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101. Southeast Asia E-Commerce Growth with Shlomi Cohen

Introduction

In this episode, I had the pleasure of speaking with Shlomi Cohen, the Head of Business Development and Partnerships at aCommerce, Southeast Asia's leading e-commerce enabler based in Bangkok. With over a decade of experience across the region, Shlomi shared invaluable insights about the rapidly growing e-commerce landscape in Southeast Asia.

aCommerce Overview

Founded in 2013, aCommerce offers comprehensive end-to-end solutions for brands seeking to establish or expand their online presence in markets like Thailand, Indonesia, Vietnam, and more. Their offerings range from web store development to logistics management, customer service, and data-driven marketing strategies.

During our conversation, Shlomi provided a detailed overview of the Southeast Asian e-commerce market, highlighting its size, growth rates, and key players. He identified Indonesia, Thailand, and Vietnam as the top markets to watch, illustrating the unique factors that drive growth in each country.

Market Insights

Current Market Size and Growth Rates

The Southeast Asian e-commerce market grew from approximately $ 99 billion in 2022 to $ 114 billion in 2023, demonstrating a healthy growth rate. Indonesia emerged as the largest market contributor with $ 53 billion, followed by Thailand and Vietnam. Thailand's impressive growth rate was attributed to a combination of a robust tech scene, recovering tourism, and increasing retail spending.

Rise of Social Commerce

Shlomi elaborated on the rise of social commerce, specifically the influence of platforms like TikTok and TikTok Shop. In Thailand, TikTok accounts for around 21% of the e-commerce market, showcasing the power of "shoppertainment" in driving online purchasing behavior. aCommerce is actively involved in this space, having launched a reality TV show focusing on live commerce.

Strategies for Local and International Brands

For brands looking to enter the Southeast Asian market, Shlomi recommended several strategies. This includes prioritizing TikTok for marketing, utilizing marketplaces like Shopee and Lazada, and leveraging video content and influencer partnerships for customer acquisition.

Shlomi emphasized the importance of understanding local consumer behaviors and adapting strategies accordingly. For instance, brands need to consider the price points and cultural acceptance of their products in different markets.

Opportunities for US Brands

Shlomi identified several exciting opportunities for US brands in Southeast Asia. While the region presents regulatory challenges, it also offers substantial market potential. Brands are encouraged to start their journey in a single country and gradually expand their presence based on market insights and consumer behavior data.

The Role of Retailers

Lastly, Shlomi discussed the evolving role of retailers in the e-commerce ecosystem, particularly focusing on the shift towards third-party marketplaces. Retailers in Southeast Asia are adopting a more dynamic strategy to compete against major players like Shopee and TikTok, allowing third-party sellers to leverage their platforms.

In conclusion, the Southeast Asian e-commerce landscape is flourishing and presents tremendous opportunities for both local and international brands.

Keywords

  • E-commerce
  • Southeast Asia
  • Growth
  • Shlomi Cohen
  • aCommerce
  • Social Commerce
  • TikTok
  • Market Insights
  • Consumer Behavior
  • Retail Strategy
  • Brand Expansion

FAQ

1. What is aCommerce?
aCommerce is Southeast Asia's leading e-commerce enabler, providing end-to-end solutions for brands to establish their online presence.

2. Which countries in Southeast Asia are currently growing fastest in e-commerce?
Indonesia, Thailand, and Vietnam are identified as the key markets to watch for rapid growth.

3. How important is social commerce in the region?
Social commerce plays a significant role, with platforms like TikTok transforming online shopping behavior, accounting for significant percentages of market share in countries such as Thailand.

4. What strategies should brands consider for market entry?
Brands should focus on marketing through TikTok, utilize marketplaces like Shopee and Lazada, and prioritize video content and influencer partnerships.

5. Is there potential for US brands in Southeast Asia?
Yes, there are numerous opportunities for US brands, particularly those who are prepared to adapt their strategies to local market conditions.

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