Southeast Asia’s online retail market set to grow at 23 per cent
Southeast Asia’s online retail market is expected to reach US$53 billion in the next five years, according to a recent analysis by Forrester Consulting.
The report anticipated a compound annual growth rate (CAGR) for the industry of 23 per cent over the period, given the momentum of smartphone penetration and fast-growing economies in the region.
Currently the area’s largest online retail market is Indonesia – which took 41 per cent of Southeast Asian online sales last year – followed by the Philippines with its strong base of social media users.
The report identified fashion as the main driver of growth in Southeast Asia’s online retail market, while consumer electronics retains the greatest market share at 24.2 per cent. Fashion and cosmetics brands launched online are likely to be a more regular marketplace feature in the near future.