6 things I learned working in Southeast Asia’s digital scene

Last year, I wrote an article on LinkedIn that got a very good response. One year later, not much has changed, in my opinion. These observations were based on ecommerce work and projects I did, but I think they could easily apply to startups as well.

Observations based on ecommerce

I’m a consultant and co-founder of an aggregator for online fashion shopping. I’ve been living and working in the region for more than 6 years, and based on this, here are some of my observations:

1. Companies focus too much on the big numbers when they evaluate market potential

We’ve all heard those exciting numbers – 500 million people, 90 percent have mobile, young population online, etc …

In my mind, the reality is very different. A very large percentage of the population doesn’t have significant income for example. Right now Southeast Asians simply do not spend online (i.e. less than 2 dollars a year on average for Indonesians). Thus, your 500 million market is actually probably 10 times less than that, spread over 7 countries.

Yes, there is a growing middle class, yes e-commerce will (probably) boom, but let’s be realistic. It will take time, and you cannot expect instant returns.

Key takeaway? There are obvious opportunities, but be realistic about market size and potential. There’s a reason why ecommerce is still less than 0.3 percent.

2. Companies do not take any risks

First to market, spin offs, land grab, etc. … are simply not part of the corporate culture, even more so in large organizations. No wonder fast players like Rocket Internet are foreign owned. Benefits? Huge opprtunities for startups, but don’t be overly optmistic.

You are still going to fight against multi billion family conglomarate at some point. And despite all the stats in the world pointing up, it’s going to take a while. You need to be smart, agile, and have deep pockets for the long run.

Key takeaway? Your initial business plan is most probably too optimistic. It will take longer, no matter how hard you try or how convincing you are. This is a fact of life in Asia and Southeast Asia.

3. People don’t read

I don’t mean Southeast Asians cannot read, don’t get me wrong! But the way they consume content is quite different from the West, for example.

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