Introduction
Southeast Asia’s ecommerce story has entered a new chapter where growth and profitability are finally moving in the same direction. According to the latest e Conomy SEA 2024 study by Google, Temasek and Bain, the region’s overall digital economy has reached roughly 263 billion US dollars in gross merchandise value with about 15 percent year on year expansion, while revenue and profit are also rising at healthy double digit rates. Profit from key digital sectors has climbed to around 11 billion US dollars in 2024, almost two and a half times higher than in 2022, showing that platforms are learning how to monetise engagement rather than relying purely on subsidies.
Ecommerce remains the engine at the centre of this progress. After a brief cooling period when offline retail reopened, online retail has regained momentum with gross merchandise value growing in the mid teens and revenue not far behind. What has changed is the mindset. Leading platforms are no longer chasing headline GMV at any cost. They are tuning commission structures, trimming broad based discounts and investing in higher margin services such as logistics solutions, seller tools and onsite advertising. This shift is visible in improving EBITDA margins across major ecommerce marketplaces, which have moved steadily closer to breakeven and in some cases into the black.
One of the most important forces behind this renewed growth is video commerce. The report shows that shoppable video and live commerce now represent about one fifth of all ecommerce GMV in Southeast Asia, up from less than five percent as recently as 2022. Short form clips, creator reviews and livestream shopping events have turned online marketplaces into entertainment platforms where discovery and purchase sit side by side. Shoppers watch hosts demonstrate products, participate in live chats and claim limited time offers without leaving the stream, creating a sense of urgency and social proof that static product pages cannot match. For brands, this means that video is no longer a nice add on but a core part of merchandising and conversion strategy.
The way people shop online in the region has also changed dramatically. Ten years ago, the average ecommerce user placed only a handful of orders each year. Today that same shopper completes roughly 27 to 32 online transactions annually, almost eight times more frequent than a decade earlier, while spending slightly less in each basket as everyday categories like grocery, beauty and home goods grow their online share. Instead of big occasional splurges, ecommerce is becoming a utility woven into daily life, used for top up grocery runs, personal care essentials and home items. This shift pushes platforms and brands to focus on reliability, fast fulfilment and frictionless reordering rather than one off campaign spikes.
Another key insight from the report is that the next wave of growth will not come from new internet users but from deeper relationships with existing customers. With internet penetration already reaching roughly three quarters of the population in the six focus markets, between 60 and 70 percent of ecommerce GMV growth in 2024 is now generated by people who were already shopping online. That reality makes retention, cross sell and lifetime value more important than ever. Winning teams are investing in customer data platforms, lifecycle journeys and loyalty programmes that encourage repeat orders, category expansion and higher engagement, rather than pouring all of their budgets into first purchase vouchers.
The rise of video commerce is tightly linked to a fast maturing creator ecosystem across the region. Content creators in categories such as food, fashion and beauty are posting multiple videos per week, while brands increasingly partner with creators outside their home category to reach new audiences and stay culturally relevant. The report notes that less than one fifth of sponsored content from beauty brands now features beauty only creators, reflecting a more fluid approach where collaborations with food, lifestyle or entertainment personalities help brands tap into fresh communities. This creator driven landscape offers ecommerce players new pathways for performance marketing, but it also demands more sophisticated measurement and always on relationship management rather than one off influencer blasts.
Country level dynamics add nuance to the overall picture. Indonesia remains the heavyweight in absolute GMV, but markets such as Vietnam and the Philippines are growing quickly from a smaller base, while Singapore and Malaysia continue to punch above their population weight in digital spend. Across all six countries covered by the report Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam there are more than six hundred million people, with a substantial proportion already participating in the digital economy. Each market has its own mix of preferred platforms, payment habits and regulatory environments, which means that regional brands must balance central playbooks with local adaptations in areas like logistics partners, payment options and promotional calendars.
For retailers, marketplaces and direct to consumer brands operating in Southeast Asia, several practical lessons emerge from the findings. First, the days of easy growth driven by new users and heavy subsidies are over. Sustainable success now comes from disciplined monetisation, careful use of incentives and a clear focus on contribution margins at category and cohort level. Second, video commerce and the creator economy are not side projects but fundamental parts of the ecommerce mix. Brands that learn how to plan campaigns, co create content and manage performance in these formats will gain an edge in discovery and conversion. Third, customer data strategy is becoming a central competitive lever. The ability to unify data across touchpoints, understand behaviour at a granular level and act on that insight in near real time will separate those who can keep growing from those who simply defend their existing share.
Perhaps the most encouraging message in the e Conomy SEA 2024 report is that the region’s digital economy is demonstrating resilience even in the face of inflationary pressure and softer global funding conditions. Gross merchandise value, revenue and profit are all growing at double digit rates, and ecommerce remains at the heart of that story. For founders, executives and marketers across Southeast Asia, the challenge now is to build on this momentum with strategies that combine creative customer experiences with sound economics. Those who can master video led commerce, harness the creator ecosystem and use data intelligently will be best placed to turn the region’s strong consumer demand into long term, profitable growth.
Source Google Temasek and Bain e Conomy SEA 2024 report available at https://economysea.withgoogle.com
