In the ninth edition of the Southeast Asia e-Conomy report with Temasek and Bain & Company, we see how key players in the region’s digital economy are increasingly focused on profitability and moving towards more sustainable growth.
At over 100 pages long, the #eConomySEA report is a dense read. If you too enjoy consuming podcasts, listen to the discussion of the report produced by Illuminate linked below. Illuminate is a Google AI tool that turns content into an audio conversation in seconds — and while it’s very much experimental, I think you’ll agree it does a pretty good job, including conveying great excitement around key trends driving growth such as video commerce and the region’s rise as a global mobile gaming powerhouse. It also gives you a quick snapshot of the key differences across the six markets covered in the report.
If you're still keen to read the full report, you'll find it here: https://lnkd.in/ghiBFZg
This conversation is powered by Google Illuminate. Check out illuminate.google.com for more. Welcome to this discussion on the Economy C 2024 report. A comprehensive analysis of Southeast Asia's digital economy. This report, a collaboration between Google, Temasek and Bain and Company, paints a picture of growth, profitability and the challenges ahead. Let's start with the overall health of the C digital economy. What are the key takeaways regarding its performance in 2024? The C digital economy showed robust performance in 2024, achieving double digit year on year growth across key metrics. Gross merchandise value GMV reached 263 billion dollars, 15% revenue hit $89 billion. Plus 14%. And importantly, profits surged to $11 billion. Twenty 4%. This demonstrates a significant shift towards profitability after years of heavy investment and growth. That's impressive growth and profitability. What are the main drivers behind this significant increase in profits? Several factors contributed. Tighter commissions, more targeted incentives and the development of new revenue streams such as advertising played a crucial role. Key players across sectors like ecommerce, food delivery. And online travel actively implemented monetization strategies. Ecommerce seems to be a major player. Can you elaborate on its performance and the role of video commerce? Ecommerce experienced a remarkable resurgence, growing by 15% year on year. Video commerce was a key driver, accounting for 20% of e-commerce GMV IN2024A substantial increase from less than 5% in 2022. Live shopping and creator LED video content with integrated transactions. Are transforming the shopping experience. The report also highlights the rise of Southeast Asia as a gaming export hub. What's driving the success? See developers are capturing a significant share of the global mobile gaming market, contributing to 12% of downloads in 2024. This success is fueled by a booming gaming content ecosystem with more top creators and uploads than any other consumer category. Developers are also successfully adapting their games to local languages and cultures. While the overall picture is positive, the report. Also mentions challenges. What are some of the headwinds facing the sea digital economy? Private funding remains subdued due to higher interest rates and geopolitical uncertainties. This has led to a decline in deal volume. However, investors remain optimistic about the long term potential of SEA, directing a significant portion of investments towards nascent sectors like AI. The report emphasizes the importance of digital trust. How significant is this issue and what are the key concerns? Digital trust is paramount, while fraud rates are declining due to improved controls. And user awareness. Online scams remain a significant threat. Half of all digital users have fallen victim to scams despite believing they could identify them. This highlights the need for stronger security measures and increased user education. AI is another significant theme in the report. What role is AI playing in the C digital economy and what's the outlook? C is attracting substantial AI investment, with over $30 billion committed to AI infrastructure in the first half of 2024 alone. AI is driving transformative value across sectors, with early adopters realizing returns on investment within 12 months. However, maintaining digital trust in the context of AI is crucial. The report also discusses the importance of investment exits. What are the key challenges and initiatives to improve the exit environment? The exit environment remains challenging due to subdued private funding and macroeconomic conditions. However, initiatives are underway to improve capital market. Conditions including cross-border collaborations and regulatory changes to support IPOs. Early stage companies are also focusing on profitability to enhance their attractiveness to investors. The report provides country specific spotlights. Are there any significant differences in the digital economy's performance across the six countries covered? While all six countries, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam show strong growth, the specific drivers and challenges vary, for example, Indonesia's. Growth is fueled by video commerce, while Malaysia benefits from a resurgence in tourism. Each country faces unique regulatory landscapes and investment climates. What are some of the key recommendations or predictions for the future of the C digital economy as outlined in the report? The report suggests a focus on sustainable growth, including monetizable and profitable growth strategies, and inclusive growth that extends opportunities to underserved segments. This requires investment in physical and digital infrastructure, robust cybersecurity measures, and responsible AI deployment. The report emphasizes adapting to evolving user needs. What specific trends are shaping these? Consumers are becoming more discerning, seeking detailed information and exploring a wider range of products and services. They are also showing increasing interest in AI powered tools and services. Businesses need to adapt their strategies to meet these evolving demands. How can businesses in SEA leverage AI effectively while mitigating the risks associated with it? Businesses should prioritize a strategic approach to AI, aligning initiatives with core business objectives and focusing on use cases that deliver clear competitive advantages. They also need to invest in robust data management, talent acquisition, and ethical AI practices to build trust and ensure long term sustainability. This has been a fascinating discussion on the key findings of the Economy C 2024 report. Thank you for sharing your insights.
I help Academia & Corporates through AI-powered Learning & Growth | Facilitator - Active Learning | Development & Performance Coach | Impactful eLearning
This sounds like an insightful report on Southeast Asia's digital economy! Excited to check out the podcast version—love the innovative use of Google AI to summarize key trends. 🎧📈
Why are Asia's Middle Classes Stagnating?
The Economist's latest podcast explores a critical issue: the stagnation of Asia's middle classes. Once seen as the driving force behind global growth, this demographic is now grappling with slow income growth, rising inequality, and shifting global dynamics.
Adding depth to the discussion is Wolfgang Fengler, CEO of World Data Lab, who provides expert insights into Asia's economic trajectory and what it means for the future of the global economy. At World Data Lab, we analyze these trends to uncover their impact on global consumer spending and economic mobility.
With Asia accounting for nearly half of the global consumer class, the implications of these changes are far-reaching.
Explore this thought-provoking conversation: https://lnkd.in/dMn8H9AE
For deeper insights, join Wolfgang Fengler on December 5th for our World Consumer Outlooks webinar, where we’ll uncover how demographic shifts and consumer spending patterns are shaping the global economy through 2030 https://lnkd.in/du8nE_7M#WorldDataLab#Asia#MiddleClass#EconomicTrends#WolfgangFengler
Why are Asia's Middle Classes Stagnating?
The Economist's latest podcast explores a critical issue: the stagnation of Asia's middle classes. Once seen as the driving force behind global growth, this demographic is now grappling with slow income growth, rising inequality, and shifting global dynamics.
Adding depth to the discussion is Wolfgang Fengler, CEO of World Data Lab, who provides expert insights into Asia's economic trajectory and what it means for the future of the global economy. At World Data Lab, we analyze these trends to uncover their impact on global consumer spending and economic mobility.
With Asia accounting for nearly half of the global consumer class, the implications of these changes are far-reaching.
Explore this thought-provoking conversation: https://lnkd.in/dQm_uH6M
For deeper insights, join Wolfgang Fengler on December 5th for our World Consumer Outlooks webinar, where we’ll uncover how demographic shifts and consumer spending patterns are shaping the global economy through 2030 https://lnkd.in/d8HNQJ6Q#WorldDataLab#Asia#MiddleClass#EconomicTrends#WolfgangFengler
In this episode of the Happy Market Research podcast, CarterJMRN's Dominic Carter and Debbie Howard dive deep into the nuances of market research in Japan. They share invaluable strategies for integrating deep cultural understanding into research methodologies, as well as some personal anecdotes and background.
A must-listen for professionals looking to navigate the complex Japanese market with precision and insight. Check out the full discussion here: https://hubs.la/Q02m9D-B0#MarketResearch#JapanBusiness#StrategicInsights
In this edition of Disruptors: The 10-Minute Take, co-hosts John Stackhouse and Trinh Theresa Do explore the travel industry’s powerful post-crisis rebound. Can the industry keep up with pent-up demand given current labour shortages and record inflation? They’re joined by Claire Fan, Economist at RBC Economics, who breaks down what Canadians’ spending habits reveal.EPISODE NOTES:Read Claire’s new, RBC Proof Point, Canadians are scratching the travel itch again, but can the industry meet demand?, at RBC Thought Leadership.
After 2 years in the wilderness, I'm back behind the microphone recording a new episode of Biz Bytes. Apparently, I needed that long to come up with new content!
And it all came from reading a book!
In this episode, I sit down with Ben Reid to discuss his new book Fast Forward Aotearoa and explore how exponential technology is shaping New Zealand's future and what we can do about it. We dive into:
- The rapid pace of technological change and its impact on New Zealand.
- The growing gap between global tech hubs and New Zealand, and the urgent need to bridge it.
- Techno-optimism vs. the realities of climate change and geopolitical instability.
- The societal impact of AI, the future of work, and the importance of skills development.
- Challenges of increasing energy consumption due to AI and the need for sustainable solutions.
- New Zealand’s technological strategy and sovereignty, including the role of data centres and infrastructure.
Ben shares insights on developing a broader objective function beyond GDP, considering environmental and social externalities, and the potential for decentralized and open-source technologies to maintain technological sovereignty.
Join us as we unpack these critical topics and consider the future of New Zealand in the age of AI.
Listen at:
Spotify https://lnkd.in/gEe5zsgU
Apple https://lnkd.in/gp8yXp55
or all good podcast apps
A massive shout out to Joanne Luxton, Ryan Fairweather, and the team at Crescendo for the awesom work with the editing on this episode too.
#futurism#Technology
Momentive Software is bursting onto the podcast scene with "Beyond Membership," focused on uncovering what drives associations forward.
The first episode, "Association Trends Study," features VP of Product Marketing at Momentive Software, Tirrah Switzer, and discusses the study, the key findings, and the implications.
Listen now: https://hubs.ly/Q02_b1Yz0#beyondmembership
Join us as we sit down with Thomas Knoop, a Shanghai veteran with 15 years of experience navigating China’s dynamic market. 🇨🇳 From personal growth to professional insights, this conversation is packed with valuable lessons for anyone eyeing success in China.
Here’s what we cover:
🔍 Market Entry Strategies
How to prep for success, avoid common pitfalls, and stay agile in an ever-changing environment.
👥 Understanding Chinese Consumers
Unpack what sets Chinese consumers apart and how to tailor strategies for this unique market.
⚖️ Overcoming Challenges
We discuss navigating regulatory hurdles, bridging cultural gaps, and standing out in a competitive landscape.
📈 The “New Normal”
Explore how economic shifts are reshaping the market, the push for differentiation, and evolving pricing models.
🌟 Future Outlook
Insights into emerging industries and opportunities for foreign investment.
Ready to unlock these insights?
Dr. Pearl LaiGaelle Dechelette#ChinaStrategy#MarketEntry#ConsumerTrends#BusinessGrowth#MNCsInChina#Podcast
🎙️ Podcast Release: Lumen Vietnam Fund – Macro Update & Outlook 2024 🎙️
Join us as we dive into the latest macroeconomic data for Vietnam, covering key trends and insights.
- Tourism & Consumption: Strong growth in international tourism boosted overall consumption
- Manufacturing & Trade: Vietnam’s manufacturing sector continues to expand with double-digit growth in imports and exports.
- Foreign Direct Investment (FDI): Robust FDI inflows, particularly in the manufacturing sector, reflect strong investor confidence. Key projects include Google’s potential large data center in Ho Chi Minh City, with an estimated value of USD 300-650 million.
🔍 In the podcast, we also discuss the drivers for continued economic growth and FDI inflows, as Vietnam prepares new cash incentives for high-tech firms to remain competitive on the global stage.
Tune in to our half-year review and outlook for the remainder of 2024, and learn why Vietnam remains a top destination for international investors.
For further information or inquiries about the Lumen Vietnam Fund, feel free to reach out to us directly.
Son Nguyen, Mario Timpanaro, Caroline Wirth
#Vietnam#FDI#EconomicGrowth#Investment#VietnamEconomy#LumenVietnamFund#Podcast#InvestmentOutlook
I help Academia & Corporates through AI-powered Learning & Growth | Facilitator - Active Learning | Development & Performance Coach | Impactful eLearning
1moThis report highlights the shift towards sustainable growth in SEA. Exciting trends like video commerce and mobile gaming are driving progress. The Illuminate podcast offers a quick, insightful overview of key findings. Looking forward to diving deeper into the full report! I invite you to our community so that we all can contribute and grow together using AI here: https://nas.io/ai-growthhackers/. LinkedIn group: https://www.linkedin.com/groups/14532352/