Poised for Growth
Southeast Asia especially is setting up to be rich hunting grounds for SMEs and retailers hoping to launch brands for the cross-border market. A report from Mordor Intelligence said cross-border eCommerce already accounted for over 40% of total eCommerce sales in the region.
Lazada and Shopee are two big reasons for this phenomenon. Their platforms facilitate cross-border sales in Southeast Asia as both cover the six major regions – Singapore, Malaysia, Thailand, Philippines, Vietnam, and Indonesia. Each of these countries in turn shows huge potential for growth in eCommerce.
Collectively, the region is reaping the rewards of a large, increasingly urban, and young working-age population eager to keep up with the latest trends they see on TikTok or Instagram by buying foreign goods. Indonesia, unsurprisingly, will be the biggest market with GMV touching U$82 billion by 2025. Vietnam is seen leaping from US$400 million to a mammoth US$23 billion. Thailand is predicted to hit US$18 billion, and the Philippines US$12 billion. In Singapore, 55% of all online transactions is expected to come from cross-border orders.
Above all, the positive response from shoppers to cross-border sales comes down to a single factor: product availability. By offering foreign products from more mature eCommerce markets like Japan and South Korea, merchants give Southeast Asian shoppers access to coveted goods that are unavailable in their home markets.