Once considered a promising blue ocean, Southeast Asia's e-commerce market is now confronting challenges of declining traffic. Recent data from analytics platform SimilarWeb reveals that in September, the combined website traffic of Shopee and Lazada across six major Southeast Asian markets (Thailand, Malaysia, Vietnam, Indonesia, Philippines, and Singapore) totaled 549.5 million visits, marking a 3.9% decrease from August's 571.7 million. Shopee's total traffic fell by 4.6% to 401 million, while Lazada experienced a 1.9% drop to 148.5 million. This downward trend isn't limited to these two giants—both local and international e-commerce platforms across the region are witnessing similar declines.
Traditional Platforms Cool as Independent Stores Gain Traction
Amid the traffic slump on conventional e-commerce platforms, independent online stores are attracting growing attention from cross-border sellers, particularly those from China, as a new pathway to expand in Southeast Asia. With the maturation of SaaS website-building technologies and supportive policies, numerous excellent service providers like 2Cshop and Shopify have emerged, enabling merchants to quickly establish independent stores that connect directly with consumers, reducing reliance on traditional platforms.
The advantages of independent stores are clear: sellers gain full control over sales strategies without platform restrictions, enjoy faster capital turnover, implement more flexible marketing approaches, face fewer product category limitations, and can showcase products in richer formats—all while avoiding price wars.
Key Strategies for Independent Stores in Southeast Asia: Product Selection and Traffic Acquisition
While independent stores offer significant potential, success in Southeast Asia's market requires focused attention on two critical aspects: product selection and customer acquisition.
Product Strategy: Understanding Southeast Asian Market Demand
Product selection forms the foundation of independent store operations, directly influencing market acceptance and profitability. Which products resonate most with Southeast Asian consumers?
- Beauty and Personal Care: The region's economic growth and rising female consumer awareness are driving continuous expansion in this sector. Mintel forecasts Southeast Asia's beauty market will reach ¥304.8 billion by 2025. Sellers should focus on products tailored to local skin types and preferences, such as whitening, moisturizing, and sun protection skincare items, along with vibrant, long-lasting cosmetics.
- Electronics: 3C products remain popular in Southeast Asia's e-commerce market and represent a traditional strength for Chinese merchants. Key products include mobile accessories, wearable devices, and home appliances, with emphasis on cost-performance ratio, practicality, and differentiation.
- Maternal and Child Products: Unlike other regions facing declining birth rates, Southeast Asia continues to see growing numbers of newborns, with Indonesia, Philippines, and Vietnam accounting for 90% of the region's 0-4 age group. This demographic dividend creates substantial potential for baby food, clothing, toys, and care products—all requiring strict quality and safety standards to build consumer trust.
- Pet Supplies: The pet economy ranks among Southeast Asia's fastest-growing industries, projected to reach $25 billion by 2030. Preferences vary by country due to cultural and religious differences—dogs dominate in Thailand, Philippines, Vietnam and Singapore, while cats prevail in Malaysia and Indonesia. Product preferences also differ regionally, with Malaysian pet owners prioritizing health care products and Thai consumers favoring mid-range pet supplies.
- Health Products: The pandemic has heightened health awareness, creating sustained demand for vitamins, dietary supplements, and fitness equipment. Marketing should emphasize scientific credibility while avoiding exaggerated claims.
Additional product selection considerations include climate factors (avoiding winter products in tropical Southeast Asia), payment preferences (cash-on-delivery remains dominant outside Singapore and Malaysia, making high-value products less ideal), and cultural sensitivities (modest women's clothing in light colors).
Traffic Acquisition: Social Media Marketing as the Cornerstone
Customer acquisition presents another major challenge for independent stores. Southeast Asia's large, young population and high social media penetration create ideal conditions for social media marketing through platforms like Facebook, YouTube, and TikTok.
- Facebook: As the region's most active and engaging platform, Facebook offers extensive reach for targeted advertising to potential customers.
- YouTube: With Southeast Asian users spending over 10 weekly hours on YouTube, collaborating with local influencers for product reviews and tutorials can effectively attract attention.
- TikTok: Rapidly growing among young Southeast Asians, TikTok allows sellers to create engaging short videos to quickly build followings.
Conclusion: Seizing Opportunities in Southeast Asia
Southeast Asia's vast potential continues to attract cross-border e-commerce sellers. As traditional platforms experience traffic declines, independent stores offer new growth opportunities. Success hinges on mastering product selection and customer acquisition strategies.
Expert Recommendations:
- Implement localized operations by deeply understanding each market's culture, religion, and consumption habits.
- Prioritize mobile optimization given the region's high mobile internet penetration.
- Select reliable logistics partners to ensure fast, dependable delivery and customer satisfaction.
- Provide excellent customer service to resolve issues promptly and build strong brand reputation.