《eTOC：2023东南亚电商市场白皮书（英文版）（41页）.pdf》由会员分享，可在线阅读，更多相关《eTOC：2023东南亚电商市场白皮书（英文版）（41页）.pdf（41页珍藏版）》请在三个皮匠报告上搜索。

1、eTOC GmbH 2023Southeast AsiaE-commerce White eTOC GroupLegal notice.We help international brands sell and grow in China via e-commerce.Copyright 2023 eTOC GmbHAll rights reserved.This white paper or any portion thereof may not be reproduced or used in any manner whatsoever without the express writte

2、n permission of the publisher eTOC GmbH except for the use of brief quotations for reference purposes.Although the authors and publisher have made every effort to ensure that the information in this paper was correct at press time,they do not assume and hereby disclaim any liability to any party for

3、 any loss,damage,or disruption caused by errors or omissions,whether such errors or omissions result from negligence,accident or any other cause.The publisher has made every effort to ensure that URLs for external websites referred to in this paper are correct and active at the time of publishing.Ho

4、wever,the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate.Every effort has been made to trace all copyright holders but if any has been inadvertently overlooked,the publisher will be pleased to

5、include any necessary credits in any subsequent reprint or edition.Please contact us at for any related enquiries.eTOC initially derives from e-Commerce TO China.Southeast Asia E-commerce market1Forward.Dear esteemed readers,It is with great pleasure that eTOC present to you this comprehensive white

6、paper on the Southeast Asia ecommerce market.The region has experienced exponential growth in ecommerce in recent years,with a higher number of consumers shifting towards online shopping,coupled with an influx of businesses entering the market.This whitepaper seeks to provide an in-depth analysis of

7、 the Southeast Asia ecommerce landscape,highlighting the reasons behind its success,current market trends,the challenges that businesses might encounter,and a practical guide on how brands can leverage the opportunities presented by the market.The growth of the Southeast Asia ecommerce market is dri

8、ven by various factors such as a growing middle-class population,increased internet penetration,a surge in mobile usage and the rising foreign investment.As such,it is imperative to understand the ecosystem of this thriving market to stay competitive,and this whitepaper offers valuable insights into

9、 the top players with their market share and business model introduction.Moreover,this whitepaper offers a thorough review of the latest ecommerce trends,including social commerce,omnichannel retailing,and the importance of logistics and fulfillment.Additionally,we address the challenges that busine

10、sses may encounter in the Southeast Asia market,such as cultural and language barriers,logistic limitations,and the complexity of payment system.Finally,to help businesses thrive in this dynamic and rapidly evolving market,we have compiled practical advice on seizing the opportunities presented by t

11、he Southeast Asia ecommerce market.From channel navigation,product assortment to marketing strategy,we share effective strategies that can help your brand succeed.Thank you for choosing this whitepaper,and we hope that it will be a valuable resource for your business as you navigate the Southeast As

12、ia ecommerce market.Sincerely,2Southeast Asia E-commerce market01.Introduction02.E-commerce growth driversPopulation benefitsAccelerated digital transformationForeign investment promoted by government03.Decoding e-commerce landscapeBooming e-commerce market accelerated by COVIDDynamic e-commerce lan

13、dscapePost-Covid e-commerce consumption trendsChallenges for next level of growth04.E-commerce market entry tacticsChannel expansionProduct assortmentMarketing strategiesAgenda.3Southeast Asia E-commerce market-P.04-P.05-P.07-P.09-P.11-P.13-P.18-P.23-P.26-P.31-P.2201.IntroductionThis powerful place

14、is a vast region situated east of the Indian subcontinent and south of China.It comprises 11 countries,including Singapore,Thailand,Vietnam,Indonesia,Philippines,Malaysia,Cambodia,Laos,Myanmar,Brunei and East Timor,covering about 4,500,000 km2(1,700,000 sq mi),which is 10.5%of Asia or 3%of Earths to

15、tal land area.The region is home to more than 650 million people,accounting for 9%of the worlds population(50%of Chinas total population).The big 6-Singapore,Thailand,Vietnam,Indonesia,Philippines,and Malaysia-contributes 87%of the total SEA population,which also dominating the market demographicall

16、y and economically.11 countries650 Million population4Southeast Asia E-commerce marketBrunei Cambodia East Timor Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam02.Key drivers for E-commerce Europe45%Singapore60%Thailand59%Vietnam65%Indonesia66%Philippines65%Malaysia65%20212030

17、+23 Million Population benefitsSoutheast Asia boasts a rapidly expanding population of over 650 million individuals,a significant portion of whom are young and part of the burgeoning middle class.This dynamic has led to the creation of a massive consumer market with considerable purchasing power.#1

18、The large and rising working-age population The regions growing labour pool,defined as people between 15 to 64 years old,presents an opportunity for businesses and companies.The percentage of the working-age population of Southeast Asian countries is around 60%or even more than 60%.Vietnam,Indonesia

19、,Philippines,Malaysia exceeds that of Europe(45%).And it is said the regions working population is set to grow by 23 million people by 2030,while in other markets outside the area,like Europe,the working population will continue to shrink in the future.Percentage of working population 2021Source:Sta

20、tista5Southeast Asia E-commerce market#2 Middle-class&urbanization drive consumption upgrading With increased wealth,the domestic consumption of a rapidly growing middle-class population will also be an essential growth driver.According to data,by 2022,the middle-class population in Southeast Asia i

21、s projected to reach 350 million,is almost doubling since 2012.As this large,emerging middle class becomes wealthier and accustomed to a higher quality of life,the demand for high-quality foreign brands and sustainable products will likely increase.350 Million by 2022159 Million by 20212XNumber of m

22、iddle-class population 2021&202249%56%Percentage of urban population 2021&2023The United Nations projects the urban population will expand from 49%of the current total to about 56%by 2030.Thats another 80 million people jostling each other in towns and cities,competing for jobs and facilities.But,mo

23、re positively,it also represents 80 million workers with a chance to be more productive and earn higher wages in a dynamic urban setting.These workers will make up a lucrative market for companies selling various goods and services.Source:e-Conomy SEA 2022 published by Google,Temasek and Bain&Compan

24、ySource:United Nations6Southeast Asia E-commerce marketAccelerated digital transformationThe region is experiencing a digital transformation,with an increasing number of people gaining access to the internet and mobile devices.CountryINTHVNMYPHInternet users204.7M54.5M72.1M29.6M76MInternet penetrati

25、on rate73.7%77.8%73.2%89.6%68%7Southeast Asia E-commerce marketSource:INSIDER,Statista#1 High internet penetration rateJust as large parts of the rest of the world,the Southeast Asia region is being transformed by the rapid adoption of digital technologies.Internet use has risen steadily across the

26、area,and millions of new internet users will be added in the coming years.According to Google,75%of the regions total population is online(China-70%),which is 440 million people in total in 2021.In 2022,internet user growth in the region will be highest in Indonesia(3.9%)and Thailand(3.2%).Indonesia

27、 also occupies the most proportion among Southeast Asia regions,with a relatively high internet penetration rate of around 74%.Looking at Malaysia,we can notice that there is up to a 90%internet penetration rate,which indicates that 9 out of 10 people in Malaysia have access to the Internet.Source:e

28、-Conomy SEA 2022 published by Google,Temasek and Bain&CompanyIndonesia ThailandPhilippines Malaysia VietnamSingaporeWorld7974706861575564ChinaMobile E-commerce adoptionPercentage of internet users who bought something online via a mobile device#2 High mobile penetration rateThe high mobile penetrati

29、on rate boosted mobile e-commerce.Being late adopters of the internet,most consumers in the region have never owned a desktop computer.Instead,with smartphones becoming increasingly more affordable and accessible,mobile devices have become the primary means to stay connected and shop online.Indonesi

30、a emerged as the worlds most enthusiastic adopter of mobile e-commerce last year,with about 79%of Indonesias internet users purchasing something online via a mobile device,followed by Thailand(74%)and the Philippines(70%).Meanwhile,mainland China ranked sixth in mobile ecommerce usage,with 64%of int

31、ernet users have shopped online using a mobile phone.4 out of 6 Southeast Asia countries surpassed China in mobile e-commerce adoption.8Southeast Asia E-commerce marketSoutheast Asian White PaperPrivate funding value Foreign investment promoted by governmentThe governments of Southeast Asian countri

32、es have been actively promoting foreign investment,creating a more business-friendly environment and further driving economic growth.More investors are pouring money into Southeast Asias internet economyIn 2021,investments in SEAs internet economy hit an all-time high despite the pandemic.Investment

33、s maintained strong momentum in H1 2022 with$B13.2 value.Singapore(57%of total H1 2022)and Indonesia(25%of total H1 2022)are the top 2 investment destinations.Vietnam,Indonesia and Philippines are gaining more investors over the longer term.Indonesia emerged as the worlds most enthusiastic adopter o

34、f mobile e-commerce last year,with about 79%of Indonesias internet users purchasing something online via a mobile device,followed by Thailand(74%)and the Philippines(70%).Meanwhile,mainland China ranked sixth in mobile ecommerce usage,with 64%of internet users have shopped online using a mobile phon

35、e.4 out of 6 Southeast Asia countries surpassed China in mobile e-commerce adoption.201920222021H1 2021H2 2021H1 2022$12B$11.6B$26.7B$11.5B$15.2B$13.2B57%Singapore25%Indonesia9Source:CBINSIGHTS Early influence from China e-commerce market accelerate the industry revolutionDue to its geographical and

36、 demographic similarities with China,Southeast Asia presents a unique opportunity to replicate Chinas success in the e-commerce industry.Early investments by Chinese tech giants in Southeast Asias digital economy have brought in advanced technology and experience from the worlds largest e-commerce m

37、arket,making Southeast Asia an ideal location for similar growth and development.Chinese Internet Giants in Southeast Asia:Investment and M&A2012-2017 YTD20152016201710Southeast Asia E-commerce market03.Decoding e-commerce marketBooming e-commerce market accelerated by COVID-19In addition to fundame

38、ntal factors,its important to acknowledge the significant impact of the COVID-19 pandemic on the booming e-commerce industry.Shutdowns,quarantines,and other mitigation efforts made digital shopping a necessity for many consumers,reinforcing the already growing trend towards e-commerce.In the span of

39、 just three years(2019-2022),the digital economy has doubled in size,with e-commerce driving a majority of the growth at 63%market share across all industries.Southeast Asia digital economy GMV($Billion)10211616119433014%38%20%20%GAGRx2 in 3 years Source:South Asias digital consumers:A new stage of

40、evolution published by Meta&Bain&Company11Southeast Asia E-commerce marketE-commerce market enjoys double digit growth rate,but varies among different countriesIn recent years,Southeast Asia has witnessed a significant surge in e-commerce development.According to a report by Meta&Bain&Company,the re

41、gions e-commerce market reached a staggering$129 billion in GMV in 2022 and is projected to maintain a double-digit growth rate until 2027.While all markets in the region are flourishing:Indonesia is currently leading the way,accounting for nearly 50%of the total e-commerce market in Southeast Asia.

42、Thailand is also projected to become the second-largest e-commerce market in the region by 2025,with a compound annual growth rate(CAGR)of 14%,followed closely by Vietnam.As the only wealthy country in the region-Singapore still enjoys double-digit growth in e-commerce.17%E-commerce GMV($Billion)17%

43、11%20%10%14%28%2022 vs 2027F Growth rate13Source:South Asias digital consumers:A new stage of evolution published by Meta&Bain&Company12Southeast Asia E-commerce marketDynamic e-commerce landscape1308273605114149373926201292716E-commerce platform MAU distribution(million)The super APP model copied f

44、rom ChinaThe Chinese tech landscape has had a significant impact on the strategies of e-commerce platforms such as Shopee,Tokopedia,and Lazada.These companies are creating super apps-one-stop-shop apps that offer a seamless experience for consumers.Through these apps,consumers can purchase products,

45、complete payment transactions,and track their deliveries without the need to use separate apps.This approach has made online shopping much more efficient and user-friendly for consumers.13Southeast Asia E-commerce market#1 Shopee,Lazada and Tokopedia are key marketplace playersThe region has a rich

46、landscape of local e-commerce companies with brands few people outside southeast Asia will recognize.The most prominent players,including Shopee,Lazada and Tokopedia,are online marketplaces selling a diverse range of goods,similar to the Amazon model.They take a large share of Southeast Asias total

47、online retail sales,which are forecast to reach$71 billion in 2021.#2 Shopee-NO.1 online shopping app download in 2021Shopee is the largest online marketplace in Southeast Asia,with 342 million visits per month(2021 April).It operates across the whole region,and has recently expanded into South Amer

48、ica.Indonesia,which is by far the largest economy in Southeast Asia,provides 27%of Shopees traffic.Shopees success relies onLeveraged the resources from other 2 brother business segments-Garena(Game)and Seamoney(Online payment)to obtain traffic and close the transaction loop.Localized operation stra

49、tegy:Based on the differences of 7 countries in SEA,Shopee has launched 7 independent apps to meet the local needs.Mobile first approach:95%Shopee s orders are placed via mobile.Strong branding:Leveraged stars&social media communication to acquire more users.MobileDesktop76.8%YoY growth rate(2020 vs

50、 2021)342 MillionMonthly visits*(2021 April)Shopee Top 3 selling categories by country in 2021Source:Webretailer1514Southeast Asia E-commerce market#3 Lazada-The leading B2C platform(Like Tmall)in SEAAs the e-commerce giant in China,Alibaba conquered the world with cross-border business during the p

51、ast decade.Lazada is the key milestone to start the e-commerce business in SEA.Backed by Alibaba Group,and supported by Alibabas technology,logistics,and team,Lazada serve as Alibabas flagship e-commerce platform-Tmall in the SEA market.Long history in SEA:Deeply cultivated in SEA for 12 years,and h

52、as the most extensive footprint in southeast Asia,covering 6 countries.B2C business focus:Provides one-stop shopping site for large number of brands(32,000 brands)and guide the sellers to highlight their own brand and emphasize the professional norms of the picture.Alibaba ecosystem benefits:Leverag

53、e Alibabas best logistics and payment solutions to quickly help Chinese sellers and internationals sellers go overseas.Lazada Top 3 selling categories by country in 2021MobileDesktop21 Billion GMV(2020 Sep.-2021 Sep.)+82%YoY orders growth rate(2022 Q2 vs 2021 Q2)Source:Involve.asia in Jan.-Oct.2021,

54、eTOC analysis15Southeast Asia E-commerce market#4 Tokopedia-NO.1 Indonesia e-commerce platformThe next largest marketplace is Tokopedia,which surpassed Shopee and became the No.1 Indonesia e-commerce platform in terms of MAU in 2021.Here are few highlights of Tokopedia.The merge with tech unicorn Go

55、jek:The new company became a digital leviathan spanning e-commerce,ride-hailing and financial services based in the worlds fourth most populous country.Empower local entrepreneurs:Tokopedia built the platform and infrastructure to help small merchants go online on the largest archipelago in the worl

56、d,upgrade platform experience by onboarding more B2C brands.“Smart logistic”system:Tokopedia has covered 98%of Indonesias district and realized one-day delivery for some districts by launching Tokopedia warehouse.Source:Involve.asia in Jan.-Oct.2021,eTOC analysisMobileDesktop+133%YoY sales growth ra

57、te(2020 vs 2021)149 MillionMonthly visits*(2021 April)Tokopedia Top 3 selling categories by country in 20211716Southeast Asia E-commerce market#5 Emerging social commerceSocial commerce is becoming an increasingly important channel in the e-commerce landscape,especially in Southeast Asia where it is

58、 particularly powerful,with Thailand,Vietnam,and Indonesia emerging as the top markets.When we talk about social commerce,we refer to below 3 types:Source:TechcrunchConversational commerce,where consumers select a product and pay directly on a messaging app,is experiencing significant growth.Nearly

59、half(45%)of internet users in Singapore are currently shopping on messaging apps,with Whats App and Facebook Messenger the most popular platforms.Live shopping experiences are also on the rise,with 44%of internet users in the region participating in live shopping during the last 12 months.The trend

60、is being led by Vietnam and Thailand,where 60%of respondents have purchased products during live shopping events.Emerging group/community-buying social commerce startupsKitaBeli is an app-based platform that offers group-buying solutions(FMCG products focus)for consumers in tier 2,tier 3 cities in I

61、ndonesia.Chilibeli,an online community-based platform offering agricultural products.It offers consumers the chance to become casual,part-time agents(mitra in Indonesian)who buy produce in bulk and sell it on to fellow consumers in their neighborhood at competitive prices.17Southeast Asia E-commerce

62、 marketPost-COVID e-commerce trendCovid has changed everything and disrupted the way that consumers are used to shop.Understanding southeast Asian consumers e-commerce behaviors is quite crucial.#1 Product preferenceElectronics,fashion,and baby products are consistently in high demand,while the F&B

63、industry has experienced a significant surge in growth due to the COVID-19 pandemic.Source:Statista/DNY 123/Zaapi/VinculumCategoryRevenue(USD billion)2022Share of revenueEstimated GAGR(2022-2025)Electronics43.6631%13.79%Fashion21.4515%12.25%Furniture18.3613%14.48%Toys&hobby&DIY19.1214%14.92%Beauty&h

64、ealth&personal care18.5213%18.52%Food11.278%25.84%Beverage7.115%16.38%1918Southeast Asia E-commerce marketElectronics:Digital consumerism has been brought forward by electronics,so its not surprising to see that people are willing to buy.In Southeast Asia,electronics have become one of the prime pro

65、duct categories for eCommerce.The top-selling products from this category are TVs and smartphones,laptops,home office electronics,mobiles,USB drives,power banks etc.Fashion&clothing:One of the most competitive online selling categories in Southeast Asia is fashion and clothing.Southeast Asian women

66、are big online consumers for fashion,beauty and accessories.20%of women in Southeast Asia are buying online.Amongst them,fashion and clothing make up the biggest purchases by volume.Baby care:The high birth rate of 16.78 births per 1000 people is kind of responsible for the growth of baby products.S

67、outheast Asia is an extremely fertile ground and in fact,probably the best markets for selling baby products.From Diapers to toys,and from baby food to all baby essentials,Southeast Asian parents are changing their lifestyle for their kids and they demand the best quality baby products available.Gro

68、ceries(food&beverage):Shopping online for essentials is now mainstream,especially for groceries.Online grocery purchases have started to see greater mainstream adoption.Food enjoys the highest growth rate(25%)in the future,followed by beverage(16.38%).According to Bain,between 35%and 43%of digital c

69、onsumers now go online for packaged groceries,fresh groceries,and non-alcoholic drinks.The increased willingness to buy groceries online presents an unprecedented opportunity for certain industries such as fast-moving consumer goods and other companies that deal in essential goods and services.19Sou

70、theast Asia E-commerce marketSource:Google trends;Thai consumers willing to pay more for ESG-linked products published by PWCBetter delivery optionsShipping costs can be a barrier to online shopping in Southeast Asia,so offering free shipping is a key driver for online shoppers.In Thailand,free ship

71、ping is the most popular(57.7%)online shopping driver,followed by Malaysia(67.3%)and Singapore(57.3%).Convenience plays a crucial role in the online shopping experience for Southeast Asian consumers,with 63%willing to pay extra for same-day or next-day delivery.Customer reviewBased on a 2021 PwC sur

72、vey,customer reviews are highly influential in Southeast Asias online shopping market,with 56%of consumers considering them the most critical information source when making a purchase decision.The survey also revealed that 48%of consumers in the region use social media to research products before ma

73、king a purchase,emphasizing the growing importance of online reviews and social media in the shopping experience.Pay for added-valueThe pandemic has compelled consumers to remain indoors,reassess the connection between humans and the environment,and focus more on self-care.Along with considering val

74、ue for money,delivery,and customer reviews,consumers in certain countries have upgraded their shopping habits to include more value-added products.In Singapore,for instance,consumers place less importance on a products value-in-use due to their higher purchasing power,workplace stress,and social res

75、ponsibility.Similarly,Thai consumers are reputed to be more environmentally conscious when shopping online.#2 Factors impacting purchasing decisionsPrice and delivery are the key factors impacting purchase decision,followed by customer review.Price is the top priority for 67%of consumers when shoppi

76、ng online.To meet this demand,e-commerce platforms in the region heavily rely on promotions,such as vouchers,cashback,and flash sales,to attract customers.Big sales events like 11.11 and 12.12 are critical for platform sales,accounting for 50%of total sales.In Malaysia,Ramadan is also a significant

77、promotion event,with 76%of online consumers preparing for it.Meanwhile,value-for-money is the primary reason for Thai consumers to switch brands,particularly among the discovery generation.Value for money2120Southeast Asia E-commerce market#3 Omnichannel purchasing journeySoutheast Asian consumers p

78、urchasing journey takes detour between social media and ecommerce especially during discovery and evaluation phases.Ecommerce platforms and social media videos are the primary sources for online discovery.%of consumers citing online as top channel for discovery 2022Despite having access to an abunda

79、nce of information,many consumers in Southeast Asia remain uncertain about what they want to purchase and where to buy it.As a result,they are more open to discovering new stores and brands.In the region,e-commerce platforms are the primary search tool,with 27%of consumers citing them as their top c

80、hoice for discovery.Meanwhile,videos on social media platforms are also becoming increasingly important,with 21%of consumers citing social media videos as their preferred discovery method.These videos are helping consumers to find and explore new products,and are proving to be an effective way for b

81、rands to engage with consumers and build brand awareness.21Southeast Asia E-commerce marketSocial media and messaging are crucial online channels during the evaluation stageSocial media and messaging APPs account for 43%of the share and are essential mediums for digital shoppers.Online word-of-mouth

82、,social media ads,and posts by influencers are the top sources of influence for consumers when considering products or brands.Ecommerce ranked second as consumers often rely on reviews before making a purchase.%of consumers citing online as top channel for evaluation 2022Influencers play an importan

83、t roleWhile in a scale of Southeast Asia,32.7%of consumers decide to buy a product after getting recommendations from influencers within a period.Also,25%of Southeast Asian consumers are influenced by influencers many times before making product purchases.In Thailand and Malaysia,70%of teenage YouTu

84、be users say they trust KOL recommendations more than traditional celebrities.In the Philippines,66%of social media users trust KOL recommendations over traditional celebrities.2322Southeast Asia E-commerce marketChallengesThe e-commerce market not saturated and the region could emerge as one of the

85、 worlds leading five digital economies by 2025.Challenges still exist in Southeast Asia ecommerce market,with logistic issues,complicated payment methods and culture diversity,which differ from what we may be used to.#1 Regional division:Last-mile delivery is crucialSoutheast Asias complex and dispe

86、rsed geography poses significant challenges for e-commerce companies.Many countries in the region,including Malaysia,Singapore,Brunei,Indonesia,and the Philippines,are made up of numerous islands,long rivers,mountain ranges,and seas,making it difficult to transport goods and services to customers in

87、 remote areas.To address these challenges,big e-commerce platforms have started building their own warehouses and logistics arms to ensure last-mile delivery.Various distribution methods,such as click-and-collect,have also gained popularity in the region to overcome the complexities of terrain.23Sou

88、theast Asia E-commerce market#2 Complex payment methods:COD(cash on delivery)is popular while mobile payments are on the riseUnlike in China where digital payment platforms such as Alipay and WeChat Pay dominate the online payment market,or in Western countries where credit card is the most common p

89、ayment method for online shopping,payment methods vary across Southeast Asia due to different currencies and economic development.Consumers from Singapore(75%)and Indonesia(34%)prefer credit/debit cards,while those from Malaysia(50%)and Thailand(29%)prefer bank transfers.Cash-on-delivery is popular

90、in the region,with Vietnam(52%),Thailand(20%),and Indonesia(15%)being the top users.The COD payment could bring additional cost burden to the companys profits.However,mobile payment is growing in these countries where local payment solution providers like Grab,Airpay,true money,and Bukalapak offer d

91、igital payment services.Digital wallets are also gaining traction and are expected to be used more in the future.However,Singapores payment market is still dominated by credit cards,and mobile payment and digital wallets have not disrupted the market.Source:TMO Group/IndonesiaMalaysiaThailandVietnam

92、Singapore2524Southeast Asia E-commerce market#3 Culture&economic diversity:High demands for localization operationSoutheast Asia is a culturally and ethnically diverse region,with hundreds of languages spoken by different ethnic groups.Indonesia contributes over half of the total number,with over 80

93、0 languages being spoken,followed by the Philippines with 187 languages and Malaysia with 137.The region has over 350 ethnic minorities,many of whom continue to take pride in their traditional customs,dances,and dress.In terms of religion,Buddhism is dominant in Vietnam and Thailand,while Islam is t

94、he predominant religion in Indonesia,the largest Muslim country in the region,and Malaysia with 61.3%of the Muslim population.The Philippines is mainly Catholic.Furthermore,the income levels across the region are also diverse.Singapore is the only high-income developed country with a more mature and

95、 affluent consumer base.Malaysia and Thailand fall into the middle-to-high income group,while Indonesia,Vietnam,and the Philippines are relatively low-income regions.The multi-lingual,multi-religious,and multi-cultural differences and imbalance of economic development in Southeast Asia place higher

96、demands on the localized operation strategy of brands(product assortment,customer service,etc.)as there is no one-for-all strategy for the whole region.Source:TMO Group/CurrencyLanguageReligionsGDP/capita in 2025Income levelSingaporeSingapore DollarMalay;Tamil,English,Mandarin ChineseBuddhism-31%Isl

97、am-15.6%No religion-20%94,419HighMalaysiaMalaysian ringgitMalayIslam-official religion16,200Mid-to-highThailandThai BahtThaiTheravada Buddhist-95%8,993IndonesiaIndonesian rupiah200+language but Indonesian-Spoken by over 94%populationIslam-86.7%5,767Mid-to-lowPhilippinesPhilippine PesoFilipino,Englis

98、hCatholic-85%4,494VietnamVietnamese dongVietnameseBuddhism-50%5,61225Southeast Asia E-commerce market04.E-commerce market entry tacticsChannel expansion#1 Online retail relies on marketplaceMarketplace platforms play a crucial role in the e-commerce industry in Southeast Asia as they provide a platf

99、orm for businesses of all sizes to sell their products to a wide customer base.These platforms are essentially digital marketplaces where sellers can list their products,and customers can browse and purchase them online.Marketplace platforms often offer a range of services to help sellers manage the

100、ir business,such as order management,logistics,and payment processing.These services can be particularly useful for small and medium-sized enterprises(SMEs)that may not have the resources to set up their own e-commerce operations.As brand it is essential to understand each key marketplace platforms

101、in terms of below elements:Platform positioning and consumer base.Each marketplace platform in Southeast Asia has its own unique consumer base.For instance,Shopee has the largest audience and caters more to young consumers,with a higher number of orders placed.On the other hand,Lazada has a consumer

102、 base that tends to purchase premium products,as evidenced by its higher average transaction value.Business model.Marketplaces serve as a bridge connecting consumers with sellers,with two distinct business models:C2C(individual sellers)and B2C(companies with legal entities).The application process,f

103、ees,and online store features differ between the two models.To distinguish authentic brands from individual sellers and support their growth,marketplace platforms offer dedicated shopping solutions such as Shopee Mall,LazMall,and Official Stores for B2C transactions.2726Southeast Asia E-commerce mar

104、ketCrossborder vs domestic business.Southeast Asian marketplaces facilitate cross-border business,allowing brands to list their products on the platform and directly ship them from their home countries to Southeast Asian countries without officially importing the products.Despite logistic challenges

105、 in the region,cross-border business is possible on platforms such as Shopee and Lazada,which account for only 6%to 10%of total platform sales.However,this feature offers a valuable opportunity for international brands to tap into the Southeast Asian market and expand their reach.Logistic.Logistics

106、is a crucial factor for conducting online businesses in Southeast Asia.Brands need to consider two phases of logistics:Phase 1,which involves delivering products from home countries to local warehouses,and Phase 2,which involves delivering products from local warehouses to customers.Platforms like L

107、azada and Tokopedia provide their own logistics services for Phase 2 to ensure excellent last-mile delivery,while sellers on Shopee are responsible for managing their own logistics in collaboration with different Shopee logistic partners.For sellers based in China,Shopee and Lazada offer one-stop lo

108、gistics services for both phases due to Chinas robust logistic infrastructure.Fee As the e-commerce market in Southeast Asia is still in its early development stage,the commission that sellers need to pay on each order is relatively low,typically around 5%.#2 Lazada and Shopee are the top 2 choices

109、for international brandsInternational brands often choose to launch their products on Shopee Mall and Lazada Mall,which are both B2C platforms operating across the whole Southeast Asia region.However,it is important for brands to consider their own situation,such as the size of their category,target

110、 audience,price range,and type of business,when deciding which channels to use.Source:TMO Group/Shopee MallA dedicated channel to display all the brand official stores(B2C)LazMallEvery country has the direct entry to LaMall at home page27Southeast Asia E-commerce marketSource:TMO Group/PositionPlatf

111、orm provides price advantages with more user benefitsPlatform focuses on providing premium consumer journey with relatively higher ATV(average transaction value)Platform supports Indonesia small&medium merchants online business covering consumers everyday needs with reasonable priceMAU419M+150M+158

112、M+GMV62.5B21B11+BBusiness modelC2C+B2CFocus on B2C C2C dominatingBrand flagship storeCross-borderPopular categoryHome&living,Health,Electronic devicesBeauty,Groceries,Electronic devicesHealth,Home&living,Food&beverageLogisticSlower logistic with lower shipping paymentShopee express for local deliver

113、yShopee logistic service for Chinese and Korea crossborder sellerFaster logistic with higher shipping paymentLazada logistic for local deliveryOne stop logistic service for Chinese crossborder sellersTokopedia smart warehouse to improve the delivery serviceBest logistic in Id.Ranks No.1Fees4%-6%3%-5

114、%2%-15%Comparison of key e-commerce platforms:2928Southeast Asia E-commerce market#3 Offline retail still mattersOnline sales in Southeast Asia currently represent only 7%of the total retail industry.While shopping malls are relatively new to the region,they have quickly become a key recreational ac

115、tivity,especially as more people move to urban settings.With COVID restrictions easing,offline retail is likely to remain prominent.Given its development and mature consumer base,Singapore is often the first choice for brands looking to establish an offline presence in the region.Source:TMO Group/So

116、utheast Asia consumers are not as mature as Chinese consumers,an offline presence still necessary to build brand authenticity for new brand in South east Asia-Expert interview from eTOC29Southeast Asia E-commerce marketCase studyAs a Korean premium beauty brand-Sulwhasoos route to Southeast Asia cov

117、ers both online and offline expansionFirst step on LazadaSulwhasoo has launched on Lazada in 2019.With this Lazmall store,shoppers in Indonesia,Malaysia,Singapore,Thailand,and Vietnam can access Sulwhasoos range of beauty products(consumers can access skincare products now).Offline concept storeAime

118、d to blend online-to-offline shopping elements,Amorepacific and Lazada unveil an O2O concept store at Funan,Singapore.Expansion to ShopeeSulwhasoo built a partnership with Shoppe in 2020.Starting with Sulwhasoo,Amorepacific(Sulwhasoos parent company)launched its first regional campaign for the brand

119、 on Shopee Premium in April 2021,to drive online sales and premium category growth on e-commerce.3130Southeast Asia E-commerce marketProduct assortment#1 Select different products for different marketsA single product assortment strategy doesnt work.Southeast Asian countries are geographically dispe

120、rsed and have apparent religious diversity.Different ethnic groups and religious beliefs affect peoples consumption preferences.This requires e-commerce teams to be more cautious and sensitive to local cultural differences and consumer taboos.Thailand:Clothing is the most popular category,followed b

121、y personal care(39.4%),cosmetics(36.8%),and electronic products(30.0%).Singapore:The top three categories are tourism(64%),clothing(57%),and entertainment products(48%).This is followed by beauty products(38%),electronic products(32%),and books(31%).Malaysia:Fashion,beauty,and toys are particularly

122、popular,with growth rates of up to 18%to 23%.Vietnam:The best-selling products are baby and child products,such as formula milk,diapers,and baby strollers.Indonesia:As the largest cross-border market in Southeast Asia in terms of potential and scale,mother and baby products,fashion accessories,watch

123、es,home furnishings,womens bags,and mobile phone peripherals are all popular.The best-selling categories for mother and baby products are childrens clothing,toys,and baby products.Fashion accessories mainly consist of low-priced products such as earrings,necklaces,and rings.Surprisingly,watches are

124、also popular in Indonesia,with mens watches often being positioned at a higher price point.Home furnishings mainly consist of decoration,kitchenware,toilet supplies,living and storage products.#2 Develop products locally based on consumer needsDeveloping products based on user feedback is a crucial

125、aspect of achieving success in the Southeast Asian market.This is especially important due to the unique climate and culture in the region,which creates a distinct set of consumer preferences that must be taken into account.Localized products that cater to the specific needs and desires of consumers

126、 in Southeast Asia have proven to be more effective in capturing the attention and loyalty of local customers.Source:Vr.sina31Southeast Asia E-commerce marketCase studyPerfect Diary developed Southeast Asian market specific products in collaboration with ShopeeCollect consumer insightsWith the messa

127、ge tool in Shopee,Perfect diary built the connection with local consumers by questionnaire and got the first hand consumer insights.Identify local needsEach market in Southeast Asia has a different preference for lip glaze shades.Consumers prefer natural browns eyebrow pencils and pay more attention

128、 to strong oil control loose powders,which is related to the local users eyebrow-to-eye ratio,skin tone and climate.Product localizationThe brand launched more shades fitting south east asia consumers face and launched cross over product with local popular IP.3332Southeast Asia E-commerce marketMark

129、eting tactics#1 Social media,especially Instagram,Facebook and TikTok influence consumers significantlySoutheast consumers are social media addicted.A whopping 482.73 million South Asians were active social media users in 2020.The social media penetration rate in all southeast asia countries is over

130、 70%.In Malaysia,the number reached 91.7%,followed by Thailand at 87.2%and the Philippines at 82.4%.Source:Market report published by TMO groupPenetration+70%Social media penetration rateTotal 483.73 MActive social media users in 2020Population99.6%Internet users between ages of 16-24 years old.Phil

131、ippinesVietnamMalaysiaIndonesiaThailand92.1Msocial media users82.4%Social media penetration42%Percentage of Social media ads spending/total digital marketing77Msocial media users78.1%Social media penetration54%Percentage of Social media ads spending/total digital marketing30.3Msocial media users91.7

132、%Social media penetration45%Percentage of Social media ads spending/total digital marketing191.4Msocial media users68.9%Social media penetration42%Percentage of Social media ads spending/total digital marketing56.9Msocial media users81.2%Social media penetration32%Percentage of Social media ads spen

133、ding/total digital marketingSocial media users are also young.99.6%of South-East Asian internet users between the ages of 16 and 24 use social media every month,making it the No.1 online activity for this demographic even ahead of using search engines.33Southeast Asia E-commerce market#2 Social medi

134、a ads and banner ads account for the majority of the ads spending.Facebook and Instagram are popular among Southeast Asia social media users,while Tiktok and telegram(local)have also started to get attention.Source:Market report published by TMO groupPhilippines59%70%76%94%96%Vietnam60%76%82%91%94%M

135、alaysia62%66%79%89%93%Indonesia63%63%81%85%89%Thailand69%80%85%93%94%TwitterTiktokInstagramFacebook MessageFacebook ZaloTelegramWhatsappLine3534Southeast Asia E-commerce marketCase studyDuring the pandemic,there was explosive growth in Indonesian e-commerce.However,some brands that mainly relied on

136、offline sales found themselves out of touch with the market.To adapt and transform digitally,one company made All in TikTok their top strategy and converted their traditional sales methods into a full-cycle marketing strategy with TikTok for Business.Target audienceRamadan is an important festival i

137、n Islamic countries,similar to the Chinese New Year,it has a culture of returning home.However,brands have found that for local women,returning home not only means family reunions,but also being pressured by their families to get married.But women in their twenties are more willing to pursue their c

138、areers and live independently.ObjectiveExpand online presence,build brand awareness and increase salesMarketing tactics-#WouldYouLoveYou TikTok Challenge-Collaborate with TikTok influencers(The brand ask influencers feedback and improve the products before official launch).Measurements-Total video v

139、iewership:55,142,476-Total engagement:327,642-GMV growth:+125%35Southeast Asia E-commerce market#3 Collaboration with nano influencers is crucialFacebook and Instagram are popular among Southeast Asia social media users,while Tiktok and telegram(local)have also started to get attention.Southeast Asi

140、ans trust recommendations from Nano-influencers more than anyone.Nano-influencers:46%of Southeast Asia customers prefer product recommendations by Nano-influencersCelebrities:20%of Southeast Asia customers will buy celebrities product recommendationsMacro-influencers:17%of Southeast Asians trust pro

141、duct recommendations by macro-influencersMicro-influencers:15%of Southeast Asians want to buy a product based on micro-influencers recommendationCase studyTarget audienceAdventurous and trendsetting Singaporean young adults&Interested in music and photography and integrate smartphones into their dai

142、ly livesObjectiveTo launch new Product Launch-X50(featured at music and photography)and increase social media engagement on socialMarketing tacticsWith Instagram as the key channel,60 unique postings were developed throughout the campaigns three phases,with every influencer sharing unique content.Me

143、asurements-Total reach-350,000-Engagement rate was exceeded by 250%compared to target-27,500 likes,1,500 comments,and 23,000 story viewsVIVO is a Chinese smartphone brand.It conducted influencer marketing on Instagram3736Southeast Asia E-commerce marketeTOC team wishes you the greatest success in Ch

144、ina Digital Marketing!Do you want to sell or grow in China?Contact us and wed love to help!Your contact person:DE/EN/中文Hao TongManaging Director ChinaMoonie Zhu Managing Director E 1Southeast AsiaE-commerce White paper.The teamTong HAOManaging DEric HUJunior ConsultantEvan KIMConsulting directorJiao

145、wei TANGSenior ConsultantRum sapid quam et volorem poreium lique fguga non cus,acerum est rentibus eostis alis nos est et rero magnimus,ea vellacest aut offici bearis voluptat aut autAxim sequo omnihit ommolor ibusdam quid quatisim as endaeri que dera con numhiliquia in non re eatquatiandi omnihilCo

146、nsecab incti omnimin reium reperci psuntium quunt faccum ex esti omni ut et explibus soluptur,sum voles delibus,occae non pliaeptas aped moOrempore stibusdaniet volupta volor magnihil invel milicitius excest in cuptati omnihiliquia quid quaeprae dolorernatet la vellabo.Ferum nusPlease contact eTOC S

147、outheast Asia market experts for more information!THE TEAM.Moonie ZHUManaging Director EuropeRum sapid quam et volorem poreium lique fguga non cus,acerum est rentibus eostis alis nos est et rero magnimus,ea vellacest aut offici bearis voluptat aut aut403B2B Marketing 2023509A NEXXUS,No.758 South Xizang Road,Huangpu District,200121AddressOnlineWebsite:Phone&FaxEurope:+49 40 8420 0400China:+86 21 5353 7397Linkedin: