Tapping the potential of e-commerce in Asean

ALIBABA, one of the world's largest e-commerce companies, has made two significant moves in South-east Asia. Earlier this year, it acquired a controlling stake in Lazada, a leading online retailer with a focus on South-east Asia, in a deal valued around US$1 billion. This month, Lazada acquired RedMart, a Singapore-based online grocer.

While RedMart currently operates only in Singapore, it has always aspired to expand regionally. Alibaba is not the only company eyeing the region. Amazon, one of the world's biggest online firms, has announced plans to enter the region as early as next year. The reasons companies are making a beeline for the region are simple. The 10-member Association of Southeast Asian Nations (Asean) bloc is one of the world's most promising e-commerce markets.

The bloc is home to more than 600 million people. More importantly, Asean member nations, especially the six key economies - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, have seen sustained economic growth in recent years. That has resulted in a rise in income levels across these countries, giving consumers more disposable cash to spend.