KUALA LUMPUR (April 18): Asean e-commerce will move from its infancy to a more mature stage, and by 2025 online shopping in Asean is expected to be worth $172 billion, or 2.8 times what they were in 2020.
Citing from ResearchAndMarkets.com “ASEAN Warehousing and Distribution Logistics Market – Growth, Trends, Covid-19 Impact, And Forecasts (2022 – 2027)” report for Friday, April 15, Business Wire said that in 2020, ASEAN added another 40 million internet users, bringing the total number of internet users to 70% of the region’s population.
The report says Asean has a huge young population and its strong GDP growth has rapidly expanded the middle class, which is good news for the region’s retail sector, which is expected to grow at a annual rate of 5% until 2025.
He said consumers are starting to buy more expensive products online with a much higher level of trust as e-commerce matures.
At the same time, the report states that the Malaysian industrial market has grown steadily in recent years, driven by increasing e-commerce penetration rates, which has led to an increase in storage space requirements to cope with the increase in last mile delivery as well as the structural evolution towards omnichannel. retail.
He said international retailers are gradually expanding warehouses in Malaysia to increase delivery times, customer service and product availability. IKEA, Nestlé, Tesco, Zalora and Lazada are among the global companies investing in Malaysian fulfillment centers to grow their e-commerce footprint in the country.
COVID-19 has accelerated the growth of online retail businesses in the warehousing and logistics sectors, and investors are actively viewing this strong asset class as an all-time favorite investment.