With the deepening of globalization, it has become a new normal for domestic enterprises to go to Southeast Asia. The Southeast Asian market has attracted the attention of many Chinese enterprises with its unique geographical advantages, demographic dividend and economic growth potential. What are the market and consumption trends in Southeast Asia, the policy support for going to Southeast Asia, and which industries are more profitable? This article will share and discuss these issues.
01 Consumption trend in Southeast Asia market
With the improvement of network infrastructure and the increase of Internet penetration, Southeast Asian consumers increasingly rely on mobile devices for shopping, and the penetration rate of mobile e-commerce has exceeded 60%. At the same time, the utilization rate of online payment methods such as electronic wallet has risen rapidly, especially during the epidemic period, the number of new registered users of electronic wallet has surged.
The high attention of Southeast Asian consumers to health has promoted the rapid development of many health-related tracks, including fitness, nutrition supply, beauty care, healthy home, healthy diet, etc. Southeast Asian consumers will compare and search online and offline multi-channel when shopping to seek the most favorable price. For example, they may study products online, then experience them in physical stores, and finally choose the channel with the best price to complete the purchase. With the growth of the middle class in Indonesia, Vietnam, Thailand and other countries, their demand for improving the quality of life and pursuing a better life is increasing, which provides market opportunities for high-end products and services.
Southeast Asian consumers' choice of brands and products is characterized by individuation, and consumers in different countries have different preferences. At the same time, with the emphasis on local culture, brands need to adopt marketing strategies that conform to local culture, and use local festivals and customs for marketing. Southeast Asia's multi-cultural and festivals are important entry points for brand marketing, such as Ramadan, Water Splashing Festival and Spring Festival. Brands can attract consumers through these festival cultural activities.
02 Opportunities in Southeast Asia
Economic growth and demographic dividend. Southeast Asia includes 11 countries with a total population of more than 600 million, of which 45.3% are people aged 20-50. According to the prediction of the International Monetary Fund, by the end of 2024, the real GDP growth rate of Vietnam, the Philippines, Indonesia and Malaysia will exceed the level of the world, China and the United States. This demographic structure and economic growth provide huge potential for the consumer market.
The rise of digital economy. Southeast Asia has entered a period of deep use of mobile Internet. By January 2023, the total number of Internet users in Southeast Asia has reached 476 million. By 2025, e-commerce sales are expected to be close to $210 billion, far more than other regions in the world. This trend provides a huge online market potential for Chinese enterprises. and The promotion of the China ASEAN Free Trade Area, especially the 3.0 negotiation, will cover new areas such as trade in goods, investment, digital economy and green economy. This has provided a more convenient trade and investment environment for domestic enterprises.
Source: Yunnan Network
03 Analysis of the Industry Going to Southeast Asia
1. E-commerce market
The e-commerce market in Southeast Asia has great potential, but its penetration rate is relatively low. According to statistics, the scale of e-commerce market in Southeast Asia will be 38 billion dollars in 2019, and is expected to grow to 153 billion dollars by 2025. Enterprises can make full use of their advantages in e-commerce to expand the Southeast Asian market.
2. Manufacturing
Southeast Asian countries have lower labor costs and more preferential policies, which have attracted a large number of foreign enterprises to invest and set up factories. Enterprises can make use of their advantages in manufacturing industry to invest in Southeast Asian countries and realize industrial transformation and upgrading.
3. Fintech
The financial market in Southeast Asia has huge development space, and financial technology enterprises are expected to achieve rapid development in this field. It is estimated that the scale of Southeast Asia's financial technology market will reach US $110 billion by 2025.
4. Infrastructure construction
Southeast Asian countries have strong demand for infrastructure construction, providing a broad market space for Chinese enterprises. According to statistics, the scale of infrastructure construction market in Southeast Asia has reached US $1.5 trillion.
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