In The Checkout this week, we look at the state of the ecommerce sector in Southeast Asia and analyze the possibility of Temu entering Indonesia. [Read from your browser]( The Checkout ð
Â
--------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If youâre not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - The [state of the ecommerce sector]( in Southeast Asia
- The possibility of Temu entering Indonesia amid the countryâs strict regulations
- Vietnamâs Sendo [bets on groceries]( --------------------------------------------------------------- Hello {NAME} For many of us, the pandemic now seems like a distant dream. Yet, some habits from those times still carry on today: ordering daily necessities or food online, for instance. These behaviors continue to drive growth in Southeast Asiaâs ecommerce market. In this weekâs featured story, my colleague Miguel mapped out the current landscape of the ecommerce sector in the region, including funds raised and the market share of ecommerce platforms. While ecommerce remains the largest contributor to the digital economy in Southeast Asia, this sector is not immune to the funding winter. The total number of ecommerce deals has steadily decreased over the past years, with 2023 recording the lowest figure since 2017. Meanwhile, in this weekâs Hot Take, I analyze the possibility of Temu entering Indonesia. Rumors have surfaced that the PDD-owned ecommerce platform, known for selling inexpensive products, plans to bring its services to the country. Considering Indonesia's strict regulations on cross-border ecommerce activities, will this push through? And will it be the right move for Temu? â Jofie
Â
--------------------------------------------------------------- THE BIG STORY [Mapping the players in Southeast Asiaâs expanding ecommerce basket]( Despite the economic slowdown, opportunities for growth abound in the region, particularly in markets like Thailand, Vietnam, and the Philippines.
 ---------------------------------------------------------------
Â
THE HOT TAKE Will Temu dare face Indonesiaâs strict regulations? Hereâs what happened: - Temu, the ecommerce marketplace owned by Chinese giant PDD Holdings, is rumored to be entering Indonesia.
- The Indonesian Ministry of Trade stated that there has been [no application for a permit]( from Temu to operate in the country.
- The ministry also emphasized that Temu's business model cannot be applied in Indonesia. Hereâs our take:
Temu, which sells extremely affordable products on its platform, is enjoying a surge in popularity in the US. In April, the Chinese ecommerce platform had over 17% market share in the US and topped the shopping app charts on Appleâs App Store, [surpassing Amazon](. It has also expanded its global reach, including to Southeast Asia, where it is now available in Malaysia and the Philippines. However, traffic in these two countries does not yet appear as significant as in the US. Its possible entry into Indonesia raises questions. Will it dare take the gamble, given the countryâs strict regulations? Companies that sell products from China often face resistance in the archipelago, which is Southeast Asiaâs largest economy. TikTok Shop experienced this firsthand. In Indonesia, the platform, which sources much of its goods from China, was accused of being a threat to local MSMEs, including traditional market sellers. TikTokâs integration of its ecommerce services with its social media platform also presented issues on user privacy. This prompted the government to issue regulations on social commerce, prohibiting the operation of social media and ecommerce services on the same platform. TikTok complied and temporarily closed its services from October to November 2023, before reopening after merging with Tokopedia. The Indonesian government has also banned the sale of goods below US$100 through cross-border ecommerce since [September 2023](. This led online retailer AliExpress to halt its shipping services to Indonesia. Shopee and Lazada ceased their cross-border operations in the country as well. In 2021, Shein [exited]( the Indonesian market, reportedly due to the countryâs strict customs policy. See also: [Southeast Asiaâs ecommerce players go low to get ahead in price war]( In these circumstances, it is difficult to imagine Temu venturing into the nation, especially with its main business model being cross-border ecommerce. If it does decide to enter Indonesia, it will have to make adjustments to its business model to comply with prevailing regulations. However, if it does, what advantages will it have compared to incumbents? Temu is known as a platform for cheap goods because it can source products directly from China. If this cannot be done in Indonesia, it will have to spend significantly on subsidies to compete with Shopee, Lazada, Tokopedia, and TikTok Shop. A gamble like that would be very costly for Temu and one it might ultimately avoid.
 ---------------------------------------------------------------
Â
NEWS YOU SHOULD KNOW Also check out Tech in Asiaâs coverage of the ecommerce scene [here](. 1ï¸â£Â [Former Lazada Logistics Indonesia CEO joins SiCepat]( Philippe Auberger joins the Indonesian logistics firm as its COO. 2ï¸â£Â [Vietnam mulls VAT on imported goods sold on ecommerce sites: report]( Around US$45 million to US$63 million worth of goods imported from China circulate on platforms like Shopee, Lazada, and Tiki in a single day. 3ï¸â£Â [Ecommerce firm Shopee admits violating monopoly rule in Indonesia]( The countryâs antitrust agency said Shopee has agreed to make adjustments to its logistics operating practices. 4ï¸â£Â [Blibli parent company acquires home decor startup Dekoruma]( The transaction value is over 1.1 trillion rupiah, or around US$70.6 million. ---------------------------------------------------------------
Â
FYI 1ï¸â£Â [Vietnamâs Sendo bets on groceries to revive ecommerce fortunes]( The online grocery business is now the firmâs largest and fastest-growing unit, handling about 50 metric tons of goods and serving 10,000 customers daily. ---------------------------------------------------------------
Â
EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asiaâs signature events [here](. [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on 24-25 July](
Hear from Ganesh Rengaswamy, Managing Partner at Quona Capital, a leading investor in fintech startups across Asia as he shed light on the IPO landscape in Southeast Asia. Limited Fourth Release tickets are available and prices increase on July 1. [Secure your tickets today!]( [Tech in Asiaâs Founders Meetup in Malaysia on July 25]( Double the excitement awaits as Founders Meetup returns to Malaysia, this time in conjunction with the closing party of TIA Conference KL! It's the perfect opportunity to unwind, network, and connect with fellow founders, startup leaders, and investors. Hurry, [get your early bird ticket]( before the promo ends on June 28! [Tech in Asia Conference Jakarta on Oct 23-24](
Where is the next Silicon Valley? It might just be Jakarta! Indonesia's young tech talent is booming, and Tech in Asia Conference Jakarta puts you right in the center of the action. Join us at #TIAConferenceJKT to connect with 4000+ region's brightest minds, 150+ hottest startups, and hear straight from 80+ experts. Early-bird tickets are now available! [Snatch the 75% discount while it lasts!]( --------------------------------------------------------------- Thatâs it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your âedit profileâ page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails?
Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](
 Copyright © 2024 Tech in Asia, All rights reserved.
63 Robinson Road, Singapore 068894