SEA ecommerce predictions for the year-end sales period

The latest report from Facebook and Bain & Company has proven that the “new normal” resulted in purchasing habits that have boosted digital consumption. Ecommerce sales in Southeast Asia is estimated to nearly double to US$254 billion by the end of 2026.

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While it is expected that digital spending will continue to expand amid the pandemic, how much will the region’s ecommerce companies grow as the year-end sales period begins?

Ecommerce aggregator iPrice Group analyzed the most visited ecommerce platforms in Southeast Asia to predict where the market is heading and what developments to expect from the year-end shopping frenzy.

Here are three key predictions on Southeast Asia’s ecommerce industry for the rest of the year.

Online growth will be off the charts

The pandemic-induced digital shift is enhancing online consumption even more than last year. Data shows that the overall web visits of online shopping platforms across Southeast Asia grew in the first half of 2021 compared to the same period in 2020.

From January to June this year, average web visits to ecommerce platforms reached 4 million, increasing by 31% from H1 2020. The Philippines experienced the largest year-on-year surge in web visits (73%), followed by Indonesia (41%), Malaysia (34%), Singapore (10%), Thailand (9%), and Vietnam (7%).

In H1 2021, the top two Singapore-based ecommerce platforms, Shopee and Lazada, experienced an increase in web visits by 56% and 10%, respectively, compared to the same period last year.

The rising numbers were most likely driven by the two firms’ constant marketing initiatives during the new normal with flash sales, Ramadan promos, monthly events like the 6.6 sale, and more.

In 2020, iPrice Group saw that overall web visits across the six Southeast Asian countries surveyed grew at a combined 26% from H1 to H2 2020. The company forecasts that total average web visits will grow even more for the remainder of 2021.

According to the company’s research, online marketplaces will potentially receive an average of at least 690,000 additional visitors across the region, owing to the many upcoming year-end sales.

Influencers will continue to drive success

From footballers to Korean artists, Shopee and Lazada have tapped a wide range of brand ambassadors. The company’s recent partnerships with Jackie Chan and Hyun Bin, respectively, have sparked consumer hype going into the year-end shopping season.

A study by iPrice Group tracked the social sentiments of the latest 9.9 campaigns of both platforms and uncovered how successful these campaigns were.

Jackie Chan’s endorsement of Shopee had the higher engagement in terms of articles published. The campaign collaboration with the kung fu star for the company’s 9.9 sale had over 59 articles published online. Meanwhile, there were 53 articles written about Hyun Bin’s endorsement of Lazada.

Steady increase of consumer spending year over year