3 new trends show the future of Southeast Asia's e-commerce industry

It is not surprising that the growth of e-commerce has seen rapid growth in the pandemic. As social restraining orders were executed, people gradually turned to more consumer shopping online to meet retail and adaptive needs in the ‘new normal’ state.

Consumers choosing to shop at home more have created opportunities for online retail brands to grow and get closer to consumers.

Looking at the three main trends affecting e-commerce in Southeast Asia, as well as how brands connect with new consumer shopping trends, here are three new trends that show The future of Southeast Asia’s e-commerce industry that marketers need to know in order to adapt their marketing strategies.

Online shop will be the new front of the store

Restricting travel in Southeast Asia has reduced physical retail sales, while increasing consumer demand on e-commerce platforms. However, receipt in Vietnam and Thailand shows that people are still actively going to grocery stores or medical supplies stores, pharmacies.

Even when the social exclusion order in some countries in Southeast Asia has expired, the number of users searching on e-commerce platforms such as Lazada, Shopee, and Sendo has grown well. In fact, in Thailand has increased 63% over the same period last year, Malaysia (+ 32%), Vietnam (+ 13%) with the level of positive attention.

That is why it is so important to build and set up an online retail strategy. Investing in optimizing brand products on digital platforms can enhance the user experience and other gadgets for customers.

For those who rarely visit the store, this will be an opportunity for advertisers to increase coverage and sales growth. Consider promotions to encourage consumers to spend more for each purchase.

Increase online buying and selling activities

In recent months the report has recorded a large number of first-time shoppers on e-commerce websites, something they had never done before the social gap.

In Singapore, 24% of consumers during the quarantine period were new buyers, 32% of Indonesians during the social exclusion period said they had not previously purchased on any e-commerce platform. These movements and consumption trends are not merely short-term during a pandemic.

In fact, 74% of first-time online shoppers in Singapore said they would continue to shop online in the future. These are not only interesting growth figures but also show that the purchasing power of consumers on online platforms is growing significantly.

Jo Bjordal, marketing director of Zalora Group, said: “We have served our first-time online shoppers and have seen an increase in returning customers after more than a year.”

This new customer growth has never happened in the past, and we see it as significant lasting value to the brand.

Shopify increased 62% of new stores between March and April compared to the previous six weeks. Meanwhile, selling interest in SEA increased more than 20% in May compared to April, although retail stores have been allowed to reopen in certain markets.

Existing online markets are also contributing to this growth, with more and more shifting from traditional store-based sales model to online form. Some of them include: Lazada University, Shopee University, and Tokopedia Pusat Edukasi Seller with courses for e-commerce store owners on how to make the most of their presence on online platforms. .

Therefore, when the opportunity to find new customers is higher than ever, marketers need to find similarities with the target audience and have creative and attractive marketing strategies to increase the scope. approach.

New purchase journey

We also noted a change in user interest (during the period of social spacing) with unimportant items such as: smart home devices to enhance the home experience, Cooking utensils to prepare new recipes, additional vitamin items to increase the body’s resistance.

Consumer interest in kitchen appliances such as oil-free fryers and boilers increased by 190% in Singapore during the social separation period. Vietnam also saw a 68% growth with appliances such as blenders and coffee makers, a figure of 33% in the Philippines.

When people don’t go out, they will focus on upgrading indoor living spaces. In Thailand, user search interest with home automation devices has increased by 95% during peak social separations. “Smart TV” also saw a 39% increase in Malaysia as users sought ways to improve home entertainment needs.

This time is also an opportunity for people to establish healthier habits. Global search interest among consumers for "vitamins" has increased by 40% over the previous year, with the largest increase in the Philippines market, followed by Indonesia. Singapore also noted a high level of interest in “lutein” (an eye vitamin) because people spend a lot of time on electronic screen devices when working from home.

While users’ search interest in some commodities has increased, marketers should still be wary of the financial crisis caused by the Covid-19 epidemic that also has a definite impact on households. family. In fact, 48% of Singaporeans surveyed said the pandemic had a major impact on their personal / household finances and this figure in the Philippines amounted to 87%.

Consumers will spend more carefully, promotions and discounts will be their top priority. 55% of Singaporeans said they would be willing to wait for a promotion before making a purchase, and 40% said they are looking to make more preferential purchases.

Offering discounts will be the key in helping marketers grasp customer needs. Retailers will need to adjust prices and creative ways to quickly liquidate inventories, and the 2020 shopping festivals could become a lever for the industry’s growth.

During this time, it is important to keep an eye on the change in consumer behavior and bring in the right promotions. Find out how consumers maintain useful habits formed during social spacing, behaviors that have a lasting impact on how they use your products and services in the future.

David Mattin, a representative at TrendWatching, said that all long-term consumer trends are set based on basic human needs or desires. Undoubtedly, the use of e-commerce platforms will be focused on expanding further investment in the coming time as an indispensable rule in the state of ‘new normal’.

Phuong Thao – MarketingAI

According to Thinkwithgoogle

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