{"id":4644,"date":"2020-04-02T12:17:06","date_gmt":"2020-04-02T03:17:06","guid":{"rendered":"https:\/\/news.cafe24.com\/global\/?p=4644"},"modified":"2020-10-28T15:58:29","modified_gmt":"2020-10-28T06:58:29","slug":"approaching-south-east-asias-e-commerce-market-mobile-first","status":"publish","type":"post","link":"https:\/\/news.cafe24.com\/global\/approaching-south-east-asias-e-commerce-market-mobile-first\/","title":{"rendered":"Approaching SEA\u2019s e-commerce market mobile first"},"content":{"rendered":"

In developing countries, the adoption of technology does not occur incrementally. Instead, they immediately adopt the latest technology, also known as leapfrogging. <\/em>Southeast Asia\u2019s internet economy and e-commerce are no exceptions. <\/em><\/p>

Leapfrogging: Jumping ahead to the newest technology<\/h2>
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Using a smartphone for payment is extremely commonplace in China today. Source: Gettyimagesbank<\/figcaption><\/figure>

Many assume that the adoption of new technology and infrastructure in developing countries occur in phases. Take, for instance, a cash-based society. The assumption is that members of that society would start replacing cash with credit cards. Once credit card penetration is high enough, the country would then move on to become a cashless society based on digital payments.<\/p>

But this assumption is mistaken. Instead, the adoption of new technology happens like bounding up the stairs in broad strides, leaping over some steps. Developing countries that skip traditional stages of technological development and achieve rapid advances are said to be leapfrogging. In some cases, they even outpace developed countries.<\/p>

For instance, China has the highest mobile payment penetration rate in the world. According to Alibaba Group,<\/a> its mobile payment system Alipay has about 900 million domestic annual active users. Tencent\u2019s WeChat Pay<\/a> also has a high usage rate with over 800 million domestic monthly active users. Using a smartphone for payment is extremely commonplace in China today. People make everyday transactions via mobile not only in the biggest cities like Beijing and Shanghai, but also in small cities and suburban areas.<\/p>

Leapfrogging in SEA\u2019s e-commerce market<\/h2>

With rapid industrialization, Southeast Asian countries are leapfrogging. The phenomenon is most pronounced in the internet economy. Countries are skipping the adoption of the PC-based stationary internet to advance straight into accessing mobile internet via smartphones. This unique adoption is driving the rapid growth of mobile-based platforms like e-commerce and ride-hailing.<\/p>