The data from the iPrice price comparison platform and SimilarWWeb web analyst company shows that 2 online retailers headquartered in Singapore, which are Shopee and Lazada, account for 60% of the E-commerce site accesses in the period from March to December 2019.
Meanwhile, according to research published last year by Google, the digital economy of Southeast Asia was expected to be 300 billion USD in 2025. “Companies looking for opportunities in this region need to understand that it is ineffective to use a one-for-all approach.
Southeast Asia is famous for being the place where each market will have different consuming habits”, said an analyst on Nikkei. The newly-established Indonesian startup Tokopedia funded by Softbank and Bukalapak were the 3rd and 4th most popular E-commerce platform based on the number of accesses whose market shares were declining sharply.
Shopee accounted for 33% of the total regional E-commerce accesses in the last 3 months of 2019, ranking in the 1st place. It was followed by Lazada with 27%. The market share of Tokopedia dropped from 14% to 11 in the same period, and that of Bukalapak dropped from 14% to 6.5%. iPrice also noted that the Indonesian Government’s plant to increase Internet usage in the biggest market in the Southeast Asia region may further promote the 2 domestic platforms.
“There are many opportunities for Tokopedia to reach to the top as the Indonesian Internet provider association has announced in June 2019 that 56% of Internet users of this country have never done any E-commerce trading”. Shopee, which attracted only 7% of the E-commerce website accesses in the 3rd quarter of 2017, stood at a lower place than Bukalapak, Tokopedia, and Lazada. However, it has overthrown the other sites due to excellent marketing campaigns. Last year, Shopee had a successful day of Singles Day shopping discounts when using football star Cristiano Ronaldo as the brand ambassador.
According to the App Annie mobile tracking company, Vietnam’s Sendo, America’s Wish, and Singapore’s Zilingo are also earning attraction in Southeast Asia and are currently the most download mobile platforms. Edwin Koh, Southeast Asia's digital content manager at digital media solution provider Limelight, said: "What can really benefit e-retailers in their quest for dominance is keeping the online shopping experience when consumers search for products from falling behind.”
"Today's buyers are very knowledgeable and online shoppers often appreciate the advanced online shopping features and personalized shopping experience," Koh said. "Improving the customer-oriented interface as well as the infrastructure to ensure scalability, performance, and security are important factors to consider when e-commerce websites want to retain customers."
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