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In Southeast Asia, e-commerce platforms experienced a 23 percent increase in gross merchandise volume last year, reaching approximately 1 trillion Chinese yuan (around $157.6 billion). The market was primarily dominated by Shopee, Lazada, and TikTok Shop, which together held 99 percent of the regional market share, according to a recent report.
Shopee, owned by a Singapore-based internet company, along with Lazada, backed by Alibaba, and TikTok Shop, owned by the parent company of ByteDance, collectively accounted for nearly all of Southeast Asia’s e-commerce activity. Notably, TikTok Shop, when combined with its Indonesian subsidiary Tokopedia, generated a Gross Merchandise Value roughly two-thirds of Shopee’s. Meanwhile, Lazada has shifted its focus towards brand-centric strategies.
The report highlights a shift from aggressive expansion to more strategic, refined operations among these platforms. They are now emphasizing better demand management, delivery efficiency, and improved profit margins. The region also continues to attract global brands seeking to grow their presence in Southeast Asia.
Artificial intelligence is increasingly playing a vital role across the sector, with many believing it will transform the e-commerce landscape. Lazada, for instance, had nearly 100 million users for its AI-powered shopping assistant last year, and over half of its product pages incorporated AI technology. Additionally, more than 330,000 vendors on Lazada offered AI-based customer service solutions.
Chinese brands are expanding rapidly across Southeast Asia, with over 8,000 brands from Alibaba’s Tmall platform joining Lazada since September of the previous year. Their gross merchandise value during their early growth phase swiftly surpassed $100 million.
The report also notes that Thailand and Malaysia lead in GMV growth, with year-over-year increases of 52 percent and 48 percent, respectively. Vietnam, the Philippines, and Singapore have also experienced strong double-digit growth, each exceeding 20 percent.
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