(Bloomberg) — Southeast Asia’s sizzling-hot internet economy cooled during the pandemic but spending online should bounce back rapidly and triple to more than $300 billion by 2025, research from Google, Temasek Holdings Pte and Bain & Co. shows.
The value of transactions in four key areas — e-commerce, travel, media and transport and food — should grow just $5 billion to about $105 billion in 2020, when many consumers turned to mobile shopping for the first time but lockdowns hammered spending on trips.
The region, home to Alibaba Group Holding Ltd.’s Lazada and Tencent Holdings Ltd.-backed Sea Ltd., will see a 63% increase in e-commerce gross merchandise value from 2019 as home-bound consumers picked up groceries and essentials from the likes of Lazada’s RedMart and Sea’s Shopee. Online shopping is now forecast to hit $172 billion by 2025 versus a previous $153 billion estimate, the research showed.
Tech adoption rates are up dramatically in the last six months due in large part to COVID. Almost overnight, even the least tech literate companies were forced to move business to the cloud, buy collaboration platforms, and start using SaaS applications to keep their business running and their employees safe. Events and meetings moved online. Companies from Facebook to Microsoft are allowing remote work to continue likely for all of 2021. But at some point in the future, however, the world will return to some semblance of normal. Travel will be safer and easier. Deals will be made over dinner and a glass of wine again. Companies will return to their abandoned offices and employees will return to work like normal.
So what happens to the technology when all of this comes to fruition? Many are wondering if we will see a tech repatriation or if companies will continue
The world has become a place which nobody had ever imagined a few months ago. It has been surrounded by the outbreak of a virus that has brought the working of many businesses, brands, and entrepreneurs to a standstill. Nobody was ever prepared for such crucial times in the business world and the situations and circumstances have today made companies and entrepreneurs introspect and come to the conclusion of what needs to be done now to either retain their original positions in the market or thrive with the new normal.