In one of our previous updates, at the start of this year we spoke about the Indonesian travel market and its immense opportunity. In this article we take a deeper look at the Online Travel Agent (OTA) market and what trends are going to be shaping up the industry. And as a bonus, we also talk about […]
The wellness movement is becoming an essential part of the lifestyles of Gen Z and millennials due to their busy schedules, increasing health issues, and growing awareness. It is not just a trend or about physical health, but it is a deeper connection to the overall well-being of the body, mind, and spirit. In Indonesia, […]
While the current macroeconomic situation has seen manufacturing and infrastructure reshoring as a major trend, one common factor that we see being critical to the entire effort is blue-collar workers. These hard-working members of society are out there in the front lines and–almost literally–build everything. Not limited to traditional sectors, they are at the core […]
Ramadan is a month of fasting and spiritual reflection for Muslims around the world, a time for family gatherings, community events, and religious observance. It is also a time of increased retail spending, as families stock up on food, gifts, and clothing in preparation for the Eid al-Fitr holiday that marks the end of the […]
Understanding regulations is the key to managing business risks. Failing to appreciate regulatory nuances can flip an otherwise promising investment. Look at 2023. The EU launched anti-trust cases against Google, China remained tough on its tech sector, and Indonesia put the brakes on social media companies offering e-commerce. These had meaningful impacts on respective companies […]
If you’ve been following Indonesian current affairs, you might be aware that we are inching closer to the first round of the 2024 Indonesian General Elections in February. Nearing the end of his second term, President Joko ‘Jokowi’ Widodo has led Indonesia through one of its most prosperous periods of economic growth in modern times. […]
What was the most unexpected yet positive event in Southeast Asia in 2023? It’s a no-brainer for those keeping an eye on this region. A lesser-known firm from a typically overlooked industry in Indonesia – an Agritech company1 – hit unicorn status and was gearing to fund its growth. Remember, this happened while most companies were […]
Greetings from the enchanting archipelago of Indonesia! As we reflect on our nearly year-long journey in this diverse and vibrant country. We were struck by the immense travel offerings that the country has. From the famous beach escapes of Bali to the rich cultural history of Yogyakarta and multiple hidden gems in the form of […]
Easing macro headwinds are poised to revive interest in Southeast Asian private markets in 2024. As macro drivers take a backseat, the intense focus on profitability will progressively ease. Startups responding well to the emerging demand-supply trends will regain traction. Sectors that could see higher startup activity levels in 2024 include AgriTech, Artificial Intelligence, HealthTech, […]
In this note, we look at Singapore’s vibrant fashion market landscape and its growth drivers. We share factors that are critical for brands to scale locally and in the broader SEA region. Brands that effectively tap into local tastes, leverage online platforms, and foster meaningful connections with the Singaporean audience are poised for triumph in […]
This is part two of our series on Indonesia’s healthcare. We’re exploring future technological breakthroughs in healthcare. Indonesia is just starting to use tech in healthcare. Early efforts, such as Telemedicine and Online Booking, have already made healthcare more efficient and convenient. Upcoming advancements, especially in genomics, could bring over $100 billion in economic gains. […]
Indonesia’s healthcare infrastructure lags its counterparts and falls short of WHO benchmarks, signaling a clear need for enhancement. With prevailing health system challenges and a demographic set to age by 2030, the time for Indonesia to act is now. This newsletter zeroes in on healthcare expenditure, private sector contributions, and the evolving trends in the […]
In the first part of our series, we explored the rising prominence of local cuisines within Indonesia’s Food Services sector. Now, in Part-2, we delve into the growth prospects for both online and offline channels, and how both new entrants and established players can capitalize on these trends. 01. Despite being considered as the champions […]
Indonesia’s Food Services sector is a relatively small part of the overall F&B pie. The share of Food Services is below the levels in China and the US, in both percentage and absolute terms. This low base provides meaningful headroom for growth, with an estimated 8% CAGR over 2022-27E. Sustained economic growth, rising affordability levels, […]
The Philippines’s has the second largest population in Southeast Asia with ~USD 400 Bn GDP that is expected to grow at high-single-digit levels in the next few years. Its digital economy is small, but is poised to grow with sustained urbanization, rising internet accessibility, widespread smartphone usage, and a largely English-speaking population. In this newsletter, […]
Southeast Asia’s IPO market remains strong amid global uncertainties, with 85 IPOs in the last six months, raising $3.3 billion. The trend of Southeast Asian companies heading for US IPOs, especially on NASDAQ, signals sustained global interest in the region’s market. However, in contrast to the broader market resilience, IPOs in the new-economy sectors have […]
In 2023, funding for Vietnamese startups is projected to exceed 2022 levels. Noteworthy entries, such as VINFAST ‘s debut on NASDAQ and early-stage startup Cross Fund securing its seed round in H2-2023, mark significant milestones. Interestingly, a departure from the trend observed in 2022, a substantial portion of the funds is now directed toward early-stage […]
Ranked second for ease of doing business, Singapore’s central location in SEA makes it a home for numerous international businesses. In this newsletter, we explore its significance and role as a pivotal hub in SEA. 01. Singapore is considered the hub of SEA, positioned strategically in the middle of SEA countries Singapore is viewed as […]
With more than 70% population holding a smartphone in their hand, gaming has become more accessible to people across socio-economic groups in Indonesia. Thanks to In-App Purchases (IAP) gaining more traction, the country is set to be one of the largest mobile gaming markets in the world. In this newsletter, we highlight the mobile game […]
Indonesia’s regulatory curveball, mandating the separation of e-commerce and live-streaming functions, will take the steam out of the live-commerce juggernaut. GMV growth rates will moderate in the short term. However, the sector’s structural growth trajectory will remain intact. We think TikTok will make a comeback via a live-commerce-free e-commerce route. Assuming no further regulatory changes, […]
The insurtech sector in Southeast Asia is undergoing a transformative phase, driven by emerging models and categories. Recent regulatory changes have paved the way for innovative business models that enhance customer and agent interactions while reducing servicing costs. In this week’s newsletter, we will explore how insurtech companies are shifting their focus from revenue generation […]
Indonesia, Singapore, and Vietnam tend to dominate digital economy discussions in Southeast Asia. As a neighbor of such countries, Malaysia’s potential is often overlooked. In today’s newsletter, we highlight some emerging sectors in the country. Malaysia’s digital economy sectors are expected to experience meaningful growth, led by factors such as a high urbanization rate, increasing […]
In Vietnam, Micro, Small, and Medium Enterprises (MSMEs) underpin the retail economy, catering to 80% of all consumer purchases. With the government’s active support in digitizing the market, this newsletter explores the opportunities within Vietnam’s MSME digital transformation. 1. Adoption of digital economy has been rising rapidly across Vietnam, especially in e-commerce The country is […]
Indonesia is fast emerging as a destination for Electric Vehicle (EV) development and deployment. It could be an essential player in the global EV supply chain. The government is playing a supportive role, and the local market conditions are suitable for building solid domestic capabilities. Further, EV batteries present an exciting opportunity to invest in […]
The Vietnamese economy is undergoing significant changes. While in the short term we have seen headwinds in the form of real estate challenges, stock market underperformance among others however in the longer run the country has set a strong base for manufacturing sector growth on account of China + 1 policies adopted by countries. With […]
Over the years, e-commerce in Indonesia has experienced significant growth, driven by factors such as increasing internet penetration, smartphone adoption, and a growing middle class. The category mix of e-commerce platforms has evolved to cater to the diverse needs and preferences of Indonesian consumers. It is further expected to undergo changes as the demographics and […]
The prospects for climate tech look encouraging. Climate tech refers to technologies and innovations that aim to mitigate or adapt to the impacts of climate change. The various drivers for rise of climate tech include government policies, corporate sustainability, public awareness, and innovation. In the article, we will be looking at various opportunities in the […]
The nascent segment of eB2B industrials in Indonesia presents an attractive opportunity, especially in the raw material procurement segment, where supply chain inefficiencies exist. The eB2B players are tapping into a promising opportunity for manufacturers looking to digitize their operations as well as providing transparent pricing and project financing solutions to buyers. This article builds […]
Electronics are among the top-selling items in the e-commerce market in Indonesia, accounting for nearly ~25% of the total GMV, and this trend is only expected to continue in the future! In this article, we explore the potential for direct-to-consumer (D2C) brands in the electronics market and the factors that may drive their adoption over […]
The Southeast Asia region’s growing middle class and urbanization are driving demand for sustainable transportation. Government policies such as tax breaks and reduced registration fees are promoting adoption as well. The entry of new Electric Vehicle manufacturers and development of charging infrastructure are offering favorable tailwinds too. These factors present opportunities for investment in EV […]
The Indonesian government has put forward a plan to digitalize and democratize the finance systems in the country by 2025. Open finance platforms directly address several of the key challenges and pain points of MSMEs and are positioned to benefit the most. In this article, we look at a sub-segment of fintech – open finance […]
Here we share how influencer marketing is gaining prominence as an impactful digital ads channel. We find that understanding regional user nuances, category mix, and niche marketing tools is critical to creating to an influencer marketing campaign. This article builds on our earlier note on the rise of influencer marketing in Indonesia, influencing-on-the-way-up. 1. Influencer marketing […]
In this article, we share consumers’ views on key consumer internet sectors in Indonesia. This story builds on our earlier update on consumer sentiments on the macro-outlook, Consumer Survey – Part 1. We share our findings on e-commerce, on-demand and FinTech. Further, we share consumer insights on digitally native/ D2C brands and electric vehicles (EVs). […]
In this interesting article, we share highlights from our consumer survey conducted in late Jan 2023. The survey assessed consumers’ views on the macro-outlook, as well as their spending preferences for key online product and services. In the first part, we cover some macro perspectives. We will share consumers’ views on key digital sectors and […]
Though Facebook, Instagram, and Google are likely to remain important channels for digital advertising, we can expect to see a shift towards alternative channels like e-commerce and affiliate marketing platforms in the coming years as advertisers look for new ways to reach and engage their target audiences. As per our recent study on Digital Ads, […]
Indonesia is the fourth most populous country in the world, with a population of approximately 274 million people. The healthcare landscape in Indonesia is complex and challenging, with a range of issues such as inadequate healthcare infrastructure, a shortage of healthcare professionals, and limited access to healthcare services in rural areas. Here we look at […]
SEA’s economy has a high dependency on agriculture (~17% contribution by GDP) and is strongly in need of modernization. In the wake, several innovative business models have come up in the region, and we go into detail to discuss a few. Here’s a broader look at the SEA market and how agri-tech players are growing. […]
Indonesia’s InsurTech sector will grow at ~40% CAGR during 2021-26E due to low base (insurance penetration), already high (and rising) digital penetration, and the emergence of newer models. The capital raises by multiple players in the region suggests the continued support from investors. More could follow as players gain scale and display clearer path to […]
Blockchain’s hype led to several innovations in this space as designers and developers flock to make an impact. Nine of the ten investors we met last quarter are closely tracking the Web3/Metaverse-related developments. However, a consensus on what the eventual winners could look like is yet to emerge. While the gates are wide open for […]
Globally, it has not been an easy ride for the industry in the post-COVID period due to several key challenges such as logistics and profitability. We connected with Vincent Tjendra, CEO at Astro to discuss what players could do differently in the upcoming period. In this article, we take a deeper look at the Quick […]
Indonesia’s double-day sales are one the largest sale periods in the region. With evolving consumer preferences, sales campaigns also need to evolve. In this article, we take a look at changing e-commerce landscape in Indonesia. As the number of consumers grows in the country, preferences have shifted towards convenience-based shopping. 1. Indonesia’s double-day sales campaigns […]
While a large portion of merchants have become digitized in the region, conducting efficient operations both online and offline continues to be a major challenge. E-commerce enablers helped merchants go online during the pandemic, and now, new challenges arise in the evolving market, which create further opportunities. Here’s a discussion on how enabler platforms in […]
Globally there have been cautionary headwinds for the ad market as a whole, but Southeast Asia has significant headroom to grow due to its low maturity compared to other countries in the region. The market is noticing a shift of advertising spend from offline to online channels, and e-commerce ads in particular, due to higher reach […]
Globally there have been cautionary headwinds for the ad market as a whole, but Southeast Asia has significant headroom to grow due to its low maturity compared to other countries in the region. The market is noticing a shift of advertising spend from offline channels to online channels, and e-commerce ads in particular, due to […]
Manufacturing contributes the highest to national GDP of Indonesia and has given employment to ~18 million people. Despite these numbers the industry has been stagnant in terms of cost to productivity due to the traditional practices followed. Indonesia is en route to enter Industry 4.0 as the manufacturing sector is ripe for technological disruption and […]
With robust macro tailwinds for the sector and on ground demand for health-related services, the healthcare sector in Vietnam is poised to undergo significant transformations. Emerging technologies like artificial intelligence, blockchain and online services are increasingly being used to tackle deficiencies in the existing healthcare system. Further omni-channel players have gained significant traction on account […]
Philippines has a vast “underserved” banking population of ~57 million demonstrating the untapped potential in the country. Philippines lacks national ID system and hence the prevalence of financial frauds is also quite high. The new age fintech players with their latest technology and credit tools can tackle this issue well and thereby gain customer confidence […]
The eB2B landscape in SEA countries of Indonesia, Vietnam and Philippines offers strong growth prospects with ~40% or higher CAGR during 2021-26. The inherent inefficiencies in the traditional supply chains make eB2B an attractive business proposition. It addresses stockouts, product variety, financing options and other pain points for retailers. Similarly, they help brands with increasing […]
Vietnam is at the forefront of a fintech revolution. The structural opportunity in digital banking and insurtech sectors in particular is likely to unfold over the next few years. Accordingly, we expect investors’ interests to sustain in the foreseeable future. 1. Macroeconomic indicators present a conducive landscape for the fintech ecosystem to develop and grow […]
Compared to other business models, coffee-chain players have been less affected by COVID due to their greater online presence, access and affordable offerings. They are expected to gain more traction by targeting different markets and introducing new products. We believe the sector holds long-term potential on the back of its standardized product offerings to a wider […]
1. Indonesia healthcare faces severe shortage of resources, with the lowest density of medical practitioners and pharmacists in the region Current capacity of Indonesia’s Healthcare system highlights its inadequacy to deal with the demands of growing population especially post pandemic. It has the lowest density of doctors and pharmacists among ASEAN countries; and given the […]
As per our report, InsurTech in Indonesia is estimated to grow fourfold during 2021-26 and reach a multi-billion-dollar gross premium size. This will be driven by rising awareness of the need for insurance, rising digital penetration, wider product offerings and other factors. The note also provides some colour on consumers’ preferences for InsurTech offerings. Here’s a […]
1. Indonesia is the largest real estate market in the region accounting for more than 50% of the overall realty market in SEA The combined real estate market size in the six focus countries of SEA is over $100 Billion. Indonesia and Vietnam are emerging as the most exciting real estate markets in the region […]
1. Indonesia possesses the macro tailwinds needed to stimulate the growth of the Electric Vehicles sector Indonesian government wants to invest for a green economy, hence has launched a roadmap to convert fuel engine vehicles to BEVs (Battery Electric Vehicle) and hybrid electric vehicles (HEVs).It possesses the largest nickel (an important component of Li-ion battery) […]
1. Merchants are increasingly shifting their ad spend wallet to digital channels; influencer marketing is a fast-growing segment Traditional media is losing share to digital media on a global scale. Over the past year, internet advertising has grown at a robust rate of 26% beating offline ad spending, which only grew by 9%. Predictably, digital […]
With a major chunk of the manufacturing activities happening in the low tech MSME space, the digital-first players are looking at a sizeable ~USD30 billion TAM
Indonesia is the leading agriculture producer in SEA. Agriculture, including farming, fishery, aquaculture contributed around 14% of the country’s GDP.
Web 3.0 applications are trending in Southeast Asia and a sizable portion of investors are willing to put their money in this space
Parcel volumes have witnessed growth in 2021, while the revenue per parcel has maintained a downtrend
SEA travel market was ~USD80 Bn in size in FY20 and is expected to grow to 1.3 times by FY27
Strong fund flows in the consumer internet economy will propel the industry ahead and lay a groundwork for increased market opportunities, penetration and revenue growth in the future
Significant increase in investment AUM expected, led by growth in retail and institutional customers
Online search and social media have the highest influence in creating product awareness
Indonesia’s e-commerce market is one of the fastest growing globally and accounts for more than half of the SEA e-commerce market
Indonesia’s e-commerce market is one of the fastest growing globally and accounts for more than half of the SEA e-commerce market
ASEAN eLogistics has seen massive growth, accounting for a multi-billion dollar industry in 2019 – we forecast 30-35% CAGR for the next 3-5 year horizon
Social commerce has seen an uptick in the recent months owing to Covid-19. Lockdown measures have resulted in decreased store time and extremely low footfall in offline stores. Many sellers have moved to the online channel to try and reach buyers and maintain their businesses.
The Seller & SME based in ASEAN countries are highly active on social media platforms. They have been quick to adapt to avenues like FB and Instagram to market and sell their products. This results in a high share of social commerce in most of these markets.
Vietnam has very favourable digital enablers and there is a marked shift by the government towards digitizing the entire healthcare ecosystem which seems conducive for the growth of eHealth services.
eB2B however witnessed a moderate growth of 10% in order volumes and 4-5% rise in Average Order Value. Frequency of orders/retailer increased due to lockdown measures – as Warungs are unable to visit their offline wholesalers to procure products.
“Warungs” are local mom and pop stores. ~70% of the sales of warungs come from FMCG category (without fresh). Within FMCG, cigarettes account for >50% of the sales. Generally, warung sales are driven by low ATV impulse purchases of “on the go” items like RTD beverages, instant snacks and cigarettes.
COVID has created a demand upsurge for online learning and EdTech players have adapted quickly to cater to this demand.
The Healthcare expenditure has steadily increased in the recent years driven by rising GDP per capita, urbanization and an increase of lifestyle-related diseases such as cancer and diabetes.
Hanoi and HCM are the supply and demand centres of Vietnam, accounting together for 18% of population and 35% of economic output.
Vietnam has been a case study on effective government response to COVID pandemic with aggressive contact tracing, testing, mass quarantining, timeliness, and the efficient mobilization of state agencies.
2019 saw strong growth in both eWallets and COD transactions, driven by a simultaneous focus on a frictionless experience amongst mature users and a need to onboard first time shoppers as well.
In a pre-COVID world, we forecasted Indonesian eCommerce to cross triple digits GMV by 2025
Grocery is the hottest category with 300%+ jump in daily order volume
India’s USD ~29 Bn E-tailing market (2019 annual GMV) was significantly impacted by the lockdown in March last week, as seen by a precipitous drop in GMV/transactions for the platforms vs 1st week of March.
Vietnam formal online retail is ready for 10x growth in 6 years Published on: Nov 2019 Growth will slowly taper down as we move into the later years as 1) the digitally mature customer base will be already be shopping online and 2) companies would need to drive growth through tier2+ regions/long tail categories + […]
Published on: Nov 2019 Food service market of UAE is ~$ 15 Bn in size. The market took a hit in revenues during early 2018 due to implementation of VAT, but the sector is back on track to provide a stellar performance going forward. We expect the key drivers to be – 1. Increased adoption […]
1. Vietnam SMEs are still early into their online retail journey; social commerce is their typical starting point Published on: Oct 2019 A significant share of SMEs started selling online very recently, with HCMC SMEs are slightly more mature in their online journey Most SMEs make their online foray via social commerce, however formal marketplaces […]
Indonesia B2B trucking is ~$32 Bn in size currently and drives the majority of B2B transport market in the country Published On: Sep 2019 Supply of trucks is significantly fragmented with low utilization rates Fragmented B2B trucking market provides a clear opportunity for tech-driven aggregators Low utilization rates- with up to 80% empty backhauls- solvable […]
As Shopee gets ready for 9.9, how has it performed YTD on its key initiatives in Indonesia? Published on: Aug 2019 Shopee Indonesia has performed strongly in scaling up B2C retail and Cash on delivery initiatives in 2019, both of which will play a crucial role in driving growth in 9.9 and other events Shopee […]
1. Fast-growing Indonesian eWallets and digital payments space seeing massive supply-side activity Published on: Aug 2019 Summary takeaways Continued rapid growth (70-80% CAGR) in Indonesia e-wallets space is attracting the attention of major global players even as local players expand into new segments Given the expected intense competition, the market may be heading for consolidation […]
1. Ready to Cook Food market is gaining adoption among consumers owing to increasing urbanization and demand for convenience food Published on: Aug 2019 Ready to Cook market in India stands at INR 2100 Cr in 2019 and the market is expected to grow at a CAGR of 18% to reach INR 4800 Cr by […]
What’s makes India’s ePharma space so exciting | How will MAUs of digital content platforms grow | Private labels driving online beauty growth story
India’s USD 18 Bn unorganized pharma retailing market is ripe for digital disruption by ePharma players Published on: Aug 2019 Summary takeaways: ePharma (USD 350 Mn in 2018) is <2% of the overall retail pie currently, but poised to expand at least 40% y-o-y, driving significant action from companies and investors ePharma continued action and […]
Indo B2B eCom- USD 1.5 Bn space with multiple consumer segments and business models Published on: Aug 2019 B2B E-commerce market is dominated by reseller target group – this is the easiest segment to operate in owing to the nature of goods. Resellers at multiple levels of the value chain buy products – for e.g. […]
Traveloka – Flying high in USD 21 bn Indonesian online travel opportunity Published on: Jul 2019 Online travel in Indonesia to grow at 25% CAGR over the next few years, with both incumbents (traveloka) and insurgents (tiket.com) spending heavily to grow the market All major e-tailers including Tokopedia, Bukalapak and others have also entered the […]
The story of Amazon Prime in India- as told through three charts Published on: Jul 2019 On the occasion of the Prime Day sale event, we conducted research around the scale of Amazon Prime in India, key messages from which are shown below. What do users of long-form video platforms consume? Our research on consumers […]
Reasons for shopping online vary significantly in Greater Jakarta vs Rest of Indonesia- indicating differing consumer maturities Published on: Jul 2019 RedSeer consumer research on 1500 online shoppers in Indonesia indicates that while Greater Jakarta shoppers cite ‘convenience’ as major most important reason for shopping online. While the top reason is ‘low price’ for Rest […]
What does the CLI measure? Published on: June 2019 CLI measures the monetizability of a platform basis three key criteria- Reach, Engagement and Trust Index ratings Player-wise Performance Player-wise Performance- Reach Player-wise Performance- Engagement Player-wise Performance- Trust Framework What does the Content Leadership Index (CLI) measure? Evaluation Parameters and Weights How is it structured > […]