26 Dec

aCommerce’s Prediction about eCommerce in South East Asia 2015

by Veritrans Indonesia

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Merry Christmas all! May your days be merry and bright  Today’s article will be talking about prediction of eCommerce industry in 2015.

A huge capital flow occurs during 2014 in South East Asia such as Alibaba investment in SingPost and also venture capital that invest $100 million in Tokopedia and $250 million in Lazada, is estimated to induce change in Indonesian eCommerce industry. Therefore, based on those investment data and interview with several big player in eCommerce, aCommerce makes several predictions about eCommerce industry in 2015, here are their predictions.

First, there will be an increase of consolidation in Business to Consumer (B2C) market. Huge capital flow which has been invested in South East Asia will make some startup may not able to handle their potential growth anymore and thus, B2C market will be required to do acquisition or merger in order to accelerate their growth.

Currently, B2C market is still fragmented and therefore, it will be hard for small eCommerce such as online shops to compete with eCommerce newbie that has huge fund such as Lazada. “With their huge amount of money, they would think of acquiring small eCommerce” said Paul Srivorakul, CEO of aCommerce.

Secondly, marketplace will be even more booming. Inspired by the IPO of Alibaba with amount of $25 billion, marketplace company try to build their own market. Besides big eCommerce players such as Lazada and Rakuten that follow this path, several companies that are engaged in telecommunication, media and banking industry also try to do that. Companies from those industries found this path as a way to gain more money from their current users by giving value added service.

“Market gets heated up, retail brand must able to approach their customers in order to ensure the existence of their products in the market. Investment in technology and marketplace that is used to distribute their products will affect the success of their brands” said Paul.

Last but not least, ASEAN’s economic circumstances will accelerate the development of eCommerce. As it is generally known, ASEAN will start free trading in 2015. Giant eCommerce such as Amazon and ASOS have already counted Singapore, Thailand and Indonesia as market that have the fastest development in Asia. As an example, recently Shopbop did their Black Friday and Cyber Monday campaign through Line and aCommerce. Chinese company such as Alibaba also see a potential growth in South East Asia market, while Chinese market will be stable.

Once again, Merry Christmas all!