Global management consulting firm, AT Kearney and CIMB ASEAN Research Institute recently published a report about removing barriers in Southeast Asia’s e-commerce space. They argued that with the ASEAN Economic Community set to come into effect by the end of the year, online retail companies are poised to make a significant impact of the region’s economic development.
According to this report, e-commerce currently accounts for less than one percent of the total retail sales in Southeast Asia. In comparison to the six to eight percent ratio in places like Europe, China and the US, this is very low. However, with the steadily rising spending power of Southeast Asia’s consuming middle classes, increased internet penetrations and a growing number of e-commerce players, online retail in Southeast Asia can grow by as much as 25 percent annually in the coming years.