Logistics And Payment Is Still The Weakest Link In Southeast Asia.

According to the world clothing shoes and hats net, Southeast Asia

The market potential is huge, but opportunities and challenges coexist. Logistics and payment are the weakest link in the development of electric business.

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The electricity giants have arranged the Southeast Asian market and become the emerging "blue ocean" market that giants are competing for.

In the past three years, the cross-border electricity supplier market in Southeast Asia has entered the field of Chinese businessmen. In a short period of time, there are capital inflows and giants' involvement, which fully demonstrates the great potential of Southeast Asian market.

Lazada Pierre Everling, vice president of cross border business operations, said in an interview that Southeast Asian electricity providers

It has great potential for growth and has more than 550 million consumers.

This potential first lies in the large number of Internet users in Southeast Asia and the fast growth rate.

According to a joint report issued by Google and Temasek in 2016, Southeast Asia is the fastest growing area in the world network. At present, the total number of countries in Southeast Asia is about 600 million. It is predicted that by 2025, the number of Internet users in Southeast Asia will increase to 480 million, which is close to 80% of the current Southeast Asian population, and the market volume is very large.

According to this growth rate, that is to say, there will be 12 new Internet users in Southeast Asia every day, with nearly 3 million 800 thousand users coming out every month.

It is worth noting that Indonesia is the largest population in Southeast Asia and the fastest growing number of Internet users in Southeast Asia.

In addition, from the perspective of electricity supplier business, the prospects for Southeast Asia are also very promising.

According to statistics, by 2025, the electricity business in Southeast Asia is expected to grow to 88 billion US dollars, with a compound growth rate of 32%.

Although Southeast Asia has huge market potential, it has the same opportunities and challenges.

On the one hand, the geographical environment of Southeast Asia is complex and the logistics supply chain is scattered. In addition, because of the difference of consumption concept, the payment mode of these areas is limited, and the differences of trade between countries and tariff policies also bring difficulties to the development of e-commerce market in this region.

Logistics problems.

In Southeast Asia, logistics is also one of the weakest links in the development of its electricity supplier.

Philippines and Indonesia have many islands, inconvenient pportation and backward logistics facilities, which impede the development of electric business.

The time needed to distribute goods in these areas is very long. For example, the local products will take more than 10 days to reach the place outside Java island.

In addition, the payment ecosystem of Southeast Asian market is still relatively weak.

According to statistics, more than 150 million of people in Southeast Asia over 25 years old have no bank accounts, especially those in Philippines, Vietnam and Indonesia. More than half of them do not have bank accounts.

This has led to payment in the Southeast Asian region, which is mainly based on offline payment, which is undoubtedly a major obstacle to the online payment based electricity supplier economy.

The differences in payment methods also reflect the different consumption cultures in different countries.

Consumers in Southeast Asia have low acceptance of online consumption. Compared with the more mature European and American electricity markets, they lack a sense of security and are worried about online payment insecurity. Therefore, they prefer to pay cash below the line and hand in cash at the same time.

The shortage of logistics and payment facilities has brought numerous difficulties to the development of cross-border electricity suppliers in Southeast Asia.

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