The Southeast Asian online market is growing “sharply” according to a Korean government report.
Last year, Southeast Asian e-commerce sales reached US$7.4 billion. But the Korea Trade-Investment Promotion Agency (Kotra), expects an average annual growth rate of 32 per cent in the years ahead, with sales reaching $87.8 billion in 2025.
Highlighting the strong business potential for cross-border e-commerce given the region’s huge population, the report said South Korean goods, in particular cosmetics and clothing items, are very popular in the region.
The Southeast Asian region’s online market is in the initial stage but has room for explosive growth, backed by its 630 million population, it said, adding that Alibaba, Amazon and other global e-commerce giants are expanding their investment in the region’s burgeoning online market.
South Korean companies are advised to pay keen attention to Indonesia and Thailand whose online markets are estimated at $2.7 billion and $1.5 billion, respectively, it added.
* Original reporting Korea Bizwire via Yonhap.