- A Tailored Approach: When penetrating a region like Southeast Asia (SEA), a tailored approach is vital due to the multicultural events that influence shopping behaviour.
- Key Players: Regional retailers with above average sell-out rates demonstrate value creation for consumers.
- Segment of Growth: Although modern styles are becoming more common in modest wear, Ethnicwear continues to drive high sell-out.
While sales in the UK dropped, Asos experienced growth in international sales. Additionally, amid the retail slump, US e-commerce grew 10.2% year-on-year from January to mid June 2020. A significant portion of this growth came from cross-border commerce, which was lifted by 42% in May from the previous year. This signals presence of market expansion opportunities that can be seized.
The Asia Pacific region demonstrated the highest growth in e-commerce sales at 25%, surpassing the world average of 20.7%. Among the top 10 countries with the fastest growing e-commerce were Philippines, Malaysia and Indonesia from the SEA region.
E-commerce in SEA is expected to exceed US$ 150 billion by 2025, 400% growth from 2019. The region comprises digitally mature countries like Malaysia, where the digital economy contributes to 20% of the country’s gross domestic product. Indonesia and Thailand also have higher levels of e-commerce adoption compared to the global average of 75% (Chart 1).
The growing middle class in SEA, with its median age at 29 versus 37 in China, coupled with high e-commerce adoption make the region an attractive opportunity for online expansion.
This report highlights how brands and retailers can navigate the local nuances of the region with Omnilytics.
Over 1,790,850 data points of prominent regional and local retailers and marketplaces in the SEA region from January to July 2020, were analysed for insights. The markets covered were Malaysia, Singapore, Thailand, Philippines and Indonesia.