WEBUY GLOBAL LTD(Stock Code:NASDAQ: WBUY) on2023year10month19The company successfully listed on the NASDAQ exchange on [date]. It is an emerging Southeast Asian community-based e-commerce retailer mainly operating in food and travel. Frost & SullivanFrost & Sullivan,Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') isWEBUY GLOBAL LTDThe listing provides exclusive industry advisory services, and we would like to extend our warmest congratulations on its successful listing.
WEBUY GLOBAL LTD(hereinafter referred to as 'Webuy"") Yu2023year10month19The company plans to go public on the 1st of July3,800,000share, issue price per share4.0US dollars, with the net amount of raised funds being approximately15.2One million dollars.
During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), and assisting the issuer in completingSECCommunication with investors, helping them quickly understand the market ecosystem and competitive landscape, assisting issuers in completingSECFeedback on various industry-related issues, etc.
Investment highlights
The company possesses strong supply chain capabilities, capable of providing value that is more competitive than traditional supply chain products;
The company possesses a strong community network, brand loyalty, and positioning, providing a solid customer base for its entry into new product and new business areas;
The company offers competitive comprehensive product and service categories on the platform, including fresh agricultural products and daily necessities./Fast-moving consumer goods, e-coupons, and daily necessities;
The company's executives and directors combine decades of local e-commerce operations and social media marketing experience, as well as professional knowledge in the global financial field.
Overview of E-commerce and Social Commerce Markets
E-commerce"E-commerce"E-commerce refers to commercial transactions that involve the buying and selling of products or services through the internet. It encompasses the entire online transaction range from seller to buyer, including supply chain management, electronic fund transfers, online marketing, online transaction processing, electronic data interchange, inventory management systems, and automatic data collection systems.
Community e-commerce is a deepened and extended form of e-commerce, which utilizes social media platforms and communication software as network media, including but not limited toFacebook,InstagramWeChatWhatsApp,line,TikTokandYoutubeWait, connect social media users with common interests and behaviors online to form community groups within the network. It utilizes personal interaction and word-of-mouth marketing to provide personalized and targeted valuable insights for potential audiences and customers. Such networks are generally formed based on the similarities of group members, including:(i)Geographical proximity among social media user groups;(ii)Online shopping preferences and behaviors. In addition, a community leader is usually deployed in the community group to manage group management, event management, customer service, and other responsibilities.
2021In [year], the number of internet users in Southeast Asian countries has risen from2016year2.5Increase by hundreds of millions4.2Economies are developing rapidly, internet penetration continues to improve, andCOVID-19 pandemicThe implementation of various epidemic prevention and control policies, such as social isolation and quarantine measures, brought about by the outbreak, prompted citizens to shift from purchasing offline stores to e-commerce platforms, jointly driving the development of the e-commerce industry in the region.2026Year-end2021In [year], the market scale of e-commerce in Southeast Asia had grown from approximately9.3Ten billion dollars increased to about82.0One billion US dollars, with a compound annual growth rate of about54.5%Indonesia'sBukalapakandTokopediaSingaporeQoo10Malaysia'sLelongVietnamTikiandSendoAnd Thailand'sPowerBuyandHomeProThe vigorous development of leading e-commerce platforms has provided impetus for the sustainable growth of the e-commerce industry. Looking ahead, it is expected that by2026In [year], the market scale of e-commerce in Southeast Asia will reach approximately234.5One billion US dollars, with an annual compound growth rate of about19.9%.
Source: Frost & Sullivan report
The high penetration rate of mobile internet and the generation that prioritizes mobile devices have led to a significant amount of time spent on social media, as well as high engagement rates, which have accelerated the popularity of community e-commerce in Southeast Asia. Southeast Asians have a strong sense of belonging to communities, and establishing relationships with residents within the same community is more important to them. The market scale of community e-commerce has grown from2016year225Millions of dollars increased2021year4,030One million dollars, with an annual compound growth rate of78.1%.
Southeast Asians attach importance to the values of traditional collectivist societies, while community e-commerce models leverage the connections of community leaders and influential individuals to generate sales by directly marketing to their relatives and friends. It is expected that by2026In [year], the market scale of community e-commerce in Southeast Asia will reach15,503One million dollars,2022 - 2026The annual compound growth rate for31.5%.
Source: Frost & Sullivan report
The community e-commerce industry in Singapore is expected to grow steadily during the forecast period.2022Year-end2026The compound annual growth rate for the year will reach26.8%Community e-commerce in Singapore will commence from2022year332.8Millions of dollars increased2026year859.4One million dollars.
As social media platforms and channels provide buyers with an interactive channel, Singapore is undergoing an organized shift towards these platforms and channels. Discovering, browsing, and purchasing within the same community is a growing trend.
Source: Frost & Sullivan report
The market scale of the Malaysian community e-commerce industry has grown from2016year36.3Millions of dollars increased2021year422.2One million dollars, with an annual compound growth rate of63.4%The increasing popularity of social media platforms in Malaysia has driven the vigorous development of social media influencers and community channels. Social commerce platforms are collaborating with these influential individuals to target larger consumer groups and increase sales in Malaysia. As a result, their cooperation with influencers has promoted the development of the Malaysian community economy. In the medium to long term, this trend is expected to continue, thereby supporting the growth of the entire community e-commerce market.2022Year-end2026In [year], the compound annual growth rate of the Malaysian community e-commerce market size is expected to reach28.4%.
Source: Frost & Sullivan report
driving factors
· Growing consumer spending and a thriving economic environment
The Southeast Asian economy is gradually expanding, and the continuously developing consumer-driven economy has driven the development of the digital advertising market in the region.2016Year-end2021Nominal value of Southeast Asia during the yearGDPSteadily growing, from about25,986USD billion to31,259More than 100 million US dollars, with an annual compound growth rate of about3.8%With the continuous advancement of urbanization and the accelerated development of the economy, the nominal GDP of this region is expected to be2022Year-end2026Higher annual compound growth rates were achieved during the year, reaching6.8%With the continuous improvement of internet infrastructure and the enhancement of online shopping convenience, it is expected that the growth of consumer capabilities will promote the expansion of e-commerce platforms including community e-commerce.
· Supportive policies for online ecosystems
2021In [year], the Association of Southeast Asian Nations ("ASEAN"Countries have signed the ASEAN E-commerce Agreement, which establishes common principles and rules to promote the development of e-commerce in the region and enhance the capacity to implement corresponding policies. The agreement aims to facilitate cross-border e-commerce transactions within the region and create an enabling environment for e-commerce development. Member states will cooperate in areas such as information technology infrastructure, electronic payment, settlement, and trade facilitation. Favorable policies have supported the pattern of online platforms, thereby promoting the development of community e-commerce industries.
· Digital Transformation
Southeast Asia has experienced significant digital transformation in recent years. In particular, the popularization of smartphones has driven the development of the industry.2021In [year], internet users in Southeast Asia will exceed4.8Internet penetration rates in major economies such as Singapore and Malaysia reached92.0%and89.6%The overall internet penetration rate in Southeast Asia has reached73.0%than2016The year has seen significant progress. Netizens have come into greater contact with online marketing advertisements, increasing the usage rate and coverage of community e-commerce. In addition, the region's developed communication and social media platform applications provide a foundation for user interaction. Conversely, the growth in the number of internet users will also bring a larger consumer base to community e-commerce platforms.
· Analysis tools deployed during rapid development operations
With the increasing maturity of software technologies such as cloud computing, big data, and artificial intelligence communities, e-commerce service providers can gain deep insights and execution plans in acquiring potential customers, and transform customer attention towards products into trials, purchases, and product loyalty. Advanced system machine learning capabilities can track customer information such as demographics, geographical location, purchasing patterns, and preferences, analyze collected data, and recommend relevant content to end customers. Community e-commerce service providers can distinguish their core competencies and formulate strategies accordingly to provide optimized results.
View the prospectus
Frost & Sullivan has extensive research experience in the e-commerce industry and has assisted well-known enterprises in successfully listing on capital markets. Successful listings include: Zibuyu (2420.HK),Blibli（BELI.IDX),Starbox（NASDAQ:STBX), Dajianyun WarehouseNASDAQ:GCT), Youhe Holdings2347.HK),YesAsia（2209.HK), Huaixin Holdings8442.HK), Shangjin International2528.HK), TopBao International6110.HK), Baby Tree1761.HK), Siku ChinaNASDAQ:SECO), Barbie Beige8297.HK) JumeiyoupinNYSE.JME), VIP.comNYSE.VIPS) etc.
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