The digital commerce sector in Southeast Asia is riding a wave of innovation and adoption, with overall growth forecast at around 16% in 2025, driven by a surge in video-based shopping and artificial-intelligence (AI)-powered buying tools, according to the “e-Conomy SEA 2025” report by Google, Temasek Holdings and Bain & Company. Business Standard+2digitalnewsasia.com+2

The report highlights that as consumers increasingly embrace mobile-first shopping, platforms incorporating live-video commerce, algorithmic recommendation and immersive brand experiences are gaining traction. Video-commerce formats—where creators livestream product demonstrations, flash deals and interactive chat shopping—are rapidly becoming mainstream in markets such as Indonesia, Thailand and the Philippines.

Key Drivers of the Growth

Video Commerce Takes Centre Stage
Live-streaming shopping sessions, often hosted by influencers or creators on apps like TikTok and regional equivalents, are reshaping how Southeast Asian consumers discover and buy products. The report finds that video-commerce formats will contribute significantly to growth, as social and entertainment formats converge with e-commerce. Business Standard+1

AI-Powered Shopping Experiences
Retailers and marketplaces are leveraging artificial intelligence to personalise offers, optimise pricing, predict shopping behaviour and recommend products. AI-driven features such as “shop by image”, voice-based search, and smart up-sell/cross-sell engines are becoming standard expectations among consumers. The report notes that advertising revenue in the region is growing at 16% year-on-year, fuelled by the maturity of retail-media networks and AI-enabled ad formats. Temasek Corporate Website English+1

Rising Digital Economy and Consumer Base
The aggregated digital economy of Southeast Asia which includes e-commerce, digital media, ride-hailing, food delivery and fintech — is projected to exceed US$300 billion in gross merchandise value (GMV) by 2025, supported by a decade of strong growth. digitalnewsasia.com+1 Mobile-internet penetration is high across many markets, and younger consumers, especially Gen Z and Millennials, are comfortable purchasing via apps and social-commerce channels.

Market Implications

For Retailers and Marketplaces:
To capitalise on this growth, companies must optimise their storefronts for mobile, video-enabled discovery, and AI-assisted purchase journeys. Merchants that remain reliant purely on traditional e-commerce layouts risk falling behind.

For Brands:
Brands entering the Southeast Asia region will need to adapt to shorter attention spans, interactive livestreaming formats, influencer-driven campaigns and context-rich shopping environments. Differentiation increasingly relies on engaging storytelling in video formats, quick fulfilment and seamless mobile UX.

For Investors and Ecosystem Players:
The structural shift towards video and AI presents opportunities for platforms enabling creators, providing backend AI-infrastructure, inventory and logistics optimisation tools, and social-commerce monetisation models. Advertising-tech firms and retail-media networks are especially well-positioned.

Challenges to Address

While the growth prospects are strong, several factors merit caution:

• Logistics and delivery remain complex across Southeast Asia’s archipelagos and rural regions; fulfilment cost and time may impact consumer satisfaction and margins.

• Data-privacy, algorithmic transparency and regulatory oversight of live-commerce and creator-driven sales are still evolving in many countries.

• As more merchants shift to video-commerce, competition intensifies, raising marketing costs, creator incentives and discounting pressure, which may compress margins.

• Monetisation of AI-led experiences and ensuring ROI from technology investments remains a medium-term challenge for smaller players.

Looking Ahead

Key indicators to monitor in 2026 and beyond include:

• Growth rates of live-commerce transactions as a share of total e-commerce in regional markets (especially Indonesia, Vietnam, Thailand, Philippines).

• Uptake of AI-enabled shopping features (voice search, image-based discovery, recommendation engines) by major marketplaces and brands.

• Advertising spend in retail-media networks and the effectiveness of AI-driven ad-formats in driving conversion.

• Infrastructure improvements: delivery lead times, cross-border shipping efficiency, returns management.

If current trajectories hold, Southeast Asia will not only expand its e-commerce market but also lead on innovation in video-commerce and AI-driven retail globally.

Conclusion

Southeast Asia is entering a transformative phase of digital commerce, one where video-based shopping and AI-powered experiences are rewriting the playbook. The forecasted ~16 % growth in 2025 underscores both the scale and speed of change. For retailers, brands and investors, the message is clear: evolve your approach from classic e-commerce to interactive, intelligent, mobile-first commerce or risk being outpaced.

Saudi-based e-commerce enablement platform Zid has partnered with Egyptian SaaS specialist Zammit to accelerate digital commerce expansion in Egypt, marking a key strategic expansion into North Africa. The collaboration was announced on 6 November 2025. startupresearcher.com+2عرب فاوندرز+2

Under the terms of the agreement, Zammit will assume operational leadership for Zid’s entry into Egypt—covering merchant onboarding, sales, technical support and localisation of the technology stack. startupresearcher.com+1 Zid will contribute its infrastructure—ranging from online-store software, payment integration and logistics tools—to be deployed via Zammit’s local platform. عرب فاوندرز+1

Strategic Rationale

The partnership reflects Zid’s view that localised operations are critical to successful e-commerce expansion in Africa and the Middle East. Instead of a distant launch, Zid chose to integrate with an established Egyptian player (Zammit) that brings regional insight and relationships. Zammit was founded in 2020 and provides SaaS services enabling businesses across Egypt to launch and manage online stores. Arageek+1

For Egypt, the move underscores growing investor confidence in the country’s digital-commerce ecosystem, talent pool and SME growth potential. Zammit’s collaboration with Zid also positions Egypt as a potential regional hub for further expansion into Africa. عرب فاوندرز+1

Operational Impacts & Scope

• Zammit’s team—led by its existing management—will take on full control of Zid Egypt operations: sales, merchant support, localisation and growth initiatives. startupresearcher.com+1

• Zid’s technology stack (merchant tools, logistics, payments, storefront management) will be migrated and integrated into the Egyptian platform, enabling smoother merchant experiences and faster scaling. عرب فاوندرز+1

• The partnership also contemplates establishing a regional tech hub in Egypt, leveraging both companies’ ecosystems for broader African market entry. Arageek+1

Market Implications

As e-commerce adoption in Egypt and the broader MENA/Africa region accelerates, infrastructure and enablement platforms like Zid and Zammit become essential. The collaboration:

• Provides Egyptian and regional merchants access to advanced tools without needing to build technology from scratch.

• Enhances cross-border infrastructure, bringing Gulf capital and technology together with Egyptian execution and talent.

• Signals to investors and startups that regional markets are integrating and that local partnerships may unlock scalability.

Challenges & Considerations

Despite the promise, execution risks remain:

• Aligning brand identity, technology integration and operational workflows between two distinct organisations must be carefully managed.

• Onboarding and supporting merchants at scale in Egypt requires localisation, regulatory compliance and high service levels.

• Expanding into additional African markets via this model will require adapting to varied infrastructures, consumer behaviours and logistics environments.

• Competition is increasing in regional enablement platforms; success depends on speed, support quality and network effects.

What to Watch Next

Key milestones to monitor include:

• Number of merchants onboarded via the merged platform in Egypt and the speed of migration to Zid’s infrastructure.

• Merchant activation metrics: how many launch, transact and scale via the platform within 6- to 12-months.

• Launch of the regional tech hub and capability expansion (e.g., payments, logistics, SaaS support).

• Replication of the model into other African markets, signalling the first phase of regional expansion beyond Egypt.

Conclusion

The partnership between Zid and Zammit marks a strategic inflection point in MENA/African digital-commerce enablement. By combining Gulf-based scale with Egyptian local know-how, the collaboration aims to lower barriers for merchants and accelerate regional digital trade. Its success will depend on integration, merchant adoption and execution.

UAE-based savings and lifestyle platform The Entertainer has appointed cloud-and-AI consultancy Zero&One as its strategic partner to advance its next-generation digital platform, according to a 7 November 2025 announcement. Consultancy ME

Founded in Dubai in 2001, The Entertainer operates across many Middle East markets including the UAE, Saudi Arabia, Bahrain, Kuwait, Egypt and Oman. The platform offers “2-for-1” lifestyle and retail deals and currently services over 10,000 merchant partners. Consultancy ME The partnership with Zero&One covers migration and modernisation of The Entertainer’s cloud infrastructure plus deployment of generative AI-driven features to enhance user discovery, personalisation and loyalty experiences. Consultancy ME

Strategic Aims & Scope

As part of the collaboration, The Entertainer will leverage Zero&One’s expertise across:

• Cloud architecture modernisation on Amazon Web Services (AWS) to support scalability and global expansion. Consultancy ME

• Generative AI-enabled discovery and recommendation engines to deliver more personalised offers across dining, leisure, retail and travel categories. Consultancy ME

• Managed services including security, data governance and performance operations. Consultancy ME

The Entertainer’s Chief Information Officer noted the initiative will drive a more seamless and responsive customer experience, describing the step as “an important step forward in our commitment to technology-led customer experience.” Consultancy ME

Regional Context & Market Implications

In a region where digital commerce, loyalty platforms and app-based consumer engagement are growing rapidly, the move positions The Entertainer to compete more effectively with global-app alternatives and local fintech/lifestyle players. By investing in cloud-scale architecture and AI-led personalisation, the business is preparing to meet rising consumer expectations for frictionless offers, faster transactions and tailored experiences.

For Zero&One, being named partner by a prominent regional brand reinforces its status as a leading cloud-and-AI consultancy in the Middle East, particularly given its AWS Premier Consulting Partner credentials and generative-AI competency. Consultancy ME

What to Watch

Key performance indicators and milestones to monitor in the coming months include:

• Time to rollout of the next-gen user experience, new app features and AI-led offer discovery.

• Impact on member engagement metrics: number of active users, offer redemption rate, time-to-offer-view and basket size.

• Infrastructure scalability: ability to support peaks (e.g., travel or festival season) and regional expansion.

• Data governance and security compliance, especially given increased use of AI and personalisation.

• Market recognition: whether the upgraded platform helps The Entertainer attract new merchant partners, expand into new countries and increase overall loyalty-programme revenue.

Conclusion

The collaboration between The Entertainer and Zero&One underscores how regional lifestyle platforms are investing in cloud and AI capabilities to deepen customer engagement and scale operations. As consumer-facing apps evolve toward greater intelligence and responsiveness, infrastructure modernisation becomes a competitive necessity rather than an optional upgrade. The success of the project will hinge not just on technology rollout, but on how effectively The Entertainer translates these capabilities into measurable user value.

HUMAIN, a global artificial-intelligence company backed by the Public Investment Fund (PIF) and provider of full-stack AI capabilities, together with EY MENA, a leading professional-services firm, today announced their ambition to integrate EY’s business-AI solutions into HUMAIN ONE — HUMAIN’s agentic-AI platform powered by the Arabic large language model ALLAM. EY+1

Under this collaboration, EY will explore how its proprietary AI assets — spanning human resources, tax, accounting, governance and corporate development — can be redeployed as «intelligent agents» within HUMAIN ONE. By embedding EY’s innovations atop ALLAM, the initiative aims to deliver transformative solutions to both public- and private-sector organisations in Saudi Arabia and, eventually, globally. EY+1

Key Focus Areas

The initial phase of the partnership will focus on six critical corporate functions:

• Human Resources: AI-driven recruitment, background checks and skills development (via EY Skills Foundry). EY

• Tax & Zakat: Automated and compliant filings using EY’s AI Tax Factory. EY

• Accounting & Audit: Streamlined oversight with EY’s Virtual Internal Auditor. EY

• Risk Management & Governance: AI-powered KYC and compliance processes. EY

• Corporate Development: Smarter M&A strategy, transactions and valuations through EY Competitive Edge and Transaction Diligence AI Agents. EY

• Financial Due Diligence & Valuation: Accelerated reviews of financial statements using AI-assisted analytics. EY

Strategic Rationale

The collaboration stems from a shifting enterprise landscape where “agentic AI” — characterised by autonomous, multi-step, decision-capable systems — is becoming central to business transformation. According to the press release, businesses and governments are moving beyond static chatbots toward intelligent agents able to execute complex processes in real time. EY

EY brings to the partnership its global footprint (spanning over 150 countries), deep sectoral expertise and an extensive suite of AI-enabled business platforms. Combined with HUMAIN’s ALLAM model and full-stack infrastructure, the alliance seeks to accelerate the transition of organisations from legacy workflows to AI-first operations. EY

Implications for Clients and Markets

For governments and large enterprises, the partnership offers a blueprint for next-generation digital transformation: more intelligent operational workflows, enhanced compliance, faster decision-making and deeper use of data-driven insights. The focus on the Middle East — particularly Saudi Arabia — aligns with regional ambitions around AI, localisation of model development and economic diversification under Vision 2030.

For EY’s clients globally, the integration into HUMAIN ONE promises access to a powerful combination of enterprise services and agentic AI capabilities. This may reshape how HR, finance, tax, audit and corporate-development functions are organised and automated.

For HUMAIN, the deal bolsters its platform proposition as a world-class AI ecosystem capable of serving enterprise-grade functions beyond the region, leveraging EY’s credibility and reach.

Challenges & Considerations

The partnership is ambitious and comes with execution risks:

• Deploying agentic AI across functions like tax, audit and governance demands rigorous data governance, regulatory compliance and change-management.

• Embedding an Arabic-centric large-language model (ALLAM) into global operations requires adaptation for varied languages, jurisdictions and enterprise contexts.

• Scaling across diverse markets means navigating regulatory frameworks, privacy regimes and ethical-AI standards in multiple jurisdictions.

• Measuring ROI and adoption in deeply traditional enterprise functions may take longer than typical tech roll-outs, requiring long-term commitment.

What to Watch

In the coming months, stakeholders will track:

• Pilot roll-outs and client case studies showing tangible impact (e.g., audit cycle time reductions, tax-filing automation gains, HR recruitment speed improvements).

• Expansion of the collaboration beyond initial focus countries and functions, indicating move from piloting to global scaling.

• Interplay with other AI models and platforms, and how the HUMAIN-EY alliance competes or integrates within broader AI-ecosystem partnerships.

• Adoption of governance and ethical frameworks to ensure responsible use of agentic AI across functions and jurisdictions.

Conclusion

The HUMAIN-EY partnership represents a major strategic step in the evolution of enterprise transformation — from automation and analytics to fully agentic AI. By combining HUMAIN’s Arabic-language model and platform infrastructure with EY’s business-AI solutions and global services footprint, the alliance aims to redefine how organisations operate, govern and grow in an AI-first future.

Amazon has officially expanded its low-cost e-commerce service, known as Amazon Bazaar, to 14 additional countries, marking a major strategic step in its global retail expansion and a direct challenge to Chinese fast-fashion giants Shein and Temu. The initiative positions Amazon to compete in the fastest-growing segment of global e-commerce: ultra-affordable shopping driven by mobile apps, algorithmic discovery, and cross-border logistics. (Reuters)

Amazon Bazaar—branded as Amazon Haul in the U.S.—was initially piloted in Mexico in 2024, offering thousands of low-priced products shipped directly from warehouses and partner suppliers. Following the pilot’s success, Amazon confirmed a major rollout across markets including the United Arab Emirates, Saudi Arabia, Hong Kong, Taiwan, the Philippines, Nigeria, and Thailand, among others.

The company says the service aims to “bring affordable everyday products to customers worldwide” while maintaining the quality and reliability associated with the Amazon brand.

Competing Head-to-Head with Shein and Temu

Amazon’s global expansion of Bazaar represents a strategic counter-move against emerging competitors that have dominated the low-cost e-commerce ecosystem. Shein and Temu—both Chinese platforms—have captured massive market share through ultra-cheap pricing, social-media-driven virality, and direct-from-factory fulfillment models.

While Amazon’s traditional marketplace targets mid- to premium-range shoppers, Bazaar focuses squarely on value-driven consumers, offering products under $10, with some listings starting at just $2. Categories include clothing, accessories, beauty, home essentials, phone cases, and novelty items—mirroring the product mix popularised by Temu’s gamified shopping experience. (Reuters)

Industry analysts interpret the launch as Amazon’s most aggressive push yet into the discount-retail segment, signaling that the company no longer intends to cede that space to Asian challengers.

“Amazon only enters a category when it sees long-term profitability and scalability. This move shows it’s serious about taking on low-price rivals in emerging markets,” said Gil Luria, analyst at D.A. Davidson. (Reuters)

A Data-Driven Approach to Affordability

Unlike Shein and Temu, which rely on Chinese factory networks and third-party logistics, Amazon Bazaar leverages the company’s own global fulfillment infrastructure. Orders placed through the service are processed through existing Amazon logistics centers, giving the company greater control over shipping times, tracking accuracy, and returns.

The service also integrates tightly with Amazon Prime delivery channels, allowing customers in select regions to benefit from faster shipping options even for budget items—a unique advantage over cross-border rivals that depend on slower shipping methods.

Amazon has not disclosed pricing for sellers, but early reports suggest commission rates lower than those on the main marketplace, intended to encourage participation by small manufacturers and value-tier merchants.

The company’s internal algorithmic pricing engine—already used across its main retail operation—will reportedly be optimized for Bazaar, ensuring competitive parity with fast-fashion and discount rivals on a real-time basis.

Expanding Access in Emerging Markets

The decision to expand the Bazaar model globally also reflects Amazon’s growing focus on emerging markets, where cost sensitivity and mobile-first shopping dominate consumer behavior.

Regions like Southeast Asia, the Middle East, and Sub-Saharan Africa have seen exponential growth in online retail adoption post-pandemic, driven by rising smartphone penetration and digital-payment infrastructure. Amazon’s expansion into these markets via Bazaar gives it access to new audiences who may not have previously considered Amazon due to higher average pricing.

In the Gulf region, the rollout aligns with broader trends in cross-border e-commerce. Platforms such as Noon, Namshi, and Trendyol are expanding rapidly in the UAE and Saudi Arabia, while Chinese players Temu and Shein have surged in popularity through aggressive price discounts and influencer campaigns.

By introducing a low-cost service that still carries the Amazon reliability and logistics advantage, the company hopes to capture a larger share of this fast-growing market segment.

Impact on Amazon’s Global Strategy

Financial analysts suggest that the Bazaar expansion dovetails with Amazon’s ongoing strategy to diversify its revenue streams while defending its e-commerce dominance.

In Q3 2025, Amazon’s international sales reached $40.9 billion, up 10 percent year-on-year (excluding currency fluctuations). Although margins remain thin in global retail, the company’s growing logistics network and AI-driven supply-chain optimization have reduced delivery costs, creating room to target lower-price tiers. (Reuters)

Furthermore, the expansion helps Amazon gather critical consumer data in emerging economies—feeding its long-term plans for advertising, payments, and logistics services. By onboarding millions of first-time online shoppers via Bazaar, Amazon can nurture loyalty and cross-sell higher-margin services like Prime Video, Audible, or Amazon Pay.

Challenges Ahead

While the move strengthens Amazon’s global presence, it also introduces several strategic challenges:

1. Margin Pressure: Competing on price with Shein and Temu—both of which operate on ultra-lean cost structures—could erode Amazon’s profitability.

2. Supply Chain Complexity: Managing millions of low-priced SKUs requires tight logistics and quality control to avoid counterfeit or defective goods.

3. Regulatory Scrutiny: Governments worldwide are increasing oversight of cross-border e-commerce, especially regarding taxes, data privacy, and product safety.

4. Brand Dilution Risks: Positioning Amazon simultaneously as a premium and low-cost marketplace could confuse consumers if not clearly differentiated.

Despite these hurdles, experts believe Amazon’s ability to combine its brand trust, logistics infrastructure, and AI-driven operations gives it an edge over competitors reliant on external supply chains.

Industry Reactions

Retail analysts have described the expansion as “Amazon’s answer to Temu.”

“Temu grew exponentially by offering consumers the thrill of discovery at low prices,” said retail consultant Jane Hsu of Retail Economics Asia. “Amazon’s approach is more structured but could be more sustainable—especially in markets with strong trust in its logistics reliability.”

In addition, merchants see potential for new growth opportunities. Local sellers in regions like the Philippines and UAE can now list budget items for international sale without building separate infrastructure, effectively becoming micro-exporters under Amazon’s umbrella.

The Road Ahead

The success of Amazon Bazaar’s global expansion will depend on several key factors:

• How quickly the company can onboard sellers and maintain inventory freshness.

• Whether shipping and delivery times can remain competitive with Shein’s and Temu’s direct-from-China models.

• The extent to which consumers in emerging markets perceive Amazon’s “budget” tier as credible and appealing.

• Integration with other Amazon verticals—like Prime, ads, and logistics—which could improve long-term monetization.

If executed effectively, Bazaar could mark the beginning of Amazon’s next growth phase—a move from being a global marketplace for everything to being a global marketplace for everyone.

Conclusion

With Amazon Bazaar, the retail giant is signaling a bold commitment to inclusive commerce—making affordability and accessibility key pillars of its next decade of growth. The rollout challenges Chinese fast-fashion dominance and highlights how global e-commerce is fragmenting into price tiers rather than geographies.

As Amazon scales its ultra-low-cost offering across continents, the competition for the world’s budget-conscious consumers is set to intensify—ushering in a new chapter in the battle for e-commerce supremacy.