蘑菇AV

These same market drivers are cited in analysis on regions from Latin America to Southeast Asia, Africa, and the Gulf States. What鈥檚 often missing is the fact that these factors don鈥檛 necessarily indicate an ecommerce market is set to soar in the near future.

Retail ecommerce sales growth in Southeast Asia, which has been blazing ahead in recent years, is set for a slowdown as the global economy faces challenges and tech funding shrinks. This year, the Philippines and Malaysia will lead the region in growth.

Growth of total media ad spend in Southeast Asia will remain elevated from its pre-pandemic levels, but digital ad spending will finally say farewell to double-digit growth this year. Meanwhile, India will top the worldwide ranking in both total media and digital ad spending growth.

In 2023, Southeast Asia will remain a growth leader in digital users. Paradoxically, while its smartphone adoption will soon approach 90% among internet users, only slightly more than 60% of the population will be internet users this year.

For the third year in a row, ecommerce sales in Southeast Asia will grow faster than in any other region of the world. This is likely the final year of Southeast Asia鈥檚 long boom, but for now, the region stands out in a world of rapidly declining growth.

TikTok Shop leverages the popularity of short video and livestreaming in Southeast Asia. TikTok Shop is on the verge of surpassing Lazada鈥檚 sales in Southeast Asia (not including Tokopedia, the retailer acquired by TikTok鈥檚 parent company, ByteDance). While Shopee鈥檚 sales far exceed TikTok Shop鈥檚, the latter is growing faster.

Bloomberg reports that construction slowdowns in Ohio, the UK, and Southeast Asia are linked to rising material costs and tariff-related uncertainty. These pullbacks, while described as demand-aligned, may also reflect growing industry concerns over AI overcapacity. Our take: Microsoft is proving that it鈥檚 more than a one-note cloud player.

Regulatory scrutiny around Chinese retailers is ramping up in Southeast Asia due to their adverse effects on local small and medium-sized businesses. In late 2023, Indonesian policymakers banned in-app online shopping transactions via social platforms. That led to a temporary closure of TikTok Shop (and eventually resulted in TikTok鈥檚 acquisition of local ecommerce giant Tokopedia).

AI-powered avatars are likely to make inroads in Asia-Pacific鈥檚 influencer marketing and live commerce鈥攂oth of which have boomed in China and Southeast Asia thanks to human influencers. AI-powered avatars such as Indonesia鈥檚 Rini (@rini_ibuonline) by AvataraLabs will soon be as lifelike as humans in promoting products.

Thailand has the third-highest number of UHNWIs鈥攑eople with assets over $30 million鈥攊n Southeast Asia, just behind Singapore and Indonesia. That cohort is expected to increase by 14.7% by 2028, according to property consulting firm Knight Frank.

Standing out in a sea of platforms: Neptune aims to reward creativity with diverse monetization streams, including tips, subscriptions, and livestreams. The app is shifting focus away from algorithms and metrics to reduce performative stress on creators.

But other regions are gaining鈥擟hina led in AI publications and patents, and high-quality models are emerging from the Middle East, Latin America, and Southeast Asia. Overall, AI optimism is growing, with some divides: 83% of people in China think AI services and products are more beneficial than harmful, compared with 40% of Canadians and 39% of people in the US.

Lego continues to outperform the toy industry by delivering products that appeal to both children and adults while expanding brand awareness in Asia. While we expect US toy and hobby sales to grow just 2.0% this year, Lego is increasingly in a league of its own. The company鈥檚 all-ages appeal, IP partnerships, and brick-and-mortar strategy are working in tandem to drive sales and encourage lasting loyalty.

With a booming economy and a flourishing middle class, Indonesia has become an intense battleground for leading ecommerce players, including Shopee, Tokopedia, and TikTok Shop.

Supply chain headaches mount for retailers: Disruptions in the Red Sea are driving up shipping rates and creating backups at key ports.

Sea of content: Netflix remains the leader among connected TV (CTV) streaming apps, thanks to its mix of original titles, live programming, and licensed content. It鈥檚 also one of the only top streamers that doesn鈥檛 sell 脿 la carte titles on top of subscriptions, like YouTube and Prime do.

The tactic: Levi Strauss is reducing its SKU count鈥攅ven as it expands the range of items it sells鈥攖o minimize tariff costs and maximize full-price sales. Our take: SKU rationalization is becoming a necessity for Levi Strauss and other brands and retailers looking to manage the impact of tariffs.

Their options are also limited by the simmering geopolitical tensions between the US and China, which is keeping Shein from pursuing plans to diversify manufacturing to Southeast Asia and could hinder both companies鈥� efforts to expand their US supply chain. Their loss will be Amazon鈥檚 gain.