Southeast Asia emerged as the fastest-growing online retail market globally, crossing US$50 billion and registering an increase of 53% in 2020, said Forrester recently when releasing a report on online retail.
Overall, the region accounts for just 2% of global online retail while contributing 10% of global online buyers, indicating that there is still room for growth in spending per buyer, the firm observed.
Forrester forecasts that online’s share of total retail sales in Southeast Asia will double to reach 15% by 2025 to reach US$143 billion.
Highlights from the report
- Indonesia, the largest market in the region, accounts for about half of the total e-commerce market; it grew by 50% in 2020.
- Thailand also grew by 50%, all of the other countries in the region grew by more than 50%. The Philippines grew fastest, at 68%.
- In 2020, all categories saw a sharp surge, with grocery registering the fastest growth at 97%.
- Consumer electronics, which includes smartphones, dominated overall online retail spend in the region; it accounted for 31% of total online retail and grew at an impressive 62%.
- Forrester forecasts that online retail’s share of total retail will double to 4% between 2019 and 2021. Indonesia came in second, with 26% of unexpected new online buyers across the region. Along with an increase in buyers, the region also witnessed an increase in online purchase frequency.