Reprise releases key findings from second annual APAC consumer study

Reprise, IPG Mediabrands’ global performance marketing agency, has released key findings from their second annual APAC consumer study conducted across 15,000 consumers in Australia, China Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, South Korea, Singapore, Taiwan, Thailand and Vietnam; to shine a light on new post-pandemic shopping insights across the Asia Pacific region.

In 2021, Reprise launched the results of their inaugural post-COVID APAC consumer study to determine the triggers and behaviour of online shoppers in Asia since the pandemic. Now in 2022, a new hybrid lifestyle has caused consumers to rewrite their purchase journey faster than ever. The latest research study confirms that the retail landscape in APAC has evolved significantly since the onset of the pandemic, leading to accelerated growth in ecommerce. Shopping habits have shifted to adjust to the “new normal”, and many consumers who moved online out of necessity will largely sustain their online behaviors post-pandemic.

FIVE KEY INSIGHTS REVEALED BY THE RESEARCH:

INSIGHT #1: The APAC shopper is young, prosperous, and extremely careful.

The Asia Pacific (APAC) region is home to 55 per cent of the world’s population and is set to be the largest consumer market by 2040. Growing income, high digital connectivity, and a rapidly expanding middle class population are all creating more demand by this new generation of consumers. The Reprise Commerce APAC Consumer Study revealed that 62% of this consumer pool are less than 44 years of age. More than half claim to be mid to high income, and 1 in 4 claim to be in the high income bracket. Of the shoppers surveyed, 70% claim to be Careful Shoppers; Deliberators in Japan index at 149ix, Thrift Seekers in South Korea index at 155ix and Need Based Shoppers in Australia index at 138ix.

However the region’s ‘digital seniors’ cannot be disregarded. The ageing Asian population has a spending power that is expected to reach over $5 Trillion p.a. by 2030. This group likes to shop offline, and are generally resistant towards quick commerce platforms which they consider to be more expensive, and pose potential safety concerns.

INSIGHT #2: The is mission-oriented APAC shopper will buy everything from a pin to a piano online.

Consumer behaviours have changed drastically in the last decade and accelerated further into the online space due to Covid. While Fashion continues to dominate online purchases at 77%, high ticket categories like personal electronics (73%), consumer electronics (63%), and kitchen appliances (59%) are all now predominately bought online. Auto and auto parts prove to be the only exception (33%), but even this category is slowly catching up.

APAC online shoppers have become mission orientated, and usually shopping during sales (141ix) and festive seasons (117ix). This deal-seeking behaviour is seen across segments; both ‘fun’ and ‘careful’ shoppers, as well as across income groups. While APAC shoppers are mostly found online, physical retail still serves a purpose. Purchasing in a physical retail store is driven by specificity (120ix) or by urgency (173ix).

INSIGHT #3: Marketplaces have become irreplaceable in APAC, but most offer functional benefits only.

Across categories, marketplaces are the #1 online shopping platform in APAC. When APAC consumers were asked why they prefer shopping on marketplaces, the top 2 reasons cited were cheaper prices (58%) and deals and promotions (35%). However there is one type of marketplace where this is different; the fashion and beauty marketplaces attract consumers for less functional reasons. When shopping on fashion and beauty marketplaces, trusted brands and wider product ranges become more important for our APAC online shoppers. These specialist marketplaces also garner loyalty and emotional preference as our research revealed that customer support and loyalty programs are of increasing importance to consumers who are attracted to perks such as points accumulation (55%), and priority shipping (41%%). In order to move away for functional benefits, brands must focus on winning the hearts and minds of consumers by leveraging customer service, and unique loyalty programs.

Shoppers who prefer to buy on brand websites do so because they consider DTC to be more trusted and authentic as well as housing wider assortment of products. Shoppers are significantly less price sensitive when shopping on DTC, which makes DTC websites a long term strategic investment for brand building.

INSIGHT #4: True personalisation is key to winning APAC shoppers.

Our research shows that 25% of APAC shoppers still prefer a physical retail experience for the ability to touch and feel the product, and to ask questions of a salesperson. Technology is now starting to bridge the personalization gap between offline and online, with new age solutions like live chat, AR, VR, and online catalogs bringing a personalised touch to the shopping experience, and bringing the advantages of physical retail closer to online consumers. At least 77% of our APAC shoppers have used these online features.

INSIGHT #5: Payment methods show a clear divide in APAC’s banking and financial services.

Developed markets like Japan (48%), South Korea (60%), Hong Kong (52%), Singapore (53%) and Australia (56%) rely heavily on credit and debits cards as a preferred payment method. However developing Asia markets where a large portion of the population is still unbanked prioritise cash such as India (21%), Philippines (46%), Malaysia (38%), Thailand (22%), and Vietnam (34%), but these markets also looks towards more homegrown solutions like e-wallets (21%).

E-wallets have traditionally been associated with quick commerce or low payment categories and apps such as Grab, foodpanda, uber, etc. However institutional forms of payment still come in to play for big-ticket purchases as they bring a sense of security. China is a clear anomaly here, where quick commerce apps worked on trust and safety features by insuring the consumer transactions, and protecting shoppers as they buy higher ticket items. As a result China’s consumers are comfortable with the use of e-wallets across all purchase sizes (41%).

Pippa Berlocher (pictured), President Reprise APAC, said: “‘With 58% of consumers buying something online every week, there has never been a more interesting or exciting time in eCommerce. Our APAC region hosts 3 of the top 5 markets for global eCommerce sales; China, Japan and South Korea, with Singapore currently accelerating as the fastest growing market. This is just one of the reasons that we are proud to conduct this in-depth Reprise Commerce research in partnership with Google. This robust, current and detailed dashboard of data, gives a greater insight into the APAC online shopper than ever before, and provides a new depth of understanding for our clients to leverage.”