The markets in Southeast Asia and Taiwan are booming, and people have strong shopping needs. According to the Southeast Asian Internet Economy Report released by Google and Temasek in October 2019, it is estimated that the size of the Southeast Asian e-commerce market will reach US$153 billion in 2025. In 2018, the overall e-commerce sales in Southeast Asia accounted for only 1% to 2% of the total retail sales, and Chinese e-commerce accounted for 18.4% of the total retail sales of consumer goods. It can be seen that the online shopping market in Southeast Asia has huge room for development.
Vietnam market analysis:
Vietnam has a total population of about 96.6 million. Compared with other countries, its economy is not developed, its consumption level is lower than that of other countries, and there are many category restrictions on the listing of goods. Therefore, few people enter the Vietnamese market, and it is still a blue ocean.
Thailand market analysis:
Thailand has a total population of about 69.5 million, which has great market potential, but Thailand mainly speaks Thai. For Chinese sellers, there are relatively large language restrictions, and it is difficult to operate compared with other sites. Therefore, there is little competition in the site and great opportunities.
Analysis of Malaysia market:
Malaysia has a total population of about 32.75 million, most of whom believe in Islam; most people have online shopping experience, and there is little difference between men and women; online shopping users are mainly concentrated in the age of 26 to 35, followed by 18 to 25, and most online shoppers are low- and middle-income earners. The average temperature throughout the year is between 26 degrees Celsius and 30 degrees Celsius, and the rainy season is from March to June and from October to February of the following year.
The Malaysian market has the following characteristics:
1) The population structure is young. The population under 40 years old accounts for about 70%, and the middle-class population is growing rapidly.
2) Diversified consumer groups. In 2018, the number of male consumers increased by about 3 times, and the average monthly compound growth rate of the number of orders brought was 9.5%. Male consumers prefer to buy products with higher average customer unit prices, and the GMV contributed by them increased by 158% at the end of the year compared with the beginning of the year.
3) Diverse ethnic languages and strong religious colors. There are differences in consumer beliefs and culture, and e-commerce sellers need to abide by relevant religious culture and taboos.
4) Fragmentation of e-commerce consumption scenarios. The penetration of the Internet skipped the PC stage and directly entered the mobile device stage. Therefore, Southeast Asian netizens are more dependent on mobile devices such as mobile phones, and e-commerce consumption scenarios are more fragmented.
5) GDP continues to grow. In 2020, GDP reached US$318 billion, and it is expected to maintain an annual growth rate of 5.3% in the next decade, with a per capita GDP of US$10,300.
6) Offline retail is underdeveloped. Consumers in remote areas lack shopping channels, which brings opportunities for the development of the e-commerce industry.
Singapore Market Analysis:
Singapore is the most important financial center and international trade transit station in Southeast Asia, and is known as one of the “Four Asian Tigers”. Singapore has a total population of about 5.7 million, mainly in the service industry, finance, technology, shipping, logistics, and tourism, and actively develops high technology and education. The people have a high level of consumption and high quality customers. Singapore has a very high penetration rate of Internet and smart phones, and is the most mature e-commerce market in Southeast Asia. Singapore has a high level of consumption, which is suitable for high-profit products.
Analysis of the Philippine Market:
The total population of the Philippines is about 108 million, and the market potential is huge. After the end of World War II, the Philippines once again became a colony of the United States, so it was greatly influenced by American culture. Compared with countries such as Malaysia and Indonesia, the customs of the Philippines are relatively open, and the acceptance of European and American style products is relatively high. The listing link can be directly in English, and most instant chats are also in English. At this stage, there are relatively few sellers entering the market. Compared with Malaysia and Taiwan, the competition is relatively small at this stage, and stable profits can be obtained after entering.
Analysis of the Indonesian Market:
With a total population of about 268 million, Indonesia has huge consumption potential and is considered one of the most promising e-commerce markets in the world, thanks to the younger generation’s preference for online shopping. Similar to the market demand in Malaysia, there is a large market for Muslim products. According to a 2018 study by Google-Temasek, the scale of Indonesia’s Internet economy reached US$27 billion in 2017 and is expected to grow to US$100 billion in 2025.
You can use a combination of Indonesian and English when listing products. The official currency is the Indonesian ruble. Sellers should pay attention to the decimal point when setting prices and avoid setting the wrong price.
Market analysis of Taiwan:
The total population of Taiwan is about 23.6 million. As one of the “Four Asian Tigers”, it has a relatively developed economy, a relatively high consumption level, and a high Internet coverage rate. The currency is the New Taiwan Dollar, and the language used for listing products is Traditional Chinese. It is one of the main sites of Shopee and is more suitable for domestic sellers.
Other market analysis:
Brazil is in South America and is not within the scope of Southeast Asian market research, but the Brazilian site is a new site of Shopee in 2020, so a brief introduction is given here. The total population of Brazil is about 210 million, of which 53.74% are white, 38.45% are mixed black and white, 6.21% are black, and 1.6% are yellow and Indian. Brazil is the largest and most populous country in South America, and its official language is Portuguese. Brazil is currently the ninth largest e-commerce retail market in the world and the only retail e-commerce market in Latin America that ranks among the top ten in the world. Shopee platform currently provides various traffic and category support for the Brazilian site. Sellers who have the opportunity can join in as soon as possible.