ASEAN: sales growth is fast in ecommerce retail - report

Monday 11 August 2014 13:20 CET | News

Ecommerce business is predicted to boom in the Southeast Asia region, according to a recent report issued by the financial services provider UBS.

The prediction is based on the high rate of internet penetration in the region explained by the rapid adoption of mobile devices and 3G networks.

Moreover, the report estimates that there are about 199 million internet users in the region, or a 32% internet penetration rate. The figure is set to rise to 294 million, an increase of 48%, from 2014 to 2017.

The report indicates that the upward trend witnessed by the ecommerce business in the region come against the low credit card penetration rate, inefficient supply chains and inhibitive customs and tax regulations.

48% of the world’s internet users are from the region in question, circumventing traditional PCs and accessing online websites via low-cost mobile devices. Notably, nearly 67% of ASEAN internet users are under 35.

Speaking about the region’s e-tail market, it ranges between USD 548 million to USD 1.1 billion, accounting for just 0.12-0.24% of total retail sales. However, it is set to increase 5 times by 2020. Already, e-tail websites are seeing 41 times more traffic than the individual online platforms of traditional brick-and-mortar stores.

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Keywords: ASEAN, Southeast Asia, ecommerce, e-tailers, merchants, Customers, online sales, online purchases
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce