The Jakarta Post
As the number of digital consumers in Southeast Asia rose by 50 percent to 200 million last year, the region’s internet economy has been valued at US$50 billion, a report shows.
With the sizable value, the market now serves as a major battleground for global industrial players aiming to tap into potentials in the lucrative market, management consulting firm Bain & Company stated in its latest report released on Monday.
However, these industry giants find local players as their major competitors as the latter start to gain ground in the region, according to the report titled “Digital Acceleration in Southeast Asia: Navigating Tectonic Shifts.”
“We have seen monumental digital growth in Southeast Asia over the past year, but what is even more interesting is how these businesses are competing with very different business models, inspired by both China and the US players,” said Florian Hoppe, the lead author of the report.
“The challenge that lies ahead is whether these companies can navigate what is still a highly fragmented market to stay ahead of the competition,” added Hoppe, who is also the co-lead in Bain’s Asia-Pacific digital practice.
Covering 2,400 consumers in six Southeast Asian countries including Indonesia, the survey estimates that 230 million individuals across the region have become "online engaged consumers," meaning they carry out online research before buying goods or services.
Travel and tourism accounts for the largest digital market with a value of $22 billion, followed by e-commerce with $15 billion. (yon/lnd)