Everyone wants to be on the pulse of what is about to happen. When it comes to e-commerce, businesses are keeping close watch over who will have the next boom. At this time, it looks like all signs point to Southeast Asia.
The Next Big Thing
According to Business Insider, the Asia Pacific region accounted for 40% of all global e-commerce sales in the first quarter of 2017. A majority of those did come from the larger markets, particularly: China, Japan, Australia, South Korea, and India. But even that shows the growth that is coming from the Asia Pacific and that means Southeast Asia is set to follow.
Expansion is Twofold
The same report provides into what is the force behind the increase in e-commerce participation. First is that internet access is becoming more commonplace in Southeast Asia. They state that, “About 200 million people in Southeast Asia have some form of internet access, and that will triple to 600 million by 2025.” Interestingly enough, Southeast Asian nations spend more hours per day browsing the internet from a mobile device than any other region. They’re clocking in around 3.6 hours per day. In comparison, China is behind them with 3 hours, the United States with 2 hours, the United Kingdom at 1.8 and Japan with just 1 hour.
In addition, the rapidly expanding middle class in Southeast Asia is providing a working population that have some level of disposable income. Nielsen forecasts that the middle class of the ASEAN nations will jump to 400 million from 190 million in 2012. ASEAN is comprised of member nations: Indonesia, Malaysia, The Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam.
You know when JD.com and Alibaba, China’s e-commerce powerhouses, are looking to invest in a market than it has immense promise. Google also is projecting that e-commerce sales in ASEAN nations with from to $88 billion by 2025, up from $5.5 billion just a decade prior. So, it looks like companies better stark staking their claims in the region as internet access and the middle class is expanding. Southeast Asia, they’re coming for you.