21-22102015_ASEAN Retail Strategies_Emerging markets, in search of sustainable growth
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The document discusses ASEAN retail strategies and e-commerce growth prospects across several Southeast Asian countries, highlighting key macroeconomic indicators and retail development. Key challenges such as slow internet speed, limited payment options, and security concerns are identified as barriers to e-commerce expansion. Overall, the report emphasizes significant growth potential for retail and e-commerce in the region, contingent upon addressing these barriers.
21-22102015_ASEAN Retail Strategies_Emerging markets, in search of sustainable growth
- 1. ASEAN Retail Strategies: Emerging Markets, in Search of Sustainable Growth By Jeffrey Bahar, Deputy CEO Spire Research and Consulting Prepared for: 3rd Annual South East Asia Retail Expansion Summit 2015 Jakarta, 21-22nd October 2015
- 2. ASEAN macroeconomic situation and Retail Development The Future of Retail: e-Commerce to Eliminate the Border E-Commerce Development in Indonesia Barriers in Indonesia e-Commerce Growth Conclusion Table of Contents
- 3. ASEAN Macroeconomic Situation and Retail Development
- 4. Vietnam GDP: US$186 billion Population: 90.7 million Urban population: 34% Thailand GDP: 374 billion Population: 67.7 million Urban population: 35.7% Indonesia GDP: US$889 billion Population: 254.5 million Urban population: 53.2% Malaysia GDP: US$ 327 billion Population: 29.9 million Urban population: 75.2% Singapore GDP: US$308 billion Population: 5.5 million Urban population: 100% Philippines GDP: US$ 285 billion Population: 99.1 million Urban population: 51% 5,519 3,492 2,870 56,287 10,933 2,052 Source: The Worldbank, CIA World Factbook, CEIC, DBS Bank ASEAN Countries: The Top Six (2014) Income per capita
- 5. Source: CEICdata, Bank of Indonesia, Economist Intelligence Unit, e-marketer 83 88 93 107 123 337 335 328 377 469 117 119 115 120 129 39 41 44 46 50 61 66 76 85 97 111 119 125 139 152 2012 2013 2014* 2015* 2016* RETAIL SALES IN SEVERAL COUNTRIES IN ASEAN (US$ BILLION) Malaysia Indonesia Thailand Singapore Vietnam Philippines ASEAN Macro Economic Situation: Retail Sales 2014 Global Retail Sales: US$22 trillion
- 6. Penetration of Modern Retail in ASEAN (2014) Source: Euromonitor, DBS Bank, Spire Research and Consulting 43 16 45 71 25 28 57 84 55 29 75 72 Malaysia Indonesia Thailand Singapore Vietnam Philippines Modern Retail Traditional Retail Benchmark: Germany 85%
- 7. Breakdown of Modern Retail Outlets in ASEAN (2014) Source: Euromonitor, DBS Bank, Vietnam Ministry of Trade, USDA Foreign Agricultural Service 55.1 43.4 15.9 5.3 14.5 16 Singapore Malaysia Thailand Indonesia Philippines Vietnam Number of Supermarkets per 1m Population 2.9 5.6 4.1 1.1 1.8 0.3 Singapore Malaysia Thailand Indonesia Philippines Vietnam Number of Hypermarkets per 1m Population 112.9 85.2 161.2 89.6 20.5 3.8 Singapore Malaysia Thailand Indonesia Philippines Vietnam Number of Convenience Stores per 1m Population 303 1,298 1,079 1,362 1,631 1,452 16 167 281 269 178 26 621 2,547 10,916 22,818 2,031 348 Singapore Malaysia Thailand Indonesia Philippines Vietnam Supermarket Hypermarket Convenience Stores
- 8. The Future of Retail: e-Commerce to Eliminate the Border
- 9. E-commerce Market share Worldwide by Region (2013) Europe United States $395 (32%) Japan *Dominated by buyer from China and Japan Source: eMarketer 2013 Global e-Commerce Retail Sales: US$1.22 trillion ASEAN China $230 (19%) $181 (15%) $119 (10%) $7 (<1%)
- 10. Vietnam 90.7 million population 40 m netizens 24 m digital buyers Thailand 67.7 million population 19 m netizens 14 m digital buyers Indonesia 254.5 million population 39 m netizens 4.6 m digital buyers Malaysia 29.9 million population 20 m netizens 16 m digital buyers Singapore 5.5 million population 4 m netizens 3.2 m digital buyers Philippines 99.1 million population 36 m netizens 25 m digital buyers Top Six ASEAN Retail e-Commerce Market Size (2013) Revenue of Retail e-Commerce (billion US$) Source: IMF, eMarketer, eCommerceMILO, DigitalFilipino, WorldBank $0.8 $1.3 $0.9 $1.3 $1.7 $1 US$ 7
- 11. B2C E-commerce Sales Share and Digital Buyer Penetration Worldwide, by Region (2015*) Western Europe Central & East Europe Middle East & Africa Latin America North America 31.7% 74.9% 3.2% 30.9% 24.6% 66.3% 2.3% 34% 3.8% 44.3% 33.4% 46.8% Asia Pacific* *Dominated by buyer from China and Japan 2015 Global e-Commerce Retail Sales: US$1.7 trillion Source: eMarketer
- 12. E-Commerce Development in Indonesia
- 13. 15% 18% 20.5% 22% Products Bought via Online Channel in Indonesia Source: Spire Online Survey Beauty Products 12% Sports Equipment 4% Automotive Accessories 4% Health Supplement 4% Books Fashion Products Electronics & Gadget Gaming Products 11.36% 6.82% 29.55% 51.14% 1.14% 0.10% 41-50 years old 35-40 years old 28-34 years old 21-27 years old 16-20 years old < 15 years old Shoppers Grouped by Age
- 14. E-commerce Development in Indonesia Source: Tech in Asia, Statista, Asosiasi Penyelenggara Jasa Internet Indonesia, Economist Intelligence Unit Known Types of Online Shopping Platform Online Stores (50.3%) Social Media (43.1%) Trading Forum (27%) Website (11.6%) Online Community (9.7%) Messenger (8.8%) Mailing List (1.3%) 2015 2014 2016 2013 4.6 million 5.9 million 7.4 million 8.7 million Number of Online Shoppers • US$ 1.8 billion 2013 • US$ 2.8 billion 2014 • US$ 3.56 billion 2015 • US$ 4.49 billion 2016 E-Commerce Revenue Growth
- 15. Free shipping Exclusive items or deals Product warranty Safe and simple payment methods Source: Spire Online Survey Shoppers Likes and Dislikes in Online Shopping Trust issue on product quality No hands on experience before buying High shipping cost and slow delivery time Unreliable payment method
- 16. Barriers in Indonesia e-Commerce Growth
- 19. “Limited payment options and worry over online security”
- 20. Increasing Usage of Mobile Money in Indonesia 1% 2.30% 2.70% 7% 24% 33% 67.40% Mobile Money Rekber PayPal Debit Card Credit Card Internet Banking SMS Banking Payment Methods Used by Indonesia Internet User 77,752 105,828 110,891 114,895 15,092 16,043 16,227 16,440 27,433 38,319 52,211 69,451 2013 2014 2015 2016* Debet and Credit Card Ownership and Active Smartphone Users in Indonesia Debet Card Credit Card Smartphone Users Source: Bank Indonesia, Asosiasi Penyelenggara Jasa Internet Indonesia
- 21. Mobile Money / Mobile Payment Jak Card Bank DKI Bank Mandiri Indomaret Card Gaz Card E-Toll Card E-Cash Bank BCA Flazz Card Mega Cash Mega Virtual Tap Cash Brizzi BBM MoneyBank Permata CIMB Niaga Rekening Ponsel Nobu Bank Nobu E-Money Bank BRI Bank BNI Bank Mega 1 t-cash Indosat Dompetku XL Axiata XL Tunai Smartfren Uangku Telkom I-Vas Flexi Cash Skye Sab Binus Easy Transaction Skye Mobile Money FinChannel Mynt e-moneyArtajasa Doku WalletNusa Satu Inti Artha Finnet Indonesia Witami Tunai Mandiri Witami Tunai mVcommerce Ponsel & Instan Pay 2 3 4 5 6 8 7 9 Bank Institution Telco Provider 1 2 3 4 5 3rd Party 1 2 3 4 5 6 (Dismissed in 2015) Mobile Money Providers in Indonesia Source: Bank Indonesia, Spire Research and Consulting
- 22. Case: BBM Money Current BBM user: 8.5 million subscriber Source: Spire Research and Consulting
- 23. Conclusion
- 24. ASEAN hold a tremendous for future retail expansion E-Commerce will continue to see a double digit growth There are barriers to be addressed in order to promote e-Commerce: Limited Broadband Access Reducing trade border Reinforce Online Security Repair the logistics system
- 25. Tel: (62) 5794 5800 Fax: (62) 5794 5808 Wisma 46, Kota BNI 25th Floor, Unit #08-10 Jakarta 10220 [email protected] www.spireresearch.com