There will be 310m digital consumers in Southeast Asia by the end of 2020, from 250m in 2018, faster than the region’s population growth is the pace of its online spend, which is projected to grow 320% between 2018 and 2025.
According to Facebook and Bain & Company’s Riding the Digital Wave: Capturing Southeast Asia’s digital consumer in the Discovery Generation report, the future of digital spend is “discovery-driven”.
The survey involved a total of 12,965 respondents from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Here are some key findings:
The market size:
Southeast Asia’s emerging middle class has led to a surge in online spend (expected to grow 3.2 times between 2018 and 2025), which is largely down to the rise in average spend per digital consumer from US$124 per consumer in 2018 to a predicted US$392 by 2025. By country, digital spend is strongest in Indonesia and Thailand. Indonesia will retain status as having the largest digital spend but Vietnam and Thailand will see the strongest expansion over the course of the next few years.
Southeast Asia online retail only makes up three percent of the global retail market (US$587.5b), indicating plenty of room for growth. Specifically, the report identifies clothing, footwear and accessories as the most sizeable opportunity, given it has nine percent penetration in the regional market.
Read the full story here