The ASEAN e-commerce retail market is growing at a considerable CAGR of around 14.0% during the forecast period (2021-2027). The major factors that drive the growth of the ASEAN e-commerce retail market include the increasing smartphone, and internet penetration, increase in online sales accessibility of mobile e-commerce. large population with rising purchasing power due to strong macroeconomic growth in ASEAN, and incremental trust in the logic of online purchases boost the market growth. Moreover, the direct channel of distribution allows the e-commerce companies to cut costs as compared to local retailor which results in increased sales. cost-effective products with great offers and a rise in the launch of new products are also the factors that drive the growth of the market. 

The market share is also estimated to increase with the rise in new players in the region owing to more people increasing their interest in online shopping. However, the high cost of logistics and reverse logistics for the transfer of products and goods, shortage of payment options in the region, and inefficient road connectivity are the restraints that affect the growth of the market. Most of the logistics companies charge high for shipping and lacks tracking facilities. Conversely, the stepping of new players in the e-commerce industry is creating enormous opportunities for market growth in the country. For instance, In March 2021, ASEAN online fashion and lifestyle company Zalora introduced the Algonomy Hyper-Personalization Suite to offer real-time, personalized interactions across all touchpoints on its customer’s digital journey, including product recommendations, browse, and content, and search. The company will influence the Algonomy real-time Customer Data Platform (CDP) to merge customer interactions and activate personalized experiences online. Algonomy’s supporting library of above 150 pre-built personalization algorithms aid to confirm shoppers are engaged with the right set of product commendations.

Impact of COVID-19 on the ASEAN E-Commerce Retail Market

The impact of COVID-19 showed high growth in e-commerce sales in several countries. Many companies and retailers were forced to adopt digitalization to be prevented infection. To increase the market in the global pandemic, many industries come with expansion, collaboration, and offers. For instance, In March 2021, Carrefour announced the acquisition of Walmart’s Brazilian retailer for $13 billion to increase the high growth of its presence in the e-commerce retail market.

Segmental Outlook 

The market is segmented based on type, products, and device used. Based on the type segment, the market is segmented into business to consumer, business to business, and customer to customer. Based on the product, the market is segmented into electronics, fashion, books and magazines, home décor, healthcare, automobile, sports, beauty and personal care, kitchenware, others. Further, based on the device used to segment, the market is bifurcated into smartphones, tablets, and personal computer

ASEAN-Commerce Retail Market Share by Product Type, 2020 (%)

The Electronics segment projected to have a significant share in ASEAN E-commerce Retail Market

Among products, the electronics segment projected to hold a considerable share in the ASEAN e-commerce retail market in 2020. There is a high penetration of large ticket electronics items such as large domestic appliances and probably also mobile phones. Many brand-new smartphones are first launched on e-commerce sites which increases the customer's interest from buying through the sites and experience-related offers. Amazon Inc., in one of the major companies estimated to take the top spot in consumer electronics share. 

Regional Outlooks

The ASEAN e-commerce retail market is analyzed based on the geography that is contributing significantly towards the growth of the market. Based on the geography, the market is segmented into Indonesia, Thailand, Singapore, Malaysia, and others. Indonesia is estimated to be the most dominating country in the region. E-commerce companies such as Lazada Group, Tokopedia, Bukalapak are currently focusing on improving the payment options in the country. The increasing number of internet users and changes in digital banking infrastructure are some of the factors that fuel the growth of the market in Indonesia. Indonesia, Singapore, and Malaysia have a significant market share among the ASEAN countries due to organized government policies, economical environment, improved infrastructure, and comprehensive growth of economies. Malaysia has a well-developed infrastructure and better road connectivity which helps e-commerce companies in reaching the masses and provides the opportunity for expansion to all the retail companies. Singapore has more than 75% of internet users and a significant infrastructure that enables e-commerce companies to boost the e-commerce retail market

Market Player Outlook

Key players of the ASEAN e-commerce retail market are Alibaba Group Holding Limited, Amazon.com, Inc., FedEx Corp., DTDC Express Ltd.,  LAZADA Group, Carousell, Qoo10 Pte. Ltd., Shopee, In order to sustain a strong position in the market, these players adopt different marketing strategies such as a merger, acquisitions, product launch, and geographical expansion so on. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the ASEAN e-commerce retail market  Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.