Digital Services Successfully Changed People's Habits in Southeast Asia

The Google-Temasek report titled "e-Conomy SEA 2019" places E-commerce and online travel become the digital sector with the largest participation in regional digital economy. In 2019, they contributed $38 billion and $34 billion, respectively, increasing to $153 billion and $78 billion by 2025.

Previously in 2018 the same research placed online travel in the first rank, the experience given E-commerce in providing new experiences makes growth squirm. Players' efforts in promoting are also considered to have a significant impact – online shopping festivals such as 9.9, Singles Day, 12.12 are always warmly welcomed by all business components.

Google Trends data records, increased service promotion E-commerce always consistent every year. The strategies began to vary, starting with cooperating with an influencer to create gamification features to attract users to connect with the application. Technology like machine learning has also had a significant impact in increasing product offerings for consumers.

The expansion of logistics channels is also considered to have contributed to business growth e-commerce. Even to pamper their users, some players provide the option of fast delivery – less than 24 hours after the order is completed. All of these efforts, from promotions to logistics options, have succeeded in changing fundamental habits when people shop online. If before E-commerce mostly used to buy "big" items like smartphone or television, even today's daily needs can be accommodated.

On average per day there are more than 5 million orders processed E-commerce with an average value of $15-$20.

Ordering food delivery is the current trend

2015, sector ride hailing It has an estimated market capitalization of $3 billion, this year the figure has reached $13 billion and is projected to reach $40 billion in 2025. If four years ago this industry was still about providing alternative transportation, now it has transformed more broadly to accommodate many other needs. What is starting to look significant are food delivery services, such as GoFood or GrabFood –and maybe in the future also related to financial services.

Research highlights that since 2018 this food delivery service has had a major influence on shifting consumer habits. Various groups began to enjoy the service, under the pretext of effectiveness in the midst of traffic and weather congestion. In the metro area, this service has a very high order rate.

Many things are the driving force, apart from the promotions and marketing that are carried out continuously by the fans decacorn, accessibility to food products is becoming wider. Food delivery services bridge menus from restaurants to street vendors. From a business perspective, the presence of the platform also brings many advantages. Some have used it to improve customer relationships through programs loyalty and reward.

Entertainment channels on the internet are still in demand

Since 2015, there have been at least 100 million new internet users in Southeast Asia. Video applications, music, to game become a popular entertainment channel -- through smartphones. This year its market value touched $14,2 billion and will grow to more than double by 2. Most users still prefer free content, despite forcing them to view ads in apps.

The new trend that was caught was short video content such as Bigo Live and Tik Tok which managed to captivate the market. Support abilities like lip sync produce viral content that is liked by almost all circles of society. Apart from that, fans online game also get very big growth. As an example, one of the most popular, Fire Fire developed by Garena, managed to attract 450 million registrants with 50 million active users.

budget hotel support the travel industry

This sector is considered the most mature in Southeast Asia's digital economy. Tourism potential is one of the main drivers. On the market side, the increasing interest of the middle class to travel – both domestically and internationally – makes a significant contribution to online travel. Alternative services have emerged, for example with the birth of budget hotels like OYO and RedDoorz.

Platform aggregator such as Tiket.com, Traveloka, to Booking.com, have also begun to increase their maneuverability. Partnerships with other digital players, for example ride hailing, also continues to be pursued. It doesn't stop just as a travel ticket provider, now it's an app online travel start providing channels"experience", driven by the needs of users who want to maximize their travel experience. Various things can now be accessed through one platform, from entertainment tickets to tickets to a show.

Service integration

Another note that is interesting to note is the matter of integration between services provided by the platform to increase user convenience. For example, early last year, Hooq agree on cooperation to provide service video streaming in app Grab. Or application Gojek which now features the channel news from Coil. Regarding this integration, it presents a wider variety of services on each platform.

If observed, ride hailing and E-commerce to be the most vigorous. In both applications, almost every digital service started to exist. The company's actions such as acquisitions and investments were ultimately selected by several startups to increase the overall capabilities of their platforms.