A short 9 slide presentation to help retailers explore Southeast Asia's growing ecommerce market. With statistics crafted from Ardent Capital (leading VC) and aCommerce (leading ecommerce solutions provider), this presentation was created for the Internet Retail Expo 2016 in Indonesia.

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aCommerce
Ecommerce Themes in Southeast Asia: A Guide for Retailers
October 2015
Full Service Ecommerce Solutions Provider in ASEAN

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Theme 1: We Are in the Perfect Storm for Ecommerce in Southeast Asia
• Ecommerce shopping makes up just 1-2% of total retail sales in SEA. This compares with 16% in Korea, 9% in the U.S. and 8% global
average
• At this exact moment, ASEAN is at the infliction point of ecommerce, with the largest growth about to happen relative to
population growth and GDP. With 8% of the world’s population, 3% of the global GDP, and only .5% of global online B2C retail, there
is a huge opportunity for ASEAN
• ASEAN’s market potential is massive. A.T. Kearney forecasts a theoretical ecommerce market size of USD67 – 89 billion for ASEAN in
the future, with Thailand, Indonesia and Malaysia, having biggest growth potential
• The bottleneck for offline retailers going online is being relieved, with internet penetration (36% now in SEA) and basic regulations
in place and companies, such as aCommerce, helping to solve all other logistics and payment processing roadblocks

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Theme 2: Mobile is the Future and Critical for Retailers in Southeast
Asia
• Every single major Southeast Asian country is above the global average in mobile phone penetration (SEA average of 118%), with
many averaging more than one phone per person due to the decrease of smartphone and tablet prices in the region, a growing
middle class, and a mobile first outlook
• 56% of the online shopping source comes from mobile in Southeast Asia vs. 44% globally
• In just one year, Lazada’s mobile traffic grew from 13% of total traffic to 49%
• Still a very big growth potential as smartphone penetration increases and users are able to utilize apps to complete mobile
purchases:

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Theme 3: Social is the Foundation
• In Southeast Asia, 34% of the total population are active
social media users compared to just 29% globally
• Interesting statistics from mobile communications app,
LINE:
 600M+ users worldwide from 0 in 2011
 3 of the top 10 countries are in SEA with Thailand
having 33M active users
 7% of APAC adult internet users use LINE monthly
 1.8 billion stickers sent per day with 250K per month
minimum charged on each sponsor stickers account
• Interesting Facebook statistics from Thailand:
 Thailand has the 3rd largest Facebook population in
the world with 35 million users
 Bangkok has more Facebook users than any other
city in the world with 20 million
 Users spend an average of 2.35 hours per day on the
site
 94% users return to Facebook every month
 Recently rolled out Instagram advertisements in
Thailand, now 7.1 million active users/month
• Internet has surpassed TV in most of Southeast Asia as the
most popular daily media outlet with 50% of people using
mobile devices while watching TV
• People use Facebook as a discovery tool to shop with 52%
of people aged 16+ in SEA reporting they use Facebook to
first hear about a new product, brand, or service

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Theme 4: Demographic Shift: Millennials Lead the Way
• In Thailand, browsers ages 65+ browse the least but have the highest conversion rate (2%)
• In Indonesia, millennials browse the most (42% of sessions) and convert the highest (1.9%)
• More than 67% of the ASEAN population is under 35 years of age:
Implications for retailers: general distribution and
purchase behavior is consistent across every
product category. Once an online shopper, always
an online shipper. Retailers should focus on
attracting ALL generations of consumers at the
earliest stage possible with an emphasis on deals
and promotions in Southeast Asia.

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Theme 5: Urban vs. Rural: Do Not Neglect Rural Buyers
• Despite Southeast Asia having over 54 million people in major cities, most purchases still happen outside of major
capital cities, with cash on delivery being a major component for rural purchases
• 70% of purchases in Thailand happen outside of Bangkok, with 66% of purchasers using cash on delivery (COD) as their
preferred payment method
• 66% of purchases in Indonesia happen outside of Jakarta with 50% using bank transfer and 30% using COD as their
payment method

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Theme 6: Challenges for Incumbents
• Sales cannibalization of offline operations
• Discounted prices and margin pressure
• Offline store-opening opportunity overstated
• Channel integration will be a major challenge
• Profit focus can be a disadvantage
• New online ventures will initially be loss-
making
• Out of 130 companies with a 1 billion (USD)
valuation this year, 30 are from Asia, and 13
from ecommerce:

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So What’s Next for Ecommerce in Southeast Asia?
Southeast Asia is BIG (2x bigger than US), young and getting richer, internet and mobile focused, extremely social, and growing
fast. Global competitors have not yet flooded the market leaving adequate funding for ecommerce startups and regional retailers.
All sources from:
• aCommerce Internal Data and Business Intelligence
• Euromonitor, BofA Merrill Lynch’s eCommerce Report as of May 2015
• A.T. Kearney Analysis Report 2015, Euromonitor
• CLSA report Sept 2015
• We Are Social, Euromonitor, East Ventures, 2015
• Globalweb index, We Are SocialReport Mar 2015
• Nielsen 2014 Asian Mobileconsumer report
• http://www.socialmediatoday.com/social-business/adhutchinson/2015-08-08/facebook-releases-new-data-south-east-asian-market-report
• UBS report “ASEAN E-commerce” / GlobalDemographics2014

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Thailand
946 Dusit Thani Building, 4th fl.,
Rama IV Rd. Bangrak, Bangkok,
Thailand 10500
Indonesia
PT Acommerce Solusi Lestari, Sahid
Sudirman Center lantai 17 A Jl Jend
Sudirman no 86 Jakarta Pusat 10220
Singapore
74B Duxton Road
Singapore 089533
Philippines
Bldg 1A Rey Marketing Compound
C. Raymundo Ave, Pasig, 1609
Metro Manila, Philippines
aCommerce is Southeast Asia’s leading ecommerce
solutions provider delivering customized ecommerce
solutions for over 140 brands such as L’Oreal, HP, LINE, and
Groupon among others, and is on a mission to break the
logistics and ecommerce bottleneck of Southeast Asia.
Founded in June 2013, aCommerce has offices and
distribution centers in Indonesia, Thailand, Philippines and
Singapore. The company provides end-to-end ecommerce
solutions to bring global and local brands into online retail
including platform design and development, order fulfilment
and warehousing, delivery and logistics, customer service
call centers, content production, performance marketing,
and channel management. aCommerce is one of Southeast
Asia’s fastest growing tech companies and is excited to be
part of the region’s rapid ecommerce movement.
Contact
About aCommerce