Wunderman Thompson Commerce and Technology releases Future Shopper Report 2023

In the afterglow of a post-pandemic world, the future of retail is steadfastly being shaped by digital, as global shoppers envision a future where nearly two-thirds (64%) of their shopping will be online in the next 10 years. Brands are closing the gap on marketplaces with online spend doubling through direct-to-consumer (D2C) channels, from 7% in 2022 to 14% in 2023, and brands should look to review their online sales models, with more than half (58%) of global shoppers saying they like to buy from branded marketplaces.

According to Wunderman Thompson Commerce and Technology’s Future Shopper Report 2023, which surveyed over 31,000 consumers globally – including India, Thailand, Japan, China and Australia – on their current and future shopping habits, online shopping continues its dominance by accounting for 58% of all spend; although we may be seeing a point of maturity, with a modest 1% increase in overall online spend compared to last year.

But what does spending look like in Asia Pacific? Globally a 6% increase in online spending is to be predicted. Although India looks to remain unchanged in spending habits, Japan expects a 12% swing from offline to online. Following just behind Japan at 11% difference, China’s online spending growth will be greatest according to the consumer audience’s projections, with 75% of all spending being online in ten years.

As we see an appetite for spending more online, there are still some concerns over whether consumers are comfortable (and no doubt financed in today’s challenging economic climate) to spend big online. Looking at the single product amount, China comes in at second globally, after UAE, saying they’re happy to spend $646 on a single product online, followed by Japan at $455 at fifth.

Despite the omnipresence of marketplaces such as Amazon, Shopee, Lazada and the like, their combined share of 36% in APAC online purchases remains unchanged from the previous year. However, they still top the list when it comes to where shoppers purchase. In second place we retailer sites come in at 15%, followed by branded websites at 14%. But don’t discount marketplace growth yet! Consumers’ trust in these vast online ecosystems extends well beyond shopping, with 50% of Asia Pacific open to using dating apps, and 57% comfortable purchasing energy, water and utilities, provided by marketplaces.

And don’t sound the death knell for the high street just yet, as 60% of global shoppers say they prefer to shop with brands and retailers that have both physical and digital stores, making a strong case for omnichannel strategies. When it comes to this majority of APAC sits above the global average, with nearly three quarters in India and Thailand agreeing, following suit is China at 70%. The markets that don’t mind whether the store has both a physical and online presence are Australia and Japan sitting at 56% and 42% respectively.

As we return to office in most of Asia Pacific, we are still seeing a prevalence of flexible working. The region now spends an average of 2.65 days working from home and it may impact purchase behaviours too. 68% of APAC consumers said that they spend more time researching their purchases due to WFH, and 62% stated they have discovered new brands and retailers due to WFH.

No matter what channel consumers choose, the cost-of-living crisis continues to sway decision-making, 93% of Asia Pacific say the price is the most important factor when purchasing. Nevertheless, it isn’t all about price, 88% of APAC say delivery is the most important with 22% of the region’s consumers expecting their products to be delivered in less than 2 hours. And given that 23% of everything ordered online in APAC is ultimately returned, free and easy returns are a key battleground (India took the second highest rate of return globally at 37%).

Surprisingly even with the high amount of demand for faster delivery, the Asia Pacific region have used sustainable delivery options – 82% of Thailand, 77% of India, 61% of China, plus Japan and Australia at 36% and 25% respectively.

As we look at who influences us to purchase, we see APAC’s keen appetite for social media with celebrities and influencers topping the list – well above other regions that list family members as their number one influencer.

Looking at social media behaviour, 70% of Asia Pacific has said they have purchased through a social media platform. Thailand has the best adoption of this coming in at the top of the list for in-app purchasing at 91%. China closely follows at 90%, India at 88%, Australia at 55% and the least likely coming in globally last is Japan at 28%. TikTok had a dramatic purchase rate in APAC sitting at 17% of consumers who have purchased from the platform in comparison to an average 8% in other regions.

Over half of Asia Pacific say they feel their more digitally advanced than the brands and commerce platforms they use. So, it’s no surprise that 63% of the region’s consumers say they wish brands would be more innovative in how they use digital technology to improve experience.

When it comes to innovation, payment options seem to be the element that excites APAC consumers the most with 62% they are excited for the likes of Amazon Go stores where you don’t have to queue to pay and over half of the region like the idea of being able to pay through biometrics.

Innovation isn’t left to this world either. When asked if consumers would be interested in spending beyond the grave, APAC consumers were the most receptive with India (72%), Thailand (71%) and China (61%) topping the charts alongside UAE (72%).

When asked if the region’s consumers would like to upload their personality to a Cloud or Metaverse so they can be bought back to life, nearly three-quarters of India were receptive to the idea. This was followed by Thailand at 67% and China 56%. Japan and Australia are the less receptive at the bottom of the chart, 19% and 26% respectively.

Aadit Bimbhet, Regional Commerce Director at Wunderman Thompson APAC, said: “The 7th edition of our Future Shopper report confirms that consumer preferences are evolving yet again in the post-pandemic world. It’s becoming an increasingly complex landscape to navigate in APAC – 93% of consumers state price as their most important criteria for purchase, but the majority of consumers want brands to provide more innovative experiences and be able to interact with brands in an omni-channel way. The key challenges for brands will be organisational adaptability in the face of an evolving future, and investing in ecosystems that combine technology, experiences and data in ways that inspire and convert consumers, while achieving sustainable growth and profitability for the brand.”

Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce and Technology, said: “The question that all brands and retailers must ask themselves is how prepared are they for the consumer of the future? The clues to their future demands are all held within the data, but are businesses making the right investments now to ensure that they can provide the right experiences across the channels that consumers will come to expect?”