E-commerce in Southeast Asia is growing at an exponential rate

Online retail in Southeast Asia grew 85% year-on-year, and the region is expected to see nearly 80% of consumers switch to online shopping by the end of 2021.

According to the annual Southeast Asia report by Facebook and Bain & Company, online retail growth in the region outpaced countries such as China (5%), Brazil (14%) and India (10%).

Benjamin Joe, Facebook's vice president for Southeast Asia, said the epidemic continues to drive people to the Internet, and consumers in Southeast Asia are forming new consumption patterns related to online exploration and purchasing.

"For new and established brands alike, these shifts signal the need for businesses to rethink traditional e-commerce and find creative ways to excite and connect with customers online."

Praneeth Yendamuri of Bain & Company added: “Southeast Asia will be the fastest growing digital economy in Asia Pacific, with GMV growing nearly 80% year-on-year, and we expect this to double in the next five years.”

The relevant contents of the report are as follows:

By the end of 2021, there will be 350 million online consumers in Southeast Asia, compared with approximately 310 million at the end of 2020.

Compared to last year, average online spending has increased by 60%. Overall e-commerce sales are expected to double by 2026, with an increasing number of Southeast Asian consumers (45%) using online shopping as their primary shopping channel.

Southeast Asian consumers are open to new products and services, with 51% saying they have made a purchase from an online store they had never heard of before this year.

Consumers are purchasing a wider range of products online – the survey shows that consumers now purchase products from an average of 8.1 categories online – 60% higher than the average of 5.1 in 2020.

Consumers are becoming more environmentally conscious, with 92% of respondents saying they are willing to pay more for sustainable products, and more than 80% willing to pay up to a 10% premium for such products.

37% of respondents said that they would work from home even after the epidemic improves, and 90% of executives believed that the hybrid WFH (Work From Home) working model will become the norm after the epidemic.

Online shopping accounts for 56% of shopping expenditure , while the remaining 44% of shopping expenditure goes to offline channels. Social media has also increased in popularity, with 22% of respondents using it as the primary channel for product discovery.

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Cross-border e-commerce market

Southeast Asia