Continuing our previous article, ASEAN’s E-commerce Challenges, we’re proud to feature opportunities for e-commerce in ASEAN as well. Southeast Asia wants to be an e-commerce giant, with phenomenal growth rates surpassing those of the US and EU.
The sheer size of ASEAN alone makes it a viable market for e-commerce businesses. Not only does ASEAN consist of more than 600 million people, but just initiated a landmark integration project called the ASEAN Economic Community. The community aims to transform the 10 member nations into a single market, greatly reducing tariffs and encouraging free trade.
This represents opportunities for both large e-commerce companies and smaller businesses of any size.
There’s huge growth potential in the e-commerce market of ASEAN. But this doesn’t mean the current market is insignificant now. The e-commerce retail market in just the 6 countries of Malaysia, Indonesia, Philippines, Singapore, Thailand, and Vietnam is worth over US$7 billion.
It’s important to note that only 29% of ASEAN’s huge population has access to the internet. The e-commerce industry is set to grow naturally as internet penetration increases.
With that said, there are two key drivers which are opening up opportunities for development of e-commerce in ASEAN.
1. Increase in Purchasing Power
In many ASEAN countries, middle and affluent class populations will double in a few years’ time. With GDP per capita expected to rise by about 7% per year, economic growth will be one of the main drivers for e-commerce in ASEAN.
2. Growth in Internet Penetration
With more internet access, more people will be exposed to e-commerce. Market research reveals the lack of internet access is one key barrier keeping many ASEAN countries from fully engaging in e-commerce. Banks and telecom companies are taking initiative to bring greater internet penetration. Most people in ASEAN will be able to make online transactions by 2025.
- The Best Places to Invest Aren’t Where You Think - 23/07/2017
- China is Overrated: Investing in ASEAN is Better - 19/07/2017
- Here’s 5 Better Alternatives to Buying Gold - 13/07/2017
- Things to Know When Hiring Contractors in Asia - 09/07/2017
- How to Beat the Market: Barriers to Entry Aren’t So Bad - 06/07/2017
- China’s New Silk Road: What Is It? How Can You Profit? - 02/07/2017
- How to Invest in Malaysia: Asia’s Easiest Place to Buy Land - 29/06/2017
- These 3 Countries Have Been Recession Proof - 22/06/2017
- Investing in Indonesia Property: The Ultimate Guide - 18/06/2017
- Best Currency in Asia: It’s Not What You Think - 15/06/2017