Southeast Asia’s ecommerce to surpass $25bn by 2020

Southeast Asia’s e-commerce growing rapidly

Southeast Asia is poised to become one of the world’s fastest-growing regions for e-commerce as revenues could exceed US$25 billion by 2020 from $11 billion in 2015, according to new research from Frost & Sullivan.

Southeast Asia is poised to become one of the world’s fastest-growing regions for e-commerce as revenues could exceed US$25 billion by 2020 from $11 billion in 2015, according to new research from Frost & Sullivan.

Its new research showed that total revenues from business-to-consumer (B2C) e-commerce in the 6 largest Southeast Asian countries will increase at the annual rate of 17.7 per cent.

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Malaysia and Thailand were the largest e-commerce markets in Southeast Asia in 2015, generating revenues of $2.3 billion and $2.1 billion respectively.

Nevertheless, by 2020, both of these markets are expected to be eclipsed by emerging economies in Southeast Asia including Vietnam and Indonesia.

These economies will however face challenges, including low credit card ownership that stands at less than seven per cent in all markets except for Singapore and Malaysia.

In some countries, more than 50 per cent of the population does not have bank accounts, making payment the biggest challenge for e-commerce companies in the region.

Another challenge concerns logistics, especially in areas with complex geographies such as Indonesia and the Philippines.

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