Southeast Asia Emerges as the New Singles’ Day Battleground Amidst Fading Appeal in China
- tech360.tv
- Nov 18, 2024
- 2 min read
Southeast Asia emerges as a new battleground for Singles’ Day as China’s appeal fades. E-commerce giants like Shopee, TikTok Shop, and Lazada compete for dominance in the region. Logistics providers experience a surge in parcel volumes during the shopping season.
The campaign has also made its mark on the Grab ride-hailing app and Lazada, creating a buzz in Thailand. This shopping extravaganza, also known as Double 11, is gaining momentum in Southeast Asia, where e-commerce markets are rapidly expanding.
Nattapong Koomuang, a Bangkok resident, recently enjoyed discounts on skincare products during Double 11 on Shopee, saving around 20 per cent. With Southeast Asia's growing e-commerce market reaching US$139 billion in gross merchandise value last year, international giants like Shopee, TikTok Shop, and Lazada are vying for dominance.
The impact of Singles’ Day in Southeast Asia is evident, with millions tuning in to TikTok Shop’s Mega Live Showdown event and Shopee Live sellers in Malaysia experiencing a significant surge in sales. Lazada described this year’s Singles’ Day as a massive business opportunity, introducing savings and free shipping to attract shoppers.
Logistics providers like J&T Express have seen a surge in parcel volumes during the shopping season, with over 15 million parcels handled in Southeast Asia between November 1 and 11. To meet the demand, J&T Express has expanded operations, upgraded sorting areas, and increased transport vehicles and staff.
The e-commerce sector in Southeast Asia is experiencing steady growth, following a boom during the Covid-19 era. This growth is attributed to greater market efficiency, with the cost per parcel decreasing consistently. In contrast, Singles’ Day enthusiasm in China is waning due to a slowing economy and sluggish consumer spending.
Chinese e-commerce platforms are now looking to expand overseas to counter a saturated domestic market. However, challenges such as diverse cultures, market dynamics, regulations, and local protectionism pose hurdles for these platforms. Platforms like PDD’s Temu and Shein have faced scrutiny in markets like Vietnam and Indonesia, highlighting the importance of compliance with local laws and regulations.
As the e-commerce landscape evolves, logistics companies like J&T Express are diversifying into non-platform businesses while continuing to support cross-border e-commerce platforms.
Southeast Asia emerges as a new battleground for Singles’ Day as China’s appeal fades.
E-commerce giants like Shopee, TikTok Shop, and Lazada compete for dominance in the region.
Logistics providers experience a surge in parcel volumes during the shopping season.
Source: SCMP
