16 May

Five Ecommerce Achievements to Watch Out in Southeast Asia

by Veritrans Indonesia

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Hello again everyone! This time is about five surprising facts about ecommerce in Southeast in 2014 which is summarized from an interesting article that I came across in techinasia: http://www.techinasia.com/ecommerce-southeast-asia-milestones-and-development-2014/.

Based on research done by Oliver, CEO of AVA Online Group, a well-established ecommerce company in Southeast Asia, consumer spending in ecommerce during 2014 will hit $525 billion in Asia, which is half of the global total due to the fact that ecommerce is the most popular investment destination for angels and start-up companies. This article will discuss five stories that are grabbing the spotlight of ecommerce in 2014.

First fact comes from the giant Chinese ecommerce group called Alibaba group which just commenced their initial public offering (IPO) last Tuesday (06/05/14). Alibaba initially run the Taobao and Tmall estores in China, but in the last few years, they start venturing into Southeast Asia. Their IPO is one of the biggest IPO in American history after Facebook since they are growing by up to 70% in 2013.

Second fact is the growth acceleration of new entrants markets in Indonesia and India through ecommerce platforms. Ecommerce platforms will begin to move from pure customer acquisition to brand-building campaigns to differentiate their offering in the minds of consumers. Bigger players such as WeChat, Line, and KakaoTalk start leveraging on the user scale by investing in the supply-side and actively increase their online sales offerings.

Third fact comes up from the fact that infrastructure such as logistic and payment development across countries will obviously take time. However, through ecommerce, this infrastructure can be delivered as a service, which is essentially needed by an emerging group of companies.

Fourth, big markets such as India and Indonesia markets become the center of attention for growing internet penetration, primarily driven by mobile phones, widen the base of potential shoppers in the SouthEast Asia region. Across the region, it is reported that mobile usage increases rapidly in 2014. Therefore, it is a really good opportunity for starting business through ecommerce.

The last but not least is the fact that many big retailers start to jump in ecommerce. The SM Group, the largest retailer in Philippines recently announced that they would invest in ecommerce as well.

So, go for Veritrans to simplify your online transaction! :)