According to Lim and Suang, one common mistake entrepreneurs in Southeast Asia will make is looking at the region as a single market. The second mistake is thinking that Vietnam’s population of 92 million or Indonesia’s population of 250 million people is one single market. The reality is that each population itself is stratified. Khor recommends slicing markets by spending power as the different groups of people with different spending power will behave differently. For example, the 50 million wealthiest people in Indonesia will probably have more in common and behave similarly to the wealthiest people in Ho Chi Minh city, or Manila, or Klang Valley, rather than 100 million almost-as-wealthy Indonesians.
Lim gave the example of Reebonz, a company which sells luxury bags to wealthy consumers. For Reebonz, their addressable market size is about 60 million people across Southeast Asia. These 60 million customers spend an average of US$3,000 a month on luxury bags, and reside in Singapore, Kuala Lumpur, Jakarta, Bangkok, Hong Kong, Manila, Australia. As of a year and half ago, the company was valued at US$250 million.
Full article: http://www.techinasia.com/find-big-single-market-southeast-asia/
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