Victorian eCommerce Network (VeN): event series

Victorian eCommerce Network (VeN): eCommerce in Southeast Asia

On Thursday 29 August, we held a seminar in Melbourne to unpack Southeast Asia’s ecommerce ecosystem, in collaboration with Global Victoria, as part of the Victorian ecommerce Network (VeN).

With rising disposable incomes and increased connectivity, Southeast Asia’s consumers are transforming how they spend their money. More than half of the region’s 640 million people are now regular internet users, making the size of the opportunity immense. Australian businesses considering online sales in the region need to develop a sophisticated understanding of the region’s different e-commerce platforms, in order to tap into this growing consumer base.

The major players:

Lazada remains the number one shopping app (by monthly users) in Southeast Asia, followed by Shopee and Tokopedia according to a recent study by online shopping aggregator iPrice Group/App Annie. Backed by Chinese e-commerce giant Alibaba, Lazada placed first in the Philippines, Malaysia, Thailand and Singapore and ranked fourth in Indonesia and second in Vietnam. 


 

Opportunity for Australian businesses:

Speaking at the VeN event, Scott Ni, Senior Director, Strategy and Operations for Lazada said that 63% of Lazada shoppers were female.


He noted Fast Moving Consumer Goods (FMCG) were experiencing significant growth on the platform, in areas such as baby products and food and beverage. Australian brands with a clean and green reputation have a significant opportunity to market their products to the growing middle-class populations across Southeast Asia who are craving healthy and good quality products. This is reflected in the top performing categories from Australia being:

  • Infant formula
  • Health supplements
  • Groceries
  • Beauty and personal care
  • And fashion.

What are the challenges?

Leigh Howard, Deputy Commissioner to Southeast Asia, State Government of Victoria told the VeN forum that infrastructure challenges and understanding the different customs and regulations that apply to specific markets were among the major hurdles across the region. Whilst countries are close-by in terms of proximity, their regulatory environments can differ significantly.

Advice for Australian businesses considering Southeast Asia:

1. Going global means that you have to be local – Understanding the market and consumer preferences are key. For example, translating your product descriptions and benefits is a small step to catering to a local market.

2. Use ‘brand Australia’ – Australian brands have developed a global reputation for being clean, green and healthy and Australian brands should showcase their origin.

3. Be a consumer first – If you are considering selling on Southeast Asian ecommerce platforms, be a consumer first. Use the platform, place a transaction and go through the user experience, this is an important step to take when deciding which platform is right for your product. 

As a part of the VeN event series, we also explored the ecommerce landscape in India.


Internet usage in India has seen dramatic growth in the last decade. In 2017, India was the second largest internet market after China, with an estimated 481 million users.

Guest speakers at the India VeN event - Dr Mark Morley, Trade Commissioner, India and Pakistan Austrade, Abhi Shukla, Head of Category & Business Development, Amazon India, Juie Gosalia, Senior Category Business Development Manager, Amazon India and Kshitij Dhedia, Sourcing Manager, Foodhall - shared their insights on India’s retail ecosystem.

The e-commerce industry in India is growing at an annual rate of 51 per cent, the highest in the world, with e-commerce stores Flipkart, Amazon and Snapdeal leading the pack. It has been predicted that the value of the industry will increase from USD 38.5 billion in 2017 to USD 200 billion by 2026. Currently, approximately 75 per cent of Indian internet users are between 15-34 years old, the demographic most likely to shop online.

For more information

To view our upcoming events visit our event landing page

And access our range of Country Starter Packs, including information on country specific online sales environments, visit our resources hub