Online spending in SE Asia to outstrip digital consumer growth
KUALA LUMPUR: Online spending in Southeast Asia is expected to grow three times faster than the growth of digital consumers by 2025, with clothing and personal care emerging as two of the leading categories, according to a study by Facebook and Bain & Company.
The study revealed that more online spending in the region will be driven mainly by increasing choice, better Internet access and rising affluence.
“Brands, therefore, need to be very savvy and re-imagine their marketing and trade spend to be in sync with the ever-evolving omnichannel consumer journey.
“Brands that want to win in this omnichannel channel need to understand what consumers are looking for in their category, work to solve needs and pain points, and customise loyalty to differentiate themselves, all while delivering with consistency,” a partner in Bain & Company Singapore, Gwendolyn Lim, told reporters after at a presentation of the study.
Omnichannel refers to a retail line that integrates with the different methods of shopping available to consumers.
Titled “Riding the Digital Wave: Southeast Asia’s Discovery Generation”, the study disclosed from 90 million digital consumers in the region in 2015, the number grew 2.8 times to 250 million in 2018. By 2025, there will be 310 million digital consumers in Southeast Asia.
Meanwhile, Facebook Malaysia country managing director Nicole Tan said there is no longer just one way to shop and nobody shops the same way twice.
“The key takeaway is that designing for discovery is absolutely crucial, given that customers engage with a business through multiple channels at the same time.
“In Malaysia alone, 70 percent of the respondents said they are either open to other brands or will buy from multiple brands when shopping online. This means businesses of all sizes, including specialty players, have a significant opportunity to compete on a larger scale in Southeast Asia,” she said.
On the six percent digital tax implementation for all digital services next year, Tan said Facebook is required to charge a six percent tax on the sale of ads to all advertisers in Malaysia.
“We conform to local requirements where we operate our business and remain focused in helping to fast forward the country’s digital transformation by helping Malaysian businesses grow both at home and abroad,” she said.
“Riding the Digital Wave: Southeast Asia’s Discovery Generation” looks at how digital consumers are reshaping e-commerce in the region.
The study surveyed 12,965 respondents across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, and interviewed more than 30 chief executive officers and venture capitalists in the region. – Bernama
