Full potential of ASEAN E-commerce market

AT Kearney - ToolsHero

ATKearney posted a nice news article about the full potential of ASEAN (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) E-Commerce Market.


According to the study Lifting the Barriers to E-Commerce in ASEAN, the online retail market in ASEAN 6 has the potential to grow 25 percent annually through 2017.

Geir Olsen, head of ATKearney Consumer Industries and Retail Practice in APAC, said that the ASEAN 6 accounts for less than 1 percent of global online retail is, even though it has 3 to 4 percent of global GDP and around 8 percent of the population.

Regarding the considerable growth potential for the ASEAN e-commerce market, he sees five significant challenges to realize the potential growth.

This is a short summary of distinct actions the region can take to surmount each challenge

Increase broadband access

Online users are just 29 percent of the ASEAN 6 population, compared to 46 percent in China and more than 90 percent in Japan.

In Vietnam, the Philippines, Thailand, and Indonesia, about or less than half of the population uses the Internet; only Singapore’s access to fixed broadband compares to markets such as the United States.

Support local offers

In order to encourage local companies to participate in the online-trend, access to finance needs to be improved, the integration of digital talent needs to be fostered and the awareness of e-commerce marketplaces needs to be promoted.

Reinforce online security

The region would benefit greatly from shared cybersecurity and regulatory best practices and coordinated legislative frameworks.

Creating an online dispute resolution facility would help the region as well.

Promote e-payment

The vast majority of payments for online retail are still made off-line, with methods such as cash-on-delivery.

By promoting non-cash transactions and instituting e-payment regulations that are coordinated region-wide.

Improve logistics and trade efficiency

Logistics and trade often do not match online shoppers’ expectations in the region.

The benefits of e-commerce development go beyond direct economic impact. Retail e-commerce can be a vehicle for economic development, social cohesion, and cultural exchanges contributing to regional integration.

More information

Add a link to this page on your website:
<a href=”https://www.toolshero.com/business-news/full-potential-of-e-commerce-market-in-asean/”>ToolsHero.com: Full potential of ASEAN E-commerce market</a>

Share your thoughts!

Share this article if you think it’s worth sharing. We’re always curious what you’re expect to find on the ToolsHero platform. We would like to receive your vision, suggestions or comments on this article. With practical and inspiring business news we want to help our visitors with this information for their personal use or you can apply it for business issues.

Did you find this article interesting?
Your rating is more than welcome or share this article via Social media!

5 / 5 (1 votes)


Please enter your comment!
Please enter your name here