Asia-Pacific has the largest retail and ecommerce sales in the world. While China continues to dominate global ecommerce share, India and Southeast Asia are increasingly driving growth. As consumer sentiment improves in China, the retail sales gap with the first-place US will narrow in the coming years.

Recent data on ecommerce in Indonesia highlights evolving patterns in online purchasing behavior, including social commerce.

In this report, we explore the world’s top region for retail and ecommerce, Asia-Pacific. Read on for a closer look at the markets in China, India, the Philippines, and more.

Amid escalating geopolitical tensions and regulatory scrutiny in the US and Western Europe, Chinese ecommerce giants are increasingly turning their focus to Asia-Pacific.

The Asia-Pacific retail ecommerce sector is both dynamic and volatile. While China and Japan are slowing, South Korea is growing rapidly, and emerging markets like Southeast Asia and India are showing robust growth and untapped potential.

With a booming economy and a flourishing middle class, Indonesia has become an intense battleground for leading ecommerce players, including Shopee, Tokopedia, and TikTok Shop.

After three years of wild fluctuations in retail and ecommerce sales growth, a sense of stability and normalcy is slowly emerging. A healthy if unspectacular rebound for ecommerce is in the cards, and most national markets are heading in the right direction.

Retail ecommerce sales growth in Southeast Asia, which has been blazing ahead in recent years, is set for a slowdown as the global economy faces challenges and tech funding shrinks. This year, the Philippines and Malaysia will lead the region in growth.

For the third year in a row, ecommerce sales in Southeast Asia will grow faster than in any other region of the world. This is likely the final year of Southeast Asia’s long boom, but for now, the region stands out in a world of rapidly declining growth.

Growth of total retail sales in Southeast Asia is set to accelerate in 2022, bucking the global slowdown trend and roaring past its pre-pandemic rates. Singapore will shine exceptionally bright by leading the region in ecommerce growth.

After missing out on a big rebound in 2021, Southeast Asia’s total retail and ecommerce sales are both set to boom this year. Indonesia—set for a standout year—will shape the region’s metrics and account for nearly 65% of Southeast Asia’s ecommerce sales.

In Southeast Asia, total media ad spending snapped back to pre-pandemic levels in 2021 and will continue rising strongly this year. The growth in digital ad spending, though tamer in 2022, will again outpace that of the overall ad market.

Like many regions around the world, Southeast Asia experienced an ecommerce boom in 2020, as various pandemic-driven social lockdowns encouraged more shopping from home. According to our estimates, ecommerce grew by 35.2% collectively in the region last year, and our newest forecast projects 14.3% growth this year. However, traditional retail is still overwhelmingly dominant.