We now witness the era of third-generation companies. The companies nowadays have given significant improvement to second-generation businesses. The second-generation mainly focuses on transforming customers from offline to online. The popular example of that generation is eBay and Monster.com.
In the third generation companies, not only they provide an online platform, but they also provide an efficient logistic network. For instance, Alibaba online shopping platform, Taobao. The platform allows users to choose goods on a smartphone app and have them delivered via an extremely efficient logistics network. Besides, users can even pay with the company’s own payments system, Alipay.
Southeast Asia Third Generation Companies
In most of Southeast Asia countries, many platforms have done similar move as Taobao. For instance, we now have Tokopedia in Indonesia or Shopee in Malaysia, Thailand, and Vietnam. Besides, Southeast Asia also has many food delivery platforms that provide rides and food delivery services completed with the digital payment method.
These platforms are successfully using technology to provide a complete end-to-end solution to its clients.
Many expect that this new breed of problem-solving companies will thrive best in developed economies. However, the most fertile ground for their development will be in emerging markets, such as Southeast Asia.
There are several reasons why. One of the biggest reasons is that Southeast Asia already has 350 million internet users who form a rapidly growing online economy. According to a recent Google-Temasek report, this mobile-first population will be worth US$240 billion in 2025, from US$72 billion at the end of 2018.
Besides, many of Southeast Asia’s countries have a young technology-savvy population that has leapfrogged the desktop computer into an ecosystem that is primarily driven by mobile devices.
In Southeast Asia, these companies have even come to the untapped market like medical treatment. An example is Jio Health, a Vietnamese company that covers the entire spectrum of medical treatment. It starts by sending a doctor to a patient’s house, where it can test samples, prescribes drugs, and arrange for transportation to treatment in a hospital if needed.
Vietnam has a population of 95 million. In this country people typically go to clinics or top-end hospitals for even the most minor ailments. Thus, a company like Jio can have a transformative impact on how people access healthcare.