Southeast Asia’s ecommerce GMV soars to $100b in 2022 despite headwinds

Photo credit: Shopee

As Southeast Asia’s ecommerce sector saw continued growth in 2022, Sea Group’s Shopee remained the market leader in the region with a gross merchandise value (GMV) of US$47.9 billion – far ahead of other players such as Lazada, Tokopedia, and TikTok Shop.

According to the latest report from venture builder firm Momentum Works, the region’s ecommerce GMV reached US$99.5 billion in 2022 – up 1.8x from 2020 – despite the challenges posed by post-covid reopening, inflation, and rising interest rates.

Shopee also hit profitability in the fourth quarter of 2022. The Singapore-based giant then remained profitable in Q1 2023. Previously, it implemented several efficiency measures, including reducing its workforce and withdrawing from underperforming markets.

Meanwhile, roughly 52% of the total GMV in the region comes from Indonesia, while Singapore and Malaysia ranked top in GMV per capita.

Lazada maintained its position as the second market leader in all countries except Indonesia, where homegrown major Tokopedia closely followed Shopee, with market shares of 35% and 36%, respectively.

However, Lazada may be stepping up its game, having received a US$353 million injection from Alibaba in April 2023.

The capital came after Lazada’s parent Alibaba announced plans to split its operations into six business units. Analysts have said the move will open up new avenues of growth for Lazada, including the option to raise outside funding through an IPO.

Meanwhile, emerging player TikTok Shop is starting to make its way into the top five in all countries where it operates in the region: Indonesia, Vietnam, Malaysia, Thailand, Singapore, and the Philippines.

The social commerce platform is reportedly targeting US$20 billion in sales this year. In 2022, it had a GMV of US$4.4 billion in Southeast Asia, marking a significant growth of 363% from the previous year.

According to the report, Southeast Asia’s total GMV is projected to reach US$175 billion in 2028 under a normal scenario, with the potential to increase to US$232 billion under the best-case scenario.

“Ecommerce in Southeast Asia will likely follow a normal and healthy trajectory over the next few years,” said Jianggan Li, founder and CEO of Momentum Works, in a statement.