Indonesia to balance growth and consumer protection in digital transformation – OpenGov Asia

Online shopping will continue to do well this year even if the COVID-19 pandemic ends, experts have said. The digital economy has seen massive growth in Southeast Asia in the past year, driven by the rise of e-commerce, according to a recent report. The regional e-commerce market has grown 24 times over the past six years, growing from US$5 billion in 2015 to US$120 billion in 2021. It is expected to reach US$234 billion in 2025.

The report said Vietnam’s market is also expected to quadruple to $39 billion by 2025 from $13 billion last year. The pandemic has triggered major changes in customer shopping behavior and habits, as 58 percent of Vietnamese surveyed said they would continue to shop at online marketplaces because it was convenient. This habit is expected to continue in the future as 53% of respondents indicated that online shopping has become an integral part of their lives.

Director of Vietnam’s Electronic Commerce and Digital Economy Agency (iDEA), Dang Hoang Hai, explained that e-commerce has been a key distribution channel, maintaining supply chains and boosting product sales. agriculture, especially during the severe resurgence of COVID-19. 19. Sales on e-commerce sites reached $13 billion last year, up 16% from 2020, making Vietnam one of the top three countries in Southeast Asia with the stronger growth in online retail sales.

According to the president of the Vietnam E-commerce Association (VECOM), the demand for e-commerce has been booming since the start of the pandemic. More than 70% of the Vietnamese population has access to the Internet; nearly 50% have shopped online and 53% are using e-wallets and have adopted digital payment methods. The waves of COVID-19 have caused major shifts in customer behavior and shaped new trends.

Five key 2021 trends are expected to continue to have profound impacts on the e-commerce ecosystem this year, namely social commerce, user-generated content (UGC), personalized customer experience, digital payment and multi-channel purchases. Although shoppers are returning to physical stores, there are no signs of a decline in online shopping. In fact, the trend continues to grow. Even if the pandemic ends, online shopping will continue to thrive as it has become a consumer habit.

The pandemic has also boosted the adoption of digital payments. Last year, non-cash payments accounted for 70% of total retail transactions in the country. According to a survey of 15,000 retailers, cashless payments in 2021 accounted for 72.8% of total transactions, up 9% year-over-year. Payments via bank accounts became the most popular method, accounting for 36.5% of total transactions in retail stores, restaurants and cafes, followed by cash (29.8%), e-wallets (14 .8%), QR codes (9.9%), bank cards. (8.5%) and payment gateways (0.5%). Notably, 89.3% of retailers have positive ratings on non-cash payments, seeing it as a current and future trend.

As OpenGov Asia has reported, new cashless payment tools are expected to be launched in the coming times to reduce the difficulties retailers are currently facing. Telecommunications is no longer the booming industry it once was as the mobile phone market has become saturated over the past few years. This has forced telecom providers to search for “new spaces”, including mobile money.

Mobile money services will be easy to use in rural and remote areas, where banking and internet branches are not yet highly developed. Once mobile money services are authorized, in theory, any telecom subscriber can access the service. However, carriers need to ensure that subscribers have the correct credentials to provide services, as well as to provide convenience and trust to customers. The country’s telecommunications market currently has about 126.3 million subscribers, with the three largest operators and those licensed to pilot mobile money accounting for more than 97 percent of the market share.

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