- Southeast Asia’s e-commerce hits $114.6B in 2023, up 15% year-on-year.
- TikTok Shop quadruples GMV, becomes second-largest platform.
- Live commerce and AI adoption drive industry growth amid challenges.
Virtual cash registers ring louder
Southeast Asia’s e-commerce sector continues its upward trajectory, with the region’s eight leading platforms raking in a total gross merchandise value (GMV) of $114.6 billion in 2023.
This represents a robust 15% year-on-year growth, according to Momentum Works’ “Ecommerce in Southeast Asia 2024” report.
Vietnam and Thailand emerged as the fastest-growing markets, boasting impressive GMV increases of 52.9% and 34.1% respectively.
TikTok Shop shakes things up
The e-commerce landscape saw a significant shift in 2023, with TikTok Shop nearly quadrupling its annual GMV to $16.3 billion.
After acquiring Tokopedia, TikTok Shop has catapulted to become the second-largest e-commerce platform in Southeast Asia. Meanwhile, Shopee maintained its market dominance with a 48% share, achieving a GMV of $55.1 billion.
The report highlighted four key trends shaping the region’s e-commerce industry. Live commerce is gaining traction, with key opinion leaders (KOLs) in Vietnam, Thailand, and Indonesia achieving multi-million dollar sales in single live sessions.
Platforms are also increasingly adopting generative AI applications to enhance user experience and operational efficiency.
However, challenges persist, including the pressure on third-party players due to platforms in-sourcing parcel delivery and the limitations of small markets pushing enablers to expand their business models.
