Is the Asian market attractive for digital expansion in the B2C sector? Which Asian countries offer potential for expansion? Are there challenges and peculiarities that expansions need to be aware of and should be considered?
The e-commerce market in Southeast Asia is experiencing a rapid development, with B2C marketplaces such as Lazada.com playing a central role in the up-and-coming sector. With a market volume of several billion US dollars, the e-commerce landscape in Southeast Asia has changed dynamically in recent years.
Impressive growth
The e-commerce market in Southeast Asia is experiencing an impressive growth surpassing the speed of growth in China. A young population, an increasing internet penetration, a growing middle class and the increased use of smartphones are driving this trend. Favoured by the populous countries in Southeast Asia and the rapidly growing trend of online shopping by the young population (even in remote regions), the Southeast Asian e-commerce market is seen as a promising alternative to the Chinese e-commerce market.
In this context, the B2C platform Lazada.com plays a leading role. Founded in 2012, Lazada.com has developed into one of the leading e-commerce platforms in Southeast Asia. With a presence in six countries such as Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Singapore, Lazada.com offers a wide range of products including electronics, fashion, and household goods.
Cultural differences
Compared to the e-commerce landscape in Germany, some cultural and consumer behaviours differences can be noticed. Southeast Asia is characterized by a variety of cultures, languages, and consumer habits, which poses a challenge for companies looking to expand to this region. Local experts often have a deeper insight into local consumer needs and are familiar with cultural and linguistic differences in Southeast Asia.
Facing these challenges, Lazada.com has successfully positioned itself in this diverse environment. The e-commerce platform does not provide only a trade platform between consumers and businesses, Lazada.com also offers comprehensive services in the field of logistics, payment processing and marketing. This “one-stop-shop” concept has helped to earn the trust of consumers and cement Lazada’s success in the Southeast Asian countries.
Promising future
The growth prospects for the e-commerce market in Southeast Asia are promising, despite specific challenges. Logistics, for example, is a complex task due to the geographical distribution of the countries. Lazada.com faced this challenge by investing in an efficient logistics network to shorten delivery times and to increase customer satisfaction. Additionally, Lazada.com needed to deal with the challenge of diverse payment methods in the countries. In contrast to Germany, where online payments are widespread, many consumers in Southeast Asia still use traditional payment methods. Facing this challenge, Lazada.com offers now a wide range of payment options, from credit cards to digital wallets. Lazada.com also offers the Cash on Delivery service among its payment options to reach consumers without bank accounts.
The future of e-commerce in Southeast Asia is promising and will continue to grow undeterred in the near future, while the B2C platform Lazada.com will play a decisive role. Adapting to local conditions, offering comprehensive services, and overcoming local challenges are important factors for success in this dynamic region. The Southeast Asian e-commerce market is not only an emerging industry, but also an exciting field of experimentation for companies looking to expand globally.
Digital expansion with the B2C platform Lazada.com offers a wide range of opportunities to participate internationally in the Southeast Asian e-commerce business. As a service partner of Lazada.com, Melchers supports SMEs from the DACH region to expand digitally into Southeast Asia. With more than 150 years of market expertise in Asia and a broad network in China and Southeast Asia, Melchers is familiar with business and intercultural differences in various Asian countries.
Here you can find more information about the cross-border e-commerce program with Lazada.com.
In our webinar you will learn more about the B2C platform Lazada.com, the market potential, and marketing opportunities. Get an overview of Lazada, LazGlobal, and LazMall, as well as a possible roadmap for a successful Lazada strategy and our service portfolio. Register here for the webinar.
