Study: 7 key trends that will define the modern APAC shopper

Advances in technology have transformed global retail, with consumers in the East being quick adopters and becoming modern shoppers. 

According to a report by VML titled "Future shopper report 2024", where 31,500 consumers across 20 countries were surveyed, it found that social media has become the hot new marketplace. 

It also revealed the weakening grip of marketplaces in the customer journey and the impact of new technologies such as AI that are changing what, how and who brands sell to. 

Don't miss: How brands can reimagine experiential retail in the APAC region

"While the West sees a resurgence in physical retail, Asia Pacific (APAC) reminds us that the future is still digitally driven," said Aadit Bimbhet, regional commerce director at VML APAC.

"Global businesses can learn from the region's mobile-first mindset, its embrace of social commerce, and its openness to AI-powered shopping. To win in APAC, and increasingly globally, brands must prioritise seamless digital experiences, hyper-personalised engagement, and lightning-fast fulfilment," added Bimbhet. 

Below are the trends that illustrate the modern shopper and the future of global retail:

1. APAC consumers still purchase online.

Globally, online spending saw a 5% decline from 58% in 2023. This suggests shifts towards more balanced shopper activity across online and offline environments, as well as a growing demand for real life experiences.

However, in APAC, online shopping only declined by 1% from 2023. Countries such as India and China lead the pack in prioritising online shopping, with over two thirds of spending happening online. 

2. Slow adoption by brands and retailers lead to frustrating user experiences.

62% of APAC consumers said mobile devices are their preferred device for shopping online. Despite consumer preference for mobile, nearly half of APAC consumers find shopping on mobile phones difficult, said the report.

In addition, the region’s consumers are demanding more, with 70% of APAC consumers believing brands and retailers should work harder at making their mobile experiences better.

3. Consumers are exploring alternative purchase channels.

Marketplaces such as Amazon, Shopee, Tmall and Lazada, remain the leading destinations for product discovery, accounting for 32% of consumer inspiration in the region. Although they are the number one destination, their grip on purchasing may be weakening, as the regions marketplace spending dropped from 37% in 2023 to 28% in 2024.

According to the report, consumers are increasingly willing to explore alternative channels for purchasing. This is especially since there is an increased direct to consumer investment in super apps such as WeChat and Line. 

Marketplaces, however, are demonstrating their own capacity to innovate and grow, with over half of APAC consumers saying that they are open to using a dating app provided by Amazon, Tmall and Lazada.

4. Consumers demand near-instant gratification. 

Customer expectations are high, with 29% APAC consumers expecting the delivery of online orders within two hours. Research in the region revealed that pharmaceuticals and groceries were the categories where speed was the priority factor with nearly half of consumers expecting delivery to be made in under two hours.

On top of that, 70% of APAC consumers report that they want inspiration through search to purchase as quickly as possible. Indonesia leads in this area with demands at 80%.

5. AI has potential to improve efficiency.

Asia is optimistic about the future of AI with 68% feeling the positives of AI outweigh the negatives. Yet, the Australia and New Zealand region is more hesitant than its Asian counterparts.

The optimism of AI’s potential is focused on efficiency and freeing up time. This is especially since nearly half of consumers are open to letting AI shop for them and organise their life, said the report. 

In fact, consumers are more likely to embrace AI when they understand its benefits and have control over its use. Moving forward, brands need to prioritise transparency, explain AI’s role clearly, and offer consumers choices in how they interact with AI-powered systems.

6. East dominates social commerce

According to the report, 81% of consumers in the region have purchased via social media before. 

TikTok Shops (or Douyin in China) dominates the social commerce landscape in China Thailand and Indonesia with one in two consumers stating they are most likely to purchase from the platform.

Looking at India where TikTok is banned, Instagram has become the prevalent platform where more than a third of consumers are most likely to transact.

When it comes to livestream shopping, Asia consumers take the new experience in stride with 82% of shoppers indicating that they have made a livestream purchase.

Meanwhile, Australia and New Zealand lag behind their Asia counterparts at just under one third of consumers having purchased via social live shopping events.

"The East skipped the desktop, leaping straight to mobile-first commerce, and Western businesses need to catch up," says Nick Pan, chief commerce officer at VML APAC.

"For consumers in the East, social platforms are the internet, making social commerce seamless and frictionless. The reach of social commerce alongside the immediacy of purchase are just two of the reasons why it should be right at the top of the agenda for consumer brands – especially for global brands wanting to expand to Asia," Pan added.

7. Consumers are evolving beyond the physical.

The definition of “consumer” is evolving, as digital avatars gain importance, and emerging technology and channels allow for interactions beyond the physical realm.

The burring of the lines between the physical and digital consumer is evidenced by the rise of gaming commerce, with a staggering 91% of APAC consumers identifying as "gamers" and 70% of those spending money in-game.

In tandem, more than half of APAC gamers believe that looking good in-game is as important as looking good in real life.

Interestingly, blended realities extend to the afterlife, with over half of APAC consumers expressing interest in "post-death consumerism”. Thailand leads "post-death consumerism" with three quarters of Thai consumers wanting to participate in it.

Moreover, 54% of consumers in the region are interested in using AI to bring deceased loved ones "back to life" through virtual conversations.

That said, retailers in Singapore are anticipating a significant transformation led by AI-driven customer engagement. In fact, an overwhelming 93% of Singapore retailers believe that AI will become a core function in retail in the next five years.

However, 71% of Singapore retailers fear that AI-powered chatbots will in turn result in more impersonal shopping experiences. This is according to a recent study by Twilio. 

In the next five years, 70% of Singapore retailers anticipate that there will be unlimited use cases for AI in retail. These use cases include personalising customer experiences, inventory management and even supply chain optimisation.

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