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Singapore leads, with more than four of five consumers making a digital purchase, followed by Thailand and Vietnam. In Indonesia, the subregion’s largest ecommerce market, less than half (47.2%) of the population will be digital buyers in 2027—the second-lowest among the six countries.

For example, it recently began asking some apparel suppliers in China to set up new production capacity in Vietnam, per Bloomberg. But it isn’t clear how much those adjustments will upend its business model by driving up its prices and squeezing its profit margins.

TikTok Shop was No. 2 in sales in Indonesia, Malaysia, and Vietnam in 2023, while Temu generated sales of less than $100 million, according to Momentum Works. Temu’s modest sales was partly due to its late entry and being in only two countries in the region.

TikTok looks strong in Asia as it faces bans elsewhere: Countries including Indonesia, Vietnam, and Thailand fuel the app's growth in its home region.

Europe’s fashion brands are particularly exposed because they often manufacture in countries now facing elevated tariffs—such as China, Vietnam, and Sri Lanka—before exporting to the US. Even those sourcing and manufacturing fashion items exclusively in Europe have been hit with a 10% universal tariff.

China-linked retailers are facing headwinds in Vietnam, despite warming political ties. Temu and Shein were suspended in early December for failing to register their businesses in the country—this happened on top of concerns about their impact on local businesses and counterfeits.

Demand for dietary supplements in Asia-Pacific will see a CAGR of 15% between 2019 and 2024, led by Vietnam, per Euromonitor. In India, the pet food market is projected to increase from $872.2 million in 2023 to $2.14 billion in 2032, with a CAGR of 10.5%, according to Credence Research.

Top manufacturing destinations like Vietnam, Indonesia, and India have been hit hard by the reciprocal measures, which will have a considerable impact on the apparel, furniture, and toy industries, among many others. Tariffs on the US’ top 10 trading partners could result in an additional $439 billion in costs, according to an analysis by PwC.

And in October 2024, Meta announced plans to roll out Meta AI in several countries in the region—including the Philippines, Indonesia, Malaysia, Thailand, and Vietnam. Additionally, it plans to add support for regional languages like Tagalog, Thai, and Vietnamese. Nations in Asia-Pacific balance safety guardrails with innovation-driving guidelines.

Tariffs on production hubs like China, India, and Vietnam were announced, paused, and, in China’s case, raised repeatedly. The volatility fueled market anxiety, prompting PC and device makers to pause sales and delay US product launches. iPhone panic buying, driven by fears of tariffs raising prices, revealed how quickly consumers react to economic shifts.

China’s manufacturing expertise is difficult to compete with: That has led some retailers to rethink supply chain diversification even as India, Latin America, and Vietnam gain traction as production hubs.

The retail outlook for 2025 is worse than previously anticipated. However, many smaller emerging markets are still in line for strong years, and ecommerce continues to claw share from traditional retail.