CROSS-BRODER E-COMMERCE MARKET IN SOUTHEAST ASIA

04/05/2022

Cross-Border E-Commerce is expected to witness higher growth than the overall e-commerce market, on a global level. The same is true in the emerging e-commerce market – Southeast Asia.

Due to an already high and still growing population, increasing disposable income, increasing number of internet users, smartphone usage and development of transport infrastructure… have led to the development of efficient logistics services. more efficiently and quickly.

Southeast Asia's cross-border e-commerce is growing by leaps and bounds. With advantages such as affordable costs, targeted consumer focus of each market and higher quality of goods, is leading to an increase in demand for the cross-border e-commerce market.

Besides, cross-border e-commerce also faces a number of challenges, such as high delivery costs and requirements on tight delivery deadlines, currency and language conversion, etc. Moreover, the Not having a bank account in some localities is also a deterrent to online payments.

It is estimated that by 2023, the total value of Southeast Asia's cross-border e-commerce market will reach 12 billion USD, accounting for more than 40% of the total regional e-commerce market.

1. Singapore and Malaysia alone account for more than 50% of the total cross-border e-commerce market in Southeast Asia.

2. Thailand is expected to reach $5.8 billion and a CAGR of 14.5% by 2022.

3. Vietnam and the Philippines are also two potential markets.

The prominent products of this market are: Hotel booking transactions, air tickets; Clothes; Footwear; Cosmetics and Games.

The international e-commerce platforms that this market targets as:

  • Alibaba Group (AliExpress, Tmall, Alibaba.com, Lazada, Taobao)
  • Amazon
  • eBay
  • JD.com (JingDong)
  • ASOS
  • ezbuy
  • Vcanbuy
  • Etsy