Retailers in Southeast Asia are facing a changing landscape in online shopping as consumer preferences evolve, according to e-commerce platforms. At a recent Tech Week event in Singapore, Shopify Country Head for Southeast Asia and India, Bharati Balakrishnan, highlighted that 52% of shoppers in the region prefer to shop online, indicating a significant shift in consumer behavior.
The Shopify Southeast Asia Retail Report 2024, based on a survey of 2,056 consumers from Indonesia, Malaysia, Singapore, and the Philippines, revealed that online shopping remains the preferred channel for shoppers. Interestingly, one in four surveyed consumers enjoy shopping both online and in-store, while only 19% prefer offline shopping.
Balakrishnan emphasized that the key to e-commerce success lies in creating a seamless shopping experience for customers, regardless of where they start their shopping journey. This involves investing in unified commerce technology to provide a holistic view of customer engagement, inventory, and fulfillment across all channels.
While the report showed that 66% of retailers plan to increase technology investment in unified commerce in the next year, there is still a gap in prioritizing in-store experiences. Businesses tend to focus more on e-commerce systems rather than enhancing physical stores, despite consumer expectations for a seamless omnichannel experience.
In the Philippines, free shipping is a top consideration for 80% of online shoppers, while 66% prioritize knowledgeable staff when shopping in brick-and-mortar stores. This highlights the importance of understanding and meeting customer expectations across different shopping platforms.
Additionally, TikTok Philippines Fashion Category Lead, Jonah Michael Ople, emphasized the potential of livestreaming for small businesses to drive growth. He noted that live selling on TikTok has become a significant source of sales for big brands in the region, with top sellers seeing 80% of their sales coming from live streams.
Ople encouraged small enterprises to leverage the platform’s livestreaming capabilities to reach a wider audience and drive sales. Despite the growth in live selling, he acknowledged that many sellers, especially small and medium enterprises, may need guidance on how to effectively use livestream shows to their advantage.
Understanding the preferences of target markets and adapting content to suit different regions and audiences are crucial aspects of successful livestream selling. In the Philippines, fashion, beauty, lifestyle, and electronics are among the top categories for live selling, reflecting the diverse interests of Filipino consumers.
Overall, the evolving landscape of online retail in Southeast Asia presents both challenges and opportunities for retailers. By embracing innovation, investing in technology, and prioritizing customer experience across all channels, businesses can stay competitive and meet the changing demands of the modern consumer.
