For more than 3 years, COVID-related disruption drove consumers online. Post-pandemic, the focus has shifted to whether consumers will return to traditional in-store shopping environments.
To understand more about the key challenges and opportunities facing the APAC retail industry, KPMG, together with GS1, surveyed over 7,000 consumers across 14 markets in the Asia Pacific region. The report, Navigating the future of seamless commerce in Asia Pacific, features interviews with senior C-suite-level executives from market-leading retailers, brands, and e-commerce marketplaces and provides a comprehensive analysis of attitudes and preferences towards emerging retailing and retail technology trends among consumer groups.
One overriding conclusion is clear: The era of seamless commerce has arrived and while both online and offline channels remain popular throughout the region, traditional retail business models are unlikely to meet the expectations of many of today’s consumers.
Consumers are paying greater attention to the sustainability credentials of both brands and retailers – not just of the impact of their purchases on the planet, but how fairly farmers and factory workers are rewarded for their productivity. In payments, e-wallets, QR codes and app-based solutions are eating into the role of cash in many markets, although in markets with large populations of unbanked consumers, the transition is slower than in other markets where technology is coveted.
Online shopping preferences including where they shop, what qualities they look for when choosing digital platforms and their attitudes towards rising technologies and services such as buy now, pay later and subscription programs must be taken into consideration. Retailers and brands must adapt or face potential consequences of not moving with the market.
This comprehensive review of seamless commerce across APAC is ground breaking in its depth of insight and frames the common threads and nuances of 14 key markets in the region. It is a 'must read' for retailers exposed to the region or looking at ASPAC expansion opportunities.
Six key seamless commerce trends in APAC
The arrival of seamless commerce: fuelled by platforms
What was once merely a buzzword, omnichannel has now given way to a more comprehensive approach that seamlessly integrates various platforms and services. This shift, accelerated by the pandemic, has propelled retailers to invest heavily in technology, AI solutions, and streamlined supply chains to meet the demands of an increasingly digital-savvy consumer base.
Gen Z consumers are the key to retail’s future growth and shape
The Gen Z demographic is driving unprecedented change because of their markedly different attitudes toward lifestyle and priorities, especially in online shopping behaviour, sustainability concerns and use of retail technology. While consumers overall across Asia Pacific identified mobile payment as the retail tech they have tried the most, among Gen Z the most popular was social commerce – especially in China, Vietnam, Indonesia and the Philippines.
AI: shaping customer experiences and driving retail sales
AI is already playing a significant role by enriching the shopping experience across various sectors such as beauty, home furniture, and apparel. With continued market support, AI can substantially improve the operational efficiency of retail stores and fine-tune the consumer experience at crucial points in the shopping journey.
The continued rise of digital payments
Digital e-wallets are gaining ground in Southeast Asia, while debit or credit cards remain dominant in more developed economies such as Australia, New Zealand, Japan, Singapore and South Korea. By meaningfully taking these variations into account and offering local payment options tailored to target regions, retailers can expand their reach, both locally and internationally.
Know your customers
Data collection and analytics are shaping seamless commerce and powering loyalty programs. To meaningfully serve consumers who are increasingly price-sensitive yet demand orchestrated experiences, businesses must first consider how to infuse technology at the right and critical moment, making technology the key driver of seamless omnichannel experiences.
The unstoppable drive towards sustainability
Sustainability isn't a marketing add-on, it's the baseline. Brands should stitch diversity, ethics, and social responsibility into their core. Sixty-five percent of consumers in APAC are willing to pay a premium for sustainability. This is the future of commerce, sewn by a generation with hearts and wallets for the green revolution. Regulators and investors echo the call, but consumer pressure roars loudest.
KPMG Australia’s retail specialists
Learn more about seamless commerce in the APAC region by contacting KPMG’s retail industry team.
