Although Singapore retailers may be struggling, a recent report by market research firm Frost and Sullivan show the huge potential of retail in ASEAN countries.
ASEAN, the Association of Southeast Asian Nations, was established in 1967 with the goals of accelerating economic growth, social progress, and cultural development for states within Southeast Asia.
Today, its 10 member countries include Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Key facts about ASEAN retail
- Retail sales in Thailand, Singapore, Malaysia, and Indonesia is estimated to be worth US$650 billion in 2015 and expected to grow by 15% per year to US$1 trillion in 2018.
- For the same four countries mentioned above, domestic consumption is expected to increase from 62% of GDP in 2010 to 75% of GDP by 2025.
- Singapore, Malaysia, Thailand and Indonesia’s GDP per capita figures are expected to achieve compound annual growth rates (CAGRs) of 5.4%, 9.8%, 5.0%, and 5.0%, respectively from 2015 to 2020.
- Indonesia and Thailand’s e-commerce market size of US$1.1 billion each in 2014 is expected to grow at a rate of 38% and 19% annually up till 2017, respectively.
- Strong fundamentals of the ASEAN market including a young, fast-growing population, emerging middle class consumers, falling unemployment numbers and increasing urbanisation.
Read the full report at SGX.com.
(Source: The Motley Fool)