What: Southeast Asia emerges as a key battleground for Singles' Day promotions, with e-commerce platforms driving USD 139 billion in gross merchandise value through enhanced logistics networks and digital integration, despite regulatory challenges in some markets.

Why it is important: This shift illustrates the evolving dynamics of global e-commerce, where emerging markets with young, digitally-engaged populations are becoming increasingly important as traditional markets mature and face regulatory scrutiny.

Singles' Day shopping festival is finding fresh momentum in Southeast Asian markets 15 years after its inception by Alibaba's Taobao in China. The impact is tangible across the region, with platforms like TikTok Shop, Lazada, and Shopee driving significant engagement through innovative promotions and seamless delivery experiences. In Malaysia alone, TikTok Shop's four-hour live event attracted over 5 million viewers and generated 80,000 live-stream orders, while Shopee saw a sixfold increase in sales during the first two hours of November 11. The logistics sector is adapting to meet this demand, with J&T Express handling over 15 million parcels daily during the festival period, representing a 73% year-over-year increase. The company's preparations included expanding sorting areas by 19,000 square meters and deploying additional transport vehicles and staff. This growth contrasts with China, where enthusiasm for Singles' Day is cooling amid economic slowdowns and regulatory pressures.

IADS Notes: The expansion of Singles' Day into Southeast Asia reflects broader shifts in global e-commerce patterns throughout 2024. While TikTok Shop faced regulatory challenges in Indonesia, it has successfully adapted its strategy in markets like Thailand, demonstrating platforms' ability to navigate regional complexities. The transformation of logistics infrastructure, as evidenced by J&T Express's 73% year-on-year growth in parcel handling and significant investments in sorting facilities, demonstrates the region's growing e-commerce maturity. This evolution comes amid changing regulatory landscapes, with Indonesia's stance on platforms like Temu highlighting the tension between international e-commerce expansion and local market protection. These developments coincide with Singles' Day's changing dynamics in China, where platforms have stopped releasing sales figures and reduced promotional activities, suggesting a strategic pivot by e-commerce platforms toward Southeast Asia's growing consumer base.

Southeast Asia is the new Singles’ Day battleground as lustre fades in China