MOST ONLINE businesses in Southeast Asia, including the Philippines, are projecting better prospects in the third quarter, with many seeing growth topping 10 after more than half of them experienced “high-level” growth in the first six months, according to e-commerce platform Lazada’s Digital Commerce Confidence Index.
Lazada said it surveyed 750 online sellers in six Southeast Asian markets — Indonesia, the Philippines, Thailand, Vietnam, Malaysia, and Singapore — in the first half of the year.
In a statement Tuesday, Lazada said it found that “52% of sellers experienced high-level growth during (the first half of) 2021, with 70% expecting additional growth of more than 10% in the third quarter of 2021.”
“Out of the 70%, a third (33%) of sellers surveyed were extremely confident that their sales volume would increase by more than 30% in the same time period,” it added.
Lazada noted the overall index returned an “optimistic” score of 64, with zero being “very pessimistic” and 100 being “very optimistic.”
It said sellers’ optimism is attributable to “significant shifts” in consumer habits, “with greater diversification between online and offline purchases.”
“With 47% of consumers reducing their offline purchases and 30% increasing their online spending in 2020, the… pandemic has accelerated the expansion of digital commerce and made it a pivotal battleground for sellers looking to scale up their businesses,” Lazada said.
Sellers from the electronics and fast-moving consumer goods sectors benefitted the most from the stay-at-home setup. Lazada said 53% of the sellers from these sectors reported that their businesses saw strong growth in the first six months.
Less than half or 48% of the surveyed sellers from the fashion sector said their businesses also improved in the first six months, while 75% said they expect their performance to be better in the third quarter.
“Almost 40% of them anticipated that their growth would exceed 30% in the same quarter,” Lazada said.
Roshan Raj, a partner at management consulting firm Redseer, said that with the increase in coronavirus cases in the region, “the expectations from fashion sellers might see some moderation in the near future.”
According to the Lazada survey, the key enablers of online business growth are developing unique and differentiated offering, driving user traffic, and harnessing data insights. — Arjay L. Balinbin