The document discusses opportunities and challenges for cross-border e-commerce between Latin America and Asia, noting that while the market is still in early stages due to complications, platforms are playing a dominant role in enabling sales. It analyzes trends like social commerce and fast changing consumer preferences in Asia, and highlights the importance of brands and watching the growth of companies like Shopee and J&T that are expanding globally across sectors.

2. Jianggan Li
CEO, Momentum Works

3. Cross border ecommerce
Latin America - Asia

4. About Momentum Works
A Singapore-headquartered venture outfit, Momentum Works builds, scales and manages tech ventures across the emerging
world.
We also leverage our knowledge, community and experience to inform, connect and enable the tech/new economy ecosystem.
4
Experience
Knowledge
Community Ventures
Enable
Inform
Connect
Find more insights/reports from Momentum Works at:
insights.momentum.asia
Subscribe to our blog The Low Down (TLD) to get our updates:
thelowdown.momentum.asia
Join our exclusive Impulso community:

5. About Momentum Works
Our direct experience
Our community
Our team presence
Indonesia
Singapore
Brazil
China
India
US
Mexico
France
UK
Unrivalled access to local
knowledge, experience &
community
in more than 30 countries
Population density

6. Some of our reports
Ecommerce Digital banks Who is Shopee Other sector-focused
For more insights:
insights.momentum.asia

7. Latin America and Southeast Asia are the frontiers for digital economy
América Latina y el sudeste asiático son las fronteras de la economía digital
7
América Latina
Sudeste Asiático

8. The two regions have a lot of similarities
Las dos regiones son similares en muchos aspectos
Southeast Asia Latin America
South of China South of the US
Population
(top 6 countries)
Total GDP (top 6
countries)
Population largest
country (M)
Flight time between
farthest capitals
VC investment in 2020
($B)
México
Chile Colombia
Brazil
Argentina Perú
Indonesi
a
Philippines Vietnam
Singapore
Thailand Malaysia
578 M 485 M
$ 3.0 B
212
9 hrs
11.1
$ 3.2 B
269
3 hrs
8.2
Superpower neighbour

9. The 8 points I would like to bring forward today
Vamos a discutir sobre estos ocho asuntos
9
1. Crossborder from Latam to Asia is in early stages, and complicated
2. China can produce everything
3. Platforms are playing a dominating role
4. Social commerce is a trend worth watching
5. What are consumers eventually looking for
6. Asian consumers are spoilt with choice - trends come and go fast
7. Brands matter for East Asia (and Southeast Asia eventually)
8. Watch Shopee and J&T duo!

10. 1. Crossborder from Latam to Asia is in early stages, and complicated
El comercio electrónico transfronterizo de Latam a Asia: en etapas iniciales y complicado
10
10%
10%
14-19%
41% China
US
Others
Origin of cross-border items
(2020, %)
Singapore
S. Korea
20-25%
4.5
3.3
1.6
Cross-border ecommerce value (US$ B)
2019 2020
2018
106%
36%
13% 16% 14%
% of total
ecommerce value (%)
Cross border
within Asia: e.g.
into Indonesia

11. 2. China can produce everything
pueden fabricar cualquier cosa en China
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Fashion, accessories, household items
(basically everything)
Cosmetics, skin care
Medicine, branded goods
Supplements, vitamins
What Southeast
Asians are buying
cross border

12. 3. Platforms are playing a dominating role
Las plataformas son muy importantes para permitir el comercio electrónico transfronterizo
12
Players by cross border model - case study: Indonesia
Heavy
B2B
B2C
asset-heavy model
Light
Asset
B2C
Import1
Export2
Import1
Control complete supply chain:
Self-operated warehouse, logistics
Provide more control in terms of product and service
quality, logistics efficiency, smoother after sales
Having exceptional experiences create differentiation
and barrier of entry for other players, and make it easier to
scale up
Work with partners
Save cost and risk of establishing and managing own
warehousing and distribution
Stronger local knowhow of partners
(e.g.: custom clearance)
Choosing the right partner is critical
Agents / partners are subjected to multiple factors (price,
service level4)
B2C
asset-light model
B2B, asset-light model
Import1
Exited Indonesia3

13. 4. Social commerce is a trend worth watching
El comercio social: una tendencia importante
13
Content Reseller Community
Content social commerce Reseller Social group buy Community group buy
Resellers buy at wholesale price
and resell to end customers.
Buyers share with existing
social network (through social
media) and buy as a group.
Buyers join local community
led by community leader and
buy in group.
KOLs and users use social
platforms to produce content
(visuals, video, live streaming)
to push conversions.
A taxonomy of social commerce: Indonesia/China
Scale effect
of group purchase
Save on last-mile cost
Mass traffic and content
to trigger potential demand
Business
rationale
Indonesia
China
Douyin Kuaishou
Leverage on agent network
of reseller
Yunji Xingsheng
Duoduo
maicai
Meituan
Select

14. 5. What are consumers eventually looking for
¿Qué quieren realmente los consumidores?
14
Why consumers buy cross border:
1. Larger product selections
1. More competitive prices
1. Perception of quality
1. Items not available in local
markets
Four dimensions of user expectations (usually)
Vast product selection
Savings
Mobile app quality &
customer service
Fast deliveries
Highest
Lowest
Based on user perception1

15. 6. Asian consumers are spoilt with choice - trends come and go fast
Los consumidores asiáticos tienen opciones: las modas vienen y desaparecen rápidamente
15
Online catalogue, divert traffic
to marketplace / private messages
No payment / fulfillment capabilities
Direct checkout / divert traffic
Partner for payment1 & fulfillment2
Direct checkout
Full ecommerce capabilities
Payment, fulfillment, aftersales
Facebook Marketplace
More C2C sellers
Instagram shop as
online catalogue for brands
Paymen
t
Direct checkout Shopee live streaming

16. 7. Brands matter for East Asia, (and Southeast Asia eventually)
Las marcas son importantes para los consumidores en el este de Asia (y eventualmente en el sudeste asiático)
16
What Chile sells on
Pinduoduo (en China)

17. 8. Watch Shopee and J&T duo!
¡Sigan a Shopee y J&T!
Presence
SEA Group and J&T, which had built their initial
success in Southeast Asia, are going global
PRC
Vietnam
Indonesia
Malaysia
Brazi
l
Mexico
Cambodia
The
Philippine
s
Colombia
Chile
Poland
Singapore
UAE
Thailand
India
Peru
Russia
US
ROC
Garena Free Fire top market
Turkey
EgyptSaudi Arabia

18. Most important factors for success in any cross border undertaking
Factores más importantes para el éxito en cualquier empresa transfronteriza
18
Product, Organization, People => Leadership

19. Jianggan Li
jianggan.li@mworks.asia