Majority of Southeast Asians refer to at least one digital channel when shopping online

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A majority of Southeast Asians refer to at least one digital channel in the shopping journey, as the Covid-19 pandemic has boosted digital intelligence and the appetite for shopping and social video.

There is also an increase in demand for categories like beauty and personal care, children’s wear and luxury supported across the region, alongside the growing adoption of Buy Now Pay Later (BNPL) and payments. digital, according to the SEA Trender 2021 report from the Zalora fashion platform.

The report also finds that AR and VR technologies are expected to make sampling easier and thereby reduce trendy pre-production waste, while also closing the brick-and-mortar gap in a redesigned hybrid future.

“The dawn of a new era of retail is already here in Southeast Asia. As consumers become more demanding and connected, we are witnessing incredible innovations in the retail industry that are completely reinventing the shopping experience, ”said Gunjan Soni, CEO of Zalora Group.

“Our flagship State of the Industry report helps facilitate the evolution of the industry by enabling more brands to understand the changing market and anticipate what the future holds. We continue to focus on consumer behaviors (relative to market size outlook) and how they are evolving. “

The report is based on a comprehensive analysis of Zalora’s business intelligence and data analytics solution, Data by GFG. It includes information from more than 59 million monthly visits, supplemented by information gleaned through a partnership with Google and other partners.

What are the conclusions of the study?

  • According to Google, 40 million new Internet users were connected in 2021, bringing the Internet penetration rate in SEA to 75%. Recognizing this shift in adoption, brands quickly expanded their online presence to reach these new digital consumers.

  • Zalora reported a 19% increase in the number of new brands joining the platform in 2021.

  • 90% of Southeast Asians have referred to at least one digital channel when looking for their purchase online, according to Google data. The average shopper browses 7.9 websites before deciding, up from 5.2 in 2020.

  • Indonesian shoppers are the most likely to spend on beauty products and sports equipment as a form of recreation, despite declining consumer confidence due to the pandemic.

  • Filipino shoppers spend the highest average number of hours online – almost 11 hours – and are the most likely to make purchases based on sustainability considerations.

  • With the highest percentage of digital natives, at 88% or 22 million, Malaysian shoppers spend almost 9 hours online on average and are most likely to be value oriented.

  • While spending on international travel and out-of-home entertainment have both fallen by more than 60%, buyers in Singapore are the most likely to invest in luxury purchases. Google search data shows a 21% year-over-year increase in searches for luxury goods by Singaporeans.

  • Fragrances dominated Zalora’s skincare category, overtaking face serums and hair care. This is accompanied by a continuous increase in the average size of the beauty product baskets on Zalora.

  • Google searches for luxury goods have seen a pronounced increase, particularly in Singapore, with a 1.5-fold increase over pre-Covid levels.

  • Reflecting the accelerating adoption of e-shopping in the region, the average cart size on Zalora across the SEA has increased from $ 77 and 2.18 items before Covid, to $ 85 and 2.37 items during low alert periods, then US $ 96 and 2.70 items during high alert periods.

  • Consumers are investing more in casual clothing and focusing on their fitness. As demand for more dressier pieces declined, men and women in the region spent more on sportswear than other product categories.

  • As consumers begin to plan their social calendars, the forgotten categories are experiencing a rebound. For example, when Singapore announced its Vaccinated Travel Lane (VTL) pilot project with Germany, search terms for “winter clothing” increased 275% on Zalora, and searches for thermal clothing increased by 325. %.

  • With 290 million “unbanked” people in the region, offering alternative payment methods has become a must for online retailers. One of the most popular options that has emerged this year is the BNPL payment option.

  • In Indonesia, for example, Google has seen more than a 10-fold increase in searches for electronic wallet services and more than 15-fold increase in BNPL services over the past five years. Other attractive payment options like monthly payments, up to 0% credit card interest charges, provide access to quality products and services while improving financial inclusion.

  • Augmented reality features are no longer a bonus but an expected prerequisite for e-merchants.


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