As consumers are stranded at home to shop online after the pandemic, South Asia’s internet economy is poised to break through the $ 100 billion mark this year, according to a recent report.
The report covers the market data of Indonesia, Malaysia, Vietnam, Singapore and The Philippines.
According to the report, Southeast Asia’s internet economy will reach $ 105 billion this year. The report says the region added 40 million new Internet users this year, bringing the total to 400 million. This means that 70% of the region’s population is now online.
The report, while citing investment experts, said: “The coronavirus has caused a permanent and massive digital adoption surge.”
Additionally, the report states that Southeast Asia’s internet economy grew 5% from 2019. E-commerce grew by 63% to $ 62 billion in 2020, to become the most large vertical sector this year, while the travel sector contracted 58% to $ 14 billion.
Online retailers have emerged as the winners in coronavirus-related lockdowns as people prefer to shop at home instead of going to stores amid concerns over an upsurge in infections.
The South Asia region’s online industry is set to triple to $ 309 billion in gross merchandise value by 2025, which almost matches the $ 300 billion forecast of the last year. With an 11% increase in the number of online users, Southeast Asia is one of the fastest growing internet markets in the world. That compares to about 4.7 billion internet users worldwide, up 7.4% from a year ago, according to wearesocial.com, a digital surveillance service.
On top of that, the report says investors still have enough capital to deploy but are more focused on the business path to financial gain.