Dec 4, 2012

ASEAN - eCommerce Boom in China and ASEAN

Follow Me on Pinterest
China’s e-commerce industry will grow quickly in the next five years and its transactions are expected to quadruple last year’s figure by 2015. The sales volume of China’s e-commerce will annually grow at least 32 percent year-on-year from 2011 to 2015. We estimate a transaction volume of 18 trillion yuan ($2.8 trillion) in 2015. The amount in 2010 was 4.5 trillion yuan.

Asia’s online population surpassed 825 million users in 2010 and new research from shows another 700 million more will be added by 2015.

AFTA and CAFTA have changed the way Asians will conduct online business. ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.

The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement in order to join ASEAN, but were given longer time frames in which to meet AFTA’s tariff reduction obligations. CAFTA is the same trading bloc that now includes China.

Nowhere in the world is online shopping exploding as quickly as in Asia Pacific. This region now includes more than 40% of the global online population, and with the growing percentage of online shoppers and increasing per-capita online spending, the aggregate online retail markets of Asia Pacific are growing faster than their counterparts in North America or Europe.

Turnover of and, two major Chinese online shopping platforms, surpassed 1 trillion yuan ($160.5 billion) as of Nov 30, according to e-commerce platform provider Alibaba Group on Monday.

Turnover of Tmall and Taobao during the first 11 months months this year equals to 5.4 percent of China’s total retail sales in 2011, which stood at 18.4 trillion yuan, according to Alibaba.

Company statistics show that people between the ages of 25 to 35, who are major customers of Tmall and Taobao, contributed to 59 percent of total turnover.

The most favored two categories of products by consumers were clothing, and 3C digital products (computers, communication and consumer electronics), accounting for 30.3 percent and 18.6 percent of the total turnover respectively.

Transaction volume on, which was founded in May 2003, reached 20 million yuan in that same year.

Alibaba split Taobao into three separate companies in 2011. They are Taobao, a C2C online shopping destination, Tmall, a B2C online marketplace for brand-name goods and eTao, a shopping search engine.

Transaction volume on Taobao and Tmall totaled about 630 billion yuan in 2011.


LAZADA is Southeast Asia’s fastest growing online department store, with operations in Indonesia, Malaysia, Philippines, Thailand and Vietnam. LAZADA is pioneering eCommerce across some of the fastest growing countries in the world by offering a fast, secure and convenient online shopping experience with a broad product offering in categories ranging from consumer electronics to household goods, toys and sports equipment. LAZADA is always striving to offer its customers the best possible offering – including multiple payment options, free returns and extensive customer service and warranty commitments.

Swedish investment house Kinnevik is betting big on Southeast Asia’s economic rise through an investment of $40 million in online shopping site Lazada, which is emerging as a leading player in the region’s e-commerce sector.

The new investment comes shortly after Lazada announced that it now had the backing of JP Morgan Asset Management in Hong Kong.

“This provides Lazada with an exceptionally well-funded balance sheet to continue its fast growth in Southeast Asia,” said Lazada, an e-commerce site owned by German incubator Rocket Internet.

The fresh funds would help the company further expand its already-growing reach and product line-up for its customers in Indonesia, Malaysia, Philippines, Thailand and Vietnam.

“By focusing on providing superior service to our customers we have grown into a trusted household brand and to broaden our assortment is a natural next step for us,” Lazada’s regional CEO Maximilian Bittner said.

Lazada recently added fashion to its extensive product offering, which ranges from consumer electronics to household goods, toys and sports equipment.

“Kinnevik has a proven track-record of investing in emerging markets and we are very excited to have such a knowledgeable and experienced investor on board,” Bittner said.

“In addition to capital, they will provide us with invaluable strategic insight of operating in such markets. It is also a strong testament to what we have accomplished so far and verifies that we are on the right track to achieve our aggressive strategic goals,” he added.

Lazada is largely believed to be patterned after the popular United States online shopping site, which failed to establish a significant foothold in fast-growing emerging markets like the Philippines.

In a statement, Kinnevik investments head Henrik Persson said Lazada’s rise to become a recognized name in e-commerce in a relatively short period led to the investment.

“We are delighted to invest in Lazada, which has obtained a market leading position,” Persson said. “The company is perfectly positioned to become the major e-commerce player in this region, which counts more than 600 million inhabitants,” he said.

Xirxi Co Ltd is a Retail and Wholesale company for three primary customer bases: consumers, sellers and enterprises. In addition, the Company generates revenue through other marketing and promotional services, such as online advertising, IT Services.

The Company operates in two segments: South East Asia and International. The Company serves consumers through its retail Websites, and focus on selection, price, and convenience, the logistics of online retail and International wholesale in South East Asia offer challenges that large companies like Amazon etc cannot manage.
Xirxi designs its Websites to enable products to be sold by it and by third parties across dozens of product categories. Xirxi also manufactures and sells unique
products that will develop an International Market.

It fulfills customer orders in a range of innovative ways, including international fulfillment centers and warehouses that it operates in Laem Chabang, Thailand’s Tax Free Zone, through co-sourced and outsourced arrangements in certain countries, and through digital delivery. It operates customer service centers in South East Asia, which are supplemented by co-sourced arrangements.

The Company offers programs that enable sellers to sell their products on its Websites and their own branded Websites and to fulfill orders through it. It earns fixed fees, revenue share fees, per-unit activity fees, or some combination thereof from these transactions. The Company serves developers and enterprises of all sizes through Xirxi IT Services (XITS), which provides access to technology infrastructure that enables any type of business.

Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at Many thanks.

No comments:

Post a Comment