How a Southeast Asian Used Car Platform Revolutionized Market Insights with Ken Research

Background: The Client's Journey

A leading Southeast Asian used car platform, established in 2015, sought to transform the region’s used car market by bridging the gap between consumers and businesses through seamless digital transactions. The company operates across C2B (consumer-to-business) and B2C (business-to-consumer) segments, offering value-added services such as warranties, inspections, and after-sales support.

With an ambitious goal of raising additional funding, the client needed a comprehensive market assessment to present actionable insights to potential investors. They sought an in-depth understanding of market size, competitive dynamics, growth drivers, and future opportunities in the Southeast Asian used car market, with a particular focus on Thailand, Indonesia, and the Philippines.

What Was the Issue?

The client faced challenges in:

1. Market Visibility: Understanding country-specific trends, such as segmentation by C2B, B2C, and C2C channels, and emerging digital adoption patterns.
2. Competitive Positioning: Identifying key players and differentiating their platform amidst increasing competition.
3. Investor Confidence: Developing robust data-backed insights to assure investors of market potential and business scalability.
4. Ancillary Services Expansion: Understanding consumer preferences for financing, warranties, and after-sales services.

When Did It Occur?

In late 2023, amidst the post-pandemic recovery, the used car market in Southeast Asia was rapidly evolving. The client needed insights and solutions to capitalize on growing digital adoption and an increasing consumer preference for used cars.

Where Did It Happen?

The assessment spanned major Southeast Asian countries, including Thailand, Indonesia, and the Philippines, where the client operates extensively.

Why Was It a Problem?

• Investor Pressure: Investors required detailed market segmentation and future growth projections to validate the client’s expansion strategy.
• Rapid Market Changes: Post-COVID trends, including rising used-new car ratios (expected to grow to 2.24 by 2026 in SEA), called for updated and actionable insights.
• Limited Regional Insights: Without detailed competitive intelligence, the client risked losing its edge in a fast-paced market.

How Did Ken Research Solve the Problem?

Ken Research developed a tailored engagement plan, combining primary and secondary research methodologies, to provide the client with robust and actionable insights:

Market Assessment with Data-Driven Insights:

• Ken Research evaluated the SEA used car market to project growth from USD 101.9 billion in 2021 to USD 191.9 billion by 2026, with a CAGR of 13.5%.
• Segmentation analysis revealed that the C2B and B2C channels were driving digital adoption, with platforms contributing to improved convenience and trust.

Country-Specific Analysis:

• Philippines: The market is expected to grow at a CAGR of 7.7% to USD 8.6 billion by 2026, with 807,000 units of used cars sold annually.
• Thailand and Indonesia: These countries contributed the highest transactions, with Indonesia leading the B2C and C2C segments, projected to reach a used-new car ratio of 2.24 by 2026.

Competitive Landscape Evaluation:

• Conducted SWOT analyses and dealer economics studies to identify the top players in each region and their market strategies.

Future-Proof Strategies:

• Forecasted a rise in ancillary services, including warranties, financing, and after-sales support, contributing to market growth by 15% annually across SEA.
• Provided actionable recommendations for scaling operations by enhancing platform transparency and leveraging partnerships with local dealerships.

Primary Research for Investor Confidence:

• Ken Research engaged with over 90 stakeholders, including authorities, dealers, and financial institutions, using a structured discussion guide.
• Insights were validated through telephonic and in-person interviews, offering the client credible and actionable intelligence.

Impactful Outcomes

1. Investor Assurance: The detailed market report enabled the client to secure $25 million in funding for their next phase of growth.
2. Strategic Expansion: With Ken Research’s insights, the client prioritized digital adoption and ancillary services, increasing market penetration by 20% in 2024.
3. Enhanced Competitive Positioning: The client leveraged data-backed differentiation strategies to maintain their leadership in the SEA used car market.
4. Revenue Growth: By addressing consumer pain points, the client achieved a 30% YoY increase in revenue, driven by improved consumer trust and platform transparency.