Since Covid, Southeast Asia has added 70 million online shoppers: Report

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Grab Delivery Cyclists will overcome each other in Singapore on April 20, 2020.

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Since the beginning of the pandemic, an estimated 70 million people have shopped online in six Southeast Asian countries. Reports from Facebook and Bain & Company..

Digital services such as e-commerce, food delivery, and online payment methods have been rapidly adopted in Southeast Asia as the government encouraged them to stay home to slow the spread of the coronavirus.

And that trend may continue. The report, which surveyed more than 16,000 people in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, predicts that Southeast Asia’s digital consumers will reach 350 million by the end of this year.

By the end of 2021, Facebook and Bain expect more than 70% of people over the age of 15 in the countries surveyed to shop online. The report predicts that the number of online shoppers in Southeast Asia will reach 380 million by 2026.

Among the countries surveyed, Indonesia, Southeast Asia’s largest economy, continues to show the highest growth rates, the report said. Its digital consumer population is projected to grow by about 15% from 144 million in 2020 to 165 million in 2021.

E-commerce boom

Many parts of Southeast Asia are working to revive Covid due to the highly contagious delta variant. Vaccination rates remain low in some emerging economies. Many e-commerce markets have flourished as consumers have difficulty visiting physical stores due to intermittent blockages and movement restrictions.

The survey conducted in May The percentage of respondents who said they were shopping “almost online” rose from 33% in 2020 to 45% this year, with the largest increase coming from Singapore, Malaysia and the Philippines. I did.

Facebook and Bain forecast that this year’s average online spending will increase by 60% from $ 238 per capita in 2020 to $ 381 per digital consumer. According to the report, the share of online retail in Southeast Asia’s total retail market has skyrocketed from 5% in 2020 to 9%, faster than Brazil, China and India.

“Over the next five years, Southeast Asian e-commerce sales are expected to keep pace with these countries, with annual growth of 14%,” the report said.

FinTech investment reaches new heights

As online purchases increase, fintech services such as “buy now, pay later”, digital wallets and cryptocurrencies are becoming more prevalent.

In the first three months of this year, 88% of the region’s private equity and venture capital investment has flowed into the technology and internet sectors. According to the report, 56% of them entered financial technology.

“We are seeing a massive triple explosion in FinTech. Not only are regulators removing regulatory barriers, but we also see a river of frictionless capital roaring,” Cento Ventures’ Dmitry Levit reported in a report. Stated.

While 37% of respondents preferred digital wallets as a payment option, 28% preferred cash, 19% preferred credit or debit cards, and 15% preferred bank transfers. In the Philippines, Malaysia and Vietnam, digital wallet adoption showed the largest growth of 133%, 87% and 82%, respectively.

The report states that the rapid digitization of Southeast Asia during the pandemic proves an immense opportunity in the region’s digital economy.

“The region will be a growth market for at least the next decade as new industries, industries and products emerge,” Justin Hall, a partner at Golden Gate Ventures, said in a report.

Since Covid, Southeast Asia has added 70 million online shoppers: Report

Source link Since Covid, Southeast Asia has added 70 million online shoppers: Report

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