Southeast Asia will be home to 310 million digital consumers by the end of this year, reaching a number previously forecast for 2025, as physical distancing measures imposed during the coronavirus pandemic accelerate the shift toward online spending, according to the latest annual Facebook Inc. and Bain & Co. report.
That means almost 70% of the region’s population that are 15 years old and older will go digital by end-2020, and the average online spending per person will triple from 2019 to $429 in 2025, according to the report released on Thursday. The study surveyed some 16,500 digital consumers in six countries including Indonesia, the Philippines and Vietnam.
“Southeast Asian digital consumers has grown exponentially and their consumption habits are shaping today’s new norm,” Praneeth Yendamuri, partner at Bain, said in an interview.
The study found that Southeast Asia’s online spending now accounts for 5% of the total retail market, surpassing India’s 4% rate. Its e-commerce gross merchandise value grew 23% per year between 2018 and 2020, faster than China, India and the U.S. during the period, it also showed. Even as lockdown measures ease, the region’s total online retail spending is projected to reach $53 billion this year before tripling to $147 billion by 2025.
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