The document discusses retail innovation in ASEAN countries. It notes that while ASEAN has over 600 million consumers and a $2.4 trillion GDP across 10 countries, the region lags global and regional competitors in innovation. Modern retail makes up less than 50% of ASEAN retail compared to 70-85% in developed markets. Private labels only account for 1-8% of ASEAN retail sales. E-commerce is growing but still below US and China levels. The report identifies four barriers to retail innovation in ASEAN - non-tariff barriers, access to talent, trade efficiency, and integration of innovators - and how to overcome them.

1. Lifting the Barriers
to Retail Innovation
in ASEAN

2. ASEAN’s fast-growing retail market has 600 million
consumers in 10 countries, and a total GDP of $2.4 trillion.
Lifting the Barriers to Retail Innovation in ASEAN
US$ billion, CAGR %
CAGR +8%
Note: ASEAN market size includes Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Market size figures are rounded.
Sources: Planet Retail, Economist Intelligence Unit; A.T. Kearney analysis
Brunei
Laos
Cambodia
Myanmar
Singapore
Vietnam
Malaysia
Thailand
Philippines
Indonesia
2015
94
875
329
139
127
40
38
89
2016
951
100
363
151
135
41
44
97
2017
1,031
107
397
164
143
43
50
105
2018
1,119
115
436
178
151
45
56
114
2019
1,215
123
478
193
159
47
63
124
2020
1,313
131
521
209
168
49
71
134

3. However, ASEAN
lags behind its
regional and global
competitors
when it comes
to innovation.
Lifting the Barriers to Retail Innovation in ASEAN

4. The share of modern
retail in ASEAN is less
than 50% of all retail
activity, compared
to 70%-85% in
developed
markets.
Lifting the Barriers to Retail Innovation in ASEAN

5. ASEAN’s retailer-
driven product
innovation is low:
Private labels
account for only
1%–8% of sales.
Lifting the Barriers to Retail Innovation in ASEAN

6. ASEAN e-commerce
is growing fast,
but overall sales
remain well
behind U.S.
and Chinese
levels.
Lifting the Barriers to Retail Innovation in ASEAN

7. Retail innovation typically
focuses on three general
areas: products
and services, the
customer shopping
experience,
and enabling
technologies.
Lifting the Barriers to Retail Innovation in ASEAN

8. Our report
highlights four
barriers to retail
innovation and
how to overcome
them.
Lifting the Barriers to Retail Innovation in ASEAN

9. Reduce non-tariff
barriers for new
products
Lifting the Barriers to Retail Innovation in ASEAN
1

10. Improve
access to
talent
Lifting the Barriers to Retail Innovation in ASEAN
2

11. Improve
trade
efficiency
Lifting the Barriers to Retail Innovation in ASEAN
3

12. Promote the
integration
of “retailer
innovators”
Lifting the Barriers to Retail Innovation in ASEAN
4

13. Retail innovation is
essential to ASEAN
retailers’ growth
and prosperity—
and economic growth
and employment
across the region.
Lifting the Barriers to Retail Innovation in ASEAN

14. For more information
about A.T. Kearney’s
Lifting the Barriers to
Retail Innovation in
ASEAN, please visit:
www.southeast-asia.atkearney.com/
innovation/asean-innovation/
lifting-barriers-to-retail-innovation-in-asean