The retail e-commerce market of the ASEAN-6, comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, is growing rapidly. With an estimated gross merchandise value of US$136 billion in 2024, the market is forecast to reach US$261 billion by 2029, representing a compound annual growth rate of 14%.
To assist Hong Kong SMEs as they refine their ASEAN-oriented e-commerce strategies, HKTDC Research conducted an online survey of 1,846 online shoppers across six ASEAN countries last year, aiming to identify their spending patterns, preferences, and perceptions of Hong Kong brands. There were around 300 respondents in each country. Respondents were aged between 18 and 60, all lived in selected major metropolitan areas and made online purchases at least once a month.
ASEAN Consumers Are Frequent Online Shoppers
Respondents indicated that they shopped online an average of 8.7 times per month. The most frequent online shoppers were those from Thailand (11.6 times a month) and Vietnam (9.2 times), while their peers in Indonesia, Singapore, and Malaysia shopped online at a level below the regional average. In terms of age, individuals in the 18-29 group shopped online the most, with an average of 10.3 times per month, followed by the 30-49 segment (8.7) and the 50+ segment (6.4).
Consumer electronics were by far the most popular online shopping category, with 87% of ASEAN shoppers reporting online purchases of these products within the past 12 months. This was followed by fashion (68%), cosmetics and personal care products (66%). These top three product preferences were consistent across the ASEAN-6 countries, as well as across all age ranges.
For most products, including consumer electronics, fashion, lifestyle and houseware goods, sports, toys and hobby items, and pet products, quality was the most influential factor when making a purchase. In the case of cosmetics and personal care items, as well as healthcare products, efficacy was deemed the most crucial element. At the same time, brand reputation was the key deciding factor for luxury products.
When looking to purchase a new product, consumers paid most attention to brand image, word of mouth or reputation (53%). This was followed by considerations such as value for money (52%) and product features or functions (41%). These rankings were fairly consistent for Malaysia, the Philippines, Thailand and Vietnam, while Indonesian and Singaporean consumers placed more importance on price attractiveness.
By age group, these rankings were fairly consistent across the 18-29 and 30-49 demographics. Meanwhile, significantly more consumers in the 50+ demographic (50%) regarded price attractiveness as a key factor.
A total of 92% of respondents in the ASEAN-6 spend more during online shopping festivals than they usually do. On average, their expenditure during these festivals is 26% higher than usual. Vietnam, the Philippines, and Indonesia are home to the biggest festival spenders, while younger ASEAN shoppers tend to respond more to online shopping festivals than older age groups.
Meanwhile, 80% of ASEAN-6 consumers expect delivery within three days, with 13% expecting same-day delivery. Consumers in Indonesia and Thailand are the most impatient, with Indonesian respondents having the highest expectations, as approximately one-third expect delivery within the same day.
Younger consumers generally have higher expectations for faster delivery. Across the region, 16% of respondents aged 18-29 expect same-day delivery, compared to 13% of those aged 30-49 and 7% in the 50+ age group.
Hong Kong Brands and Products Popular Among the Youth
A total of 69% of respondents reported purchasing a Hong Kong product in the last 12 months. The proportion was highest among respondents in Thailand (81%), Indonesia (73%) and the Philippines (69%). Overall, younger shoppers tended to buy Hong Kong brands most often, particularly those in the 18-29 age group, with 76% of such consumers throughout the ASEAN-6 having purchased a Hong Kong brand, followed by the 30-49 segment at 72%. For those aged 50 and above, about half (52%) also purchased Hong Kong brands.
When asked about their views on Hong Kong brands or products, 35% viewed Hong Kong products as less costly, 33% saw them blending Chinese and Western elements well, and 32% saw them as trendier. In addition, respondents in Indonesia, the Philippines and Thailand also had a high opinion of Hong Kong products’ quality, creativity and the availability of limited-edition items. In Vietnam, consumers saw Hong Kong products as having better safety standards and guaranteed authenticity.
In terms of age group variations, the views of consumers in the 50+ cohort largely aligned with the overall trends, while those in the 18-29 and 30-49 age groups particularly viewed Hong Kong products as of higher quality.
“Premium Effect” on Hong Kong Brands in Select Product Categories
Although respondents saw Hong Kong brands or products as less costly, they also tended to spend more on such items. For example, consumers from Thailand, Indonesia and the Philippines spent an additional 43%-100% more (per purchase) on Hong Kong consumer electronics than on comparable brands. Meanwhile, consumers from Singapore spent 25% more per purchase on Hong Kong-branded fashion products. In comparison, their counterparts from Malaysia and Vietnam spent 16% and 12% more, respectively, on Hong Kong-branded cosmetics and personal care products.
By age group, those aged 30-49 reported spending more on Hong Kong brands in four categories (consumer electronics, pet products, cosmetics and personal care, and fashion) by between 4% and 26%. The 50+ demographic, meanwhile, reported spending a remarkable 187% more on Hong Kong-branded lifestyle products.
Overall, these findings highlight that Hong Kong businesses are well-positioned to capitalize on the region's growing consumer opportunities.
ASEAN E-Commerce Opportunities: Insights on Consumer Behaviours and Positioning of Hong Kong Products is available in Chinese and English at http://bit.ly/40soAyB
