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1、1Disclaimere-Conomy SEA is a multi-year research program launched by Google and Temasek in 2016.Bain&Company joined the program as lead research partner in 2019.The research leverages Bain analysis,Google Trends,Temasek research,industry sources and expert interviews to shed light on the internet ec
2、onomy in Southeast Asia.The information included in this report is sourced as“Google,Temasek and Bain,e-Conomy SEA 2020”except from third parties specified otherwise.The information in this report is provided on an“as is”basis.This document was produced by Google,Temasek,Bain and other third parties
3、 involved as of the date of writing and are subject to change.It has been prepared solely for information purposes over a limited time period to provide a perspective on the market.Projected market and financial information,analyses and conclusions contained herein should not be construed as definit
4、ive forecasts or guarantees of future performance or results.Google,Temasek,Bain or any of their affiliates or any third party involved makes no representation or warranty,either expressed or implied,as to the accuracy or completeness of the information in the report and shall not be liable for any
5、loss arising from the use hereof.Google does not endorse any of the financial analysis in this report.Google internal data was not used in the development of this report.Reference2e-Conomy SEA2015-2025e-Conomy SEASpotlighte-Conomy SEA2019e-Conomy SEA2020Unlocking the US$200B digital opportunity in S
6、outheast AsiaUnprecedented growth for Southeast Asias US$50B Internet economySwipe up and to the right:Southeast Asias US$100B Internet economyAt full velocity:Resilient and racing ahead e-Conomy SEA2018Southeast Asias Internet economy hits an inflection point2001920205th edition of e-Con
7、omy SEA by Google,Temasek,Bain Southeast Asias Internet economy research program3Google trendsTemasek insightsPrimary research*Expert interviews&Industry sourcesBain analysisIn partnership withe-Conomy SEA research methodology4*Note:Kantar e-Conomy SEA 2020 primary research commissioned by Google,Re
8、search was conducted in Indonesia,Malaysia,Philippines,Singapore,Thailand,and Vietnam.Fieldwork ran from 18/08/2020-02/09/2020 online via a 25-minute Computer Assisted Web Interviewing survey with a total of 4,712 respondents interviewed.e-Conomy SEA covers 6 countries in Southeast AsiaSource:World
9、Bank 583M Total population across the 6 countries6MSingapore70MThailand32MMalaysia96MVietnam108MPhilippines271MIndonesia5Market coverage:5 leading Internet e-Conomy sectors and 2 new onesNote:e-Commerce does not include social commerce due to lack of reliable data;HealthTech and EdTech not included
10、in analysis because the sectors are still very nascentHealthTechEdTeche-CommerceMarketplaces Malls Direct to ConsumerTransport&FoodTransportFood DeliveryOnline MediaAdvertisingGamingVideo on DemandMusic on DemandOnline TravelFlightsHotelsVacation RentalsFinancial ServicesPaymentRemittanceLendingInsu
11、ranceInvestingNew to this years research are two nascent sectors that have rapidly accelerated due to COVID-19.62020:A year of pandemic uncertaintySource:WHOSoutheast Asia(SEA)continues to combat the pandemic as reported cases breached the 800K mark in mid-October.Earlier in the year,nations went in
12、to various degrees of lockdown,which interrupted businesses and everyday life on every level.Governments have had varying degrees of success combating the virus,and while many have reduced the number of new cases,resurgence remains a risk as economies reopen.Cascading economic consequences are still
13、 unfolding and will likely be felt for many months to come.800400003 Jan 202040002000020 Oct 202002000040200150750IndonesiaMalaysiaPhilippinesSingaporeThailandVietnamCOVID-19 daily new cases(moving 7-day average)03 Jan 202020 Oct 202003 Jan 202020 Oct 202003 Jan 202020 Oct 202003 Jan 2020
14、20 Oct 202003 Jan 202020 Oct 20207Introducing e-Conomy SEA 2020Flight to digital:Quick adoption,lasting growthOnline with a purpose:The helpful role of technologyResilience in times of crisis:Growth prospects stronger than everOn the path to profitability:Pivoting to sustainable growthNew frontiers:
15、HealthTech&EdTechCautiously optimistic:Investors remain confidentWhats aheadCountry viewContent9291958Internet usage in Southeast Asia(SEA)continues to multiply,with 40M new users this year alone(400M YTD vs 360M in 2019).But even as we write this report,the region remains in the throes o
16、f COVID-19,and its economic impact is still unfolding.Already evident,however,is that the coronavirus has brought about a permanent and massive digital adoption spurt,with more than 1 in 3 digital services consumer(36%of total)being new to the service,of which 90%intend to continue their newfound ha
17、bits post-pandemic.Southeast Asians spent on average an hour more a day on the Internet during COVID-19-imposed lockdowns,and its easy to see why.The Internet sector provided access to essential goods,healthcare,education,entertainment,and helped businesses“keep the lights on”.With 8 out of 10 South
18、east Asians viewing technology as very helpful during the pandemic,it has become an indispensable part of peoples daily lives.Flight to digitalOnline with a purposeExecutive summary e-Commerce,Online Media and Food Delivery adoption and usage have surged this year,while Transport and Online Travel h
19、ave suffered significant challenges.Ultimately,the net effect is that the Internet sector will remain resilient at US$100B GMV by year end 2020,and is poised to grow to over US$300B GMV by 2025,a clear indication that momentum has not been derailed by the years challenging environment.The crisis wil
20、l also boost Digital Financial Services(DFS),as consumers and SMEs become more receptive to online transactions.Resilience in times of crisis9Since peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core
21、business to prioritize a path to profitability,and are addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong
22、cash-generating core business to be key.HealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they can be commercialized at a larger scale.Nonetheless,the boost in
23、adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.On the path to profitabilityNew frontiersExecutive summary Deal activity across the region continued to grow unabated in the first half 2020.Despite market turbulence,growth fundamentals
24、in the region remain strong and investors are cautiously optimistic.Where the goal of years prior has been“blitzscaling”,investors are now looking for sustainable,profitable growth.Cautiously optimisticThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable
25、 ways,putting it in a stronger position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key
26、blocker that all parties will need to keep working on to ensure the momentum gained this year is sustained.Whats ahead10Quick adoption,lasting growthFlight to digital020260M360M400M40M70%new users joined the Internet in 2020,compared to 100M between 2015 and 2019of the regions population
27、is now onlineNew users are coming online at a blistering pace,adding 40M new Internet users this year aloneSource:e-Conomy 2019 report,Statista for 2020Total Internet users in SEA12In addition to new online users,COVID-19 led to an acceleration of digital consumption as users tried new digital servi
28、ces for the first time.More than 1 in every 3 digital service consumers started using the service due to COVID-19.Source:Kantar13ElectronicsApparelBeautyGroceriesFood DeliveryVideoMusicLoansEducatione-CommerceOnline MediaEducation,Groceries,and Lending benefited most from the influx of new digital c
29、onsumersS7.You mentioned that you did the following in the past 6 months.Did this come about as a result of the Coronavirus/COVID-19 lockdown?Base:Total new user responses:Singapore n=1443,Indonesia n=2762,Malaysia n=1628,Vietnam n=2814,Philippines n=1818,Thailand n=1707,SEA n=12,172 Source:KantarNo
30、te:%s are based on responses rather than respondent-on all who qualified for the vertical%of new digital consumers out of total service consumers(SEA aggregate)14VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandSEAOn average across SEA,1 in 3(36%)of all digital service consumers are new to the se
31、rvice due to COVID-19*New digital services users:consumers who were not already purchasing/signing up for/subscribing to digital services,but did so as a result of lockdownsS7.You mentioned that you did the following in the past 6 months.Did this come about as a result of the Coronavirus/COVID-19 lo
32、ckdown?Base:Total new user responses:Singapore n=1443,Indonesia n=2762,Malaysia n=1628,Vietnam n=2814,Philippines n=1818,Thailand n=1707,SEA n=12,172Source:Kantar.Note:%s are based on responses rather than respondent-on all who qualified for the vertical(not necessarily allocated to vertical)%of new
33、 digital consumers out of total service consumers(SEA aggregate)15MalaysiaVietnamThailandIndonesiaPhilippinesAside from Vietnam and Thailand,majority of new consumers are from non-metro areasS3.Where do you live?Base:Total new users:Indonesia n=564,Malaysia n=438,Vietnam n=593,Philippines n=465,Thai
34、land n=378,SEA excluding Singapore n=2,438Total existing users:Indonesia n=814,Malaysia n=605,Vietnam n=747,Philippines n=640,Thailand n=649,SEA excluding Singapore n=3,455 Source:Kantar*Note:%s are based on respondent level within new/existing,rather than responsesMetroNon-metro%of new digital cons
35、umers to services,by geography16This new digital acceleration is sticky:94%of new digital service consumers intend to continue with the service post-pandemic.Source:Kantar17VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandSEA9 in 10 new digital consumers intend to continue using digital services
36、going forwardE1.In comparison to the COVID-19 lockdown period,do you think going forward that your online purchases of/frequency of using will.(increase/stay the same).Base:New users:SG n=425,ID n=564,MY n=438,VT n=593,PH n=465,TH n=378 Source:Kantar*Note:%s are based on respondent level within new
37、users;Continue=purchases/frequency of using will increase or stay the same going forward%of new digital consumers who will continue to use at least one digital service post-COVID-1918The helpful role of technologyOnline with a purpose19Across all markets,digital engagement increased by an additional
38、 hour of personal use per day during lockdown.8 out of 10 felt that technology was helpful in dealing with the pandemic.Source:Kantar20Before DuringAfter 3.74.74.2Consumers have been spending more time online since lockdown I2.When you go on the Internet(for personal usage,not for work),how long do
39、you normally spend in a day?Base:Existing users n=4,151,Source:Kantar*Note:%s are based on respondent level within new/existing,rather than responsesAverage time spent online per day by existing users(personal use)211/hour5 times/day2-5 times/day24%46%34%33%35%35%29%11%19%8%3%5%7%4%6%BeforeDuringAft
40、er lockdownHourly Internet users nearly doubled during lockdown and now remain 10pp higher than pre-COVID-19 times1.How frequently do you access the Internet for personal usage(not in relation to work)?Base:SEA cross-market all respondents n=4,712 Source:Kantar*Note:%s are based on respondent level
41、within new/existing,rather than responsesFrequency of accessing the Internet for personal use(%of respondents)223.74.84.24.05.24.93.64.54.13.74.64.33.14.23.53.64.74.3VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandHours spent online per day rises,with highest spike in PhilippinesI2.When you go o
42、n the Internet(for personal usage,not for work),how long do you normally spend in a day?Base:New users:Singapore n=421,Indonesia n=563,Malaysia n=437,Vietnam n=591,Philippines n=464,Thailand n=377 Existing users:Singapore n=701,Indonesia n=813,Malaysia n=605,Vietnam n=744,Philippines n=640,Thailand
43、n=648 Source:Kantar *Note:%s are based on respondent level within new/existing,rather than responsesAverage hours spent online per day(personal use)BeforeDuringAfter2374 74777375746977727177 7772807480878737885797e-CommerceOnline MediaTransport&FoodElectronicsApparelBeautyGroce
44、riesTransportFood DeliveryOnline TravelVideoMusicLoansEducationShifted perception of digital services here to stayI4.How helpful did you find the following services to be before the COVID-19 lockdown?5pt scale T2B scores usedI5.How helpful do you find the following services to be during the COVID-19
45、 lockdown?5pt scale T2B scores usedI6.How helpful do you believe the following services will be after the COVID-19 lockdown?5pt scale T2B scores usedBase:Please see speaker notes for vertical sample sizes Source:KantarPerceived helpfulness of Internet services before,during,and after lockdown(%of re
46、spondents)BeforeDuringAfter24Essential goods&servicesSafe social interactions&entertainmentHealth&safety responsesSustain SMEsRemote online learningTechnology helped maintain access to basic needs during lockdown:25Despite restricted mobility,e-Commerce maintained uninterrupted access to necessities
47、,such as groceries.Food deliveries remained an option for those who could not cook and cashless solutions such as e-wallets made transactions more accessible to all populations.GrabMart,for example,scaled their services from 2 to 8 countries within three months to provide widespread access to essent
48、ial items such as rice and milk.Redmart,meanwhile,instilled a 35-item limitation per order to prioritize the efficient delivery of essentials.EssentialsIf not for home-based learning,135M school children would have lost access to education-a significant impact to families around the region.And with
49、more time spent at home,many adults also took the opportunity to upskill via online courses.Platforms such as Ruangguru and Zenius Education were exemplary in providing free access to their educational materials so students can keep abreast of their studies.Telecoms including Celcom,Digi and Maxis T
50、elecom,on the other hand,granted users 1GB daily to support their e-learning and productivity initiatives.Filling the learning gapTechnology has fundamentally impacted all aspects of life this yearWith recreational activities confined to the home,digital services like music and video streaming platf
51、orms have provided alternative sources of entertainment.At the same time,technology has been instrumental to staying in touch with friends and family.Streaming platforms Astro,Singtel and iFlix,for instance,offered complimentary access to their content to help ease the monotony of lockdowns.Streamin
52、g entertainment Mobility tracking systems,which were instrumental to government planning and control during lockdowns,were also powered by digital services.And as the burden on healthcare systems mounted,digital services helped reduce the pressure by enabling physicians to treat non-critical cases v
53、irtually.For example,MyDoc offered patients with respiratory symptoms universal access to their proprietary COVID-19 triage assessments,while Gojek and Halodoc,in collaboration with the Indonesian Ministry of Health,launched an online consultation that helped screen patients experiencing COVID-19 sy
54、mptoms.Enabling healthcare&safety tracking26Source:Bain AnalysisWork-from-home,the worlds new normal,has compelled businesses to accelerate the adoption of digital solutions so employees can work efficiently,remotely.Companies like Google and Hadirr partook in the effort by extending their tools to
55、businesses of all sizes in these times of need.For instance,the Google Meet business video-conference service was made free to all users so they could continue their work flows,and complimentary use of Hadirr helped teams keep track of attendance,work hours and assignments.Powering WFHOver this peri
56、od,companies have had to rethink their operations,diversify their sales channels and innovate new ways of reaching customers during extensive lockdowns.Fortunately support was available,such as Telkomsels educational platform that helps tourism SMEs navigate transformation.The Singapore government a
57、lso provided support by facilitating companies adopt of new solutions including e-transactions and inventory management.Digitizing businessesTechnology has fundamentally impacted all aspects of life this yearSocial distancing measures and lockdowns have deeply affected the Food Delivery and e-Commer
58、ce sectors,but technology has provided these SMEs with substitute revenue sources.Online food delivery platforms GrabFood.Deliveroo,FoodPanda and GoJek provided a way for F&B businesses to quickly transition online.And at the same time,Shopee created a Seller Support Package to help local sellers la
59、unch and grow an eCommerce presence.Sustaining retail and F&B27Source:Bain AnalysisResilience in times of crisisGrowth prospects are stronger than ever28The Internet economy remains resilient at US$100B GMV,even in the face of a global slowdown.As consumers and SMEs come online,the 2025 number stand
60、s strong at over US$300B,indicating growth despite a challenged environment.29Note:GMV=Gross Merchandise Value201520162017COVID-19 reversed years of economic growthNote:Real GDP is based on 2010 US$prices.Source:Economist Intelligence Unit,extracted Oct 2020Real GDP 2015-2020,by country,indexed to 2
61、015 levels201920202018VietnamChinaUSIndiaSingaporeThailandIndonesiaPhilippinesMalaysia1.41.21.00.030The SEA Internet economy will exceed$100B GMV this year despite headwindsSource:Bain Analysis2025205309e-CommerceOnline TravelTransport&FoodOnline MediaSEA Internet economy GMV(US$_B)201532
62、+5%+24%CAGR31Vietnam and Indonesias digital economies still growing double digitsSource:Bain Analysis10.711.43057.17.5282Philippines(US$_B)1618536Thailand(US$_B)1214523Vietnam(US$_B)Malaysia(US$_B)4044124823%129227Singapore(US$_B)Indonesia(US$_B)202520025200252002520
63、02520025201%6%21%-24%19%6%30%7%25%16%29%CAGRSEA Internet economy GMV(US$_B)32Source:Bain AnalysisSingapore remains a regional enabler for growth,despite short term GMV decline due to the Online Travel sectorRegional hub for e-Commerce and other unicornsRegional headq
64、uarters for multiple ecommerce unicorns(Lazada,SEA group)and a key enabler of the e-Commerce boom in SEA.Highest number of unicorns headquartered in SEA.Continued investments in startups325 deals executed in H1 2020,with a total deal value of US$2.5B.Continues to be a hub for multiple sectors such a
65、s FinTech within SEA,strong startup ecosystem.Positive growth outside Online Travel50%of Singapore Digital GMV in 2019 was from the Online Travel vertical which declined-70%YoY in 2019-20.The other sectors grew 20%YoY in 2019-2020 in comparison,driven by the strong increase in e-Commerce of 87%YoY i
66、n 2020.6.37.6Singapore excluding Travel(US$_B)20192020+20%33Users moved online for Food delivery,Groceries,Education,EntertainmentS8.Thinking about before the coronavirus/COVID-19 lockdown,have your behaviours in the following activities changed?Would you say you.Base:Please see speaker notes for ve
67、rtical sample sizesY-axis:%of respondents who respond“More than before”subtracted by%of respondents who report“less than before”Shift in buying behavior due to COVID-19 lockdowns across SEA(use more than before)EducationGroceriesVideo StreamingFood DeliveryMusic StreamingClothingBeautyPersonal Loans
68、Consumer electronicsTransportTravel34%33%22%21%15%12%5%5%-1%-13%-13%34COVID-19 accelerated many sectors,while setting others backTemporarily setbackContinued growthAccelerated Online MediaPaymentInsuranceRemittanceInvestmente-CommerceTransport(car hailing)Food DeliveryOnline TravelLendinge-CommerceT
69、ransport&FoodOnline TravelOnline MediaDigital Financial Services35Overall long-term outlook more robust than everGrowing online populationGreater online supplyStrong fundamentalsSupportive ecosystem36%of consumers are new to digital servicesLasting adoption of digital services(94%of new users will s
70、tay)Increased usage and trust in digital services Onboarding of SMEs catalyzedAccelerated digitization of businessesMore cross-selling opportunities across platformsContinued regulatory support for innovationEstablished Financial Services and Consumer players help SMEs go onlineContinuous infrastruc
71、ture improvementPrecovid,one of the fastest growing economic regions in the worldPent-up desire to travel continues to grow Eventual recovery of key sectors,including Travel,Transport and LendingInternet economy outlook stronger than ever36Overall,gains in e-Commerce,Media,and Food Delivery have off
72、set contractions in Travel and TransportSource:Bain Analysis38621725GMV(US$_B)per sector1311426Transport&Food34146027Online Travel1417358Online Mediae-Commerce2025200252002520025203%23%-11%30%22%15%-58%33%CAGR37Digital Financial Servicese-CommerceTransport
73、&FoodOnline TravelOnline MediaNewfound online habits have propelled e-Commerce GMV to US$62BSource:Bain AnalysisThe great consumer and SME migrationOver a third of 2020s online commerce was generated by new shoppers,of which 8 in 10 intend to continue buying online going forward.Purchase frequency h
74、as increased,though the shift towards essential goods has shrunk average basket sizes.Many SMEs moved online as e-Commerce became the only available retail channel.Online groceries have been jump startedConsumers who have now tried online grocery shopping have doubled,with over 75%indicating theyll
75、continue post-COVID-19.This could accelerate future growth once grocers resolve logistical and profitability challenges.e-Commerce is turbo-charged even as Retail contracts2025 GMV estimates have been revised upwards to US$172B despite reduced Retail and GDP forecasts for the region.38629
76、20202025e-Commerce GMV(US$_B)63%23%CAGR38Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaLasting adoption of e-Commerce is expected across the regionR3a.Before COVID-19,how much did you purchase ECOMMERCE online(e.g.app/website)?R3b.During COVID-19,how much did you purchas
77、e ECOMMERCE online(e.g.app/website)?R3c.Which of the following best describes the way you will purchase ECOMMERCE after COVID-19 is over?Based on the response of those who answered,“often/always purchase online”Base:e-Commerce(Consumer Electronics,Apparel&Beauty)Vertical:SEA n=3754,SG n=647,ID n=750
78、,MY n=542,VT n=687,PH n=561,TH n=567 Source:KantarUsage of e-Commerce before,during and after COVID-19 lockdown,indexed to pre-COVID-19 levels11.91.5121.611.81.211.61.411.41.212.11.7VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandBeforeDuringAfter47%49%on average cited save time and energy as th
79、e top reason to shop online of new users cited decreased exposure to COVID-19 as the reason to shop online40%cited issues with delivery as the top barrier to using e-Commerce39Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaShoppers are buying more groceries online-and the
80、yre not going back Source:Forrester ForecastViewOnline Grocery sector gets jump started47%of all Online Grocery users are new,of which 76%plan to continue using the service going forward.This soar has accelerated the development of temperature controlled logistics,which bodes well for long term grow
81、th of the nascent sector.More diversity in e-Commerce The pandemic has increased merchant onboarding,with offline retailers who have held out thus far forced to adapt.As the sector matures,this will expand the collective range of online marketplaces-and products-in the region.20252015202041%21%10%4%
82、19%6%33%22%12%11%16%6%31%24%10%15%14%6%Consumer electronicsHome&livingFood&groceriesApparelBeauty&personal careOthere-Commerce GMV,retail category distribution40Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaIn parallel,suppliers are trying to come online to meet the risi
83、ng demandSource:Google Trends Web Searches Search trend for online selling-related queries20920092009200920092009201820172020IndonesiaMalaysiaPhilippinesSingaporeThailandVietnam5x
84、5x3x2x4x6x41Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaGrowth in Food Delivery insufficient to offset contraction in TransportSource:Bain AnalysisCommute patterns will take a while to recoverUrban mobility plunged by up to 80%at the height of lockdown.Even as restrict
85、ions eased,work-from-home and reduced confidence in shared transportation will likely see muted volumes through the first half of 2021.In the long run,Transport sector should recover and return to normal levels.8523220025Transport&Food GMV(US$_B)561931311420.4Subsidy-war truce;focus on pa
86、th to profitabilityGrowth in prior years has been heavily fueled by subsidies.With the sector severely disrupted this year and investors becoming more selective,Transport&Food platforms have had to rebalanced aggressively towards sustainable economics and cut down on investments in non-core business
87、es.Rapid pivot towards Food and DeliveriesNew users represented 37%of Food Delivery users during lockdown.To capture the demand,platforms rapidly onboarded more eateries/merchants and pivoted their Transport capacity towards deliveries.Consumption habits of consumers have changed during this period
88、following the initial surge in cooked foods,demand for groceries and ready-to-cook meals increased.A wider portfolio of food items delivered is an incremental long term opportunity.Food DeliveryTransport-11%30%CAGR42Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaAs intra-
89、city travel resumes,so will Ride Hailing-but it will take time Source:Google Mobility Report for primary urban centers;Commute volume adjustment,indexed to January 2020Consumer sentiment about using Ride Hailing during COVID-19(%of respondents)More than beforeSame as beforeLess than before48%21%30%4
90、3%32%23%46%25%26%39%34%26%29%28%39%42%26%29%VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandJanOctFebMarAplMayJunJulAug0%-80%-40%VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandUrban commutes volume dropped sharply in Q2 2020,in direct correlation with lockdown severities.The Philippines was
91、 the worst affected(80%drop)while Vietnam remained relatively unaffected.Work-from-home,reduced social activities,and stressed tourism have kept intra-city commute volumes lower than normal,even after lockdowns ended.TransportFood43Digital Financial Servicese-CommerceOnline TravelOnline MediaTranspo
92、rt&FoodInitial surge in Food Delivery usageAt the onset,consumers immediately switched to on-demand Food Delivery services,both for convenience and concerns over public safety.Amongst all Internet services,consumers found Food Deliveries to be the most helpful during lockdowns.Thin line between cook
93、ed foods and groceriesAs work-from-home arrangements persisted,meal habits shifted in favor of home-cooking(with simultaneous rise in Online Groceries).Food Delivery platforms widened their product ranges,expanding from cooked food to ready-to-cook meals and groceries.Subsequent return to normalInit
94、ial demand for Food Deliveries did not sustain due to cost and food quality concerns,as well as a shift towards home cooking.Resumption of dine-in services at restaurants further dropped the demand.Initial surge in cooked Food Deliveries gave way to a wider repertoire of servicesSource:KantarConsume
95、r sentiment on the change in usage of Food Delivery,indexed to pre-COVID-19 levelsBeforeDuringAfter1.01.41.21.01.71.01.02.01.61.01.51.21.01.61.11.01.40.9VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandTransportFood44Digital Financial Servicese-CommerceOnline TravelOnline MediaTransport&FoodSpike
96、 in Food Deliveries subsided as lockdowns easedSource:Google Trends Web Searches for selected food delivery services,1/2016-8/2020“Xx”indicates average search queries(2020)vs.average search queries(2016)Search volumes for select Food Delivery services,by country,indexed to 2016 levels2092
97、0092009200920092009201820172020IndonesiaMalaysiaPhilippinesSingaporeThailandVietnam13x16x14x2x20 x1.3xTransportFood45Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline Med
98、iaOnline Travel most affected,nose-dives to US$14B GMVSource:Bain AnalysisOnline Travel GMV(US$_B)20.88.720.012.52002512.95.638.7193414600.36.60.61.0Signs of recovery in domestic tourism,though unevenDesire to travel is widespread,with 6-7(depending on country)in 10 respondents saying the
99、y cannot wait to travel again.Certain segments and markets have started on their journey to recovery,albeit at different speeds.Vietnam,where the pandemic has been relatively under control,has bounced back faster than the Philippines,where cases continue to rise.Hotels and holiday rentals,especially
100、 those within driving distance from major metro areas,have generally seen stronger recovery than airlines.Growth of online penetration remains promisingOnline consumers are increasingly savvy,yet they remain concerned.Theyre researching hotel safety and hygiene standards and theyre starting to adopt
101、 online Digital Financial Services(DFS)such as pay-later and travel insurance.On the other hand,tourism SMEs such as boutique hotels and walking tours are now more receptive towards joining OTA platforms.0.1Online vacation rentalOnline hotelOnline flights-58%33%CAGR46Digital Financial Servicese-Comm
102、erceTransport&FoodOnline TravelOnline MediaRestrictive regulations stir demand for domestic trips;safety top of mindSource:KantarConsumers who want to travel again once they are able toPent-up travel needs translate into short domestic trips65%of consumers across the region plan to travel domestical
103、ly in the next 6 to 12 months.6 in 10 consumers expect to book shorter trips than usual in the near future.Tourism-related businesses within driving distance from metro areas will potentially recover faster,as long as flight access remains limited.Safety is the top consideration when travelling 78%o
104、f consumers expressed a preference for companies that are committed to health and safety-more than booking flexibility(75%)or deals(69%).Consumers are now more likely to purchase experiences online to avoid crowd control complications or lining up in person(ie.at theme parks).Consumers are also more
105、 risk averse,with a higher tendency to purchase travel insurance and use pay-later services when booking a trip during the recovery phase.61%74%65%66%62%76%69%VietnamIndonesiaPhilippinesMalaysiaSingaporeThailandSEA47Digital Financial Servicese-CommerceTransport&FoodOnline MediaOnline TravelStaycatio
106、ns have surged as lockdowns eased but borders remained closed Source:Google Trends Web SearchesSearch volumes for staycations,by country,indexed at January=1006004000IndonesiaMalaysiaPhilippinesSingaporeThailandVietnam12xspike post-lockdown200600400020008000400Lockdown easedJanJulMayMarAu
107、gFebAprJunJanJulMayMarAugFebAprJunJanJulMayMarAugFebAprJunJanJulMayMarAugFebAprJunJanJulMayMarAugFebAprJunJanJulMayMarAugFebAprJun30020001003xspike post-lockdown5xspike post-lockdown4xspike post-lockdown10 xspike post-lockdownStill in lockdown48Digital Financial Servicese-CommerceTranspor
108、t&FoodOnline TravelOnline MediaSurge in entertainment as people spend more time onlineSource:Bain Analysis.Online Media refers to Advertising;Gaming,Video on Demand,Music on DemandOnline Media GMV(US$_B)20025Digital entertainment accelerated by a yearSubscription Music&Video and Online Ga
109、ming has seen a surge in new user acquisition,up to 2X in some markets at the height of city lockdowns.As countries reopened,churn from these users have not increased significantly,indicating that many of the customers are here to stay.414173522%15%CAGR49Digital Financial Servicese-CommerceTransport
110、&FoodOnline TravelOnline MediaStreaming entertainment adoption estimated to be a year ahead of projections Source:KantarSuper surge in new usersDuring lockdowns,new users made up 38%of the regions Subscription Video on Demand services(SVOD).Music subscriptions,on the other hand,grew at a slightly sl
111、ower pace of 34%in the same period.Users are here to staySo far,SVOD providers have not seen a significant increase in churn.Over half of the users(6 out of 10)intend to continue their video and music subscriptions indefinitely but having said that,users have also indicated that theres a likelihood
112、of unsubscribing once the trial period ends.45%40%39%33%31%26%40%31%27%27%46%40%users who joined because of COVID-19Subscription Music on DemandSubscription Video on Demand(SVOD)VietnamIndonesiaPhilippinesMalaysiaSingaporeThailand50Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnlin
113、e MediaUnprecedented interest in Video Streaming providersSource:Google Trends web searches for selected subscription video services brands,1/2016-8/2020“Xx”indicates average search queries(2020)vs.average search queries(2016)2092009200920182017
114、202020920092009201820172020IndonesiaMalaysiaPhilippinesSingaporeThailandVietnam11x5x8x3x18x12xSearch trends for video subscription services,by country,indexed to 2016 levels51Consumers and SMEs have adopted Digital Financial Services like never
115、before.Behavioral changes are here to stay and will boost adoption and penetration.52e-CommerceTransport&FoodOnline TravelOnline MediaDigital Financial ServicesAside from Lending,Digital Financial Services are on a healthy trajectorySource:Bain Analysis;GWP=gross written premium;APE=annual premium e
116、quivalent;AUM=Assets Under Management153511Remittance flows(US$_B)239223Lending loan book(US$_B)27.61.5Insurance APE/GWP(US$_B)218410Investment AuM(US$_B)Digital Payment Gross Transaction Value(GTV)(US$_B)200008%43%31%30%32%116%32%CAGR0%53201920202025$1200
117、B$600B$620B15%3%e-CommerceTransport&FoodOnline TravelOnline MediaDigital Financial ServicesDigitalization of all participants in the DFS ecosystem has been acceleratedConsumers:Long-lasting newfound online habitsAccelerated shift away from cashIncreased trust of online transactionsExpanded digital f
118、ootprint for better credit assessmentDFS providers:Boost in customer engagement Customer acquisition,education,and engagement efforts moved onlineNew urgency for established financial services players to digitize operationsDFS seen as critical value driver by online platforms increasing competitionB
119、usinesses:Migration of merchants and SMEs onlineBarriers to adoption of digital payment have been lowered by the pandemicShift to online transactions(i.e.listing on e-Commerce and food delivery platforms)More digitally recorded transactions allowing better credit assessmentRegulators:Continued suppo
120、rt and innovationIncreased encouragement and support from regulators for consumers to adopt DFSContinued innovation from regulators can further accelerate growth(i.e.Digital bank licenses,e-KYC infrastructure,etc.)54e-CommerceTransport&FoodOnline TravelOnline MediaDigital Financial ServicesSource:Ap
121、pAnnie:includes iOS and Google Play,Jan 1 Sep 31 2020 vs previous periodLeading financial institutions enhanced their apps and saw engagement increaseYTD monthly active user growth for select mobile banking apps,in%,by countryVietnamIndonesiaPhilippinesMalaysiaSingaporeThailand55Digital Financial Se
122、rvicese-CommerceTransport&FoodOnline TravelOnline MediaDigital Payments will retain a strong foothold Gross Transaction Value(GTV),US$_BDecline of cash,adoption of e-walletsBased on Kantar research,average number of cash transactions by consumers declined from 48%pre-COVID-19 to 37%post-COVID-19.At
123、the same time,frequency of e-Wallets transactions rose from an average of 18%pre-COVID-19 to 25%post-COVID-19,indicating a massive shift from one payment method to another.More merchants now accept Digital PaymentsSMEs shifted online out of necessity,but incumbent acquirers and traditional financial
124、 institutions also supported their merchants by teaching them how to use online payments,amongst others.Accelerated growth for Digital PaymentsWith the boost from COVID-19,which are turning into lasting payment habits,our 2025 GTV estimates have been revised to US$1.2T.200%21%18%59%20%18%
125、49%24%21%6%3%1%CashCardsA2Ae-walletPaymentRemittanceLendingInsuranceInvestment56Source:Bain Analysis,A2A=Account to AccountDigital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaIncrease in Digital Remittance users Source:App Annie data;YTD vs same period in 2019,Sample of remitt
126、ance apps based on available data:Transferwise,Remitly,World Remit,OFX,CurrencyFairApp download of Digital Remittance playersDigital Remittance sees a surge in adoptionAdoption of online remittances jumped by nearly 2x as movement became restricted.This is further supported by regulators and employe
127、rs going online to pay migrant workers electronically,then help them transfer funds to their families.Effects will likely last through 2025 Convenience and lower prices will likely result in sustained behavioral change,with up to 40%of total remittance value transacted online by 2025.App download of
128、 a sample of Digital Remittance players in 2020 201920201.3xPaymentRemittanceLendingInsuranceInvestment57Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaDigital Lending set back by concerns over credit qualitySource:Bain Analysis;NPL=Non Performing LoansLending outstanding
129、 loans(US$_B)Government intervention slightly softensthe blowGovernments across the region have intervened aggressively through loan moratoriums,restructuring,stimulus packages,tax incentives,and interest rate adjustments.Spike in NPLs puts some lenders on shaky groundAs loan moratoriums expire towa
130、rds end-2020,NPLs are expected to rise sharply.While banks in the region have been shoring up reserves,lender confidence remains low.Untested peer-to-peer lenders targeting riskier payday loans and some smaller traditional lenders will face difficulties in the coming quarters,so market consolidation
131、 can be expected going forward.Growth in the long runAs the online lending customer base expands,alongside SMEs digital adoption(e.g.e-Commerce offering pay-later options),sustained growth will ensue in the years to come.More online transactions can also provide data for better credit/risk assessmen
132、ts.Continued innovation and infrastructure improvementInfrastructure such as Singapores MyInfo(electronic KYC)has already unlocked more online lending.Further improvements in the pipeline,coupled with renewed urgency from existing players,will likely drive even more online adoption in the future.201
133、92020202520%23%69%4%20%3%23B23B92BSMBConsumer0%32%RemittanceLendingCAGRPaymentInsuranceInvestment58Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaInsurance purchases go online as traditional channels disruptedSource:Bain Analysis;GWP=gross written premium;APE=annual premi
134、um equivalentInsurance purchase online GWP/APE(US$_B)Life and Health Insurance saw a boost online as consumers become more risk conscious Demand for Life and Health Insurance coverage rose as the pandemic ensued.Movement restrictions forced both demand and supply tomove online despite Life and Healt
135、h products traditionally being more difficult to sell online.General insurance slowed as Travel and Motor insurance trickled,though those who travel did become more receptive to Travel insurance.Bite-sized micro-insurance gained good tractionPartnerships between established insurers and consumer pla
136、tforms have spurred short-term innovative products,which are then embedded into their core platform services.Some of the size of policies introduced have high potential to serve underinsured segments.Established players compelled to digitize Insurers heavily reliant on agents and bancassurance need
137、to digitize their channel mix quickly.New products will need to be fit-for-channel,as,according to our research,traditional products do not sell well online.20.83.81.91.50.57.61.80.90.60.30.5Health InsuranceLife InsuranceGeneral Insurance2.030%31%LendingInsuranceCAGRRemittancePaymentInves
138、tment59Digital Financial Servicese-CommerceTransport&FoodOnline TravelOnline MediaVietnamIndonesiaPhilippinesMalaysiaSingaporeThailandNascent Online Investment sector continues to growNote:Jan Aug 2019 vs Jan Aug 2020 year-on-year comparisonSource:Google Trends web searchesGrowth in query volume of
139、Robo-Advisorsand Online Wealth ManagementNascent sector with continued user growth Market volatility has had limited effect on user adoption,which continues to grow at a brisk pace from a small base.Consumers are increasingly comfortable with investing online.Sufficient room for competitive differen
140、tiationThere are three primary competitors in online investment:(1)pure-play FinTechs(i.e.Robo-Advisors),(2)consumer tech platforms;and 3)established wealth management players,each with sufficient room to address a different customer segment with distinct value propositions.Established wealth manage
141、rs:opportunitiesand challengesEstablished wealth managers play a critical role in driving online market growth.Improving customer experience and offering better business opportunities can be done by shifting their engagement online(or via omni-channel),though speed-to-market remains a challenge.300%
142、200%100%0%500%400%InsuranceInvestmentLendingRemittancePayment60Pivoting to sustainable growthOn the path to profitability61With investor funding slowing since 2019,staying on course the path to profitability is more critical-and urgent-than ever.Internet platforms need to re-center themselves around
143、 product-market fit and sustainable unit economics.62Note:Unicorns refer to companies valued$1B.Definitions are based on publicly available information released by the companies that have disclosed amounts raised,valuation achieved and lead investors in their latest funding rounds.Definitions are pu
144、rely illustrative and do not constitute an endorsement or a confirmation of the actual valuations achieved by the companies.SEA is now home to 12 unicorns,most are publicly focused on profitability12 unicorns in SEA,+1 from 2019In 2019,there were 11 unicorns in SEA:Bigo,Bukalapak,Gojek,Grab,Lazada,R
145、azer,OVO,Sea Group,Traveloka,Tokopedia and VNG.In 2020,we have VNPay join this group for a total of 12 unicorns,as the SEA mature ecosystem remains vibrant in the face of COVID-19.Private funding for unicorns has slowed2019 funding for unicorns has slowed from its 2018 high.Securing funding in the n
146、ear future will likely get increasingly difficult as investors shy away from heavy cash-consuming businesses.Path to profitability has begun in earnestMost unicorns have spoken publicly this year about the focus on path to profitability.E.g.Bukalapak spoke about focusing more on how the company can
147、achieve its path to profitability by increasing gross profit,rather than transaction growth or GMV that e-Commerce companies had focused on one or two years ago.Similarly,Grab streamlined its core businesses to focus on Digital Finance Services,Transport and Delivery,which are aimed at helping the s
148、uper app move toward profitability.Investment in SEA unicorns of the following sectors(US$_B):e-Commerce,Transport&Food,Travel,and Media8.720019H1 2019H2 2019H1 20205.42.75.65.10.53.063Online platforms are refocusing on core and select adjacencies Other Transport ModesFood DeliveryParcel
149、DeliveryLifestyleDigital Financial ServicesTravelMediaTransport&FoodFocus areaAdjacenciese-CommerceOnline TravelFood DeliveryOnline GroceryLifestyleDigital Financial ServicesTravelMediaInternationalDomesticHotelsLifestyleDigital Financial ServicesFlightsExperiencesRapid pivot towards Food and Parcel
150、 Delivery services Investment in Digital Financial Services(DFS)continues in earnest to capture increasing engagementConcentrate efforts around faster recovering segments(hotels,domestic)Capitalize on increasing DFS demand(i.e.travel insurance and pay-later)Focus on capturing surge in e-Commerce(&gr
151、oceries)demandContinued expansion in DFS(i.e.pay-later lending)as consumers increasingly transact onlineOther Transport ModesLifestyleTravelMediaFood DeliveryLifestyleTravelMediaInternationalLifestyleFlightsFood DeliveryParcel DeliveryDigital Financial ServicesOnline GroceryDigital Financial Service
152、sDomesticHotelsDigital Financial ServicesExperiences2019202064Type of platformDigital Financial Services(DFS)need to play to their strengths to winSEA unicorns across Internet economy verticals are participating in a full suite of DFS solutionsHighly crowded space featuring both in-houseand partnere
153、d offeringsProduct differentiation beyond price is keyPlatforms need to be thoughtful about how DFS offerings fit with core businesses,i.e.:Pay-Later e-CommerceGeneral Insurance Travel and TransportFunding and staying on the path to profitability will bea barrier to DFS expansionInsuranceInvestmentP
154、aymentLendingDigital Banke-CommerceMediaTravelTransport&Food DeliveryNumerous digital payment solutions developed organically by unicorns initially as an enabler to their core businesses but also an entry point into DFSLending targeted at captive consumer and merchant base,mix of in-house or 3rd par
155、ty lending depends on strength of balance sheet and risk appetite of Internet platformLargely limited to partnered/3rd party insurance offerings today as economics of distribution is sufficiently attractive without underwriting in-house policiesLargely limited to partnered/3rd party investment offer
156、ings,though some platforms have begun to bring this in-house through acquisitionsA few Internet platforms have submitted applications for digital bank licenses to expand their capabilities;results of applications to be determinedIn-house solutionPartnership65New opportunities and challenges for DFS
157、amidst a“new normal”Pure-play FinTechs:churn,consolidation,and new entrantsOpportunities for acquisition of those with weaker balance sheetsResilient players benefit from lower customer acquisition effortContinued challenge to differentiate against platforms,banks,and new DFS entrantsConsumer Techno
158、logy platforms:finding the right product-customer base fitWell-heeled platforms have the advantage of out-investingFit between FS offering and core customer base/business is criticalPotential acquisition opportunities,digital bank licenses up for grabsEstablished Financial Services players:online en
159、gagement is up,but digitization may varyUnexpected organic boost in online customer acquisition and engagementChallenge is moving quickly enough to capitalize on the new opportunityAmple opportunities for partnerships and acquisitions,though navigating Tech platforms remain a challengeEstablished Co
160、nsumer players:slow to start,defaulting to partnershipsDigital investments starting to pay off for some as online adoption increases(Telcos e-wallets;Retail e-Commerce)Converting large customer bases(especially in non-metro areas)onto proprietary ecosystems is a continued challengeNew entrantsEstabl
161、ished playersFinancial servicesConsumer services66New frontiersHealthTech&EdTech67HealthTech and EdTech have both played crucial roles during lockdowns.Relatively nascent,they are set to take off as the pandemic helped lower old barriers and injected new impetus to the two sectors.68Access to health
162、care is a chronic challenge around the regionSource:WHOIndonesiaMalaysiaPhilippinesSingaporeThailandVietnamChinaUSAAustraliaDoctors per 000 populationHospital beds per 000 population2.82.74.53.93.52.20.41.21.62.01.21.12.32.42.20.82.80.4Healthcare statistics by countryHealthTechEdTech69Preference for
163、 in-person consultationsSome practitioners consider Telemedicine to be an inadequate substitute for in-person diagnosis.COVID-19 has accelerated digital patient support solutions democratizing access Innovations democratizing accessMain pre-COVID-19 impediments to adoption Safety and quality concern
164、s There are concerns about the safety and quality of e-Pharmacy services,including the delivery of medication.Inaccuracy of technological solutions(ie.AI symptom checkers or health information continue to raise doubts).Strict regulatory regimesGoverning bodies in the medical sector and in independen
165、t hospitals need to help establish and enforce regulation.Patient support(B2C/B2B)Health informationAI symptom checkerHealth&wellness marketplaceHealth management toolse-PharmacyTelemedicineAppointment schedulingDisease managementHealthcare Provider support(B2B)Clinical supportElectronic health reco
166、rdsMonitors(hardware)Payer support(B2B)Smart underwritingRisk profilingActivity monitoringFraud managementHealthTechEdTech70COVID-19 unlocked a land grab for Telemedicine platformsCOVID-19 has accelerated commercial interest in TelemedicineTo capitalize on the opportunity,providers,payers,and other
167、businesses(i.e.banks,digital consumer platforms)have either built their own or partnered with existing Telemedicine providers,resulting in a land grabAcross the region this has materialized in several forms:Aggregation of smaller hospital/clinics onto a few Telemedicine platformsPartnerships establi
168、shed between Telemedicine startups and Ride Hailing platforms aim to facilitate COVID-19 testing and screeningPartnerships established between payers(insurance companies)and Telemedicine platforms to increase healthcare access and coveragePartnerships established between large hospital groups and Te
169、lemedicine platforms to provide healthcare access and act as a COVID-19 advisoryTelemedicineIncreasing partnershipBanksProviders(Hospitals)Payers(Insurers)Digital consumer platformHealthTechEdTech71HealthTech usage has grown by 4X and has retained its users post-lockdownSource:AppAnnie;SEA data comp
170、rises of both iOS and Google PlayJanFebMarAprMayJunJulUsage of Telemedicine platforms,by monthly active user,indexed to January 2020(pre-lockdown)4.14.04.53.83.82.91.0HealthTechEdTech72Investment in HealthTech has been rising over the yearsSource:Industry reports,VC partners,Bain Analysis20162017201
171、82019H1 2019H2 2019H1 2020Deal value(US$_B)0.220.330.190.510.230.170.05486285114456950#of dealsHealthTechEdTech73HealthTech is well-poised for wider commercial adoptionChallenges to addressin the coming yearsWider integration with healthcare providers and sustainable monetizationMonetization models
172、need to be further developed to reach sustainable profits for many Telemedicine and e-Pharmacy startupsDeeper integration with offline healthcare providers would help unlock more commercial benefits(higher efficiency,cost reductions,boosting customer lifetime value,etc.)Existing providers are now in
173、 the race and continued interest from investorsWidespread collaboration between existing providers and Telemedicine startups marks a beginning for deeper integrationContinued funding by financial and strategic investors will allow new business models to mature fasterHow COVID-19 loweredcommercial ba
174、rriersBroader regulation and patient trustRegulatory framework for the nascent Telemedicine/e-Pharmacy sectors needs to be more developed in order to safeguard patient outcomesThis will build more trust from all parties,including providers,payers,and patientsBudding interest from regulators and pati
175、entsRegulators have recognized the efficacy of Telemedicine and e-Pharmacy solutions and are willing to lend greater regulatory and policy support Increasing consumer interest also marks a first step towards building a trusting relationship between remote providers and patientsHealthTechEdTech74SEA
176、is home to a budding ecosystem of EdTech startups*inexhaustive listBroad categories of EdTech solutions available along the teaching/learning journeyTeaching assistant toolsLesson content,practice,and testingRemote learning mediumAnalyticsAI assisted gradingVirtual collaborationPractice/test questio
177、n repositoryGamificationVideo conferenceVirtual classroomsSmart whiteboardsLearning management systemReporting/trackingStudent managementContent managementOnline content(live,recorded)Interactive/multimedia contentClassroom tech and aidesSchools/educatorsCorporate trainersK-12 studentsCorporate trai
178、neesTertiary studentsLifelong learners.HealthTechEdTech75Source:Industry reports,VC partners,Bain AnalysisEdTech saw a steep uptick in 2019 following years of modest fundingEdTech funding has been steadily gaining momentum,with funding tripling in 2019A large proportion of funds were put into online
179、 learning platformsIndonesian startup,Ruangguru,raised US$150M in December 2019-one of the largest rounds for a Southeast Asian EdTech company Emeritus,which partners with universities to provide online courses for working professionals,raised US$40M in January 2019.New startups will emerge and fund
180、ing will grow continue post-COVID-19,as investors seek startups that have benefiting from the COVID-19-induced online learning trend.Deal value(US$_B)0.082001848201965H1 201926H2 201939H1 2020490.040.010.270.060.210.06#of dealsHealthTechEdTech76FebMarAprMayJunJulAugSepCOVID-19 sparked an
181、urgent need for Face-to-Face(F2F)alternativesThe government introduced“Belajar dari Rumah”,an educational TV programme,to supplement online classes.A free learning management system platform was also provided to universities that do not have one.The government introduced“KelasRumah”,also an educatio
182、nal TV programme,and provided materials for platforms such as Google Classroom and Microsoft Teams.Distance learning will continue to be the norm since schools reopened on 5 October,as face-to-face learning remains prohibited until a vaccine becomes available.TV and radio classes will supplement pri
183、nted self-learning modules and online materials.Schools shifted to home-based learning;students accessed the“Singapore Student Learning Space”,an online platform developed by the government in May 2018 for curriculum-aligned resources and other tools.Distance learning television(DLTV)and online clas
184、ses were launched inMay to supplement the curriculum until schools physically reopened in June 2020.Online learning and teaching via television were implemented duringthe school closure period.IndonesiaThailandSingaporePhilippinesMalaysiaVietnamSchools shut downSchools shut downPhased reopeningSchoo
185、ls shut downSchools shut downSchools shut downPhased reopeningSchools shut downHealthTechEdTech77 Source:AppAnnie,Top 5 EdTech Apps in SEA,KantarEdTech tool adoption has witnessed record growthStrong growth in EdTech adoption as students pivot to new solutions Once deemed as a complimentary medium,o
186、nline learning becomes the only option available to students,teachers and schools.Students took the plunge to try new solutions,resulting in a 3x spike in the install base of the top EdTech applications among SEA.YoY Installations of top 5 EdTech Apps in SEA(Jan Aug 2019 vs Jan Aug 2020)Pre-COVID-19
187、6M20MDuring COVID-193XHealthTechEdTech78*in-exhaustive listTeaching assistant toolsLesson content,practice,and testingRemote learning mediumAnalyticsAI assisted gradingVirtual collaborationPractice/test question repositoryGamificationVideo conferenceVirtual classroomsSmart whiteboardsLearning manage
188、ment systemReporting/trackingStudent managementContent managementOnline content(live,recorded)Interactive/multimedia contentClassroom tech and aides.Educators have yet to tap into the full potential of EdTechEdTech adoption during lockdown*Heavy adoption during lockdownSome adoption,could be increas
189、edDuring school closures,adoption of online learning tools was significant,particularly in the form of“video lectures”.Given the sudden pivot towards online learning,only simpler methodologies such as video conferencing were adapted for online use.Relatively innovative methodologies(ie.multimedia,ga
190、mification,etc.)have yet to make the transition.Full potential of EdTech could be unlocked by deeply integrating innovative methodologies into current curriculaHealthTechEdTech79Public and private sectors race to develop F2F alternativesThe Singapore Ministry of Education rolled out Student Learning
191、 Space(SLS),an online learning portal for teachers and students in the national school system in May 2018,which was instrumental for many students during lockdowns.The portal homes curriculum-aligned resources and allows teachers to customise the materials and create meaningful learning experiences.
192、The Malaysian Ministry of Education re-launched its digital learning platform,DELIMa,in June 2020 in collaboration with Google Classroom,Microsoft and Apple.The platform,which offers applications and services to students and teachers,has onboarded 10,000 schools,370,000 teachers and 2.5M students si
193、nce.GovernmentsEdTech Solution ProvidersSchoolsAcross the region,teachers turned to Google Meet,Microsoft Teams,Zoom or even WhatsApp as teaching mediums during lockdown school closures.Hundreds of public schools in Vietnam used Edmicro to provide Onluyen.vn,the national educational platform,for fre
194、e during lockdown.Edmicro provided online tools and question banks for teachers to tap into,and to automatically grade and collect assignment results.Ruangguru launched a free online school service in March 2020 when schools across Indonesia were closed.Users can enroll for free weekday virtual clas
195、ses,which include live teaching,chats and discussions.Zenius created a partnership with Gojek to provide free online learning services via their app.It provided learning videos and exercises,live lessons and chats as well as daily learning plans.HealthTechEdTech80Challenges to addressin the coming y
196、earsDevelopment and proven efficacyof solutionsInnovation in EdTech has not reached its zenith there is significant headroom to what tech has to offer this sector.More importantly,the larger ecosystem needs to be fully convinced of the efficacy of various EdTech solutions.Invaluable test&learn exper
197、iencefrom lockdownsMonths of remote learning aided by budding EdTech solutions have provided invaluable empirical data and experience on what works and what doesnt.This information will shape innovation for years to come.How COVID-19 loweredcommercial barriersDeeper adoption&integration into curricu
198、laDigital adoption during COVID-19 has only scratched the surface of EdTechs potentialA paradigm shift is required to help educators develop new methodologies that go beyond online lectures and digitized versions of problem sets.Budding interest post-COVID-19COVID-19 has pressed schools and educator
199、s to rapidly enhance their existing methods,which is centered around face-to-face learning.With intermittent lockdowns becoming a norm,there is a need for viable alternatives until a vaccine is developed.COVID-19s sudden acceleration in EdTech has kickstarted an innovation wheelConnectivity and affo
200、rdabilityEven with 400M Southeast Asians accessing the Internet,online learning is a time intensive activity that more often than not requires a dedicated digital device for each child.Still a challengeWhile COVID-19 has accelerated consumer engagement online,connectivity and affordability(1 child-1
201、 device)remains a challenge for many,especially those in rural areas around the region.HealthTechEdTech81Investors remain confidentCautiously optimistic82Outlook remains strong,and significant dry powder remains;investors are cautiously optimistic.Investments will be more selective going forward,shi
202、fting from only growth metrics towards sustainable profits.83Source:Industry reports,VC partners,Bain Analysis.Note deals include investments by Venture Capital,Private Equity,and Strategic investorsDeal activity across the region continues to growTech investment landscape in SEA continues to flouri
203、sh number of transactions increased by 7%between 2018-19,and 17%YoY between H1 19 and H1 20.Deal value has declined since 2018,primarily driven by a slowdown in big-ticket unicorn investments.Non-unicorn investments continue to exhibit strong growth.Momentum is largely sustained through H1 2020,thou
204、gh some deals were likely struck before the pandemic.Looking ahead,investors continue to remain optimistic,albeit cautiously,about investment opportunities in the region.Deal value(US$_B)61%20420181,44420191,546H1 2019626H2 2019920H1 202073575%60%47%#of dealsOtherUnicorn39%25%40%53%14.19.
205、44.712.066%34%7.714%86%4.447%53%6.384Source:Industry reports,VC partners,Bain AnalysisEarly stage remains strong,though mid-stage funding has plateauedEarly stage funding(Seed,Series A,Series B)makes up more than 95%of yearly deal transactions.Average deal size for early stage funding continues to s
206、well.Between 2016 and 2020,Series B doubled while Seed and Series A nearly tripled.However,mid-stage funding has plateaued.There were 17 Series C and D in H1 2020;down slightly from 19 in the same period the year before.Total amount raised had increased by 9%to US$700M.Funding(US$_B)1.00.5H1161.00.5
207、0.01.00.50.01.00.50.01.00.50.05.02.00.04.03.01.0H120H119H117H118H216H219H217H218H116H120H119H117H118H216H219H217H218H116H120H119H117H118H216H219H217H218H116H120H119H117H118H216H219H217H218H116H120H119H117H118H216H219H217H218H116H120H119H117H118H216H219H217H218SeedSeries ASeries BSeries CSeries DSeri
208、es E+0.085Investors continue to diversify into nascent sectorsSource:Industry reports,VC partners,Bain Analysis20.414.112.0Transport&FoodFinTeche-CommerceOnline MediaTotal deal value(US$_B)20164.7H1 2020H1 2019H2 20197.74.46.3Other MarketplaceOnline TravelOthers86Source:Industry reports,V
209、C partners,Bain AnalysisFunding in mature and consolidated sectors has slowedFunding in 4 key sectors(US$_B)Transport&Food unicorns received the lions share of all funds raised between 2016 and 2019 US$15B out of US$40B.e-Commerce unicorns come in second with US$7B.These two sectors are now mature a
210、nd largely consolidated around a handful of late-stage champions.Moving forward,it is unlikely that these sectors will continue to see record rounds of fundraising;focus will now shift heavily towards profit levers for an eventual exit.Online Travel is largely consolidated around a few global and re
211、gional players level of investment historically have been lower relative to Transport&Food and e-Commerce.The sector remains fundamentally attractive,though it is buffeted by structural challenges this year.Off the back of this confidence,investors injected fresh rounds of capital into Traveloka in
212、July 2020.OtherUnicorn20019H1 2019H2 2019H1 202020019H1 2019H2 2019H1 202020019H1 2019H2 2019H1 202020019H1 2019H2 2019H1 2020Transport&Foode-CommerceOnline MediaOnline Travel63000.40.887Source:Industry reports,VC partners,Bain AnalysisNascent sectors cons
213、istently step up in funding valueFunding(US$_B)3 budding sectors witnessed an increase in funding in 2019:FinTech,EdTech and HealthTech Deal value in the FinTech surged to a record high of US$1.7B in 2019,a 40%jump from 2018.They are driven by a blend of 1)increased deal count(15%increase in number
214、of deals in 2019)and;2)larger investments into payments and lending companies,such as VNpay and FinAccel.FinTech continue to ride its H1 2020 momentum with a wave of prolific investments despite being at the peak of the pandemic.Indonesias Moka was acquired by Gojek in April 2020,Myanmars Wave Money
215、 had secured an injection from Ant Financial in May 2020,and Grab Financial Group raised fresh capital from MUFG in February 2020.More investments and consolidations are expected in the coming years as financial and strategic investors capitalize on the fast-growing DFS sector.20019H1 201
216、9H2 2019H1 202020019H1 2019H2 2019H1 2020FinTechHealthTechEdTech21000.5182019H1 2019H2 2019H1 202088Note:Funds include both PE and VC funds;dry powder refers to the amount of capital that has been committed to a fund minus the amount that has been called by the fund for investm
217、ent.Source:PreqinInvestors remain cautious but ample dry powder maintains activity levelsSEA-based funds dry powder(US$_B)200198.46.211.99.29.72018More caution,lower likelihood of cross-border dealsFunds may pivot efforts in 2020 to focus on stabilizing their portfolios Deal-making could
218、temporarily be at a stand-still in some markets due to logistical delays in conducting due diligences or in securing regulatory approvalsAmple dry powder to deploy Dry powder reached record heights in 2019 with investors holding substantial capital going into 2020Sequoia Capital and Wavemaker Partne
219、rs had both announced the close of their Southeast Asia funds in July 2020,while others like Openspace Ventures had completed their first close.Investors still have sufficient capital for good opportunitiesIn the current climate,different investors will have varying investment strategies moving forw
220、ardMost are adopting a wait-and-see approach so natural market forces can separate the wheat from the chaff before making more calculated investments.89Investors will be increasingly selective going forwardMature sectors such as e-Commerce,Transport&Food,Travel and Media are largely consolidated and
221、 have seen multiple rounds of late-stage funding over the past 3 years.Deal activity has instead picked up for nascent sectors,including FinTech,HealthTech,EdTech,and amongst others,B2B Saas startups.Recalibrating towards sustainable and profitable growthBudding sectors of growthEssential vs non-ess
222、ential techFocus on startups that drive improvements in efficiency and access to services(ie.logistics,access to healthcare)COVID-19 has made evident which startups continue to offer essential services Adverse to“Blitzscaling”strategies that feature low take rate,high burn rate and weak cash flows.R
223、efocus on positive unit economics and path to profitability vs.growth only in GMV or active users“Essential services”Whats inWhats outSustainable profitsVanity metricsRobust cash flow profile“Negative blitzscaling”“Non-essentials”90Whats ahead91e-Conomy SEA 2020:the Internet economy will emerge stro
224、nger than ever Investments in technology remain strong,with shifting attention towards budding sectors HealthTech and EdTech.Unprecedented move towards digital services,putting digital technologies in center stage,now and hereafter.Adoption,acceptance,and usage hyper-accelerated for both consumers a
225、nd SMEs.Market competition remains healthy,with more opportunities in an open ecosystem.The Internet economy hits US$100 billion and is on track towards US$300B in 2025,despite challenges.92The key 6 momentum drivers remain the same as last year;talent continues to be the critical blockerInternet ac
226、cessThere are 400M Internet users in SEA,of which 70%are online40M new users were added in 2020Consumer trust1 in 3 of all digital services users were new due to COVID-19;94%of them intend to stay 80%of users also find tech helpful and indispensable TalentGrowth of Internet sector may be held back d
227、ue to shortage of workers with right skillsUrgent need and opportunity to reskill and upskill workers so that they can find jobs in growing Internet sectors amid the tough employment climateFundingDeal activity is growing but pace of activity has slowedAmple dry powder still available for proven sus
228、tainable and profitable venturesPaymentsCash as payment method fell from 48%of transactions to 37%in 2020In comparison,e-wallets rose from 18%to 25%LogisticsWhile the growth of e-Commerce indicates better logistics,“Issues with delivery”remains the single biggest barrier to e-Commerce cited by consu
229、mers in 5 out of the 6 countriesSignificant progressLimited progressSource:Kantar,Statista,Industry reports,VC partners,Bain Analysis93Implications for key playersExisting providersDigital transformation is the top priority and its time to actually pay heed to itExisting players help push the ecosys
230、tem forward,which in turn upkeeps the momentum on digital acceleration across the boardDigital natives and investorsLate stage companies need to pivot from growth to sustained profitInclusive and open ecosystems are core to healthier and faster growth for all partiesSensible valuations and rewarding
231、 the right behavior are vital to the industryPublic policy makersLack of digital talent is the main blocker to a thriving ecosystem-travel and immigration policies should take into consideration the needs of the digital sectorDigital job reskilling will allow workers to find jobs amid the tough empl
232、oyment climatePublic infrastructure is a catalyst for growth in budding sectors such as DFS,HealthTech,and EdTechRegulatory support and open dialogue will help shape sustainable growth of the Internet e-Conomy94Country view95Country highlights 2020Indonesiae-Commerce drives the e-Conomye-Commerce re
233、mains the main growth driver at 54%YoY(US$21B to US$32B),offsetting the-68%YoY decline in Travel(US$10B to US$3B)MalaysiaFood Delivery and e-Commerce going strong,increase in all sectors but travelStrong growth of 87%YoY in e-Commerce and 44%YoY in Food Delivery has led to a US$1B increase in overal
234、l GMV,despite a-59%decline in Travel PhilippinesFood Delivery and e-Commerce going strongStrong growth of 55%YoY in e-Commerce and 48%YoY in food delivery partially offset a-66%YoY decline in Travel SingaporeRegional powerhouse,high exposure to travel declineExplosive e-Commerce growth of 87%YoY bet
235、ween 2019 and 2020 wasnt enough to offset the countrys outsized exposure to a-70%decline in Travel Thailande-Commerce drives growth,Transport and Travel take a hitStrong growth of 81%YoY in e-Commerce and 42%YoY in Food Delivery partially offset declines in Travel and Transport at-47%YoY and-53%YoY,
236、respectively.VietnamBlockbuster growth across verticalsStrong growth across all verticals bar Travel(which suffered a limited-28%YoY decline).e-Commerce grew by 46%YoY,Transport by 55%YoY,and Food Delivery by 44%YoY.Numbers refer to GMV by sector 2019 vs 2020 growth rate96Flight to digitalInternet u
237、sage in Southeast Asia(SEA)continues to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In Indonesia,with its various stages of lockdowns,users turned to the Internet for solutions to their sudden challenges.A significant number tried new digital services:37%of all digital service
238、consumers were new(slightly higher than the SEA average),with 93%of these new consumers intending to continue their behavior post-pandemic.Online with a purposeSoutheast Asians spent on average an hour more per day on the Internet during lockdowns,and its easy to see why.Indonesians,specifically,wer
239、e spending 3.6 hours online(for personal use)pre-COVID-19,which spiked to 4.7 hours at the height of lockdowns,and now rests at 4.3 hours per day.With 8 out of 10 users viewing technology as very helpful during the pandemic,it has become an indispensable part of peoples daily lives.Resilience in tim
240、es of crisise-Commerce has driven significant growth in Indonesia,at 54%.This steep ascendance has largely offset declines in Travel,Transport and Food Delivery.Overall,2020 GMV is expected to reach a total value of US$44B in 2020,having grown at 11%YoY.Looking at 2025,the overall e-Conomy will like
241、ly reach US$124B in value,re-accelerating to 23%CAGR.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core business to prioritize a path to profitability,and are addres
242、sing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong cash-generating core business to be key,including for the 5 I
243、ndonesian unicorns.Cautiously optimisticDeal activity across the region continued to grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing fewer deals at more attractive valuations,in hope for higher returns in the long run.Where the goal of years prior has
244、 been“blitzscaling”,investors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they can be comme
245、rcialized at a larger scale.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways,putting it in a str
246、onger position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocker that all parties
247、will need to keep working on to ensure the momentum gained this year is sustained.IndonesiaMain Takeaways9793%IndonesiaExponential growth of digital consumers(who will stay)Source:KantarNew consumers to Internet economy services%of new consumers who will continue to use at least one digital service
248、post-COVID-19Average hours spent online per day(personal use)3.64.74.3BeforeDuringAfter37%98IndonesiaInternet e-Conomy reaches US$44B despite headwindsSource:Bain AnalysisInternet e-Conomy GMV(US$_B)200258404412411%23%CAGR99Indonesiae-Commerce and Media outgrow contractions in Transport&F
249、ood and TravelSource:Bain Analysis201920202025Transport&FoodOnline TravelOnline Mediae-Commerce651611031553.54.4100.620025200252002554%21%-18%28%-68%36%24%18%GMV(US$_B)per sectorCAGR100IndonesiaInvestment in Internet sectorSource:Industry reports,VC partne
250、rs,Bain AnalysisDeal value(US$_B)2.81.41.83.23.83.01.25123232202#of deals20019H1 2019H2 2019H1 2020101Flight to digitalInternet usage in Southeast Asia(SEA)continues to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In Malaysia,over various Movement Control O
251、rder(MCO)periods,users turned to the Internet for solutions to their sudden challenges.A significant number tried new digital services(36%of all digital service consumers were new),with 92%of these new consumers intending to continue their behavior post-pandemic.Online with a purposeSoutheast Asians
252、 spent on average an hour more per day on the Internet during lockdowns,while Malaysians spent 3.7 hours online(for personal use)pre-COVID-19,which spiked to 4.8 hours at the height of lockdowns,and now rests at 4.2 hours per day.With 8 out of 10 users viewing technology as very helpful during the p
253、andemic,it has become an indispensable part of peoples daily lives.Resilience in times of crisise-Commerce has driven significant growth in Malaysia,at 87%.This steep ascendance has largely offset declines in Travel.Overall,2020 GMV is expected to reach a total value of US$11.4B in 2020,having grown
254、 at 6%YoY.Looking at 2025,the expect the overall e-Conomy will reach US$30B in value,re-accelerating to 23%CAGR.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core bu
255、siness to prioritize a path to profitability,and are addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong ca
256、sh-generating core business to be key.Cautiously optimisticDeal activity across the region continued to grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing fewer deals at more attractive valuations,in hope for higher returns in the long run.Where the goal
257、 of years prior has been“blitzscaling”,investors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed befor
258、e they can be commercialized at a larger scale.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways,
259、putting it in a stronger position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocke
260、r that all parties will need to keep working on to ensure the momentum gained this year is sustained.MalaysiaMain Takeaways10292%36%MalaysiaExponential growth of digital consumers(who will stay)Source:Kantar3.74.84.2New consumers to Internet economy services%of new consumers who will continue to use
261、 at least one digital service post-COVID-19Average hours spent online per day(personal use)BeforeDuringAfter103MalaysiaInternet e-Conomy proved resilient at US$11BSource:Bain Analysis20025510.711.4306%21%Internet e-Conomy GMV(US$_B)CAGR104MalaysiaSurge in e-Commerce offsets contraction in
262、 TravelSource:Bain Analysis361310.91.130.34.71.9932.340.61.820025Transport&FoodOnline TravelOnline Mediae-Commerce20025200252002587%17%19%26%-59%37%24%18%GMV(US$_B)per sectorCAGR105MalaysiaInvestment in Internet sectorSource:Industry reports,VC partners,Ba
263、in AnalysisDeal value(US$_M)26723324759886182019H1 2019H2 2019H1 2020#of deals106Flight to digitalInternet usage in Southeast Asia(SEA)continues to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In the Philippines,given the extensive COVID-19 lockd
264、own periods,users went online searching for solutions to their sudden,new challenges.A significant number tried new digital services:37%of all digital service consumers were new(slightly higher than the SEA average),with 95%of these new consumers intending to continue their behavior post-pandemic.On
265、line with a purposeSoutheast Asians spent on average an hour more per day on the Internet during lockdowns,while Filipinos were spending 4.0 hours online(for personal use)pre-COVID-19,which spiked to 5.2 hours at the height of lockdowns-the highest across the region-and now rests at 4.9 hours per da
266、y.With 8 out of 10 users viewing technology as very helpful during the pandemic,it has become an indispensable part of peoples daily lives.Resilience in times of crisise-Commerce has driven significant growth in the Philippines,at 55%.This ascendance has largely offset declines in Travel,Transport a
267、nd Food Delivery.Overall,2020 GMV is expected to reach a total value of US$7.5B in 2020,having grown at 6%YoY.Looking at 2025,the overall e-Conomy will likely reach US$28B in value,re-accelerating to 30%CAGR.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-C
268、ommerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core business to prioritize a path to profitability,and are addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do colli
269、de,and though its too early to tell the outcome,we expect that continued funding and a strong cash-generating core business to be key.Cautiously optimisticDeal activity across the region continued to grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing few
270、er deals at more attractive valuations,in hope for higher returns in the long run.Where the goal of years prior has been“blitzscaling”,investors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adopti
271、on rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they can be commercialized at a larger scale.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis yea
272、rs seismic consumer and ecosystem shifts has advanced the Internet sector in unimaginable ways,putting it in a stronger position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significa
273、nt progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocker that all parties will need to keep working on to ensure the momentum gained this year is sustained.PhilippinesMain Takeaways10795%37%PhilippinesExponential growth of digital consumers(who will stay)Sourc
274、e:Kantar4.05.24.9New consumers to Internet economy services%of new consumers who will continue to use at least one digital service post-COVID-19Average hours spent online per day(personal use)BeforeDuringAfter108PhilippinesInternet e-Conomy stands resilient at US$7.5BSource:Bain Analysis201520192020
275、202527.17.5286%30%Internet e-Conomy GMV(US$_B)CAGR109Philippinese-Commerce and Media offsets contraction in Transport&Food and TravelSource:Bain Analysis341510.80.840.32.00.7511.72.150.420025Transport&FoodOnline TravelOnline Mediae-Commerce2002520025200255
276、5%31%-10%36%-66%46%27%17%GMV(US$_B)per sectorCAGR110PhilippinesInvestment in Internet sectorSource:Industry reports,VC partners,Bain AnalysisDeal value(US$_M)377232402220019H1 2019H2 2019H1 2020#of deals111Flight to digitalInternet usage in Southeast Asia(SEA)continu
277、es to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In Singapore,with the various stages of the COVID-19-induced Circuit Breaker,users turned to the Internet for solutions to their sudden challenges.A significant number tried new digital services:30%of all digital service consume
278、rs were new,with 91%of these new consumers intending to continue their behavior post-pandemic.Online with a purposeSoutheast Asians spent on average an hour more per day on the Internet during lockdowns,and its easy to see why.Singaporeans,specifically,were spending 3.6 hours online(for personal use
279、)pre-COVID-19,which spiked to 4.5 hours at the height of lockdowns,and now rests at 4.1 hours per day.With 8 out of 10 users viewing technology as very helpful during the pandemic,it has become an indispensable part of peoples daily lives.Resilience in times of crisise-Commerce was strong at 87%,but
280、 this wasnt enough to completely offset the 70%decline in Travel(Singapores largest digital sector in 2019).Overall,2020 GMV is still expected to reach a total value of US$9B,having contracted at-24%YoY.Looking at 2025,the e-Conomy will likely reach US$22B in value,re-accelerating to 19%CAGR.Despite
281、 short term challenge,SG remains a key enabler for the region.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core business to prioritize a path to profitability,and a
282、re addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong cash-generating core business to be key,especially f
283、or Singapores multiple unicorns.Cautiously optimisticDeal activity across the region continuedto grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing fewer deals at more attractive valuations,in hope for higher returns in the long run.Where the goal of yea
284、rs prior has been“blitzscaling”,investors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they
285、can be commercialized at a larger scale.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways,putting
286、 it in a stronger position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocker that
287、all parties will need to keep working on to ensure the momentum gained this year is sustained.SingaporeMain Takeaways11291%30%SingaporeExponential growth of digital consumers(who will stay)Source:Kantar3.64.54.1New consumers to Internet economy services%of new consumers who will continue to use at l
288、east one digital service post-COVID-19Average hours spent online per day(personal use)BeforeDuringAfter113SingaporeInternet e-Conomy contracts by 24%Source:Bain Analysis20025712922-24%19%Internet e-Conomy GMV(US$_B)CAGR114Source:Bain AnalysisSingapore remains a regional enabler for growth
289、,despite short term GMV decline due to the Online Travel sectorRegional hub for e-Commerce and other unicornsRegional headquarters for multiple ecommerce unicorns(Lazada,SEA group)and a key enabler of the e-Commerce boom in SEA.Highest number of unicorns headquartered in SEA.Continued investments in
290、 startups325 deals executed in H1 2020,with a total deal value of US$2.5B.Continues to be a hub for multiple sectors such as FinTech within SEA,strong startup ecosystem.Positive growth outside Online Travel50%of Singapore Digital GMV in 2019 was from the Online Travel vertical which declined-70%YoY
291、in 2019-20.The other sectors grew 20%YoY in 2019-2020 in comparison,driven by the strong increase in e-Commerce of 87%YoY in 2020.6.37.6Singapore excluding Travel(US$_B)20192020+20%115SingaporeSurge in e-Commerce insufficient to offset contractions in Transport&Food and TravelSource:Bain Analysis248
292、1325162741.51.830.820025Transport&FoodOnline TravelOnline Mediae-Commerce20025200252002587%16%-26%17%-70%31%24%10%GMV(US$_B)per sectorCAGR116SingaporeInvestment in Internet sectorSource:Industry reports,VC partners,Bain AnalysisDeal value(US$_B)2.51.85.37.
293、19.15.73.7529837732520019H1 2019H2 2019H1 2020#of deals117Flight to digitalInternet usage in Southeast Asia(SEA)continues to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In Thailand,with its various stages of lockdowns,users turned to the Internet for solut
294、ions to their sudden challenges.A significant number tried new digital services:30%of all digital service consumers were new,with 95%of these new consumers intending to continue their behavior post-pandemic.Online with a purposeSoutheast Asians spent on average an hour more per day on the Internet d
295、uring lockdowns,while Thais were spending 3.7 hours online(for personal use)pre-COVID-19,which spiked to 4.6 hours at the height of lockdowns,and now rests at 4.3 hours per day.With 8 out of 10 users viewing technology as very helpful during the pandemic,it has become an indispensable part of people
296、s daily lives.Resilience in times of crisise-Commerce has driven significant growth in Thailand,at 81%.This steep ascendance has largely offset declines in Travel and Transport.Overall,2020 GMV is expected to reach a total value of US$18B in 2020,having grown at 7%YoY.Looking at 2025,the overall e-C
297、onomy will likely reach US$53B in value,re-accelerating to 25%CAGR.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core business to prioritize a path to profitability,
298、and are addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong cash-generating core business to be key.Cautiou
299、sly optimisticDeal activity across the region continued to grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing fewer deals at more attractive valuations,in hope for higher returns in the long run.Where the goal of years prior has been“blitzscaling”,invest
300、ors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they can be commercialized at a larger scal
301、e.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways,putting it in a stronger position than ever.I
302、n our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocker that all parties will need to keep working
303、on to ensure the momentum gained this year is sustained.ThailandMain Takeaways118ThailandExponential growth of digital consumers(who will stay)Source:Kantar3.74.64.330%95%New consumers to Internet economy services%of new consumers who will continue to use at least one digital service post0-COVID-19A
304、verage hours spent online per day(personal use)BeforeDuringAfter119ThailandInternet e-Conomy reaches US$18BSource:Bain Analysis2002561618537%25%Internet e-Conomy GMV(US$_B)CAGR120ThailandSurge in e-Commerce offsets contraction in TravelSource:Bain Analysis592411.31.170.47420192
305、0202025Transport&FoodOnline TravelOnline Mediae-Commerce20025200252002581%21%-12%45%-47%31%20%15%GMV(US$_B)per sectorCAGR121ThailandInvestment in Internet sectorSource:Industry reports,VC partners,Bain AnalysisDeal value(US$_M)7145201
306、6201720182019H1 2019H2 2019H1 2020#of deals122Flight to digitalInternet usage in Southeast Asia(SEA)continues to grow,with 40M new users this year alone(400M YTD vs 360M in 2019).In Vietnam,with its various stages of lockdowns,users turned to the Internet for solutions to their sudden challenges.A s
307、ignificant number tried new digital services:41%of all digital service consumers were new(higher than the SEA average),with 94%of these new consumers intending to continue their behavior post-pandemic.Online with a purposeSoutheast Asians spent on average an hour more per day on the Internet during
308、lockdowns,and its easy to see why.The Vietnamese,specifically,were spending 3.1 hours online(for personal use)pre-COVID-19,which spiked to 4.2 hours at the height of lockdowns,and now rests at 3.5 hours per day.With 8 out of 10 users viewing technology as very helpful during the pandemic,it has beco
309、me an indispensable part of peoples daily lives.Resilience in times of crisise-Commerce has driven significant growth in Vietnam,at 46%,alongside strong growth across most sectors except for Travel.Overall,2020 GMV is expected to reach a total value of US$14B in 2020,having grown at 16%YoY.Looking a
310、t 2025,the overall e-Conomy will likely reach US$52B in value,re-accelerating to 29%CAGR.On the path to profitabilitySince peaking in 2018,funding for unicorns in mature sectors(e-Commerce,Transport&Food,Travel,and Media)has slowed.Platforms are now refocusing on their core business to prioritize a
311、path to profitability,and are addressing consumers broad range of needs through partnerships.The emerging DFS battleground is one of the few spaces where the super-services do collide,and though its too early to tell the outcome,we expect that continued funding and a strong cash-generating core busi
312、ness to be key.Cautiously optimisticDeal activity across the region continued to grow unabated in the first half 2020.Investors are remaining cautiously optimistic and are doing fewer deals at more attractive valuations,in hope for higher returns in the long run.Where the goal of years prior has bee
313、n“blitzscaling”,investors are now looking for sustainable,profitable growth.New frontiersHealthTech and EdTech have played a critical role during the pandemic,with impressive adoption rates to match.Even so,these sectors remain nascent and challenges need to be addressed before they can be commercia
314、lized at a larger scale.Nonetheless,the boost in adoption,compounded with fast growing funding,is likely to propel innovation in this space over the coming years.Whats aheadThis years seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways,putting it in a stronge
315、r position than ever.In our 2019 report,we identified six key barriers to growth-Internet Access,Funding,Consumer Trust,Payments,Logistics and Talent-and this year has seen significant progress on most(Payments and Consumer Trust,especially).Talent,however,remains a key blocker that all parties will
316、 need to keep working on to ensure the momentum gained this year is sustained.VietnamMain Takeaways12394%41%VietnamExponential growth of digital consumers(who will stay)Source:Kantar3.14.23.5New consumers to Internet economy services%of new consumers who will continue to use at least one digital ser
317、vice post-COVID-19Average hours spent online per day(personal use)BeforeDuringAfter124VietnamInternet e-Conomy reaches US$14BSource:Bain Analysis20025312145216%19%Internet e-Conomy GMV(US$_B)CAGR125VietnamAll sectors except Travel continue to growSource:Bain Analysis57290.4GMV(US$_B)per s
318、ector1.11.670.243923.370.62.820025Transport&FoodOnline TravelOnline Mediae-Commerce20025200252002546%34%50%34%-28%25%18%15%CAGR126VietnamInvestment in Internet sectorSource:Industry reports,VC partners,Bain Analysis20019H1 2019H2 2019H1 2020Deal value(US$_M)327674265685833#of deals127128