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As the year’s largest online sales campaigns wrap up, research from Google and Temasek predict Southeast Asia is well on its way towards becoming a digital powerhouse worth much more than $200 billion USD in eight short years. How did shoppers behave during Single’s Day in light of all the work poured into gaining their trust and promoting online shopping?

From exclusive updates provided by the companies to ecommerceIQ, here is how Google’s recent report correlates with real time results.

Lazada Group Single’s Day and Online Revolution:

  • Single’s Day (11.11) generated USD$123 million gross merchandise value (GMV), 171% year-on-year growth
  • Shoppers ordered 6.5 million items, 191% year-on-year growth
  • 70% of orders were placed from mobile devices
  • Sells 12 limited edition Volkswagen Beetles within 20 minutes, each costing RM112,112 (USD$27,441) during Lazada Malaysia Online Revolution (12.12)
  • Apple products offered officially on Lazada as the brand’s authorised online reseller, opens shop-in-shop (SiS)

11street Malaysia 

  • 600% increase in cross-border product orders, 400% increase in total orders (compared to a regular day)
  • Most popular products: GPS, mobile accessories, smartphones, TV sets, theme park tickets
  • Traffic to the website doubled, 85% contributed by mobile

Shopee 9.9 Mobile Shopping Day 

  • 350% increase in orders, 500% increase in traffic
  • Most popular products: make up brushes, smart watches, canvas backpacks
  • 7 million chats, 30,000 participating sellers
  • Highest number of items ordered by one buyer was 218
  • Find more here

The results from this year’s mega sales campaigns work well with new predictions by Google & Temasek in their latest e-Conomy SEA Spotlight report:

  • Ecommerce sales of first-hand goods will reach $10.9 billion in GMV in 2017, up from $5.5 billion in 2015 (driven by top players like Lazada, Shopee, and Tokopedia)
  • Southeast Asia’s internet economy will reach $50 billion in 2017, growing at 27% CAGR
  • The region’s internet economy accounts for 2% of Southeast Asia’s GDP, will increase to 6% by 2025
  • There will be 330 million monthly active internet users by year end, 90% of which are smartphone users
  • Search interest for ecommerce brands growing more than two-fold in two years thanks to promotional activities and marketing investments by leading regional/global ecommerce players and co-marketing initiatives with top brands in electronics, fashion and consumer goods industries.

ecommerceIQ

It’s shaping up to be a good end to 2017 for ecommerce players, investors and shoppers in Southeast Asia. Stay tuned for 2018 ecommerce predictions.

For more charts & graphs related to ecommerce in Southeast Asia, check out our database.

Here’s what you should know:

1. Amazon hiring taxis to fulfill the demand of Amazon Prime in Singapore

As the launch of Amazon’s Prime Now Singapore is met with a high demand, the company has resorted to booking taxis — on top of tapping freelance drivers — to make deliveries.

Transport operator ComfortDelGro confirmed bookings through its call centre by Amazon Prime. Meanwhile, ride-hailing apps Grab and Uber have said their drivers are also free to explore other sources of income.

Drivers in Singapore is said to earned an hourly rate of up to S$30 from making Amazon Prime deliveries.

This move is likely taken as temporary measure before Amazon put a more efficient delivery infrastructure as it is defied the company’s strategy in the US, said transport economist Walter Theseira from the Singapore University of Social Sciences.

Read the full story here.

2. PayPal opens innovation labs in India

US-based PayPal has launched its third Innovation Labs at the Chennai and Bengaluru technology centres, after opening such facility in the US and Singapore.

The lab will serve as a platform to promote innovation in the newest technology areas across diverse fields including machine learning, AI data science, internet of things (IoT), and augmented reality/virtual reality (AR/VR).

The company is looking to diversify its employee pool to address new age innovation so that new solutions can come from mobile first and mobile savvy countries like India which is innovating solutions for the other emerging economies as well.

Read the full story here.

3. Singapore’s Temasek may come to the SoundCloud’s rescue

Temasek Holdings and boutique-bank Raine Group are buying SoundCloud’s stakes that would help stabilize the owner of the popular music-streaming service.

The deal could be closed by the end of this week but the terms of the deals weren’t immediately available.

The Berlin-based startup has failed to generate money despite attracting more than 175 million users. As a result, it laid off 40% of its staff earlier this month, and closed offices in San Francisco and London.

Read the full story here.

 

Here’s what you should know today.

1. Temasek leads $70m investment in gym subs service ClassPass

New York-based startup ClassPass has just closed a series C round worth US$70 million. The round was led by Singapore state fund Temasek Holdings.

ClassPass has travelled a rocky road prior to closing its series C. The company struggled to make an impact during its first two years, before adopting its current subscription model.

Temasek is an increasingly visible player on the global VC scene. It manages a portfolio worth over US$180 billion, mainly concentrated in Asia.

Read the rest of the story here.

 

2. Indian financial services marketplace BankBazaar enters Malaysia

BankBazaar, a leading online financial services company in India, has announced its expansion into Malaysia.

With over 70% active internet users, coupled with Malaysian Government’s commitment to digitise the financial ecosystem, Malaysia has led to the adoption of advanced financial technologies to equip customers to shift towards digital transactions.

Adhil Shetty, Co-founder and CEO, BankBazaar.com, said: “Buoyed by the positive business sentiment and a progressive regulator, Malaysia’s banking industry is poised towards the next phase of disruption.”

Read the rest of the story here.

 

3. Recommended Reading: Is Whole Foods a healthy option for Amazon?

Whole Foods, which some of my friends call “whole wallet,” focuses on their high-quality, high-price, heavily curated selection. On the other hand, Amazon is known for their hyper-efficiency, value and choice.

For Amazon, the ability to distribute products they already sourced at a higher-margin is a boon for their business. In other words, the Whole Foods markup builds Amazon a highly profitable channel for their goods.

Read the rest of the story here.

Here’s what you should know.

1. Groupon Malaysia officially rebrands as O2O platform Fave

KFit, which acquired Groupon Malaysia in November last year is now known as Fave.

This move will see Fave integrate all of Groupon Malaysia’s customers as well as deals from businesses such as restaurants, spas, fitness centres, hotels and more; essentially transforming Fave into a holistic lifestyle O2O platform.

Read the rest of the story here.

 

2. Temasek unit Heliconia launches $422m international partnership fund

This is aimed at helping Singaporean enterprises expand abroad and internationalise their business operations.

With its focus on Asian markets, its policy of joint investment means that local firms can partner with other Asian companies to engage in extending product lines, brands or value chains, or otherwise gaining access to markets, channels and technologies.

Read the rest of the story here.

 

3. Recommended Reading: Why marketplaces are essential to a retailer’s international strategy

According to a report from Accenture and AliResearch, global cross-border ecommerce is set to reach as much as $1 trillion in 2020. In addition, data has shown that globally 63% of frequent cross-border buyers shop internationally at least once a month.

Online marketplaces have fully integrated IT, stock management and reporting systems that retailers can leverage when selling in a new market. This data can be used to further develop local propositions and manage the allocation of stock.

Read the rest of the story here

 

4. Community Chatter: KFit founder Joel Neoh shares his thoughts on Fave

Source: Joel Neoh’s Facebook

Garena, Southeast Asia’s most valuable tech startup, has closed additional funding from three new investors, reports Tech Crunch.

They include: SeaTown Holdings International, an affiliate of Singapore sovereign wealth fund Temasek, Indonesia’s GDP Venture and Mistletoe, a Japan-based fund.

The amount raised was not disclosed, and Singapore-headquartered Garena did not reveal a post-money valuation.

The company’s last valuation was $3.75 billion following a $170 million funding round in March from Khazanah Nasional Berhad, the Malaysian government’s strategic investment fund, and Chinese tech giant Tencent, a long-term, existing investor.

Garena is best known for the gaming business it started in 2009, which accounts for most of its revenue, but today it also operates a payment service, AirPay and social commerce app, Shopee.

While Garena didn’t elaborate a lot, it did reveal some notable figures for its two newest ventures.

Shopee has reached 1.4 million sellers and annualized GMV of $1.3 billion.

But Shopee’s GMV figure is being calculated using monthly figures rather than an entire year of sales, this means the figures may be somewhat distorted. The same applies to AirPay, which Garena said has an annualized gross transaction value exceeding $510 million, but again, this is an annualized figure.

Regardless, it highlights the fact that Garena is putting its significant weight into social commerce and payments.

The deal will see Taizo Son, the younger brother of SoftBank CEO, and SeaTown’s Archana Parekh join Garena’s advisory board.

A version of this appeared in Tech Crunch on September 5. Read the full version here

Busy weekend? Don’t worry, here’s the weekend re-cap of headlines you should know.

1. Google and Temasek Report: By 2025, Indonesia will dominate 52% of all ecommerce activity in Southeast Asia

Google and Temasek released an Indonesia specific report last week, following their Southeast Asian report that came out in May. The report is optimistic about the growth of ecommerce in Indonesia, including the country’s internet adoption and opportunities of ecommerce. Read the rest of the story here

 

2. China Post launches WeChat account

Following the announcement of China Post and Tencent’s strategic alliance, the postal giant has release a statement regarding its official WeChat account which will offer  customers mail and ecommerce services. Read the rest of the story here.

 

3. Fynd is the Uber for gadget repairs, raised $385,000 in pre-series A funding round

The funding was led by Far East Ventures, the venture capital arm of Singaporean property developer Far East Organization. The startup will use this funding to grow its services in Southeast Asia. Currently, it is available in Singapore and Hong Kong, with plans to launch in Jakarta this year. Read the rest of the story here.

 

4. Global ecommerce logistics market will be worth $781 billion by 2024

A key factor to growth acceleration is the rise of cross-border ecommerce and low-cost cargo options. FedEx and DHL International currently lead the global ecommerce logistics market. Read the rest of the story here.

 

5. Amazon sends Chinese email to suspended US sellers

In midst of major ecommerce counterfeit issues in the last few months, Amazon has increased efforts to openly court Chinese manufacturers, resulting in a string of bizarre emails being sent to sellers. Read the rest of the story here.

 

6. HappyFresh Exits Philippines and Taiwan, Raises an undisclosed series B funding round

It will “concentrate” on its three other markets: Indonesia, Malaysia and Thailand Southeast Asia as it aims to become a sustainable business. Read the rest of the story here.