online retail across Southeast Asia include mobile and cross-border online shopping.
In Indonesia, mobile phones were used by the majority of Internet users to go online in 2014. Furthermore, they were the devices most used by online shoppers to make purchases. Meanwhile, Malaysia is seeing over a third of online purchases coming from cross-border sales in 2014.
Major regional players in the e-commerce space in Southeast Asia include online retailer and marketplace Lazada, online classifieds platform OLX and online clothing merchant Zalora. Global e-commerce websites such as Amazon.com, Aliexpress.com and eBay.com also rank high in popularity among Internet users in Southeast Asia.