E-Commerce GMV growth in Southeast Asia slows but remains ‘healthy’
Online purchase frequency dipped due to the relaxation of COVID restrictions.
Gross merchandise value (GMV) of e-commerce in Southeast Asia is expected to grow by 15% year-on-year (YoY) in 2022 to $129b, slower than the 48% YoY growth in 2021, according to a report by Meta and Bain & Company.
Online purchase frequency declined this year, with the average number of digital purchases in the last three months before the survey declining by 5% compared to the same period last year.
“The easing of COVID-related restrictions could be a contributing factor to this decline, as greater freedom of movement opens up more options for consumers to buy offline,” the report read.
“Consumers possibly prefer the “look and feel” aspect that offline channels offer, thus prompting this channel shift. Other possible factors include inflationary and supply chain pressures,” it added.
The online spending remains on a “healthy trajectory” when measured by GMV, Meta and Bain said, adding that it is expected to increase to $280b in 2027.
Meta and Bain added that online purchases in some categories have increased such as beauty and cosmetics, household furnishing, and household appliances.