E-commerce, food delivery SEA’s e-economy to bring in $ 360 million by 2025 – Wired PR Lifestyle Story

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Since the launch of Covid-19, 60 million new digital consumers have been added to the Internet economy in Southeast Asia (SEA), adding 20 million people in the first half of this year.
Growth is helping the region’s Internet economy reach $ 360 trillion by 2025, Google, Temas and Bain & Company said in the sixth edition of the e-Conomy SEA report. The goal is an upward revision of the previous $ 300 billion forecast.
The region is also on track to turn $ 20 trillion into a digital economy by 2030.
It sees a rapidly growing support for the digital consumer and retail base, and a acceleration in e-commerce and food delivery.
The region has reached 440 million internet users
By 2021 alone, the SEA is estimated to reach $ 174 billion in gross commodity value (GMV).
The region currently has more than 440 million internet users. “Once the pandemics were catalyzed, existing digital consumers were more likely to venture into online services, and four new verticals began buying services since the explosion began. Existing users also rely more on digital services and spend more on most verticals,” the report says.
He also revealed that more SMEs are turning to digital platforms to deal with the pandemic.
“Digital financial services emerged as a critical enabler, with more than 90 percent of digital merchants accepting payments digitally. Over the next five years, eight out of 10 of those merchants expect more than half of their supply purchases and sales to come from online sources,” he said. .
Among SEA’s Internet users, eight out of 10 are digital consumers. Singapore is the largest entrant among other SEA nations, with at least 97 percent of Internet users making online purchases.
Thailand and Malaysia are the next two countries where more Internet users make at least one online purchase, compared to other residents, with 90 percent and 81 percent, respectively.

It encourages growth in food delivery, while e-commerce continues to help
The food delivery sector emerged as a bright spot, growing by 33 percent year-on-year at GMV to $ 12 billion.
Today, it has become the most embedded digital service, with 71% of all Internet users requesting meals online at least once.

Meanwhile, e-commerce continues to strengthen at its own pace. The SEA is expected to advance the Internet economy over the next decade, Google, Temas and Bain & Company said.
“By 2030, e-commerce GMV could exceed $ 120 trillion by the end of 2021 (almost double by 2020) and reach $ 234 trillion by 2025.”

Funding recovery and IPOs
Investments in SEA’s Internet economy are expected to reach an all-time high in 2021.
The value of the agreement reached USD 11.5 billion in the first half of the year, exceeding USD 11.6 billion by 2020 as a whole.
“Investors see SEA as a long-term investment destination for the long-term investment, especially in sectors such as e-commerce and digital financial services, as they continue to attract the majority of investment,” the report says.
He also noted that more technology companies are considering Initial Public Offerings (IPOs) as a viable way to raise capital or make money for early investors in their holdings, especially considering strong valuations and new listing approaches such as special purpose procurement firms ( SPAC).

In recent months, tech companies like Grab, a giant Property Guru tour have announced mergers with SPAC with the intention of listing them in the US in the coming months.
“We think this is just the beginning where I would expect to see local listings or foreign listings in the US in the next 12 to 18 months,” said Rohit Sipahimalani, chief investment strategist; head, Southeast Asia, in Temasek.
Online travel is expected to go up, games go up
Although the growth of online travel remains silent, it is likely to see a recovery in the medium term
long-term, driven by sustained demand and vaccine advances.
The report also noted that online media had a healthy growth of 32% in 2021 to $ 22 billion. In fact, Covid-19 brought a new generation of players, bringing a willingness to spend.
Featured Image Credit: Mckinsey
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