Online spending in Southeast Asia to quadruple to $120 billion by 2025

Online Spending In Southeast Asia To Quadruple To $120 Billion By 2025

E-commerce spending in Southeast Asia will increase nearly fourfold to $120.9 billion by 2025 from $31.3 billion in 2018, a recent study by consultancy Bain and Company found. Indonesia, Thailand and Vietnam are expected to be the biggest contributors to the growth of consumer digital spending in in the region over the next five years.

The study surveyed almost 13,000 respondents in the middle of this year across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, concluding that the emerging middle class in the region would account for 70 to 80 per cent of the growth in digital consumers. Indonesia has the largest such consumer base at present, growing from 64 million in 2017 to 102 million in 2018.

Bain & Company has projected that the average spend per digital consumer is expected to increase dramatically to $390 by 2025, more than three times the average spend of $125 as of 2018. They also project that there will be about 310 million digital consumers across Southeast Asia by 2025, compared with 250 million as of 2018. Specifically, 70 to 80 per cent of the growth in digital consumers will come from the emerging middle class.

Bain partner Praneeth Yendamuri said the rapid digitisation of communities in Indonesia, Thailand and Vietnam made these countries the top contenders for the region’s digital spending crown.

“If you look at Thailand and Vietnam, they [the digital communities] are growing very fast. And we believe that Thailand and Vietnam, together by 2025, should be as big or even bigger than Indonesia,” he said.

The biggest spenders tended to come from Singapore, according to the study, with 55 per cent of online shoppers from the city-state falling under this category. For the rest of the five countries included in the study, high spenders made up 40 per cent or less of digital consumers.

In terms of goods, clothing and personal care emerged as two of the leading categories in the study, which also found that Southeast Asia’s consumers shop-hop across 3.8 platforms on average before they make a purchase decision.

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E-commerce spending in Southeast Asia will increase nearly fourfold to $120.9 billion by 2025 from $31.3 billion in 2018, a recent study by consultancy Bain and Company found. Indonesia, Thailand and Vietnam are expected to be the biggest contributors to the growth of consumer digital spending in in the region over the next five years. The study surveyed almost 13,000 respondents in the middle of this year across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, concluding that the emerging middle class in the region would account for 70 to 80 per cent of the growth in digital consumers. Indonesia...

Online Spending In Southeast Asia To Quadruple To $120 Billion By 2025

E-commerce spending in Southeast Asia will increase nearly fourfold to $120.9 billion by 2025 from $31.3 billion in 2018, a recent study by consultancy Bain and Company found. Indonesia, Thailand and Vietnam are expected to be the biggest contributors to the growth of consumer digital spending in in the region over the next five years.

The study surveyed almost 13,000 respondents in the middle of this year across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, concluding that the emerging middle class in the region would account for 70 to 80 per cent of the growth in digital consumers. Indonesia has the largest such consumer base at present, growing from 64 million in 2017 to 102 million in 2018.

Bain & Company has projected that the average spend per digital consumer is expected to increase dramatically to $390 by 2025, more than three times the average spend of $125 as of 2018. They also project that there will be about 310 million digital consumers across Southeast Asia by 2025, compared with 250 million as of 2018. Specifically, 70 to 80 per cent of the growth in digital consumers will come from the emerging middle class.

Bain partner Praneeth Yendamuri said the rapid digitisation of communities in Indonesia, Thailand and Vietnam made these countries the top contenders for the region’s digital spending crown.

“If you look at Thailand and Vietnam, they [the digital communities] are growing very fast. And we believe that Thailand and Vietnam, together by 2025, should be as big or even bigger than Indonesia,” he said.

The biggest spenders tended to come from Singapore, according to the study, with 55 per cent of online shoppers from the city-state falling under this category. For the rest of the five countries included in the study, high spenders made up 40 per cent or less of digital consumers.

In terms of goods, clothing and personal care emerged as two of the leading categories in the study, which also found that Southeast Asia’s consumers shop-hop across 3.8 platforms on average before they make a purchase decision.

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