• Shopee retains its 48% leading market share in 2023; 
  • TikTok Shop is now the 2nd largest ecommerce platform in Southeast Asia; 
  • Vietnam and Thailand are the fastest growing ecommerce markets in 2023;

SINGAPORE, 16 July 2024 — Total GMV of Southeast Asia’s 8 leading ecommerce platforms rose to US$114.6 billion in 2023, up 15% from 2022, according to Momentum Works “Ecommerce in Southeast Asia 2024” report released today. 

The annual report offers in-depth insights into the region’s six core ecommerce markets, as well as competitive dynamics of leading ecommerce platforms and ecosystem players including logistics. 

Vietnam and Thailand are the fastest-growing ecommerce markets, with GMV increases of 52.9% and 34.1% YoY respectively. Vietnam also overtook the Philippines as the 3rd largest ecommerce market in the region.

Indonesia remains the largest ecommerce market, contributing 46.9% to the region’s GMV. Its growth rate of 3.7% is the most modest in the region. 

Shopee achieved US$55.1 billion GMV in 2023, retaining its 48% market share. Lazada and Tokopedia clocked US$18.8 billion and US$16.3 billion respectively.

TikTok Shop nearly quadrupled its annual GMV to US$16.3 billion. After taking over Tokopedia, TikTok Shop has become the 2nd largest ecommerce platform in Southeast Asia.   

TikTok Shop also quadrupled its employee count since December 2021 to over 8,000 employees, while Shopee, Lazada, and Tokopedia all reduced employee numbers between 2022 and 2024. 

The report also identified four key trends in Southeast Asia’s ecommerce industry: 

  1. Live commerce: Leading live selling KOLs in Vietnam, Thailand and Indonesia have achieved multi-million dollar sales in single live sessions; 
  2. Generative AI: the region’s platforms start to adopt generative AI applications, notably in user experience and operational efficiency; 
  3. Ecommerce enablers: facing the limitation of a small market and brands’ reduced market share on platforms, many enablers started expanding their business models; 
  4. Ecommerce logistics: 3rd party players face the pressure of platforms in-sourcing parcel delivery. 

”The competitive landscape of ecommerce in Southeast Asia remains dynamic and constantly transforming,”  said Jianggan Li, Founder and Chief Executive Officer of Momentum Works. 

“With markets like Vietnam and Thailand showing remarkable growth and platforms like TikTok Shop rapidly expanding, it’s clear that innovation and adaptation are key to success in this region. The adoption of generative AI and the evolution of live ecommerce are reshaping the industry, and we are excited to see these trends drive continued growth and opportunities for business across Southeast Asia.”

To better understand the evolving landscape and market dynamics of ecommerce platforms in the region, check out our Ecommerce in Southeast Asia 2024 report.

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Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].