Double-digit growth in online spending predicted through 2020
Ecommerce spending in Southeast Asia is growing by leaps and bounds thanks to growing rates of digital adoption among the region’s digital consumers. This rapid growth in ecommerce activity is helping raise revenues for Southeast Asia’s top online retailers, with some analysts predicting a dramatic rise in revenue over the next five years.
According to an August 2016 analysis of Southeast Asian ecommerce from Frost and Sullivan, business-to-consumer (B2C) ecommerce sales in the region are predicted to grow from $11 billion in 2015 to $25 billion by 2020, representing a compound annual growth rate of 17.1%.
eMarketer’s own 2016 forecast of retail ecommerce sales in the same six Southeast Asian markets are similar to, although slightly above, Frost and Sullivan's own estimate. The forecast predicts retail ecommerce sales for the six countries studied will surpass $14 billion in 2016. Retail ecommerce sales exclude sales of travel services, which are included in B2C estimates.
This predicted double-digit increase in Southeast Asian ecommerce sales is likely a result of the rapid adoption of digital devices and purchase behaviors among the region’s consumers. According to December 2015 data on online shopping habits from MasterCard, 80% or more of internet users in select Southeast Asian countries had made a digital purchase in the three months prior to the survey.
In addition, many online shoppers appear to be repeat buyers. MasterCard noted that the average number of purchases made in each of the markets studied was two or more. In some advanced consumer markets like Singapore, the average number of purchases was more than four.