Tag: consumer behavior

Singapore – Amid the global pandemic, consumers have resorted to e-commerce and digital solutions, and the majority of them tend to visit websites without signing up or making a purchase. With this, shopper behavior teams across industries have been investigating this issue called ‘cart abandonment’.

To help uncover why people abandon carts and login boxes, and what online businesses can do about it, the global modern identity platform Auth0 and market research company YouGov has conducted an international survey among over 1,200 business leaders and 8,000 consumers around the world, including 200 and 1000 respectively in Singapore, about their expectations for login and sign-up experiences.

The survey found that 55% of APAC consumers are frustrated by long login and sign-up forms, compared to 49% globally. However, 34% of APAC businesses surveyed estimate that it takes potential customers between one and five minutes to sign up for their app – and 24% say the login process for returning customers takes more than one minute.

Moreover, the same survey showed that 87% of APAC organizations admit that potential customers abandon their cart or sign-up process, compared to 85% globally, while about 63% attribute these abandonments to sign-up processes and 51% attribute them to the login processes. However, the research shows that 84% of APAC consumers abandon their shopping cart or registration attempt due to a complex login process.

Meanwhile, the survey data previously released by Auth0 revealed that almost 89% of APAC consumers admit to reusing passwords for more than one account and that their main frustrations with the sign-up process for new apps are password-related. Consumers want alternatives to passwords, including biometrics and passwordless authentication, however, most businesses fall short of consumer expectations for these login experiences. 

According to Auth0, around the world, about 86% of Australians, together with 89% of Singaporeans, 86% of French, and 85% of British consumers are more likely than those living in Germany with 78% and Japan with 76% to abandon their cart or sign up to online content if the login process is too arduous.

Organizations from APAC countries are much more likely than their European counterparts to attribute cart abandonment to sign-up processes – about 66% of Australians, 63% of Japanese, and 60% of Singaporeans, compared to 49% of French, 46% of British, and 41% of German.

Singapore – Sales used to be a one-off thing, or at least a seasonal event that sees it happening after a particular interval, but now, sales, in the mid of the rise of e-commerce, has now become so much more than just brands offering discounts, but has turned to be a ‘celebration’ of some sort – a celebration of consumers’ buying power and merchants’ easier access to revenue. With this, mega sales are now being held on a regular basis, specifically every identical date of the month – such as ‘7.7’ for July, or ‘8.8’ for August.

The trend on mega sales events quickly transcended online commerce, and is now being joined by offline brands as well. This then makes brands think, how is the consumer behaving amid all this hoo-ha? Short-video platform TikTok conducted a 2021 survey among over 1,800 Southeast Asian users in March 2021, where 82 percent admitted to purchasing a new brand instead of a regular brand during mega sales. 

Moreover, the same survey demonstrated that over half, 55 percent, made unexpected purchases during the said sales events, even when they had prepared a shopping list. This comes as an interesting insight as brands are in constant search of ways to attract new buyers. Adding to this, TikTok’s data also found that during this time, consumers are more open to exploring, with them shopping more across all categories. 

Consumers’ likelihood to demonstrate an adventurous disposition during these mega sales events can be chalked up to the feelings of elation that shoppers have when these special sales arrive. According to a Nielsen Global Authenticity study, likewise commissioned by the short-video platform, 67 percent of users felt ‘happy’ or ‘excited’ towards the mega sales shopping season. 

On that feel-good factor, it seems that shoppers are not only looking to the shopping event itself to ignite these positive feelings but are also expecting it at every step of the experience – becoming more inclined to engage in ‘shoppertainment’ or the fusion of entertainment and shopping. Brands themselves have raised the bar, leveraging today’s digital platforms in order to allure shoppers such as through live streams, short videos, and even augmented reality. 

The same Nielsen study shows that 83 percent of users prefer to see video ads from brands over gifs or text posts. 

Ng Chew Wee, the head of business marketing for TikTok in Southeast Asia, said that people have ceased simply searching for products, but are also searching for ‘people’. 

“This year, we are seeing a rise of Shoppertainment – a convergence of content and commerce – where shoppers expect not just to be sold to, but to be entertained as well. Instead of people searching for products, products are now searching for people. We hope these insights can help businesses own their Mega Sales moment and engage with TikTok’s community of happy users. Happy users, happy buyers!” said Ng Chew Wee.

Beijing, China – With China becoming more and more open to exploring new trends and strategies within the retail and commerce market, Asia-Pacific and Western brands ought to take better attention in order to succeed in tapping the Chinese consumer market, a new report from Wunderman Thompson Intelligence shows.

Citing data from market research firm eMarketer, who notes that 52% of total retail sales globally originate from China, the report unveils how China is ‘opening’ itself to the world in terms of commerce. For Chen May Yee, APAC director for Wunderman Thompson Intelligence, Chinese tech giants and global brands alike are trying new ideas first in cities like Shenzhen, from where they spread across China and its borders, hence no global brand can afford not to pay attention. 

Statistics-wise, 27% of Chinese consumers shop online four to six times a week, compared with 19% of Indians, 14% of Thais, 12% of Australians and 11% of Indonesians. Despite the regularity, 9% of Indian consumers say they shop online every day, compared to 7% in China.

In terms of spending power, Chinese consumers are willing to spend the most on online purchases, averaging to US$1,507 though Australia is not far behind, with an average of US$1,177.

While there has been a significant rise of the Gen Z demographic in the consumer space, the older generation are not to forget as well. China’s seniors are the last untapped demographic when it comes to commerce, but not for long. Post pandemic, 81% of Chinese consumers that are aged over 55 years old are now more comfortable using digital technology.

The report also notes that the pandemic and accompanying lockdowns have pushed record numbers online, often through sheer necessity when shops were shut down. This is evident by the fact that even in China, which already boasted a high level of digital literacy before the pandemic, 62% state that they have become more comfortable using digital technology post-pandemic.

In China, the country that created the mega-influencer capable of moving millions of dollars of merchandise in a single livestream, a degree of influencer fatigue is setting in. About 24% of Chinese say friends and family are now their biggest influence on buying decisions, versus 16% who cite social media influencers and 4% who say celebrities. In China, some online marketers are tapping into this shift by promoting friend recommendations, micro-influencers and peer-to-peer networks.

The report also notes that the Chinese market has pioneered various strategies and new demographics to tap into, including launching of live commerce as well as venturing into the gamer market, where eight in ten among Chinese respondents are playing games on mobile phones. Surprisingly, 91% of respondents who are over 55 years old say they do gaming as well on mobile.

Singapore – As the financial services industry in the Asia-Pacific region has reached maturity and high adaptability, around 22% of consumers in the region are stating that they eye switch financial service providers, with 48% of the respondents saying that they are inclined to use digital banks instead, new data from experience management (XM) company Qualtrics shows.

According to their latest report, 25% of those aged under 40 and 21% of 41-50 year olds say they plan to change who they bank with over the next year. In contrast, just 14% of people aged over 50 plan to switch banking providers. Similar results are seen in insurance, as 29% of people aged under 40 are likely to switch, compared to 27% of 41-50 year olds with20% of those aged over 50.

Qualtrics notes that the product and customer experience consistently ranked in the top reasons driving trust in providers, and the reasons for choosing digital-only offerings. Alongside competitive rates and brand perception, the quality of the mobile app and website, products, and customer service are also some of the top factors driving trust in the industry. 

In addition, consumers said they were opting for digital-only offerings for better customer experience, lower fees and charges, flexible products, higher returns, and more personalization.

“While Asia Pacific is a hotbed of innovation and opportunity for financial service providers – from traditional players through to emerging fintechs – what’s clear from our research is that share of wallet is dependent on the quality of the physical and digital experiences provided. Consumers are actively hunting for products, services, and engagements tailored for their rapidly changing needs and preferences,” said Harish Agarwal, head of customer experience solutions and strategy for Qualtrics in Southeast Asia, India, and Greater China.

He added that this means organizations that are able to quickly listen, understand, and act on customer feedback will have a significant advantage.

The report also stated that despite two-thirds of respondents saying they were satisfied with their banking provider (68% of respondents) and health/life insurer (65% of respondents), a significant portion of consumers are still looking to switch, as 22% are planning to change who they bank with, and 27% are looking to change their insurance provider.

Regarding service feedback, around 69% of respondents said it was very important their provider captures ongoing feedback from them regarding products and services – and that most especially, feedback is acted on. Meanwhile, 48% of respondents said it was unlikely they’d purchase from a provider in the future if the organization failed to respond to their feedback.

Consumers are also moving away from traditional providers when it comes to investing, with 73% saying they adopted digital channels to meet their needs, such as online brokers, fintech apps, and digital wealth management solutions. Younger consumers are consistently the most willing to engage non-traditional providers.

Singapore – Despite many countries worldwide easing up on normal life disrupted by the global pandemic, there is still a large fraction of shoppers worldwide who now hesitate to shop in-store, a new report from Wunderman Thompson Commerce shows.

According to the report, 49% of APAC shoppers are now hesitant to shop in physical stores, suggesting a transition to shop through online channels.

Looking at specific markets, nearly three quarters (72%) of shoppers in India are experiencing this fear, followed by Thailand (62%), China (55%) and Indonesia (51%) – while Japan and Australia are more open to the idea (30% and 22% respectively).

Meanwhile, on a global scale, nearly three-quarters of shoppers say that online shopping came to their rescue in 2020, with Thailand at the top of the global ranking having 94% of consumers agreeing to the sentiment. Looking ahead, three-quarters of global shoppers (73%) say e-commerce would be more important to them in 2021.

In terms of frequency of shopping online, marketplaces other than Amazon account for a third (33%) of all purchases, led by Japan at 45% and Thailand coming in at 41%. 

It has been noted in the report that Amazon’s reputation on pricing is comparatively poor in Asia – just 20% of shoppers say it provides the best value, compared to 48% who identify the other marketplaces as being best: e-commerce platforms Tmall, Taobao, and Lazada.

“As we look beyond 2021, we know this channel shift from physical to digital channels is not only accelerating but will be the primary channel for retail purchasing in future. We see consumers turn to local and regional marketplaces as they take on global players like Amazon, an abundance of businesses switching to D2C offerings, and Asian consumers leading the way when engaging in new channels such as social and live commerce,” said Kaythaya Maw, chief technology officer at Wunderman Thompson APAC.

Despite these moves towards online shopping channels, there still remains hope for direct-to-consumer (D2C) brands handled by retailers. Over one quarter (29%) of shoppers in China said they have used branded direct-to-consumer sites as a source of inspiration, putting the channel third behind dominant marketplaces like Taobao and Tmall, and social media.

Nevertheless, the demand within these online retailers are surging, as APAC shoppers now demand the most from digital retailers, saying they want better products, services, and experiences online, with Thailand shoppers agreeing with the statement at 94.8%, closely followed by China and Indonesia at 89% and India at 86%.

A big finding from this year’s survey is that 44% of all global consumers the report spoke to say they have bought from a social platform. In Asia, buying directly through social media is already clearly a well-established trend, led by Thailand where 74% of consumers said they had purchased from a social platform, followed by Indonesia and China at 69%. 

Speaking about the insights, Justin Peyton, chief transformation and strategy officer at Wunderman Thompson APAC, notes that with the heightened interest in online shopping, one should refrain from the use of the term ‘e-commerce’ since the term online shopping has now expanded beyond the borders of e-commerce platforms.

He added that with the growth of sales that we have seen in the recent past, and the fact that it is becoming the channel of choice, digital transactions have become a hygiene element that brands are expected to support as part of the overall commerce ecosystem.

“What’s more interesting is how commerce is fragmented across owned platforms, social platforms, conversational platforms, and marketplaces. With this diversity, brands must focus on where they can not only gain visibility but demonstrate their products in ways that are most likely to influence consumer choice,” Peyton stated.

Meanwhile, Maw added, “With the largest representation from Asia-Pacific taking part in this year’s report, we hope to provide businesses with vital insights to formulate effective strategies and respond to how consumers are shopping in this current environment, and how they will shop in future.”

Singapore – In the wake of the pandemic, there is no doubt that people are showing unprecedented concern over their health. Within ‘health’ meanwhile, we’re looking at a variety of areas and for the Gen Z demographic in Singapore, specifically, there has been a heightened interest in skincare at the farther period of the pandemic, a report from communications agency DeVries Global shows.

With more than a year into COVID-19, skincare has now emerged to be top-of-mind. The report notes an uptick in skincare consumption among Gen Z’s in Singapore, with 84% of the respondents saying they care for such endeavors. Demographic-wise, 67% of the total female respondents and 57% of the total male respondents consider skincare as an integral part of overall health.

In addition, over 80% of the respondents say that they would consider switching skincare brands if it’s proven to improve their skincare health. Meanwhile, for those who refuse to switch, the reason boils down to three factors: satisfaction with their current brand, competitor brand’s price, and personal concerns on whether the competitor brand will work for them.

In order to convince consumers to switch from their current brand to another, the report’s data showed they would need to be recommended by health professionals (287 respondents), reviewed positively by other customers (280 respondents), and should carry scientific study results (211 respondents).

Beijing, China – As consumers are now migrating to online channels to respond to their daily shopping needs, the greater specificity of Chinese consumers patronizing e-commerce channels for their shopping needs have risen exponentially, with a greater interest in hyper-local e-commerce providers, a new joint report by Chinese e-commerce JD.com and Dada Group shows.

In their latest report, they state that on-demand consumption among Chinese online shoppers is here to stay, noting that fresh food is, by far, the largest segment of the on-demand delivery, accounting for 70% of daily consumption among the report respondents. Other areas have shown exponential growth in on-demand consumption this year, such as dairy (+120%), personal hygiene (+114%), snacks (91%), and maternity/baby care (90%).

Consumer-wise, millennials are still the most prevalent consumer group, making up 50% of the on-demand economy, with female consumers born after 1980 as the most dominant consumers, representing 67% of the on-demand market. That said, the market is attracting an increasingly diverse group of consumers, by both age and region. 

On other demographic factors, the report details how the number of male consumers has jumped by to 33% in 2021, up from 25% in 2018, while the proportion of middle-aged and elderly users who are more than 40 years old has increased to 28% in two years, up from 22% in 2019. 

Driven by easing lockdowns and an increasing focus on connecting people with a wider array of products, post-pandemic on-demand consumption in China has experienced a shift from households (74%) to workplaces (8%) and educational institutions (3%), which is further extending to recreational venues, including fairgrounds, tourist hotspots, and parks. 

There is also significant demand for 24/7 on-demand services, and those businesses serving late-night, usually at 12 am to 2 am, customers are reaping the benefits from a new wave of customers who want reliable delivery service outside of traditional business hours.

“China is leading the way in omnichannel retailing. A new wave of transformational change of omnichannel retailing is underway, fuelled by the integration between traditional e-commerce, offline retailers, and on-demand retail platforms to meet the customer demands for a more diversified shopping experience. In the era of hyperlocal e-commerce, one-hour delivery has become the new normal and it is quickly emerging as a major channel for supermarkets and grocery chains to win business,” both companies said in a press statement.

Huijian He, vice president at Dada Group stated that the unprecedented growth of China’s on-demand economy in recent years, particularly its accelerated momentum through COVID, is revolutionizing consumer behavior across China. He also added that the rise of on-demand, hyperlocal one-hour delivery of goods, has transformed the retail industry and increased consumers’ expectations for a best-in-class shopping experience.

“With significant consumer demand in first- and second-tier cities, and large and rapidly growing demand in lower-tier cities, retailers, on-demand retail platforms and delivery services are increasingly competing for higher speed, flexibility and convenience across the on-demand economy,” He stated.

Meanwhile, Hui Liu, chief data officer at the JD Big Data Research Institute, commented, “We look forward to leveraging this data to continue to drive innovation across our platform as we deliver the speed, flexibility and convenience that consumers are increasingly demanding and realize the numerous growth opportunities in China’s on-demand economy.”

Singapore – Despite the ongoing pandemic, small businesses in Singapore are widely supported locally, thanks to a growing number of Singaporeans rallying their support and patronage to their products, a new report from the Singaporean arm of e-commerce giant Amazon and market research firm YouGov shows.

According to the report data, the Gen X demographic, who are born from 1965 to 1980, are the most supportive among the local demographic, tallying around 48% of respondents saying they at least buy once a week from a local business. This was then followed by millennials (44%) and Gen Z’ers (34%).

While majority of all shoppers polled said they will support organizations that have a charitable component, 63% of Gen Z shoppers said that for the same product, they would rather buy from a seller that gives back to the local community, versus one that does not, compared to 55% of both millennial and Gen X shoppers.

In terms of what type of purchases are being made, clothing and accessories topped the type of purchases being made, with 59% of respondents saying so, 64% of that data are Gen Z shoppers. Other categories include health and personal care (47%) and groceries (46%).

Regarding increased purchases made during the pandemic, pet supplies were the top purchases locally, tallying around 85% response rate from respondents. This is followed by beauty and skincare (82%) and books (78%).

With the introduction of social distancing measures and heightened public health alerts, 2 in 5 Gen X shoppers (39%) said the ability to avoid public spaces and stay safe is a key motivator for online shopping.

While 27%of Gen Z shoppers said the availability of international selection is a crucial online shopping motivator, the highest compared to their Millennial and Gen X counterparts.

Lastly, with the majority of Singaporeans identifying as Bargain Hunters (32%) and 41% saying that lower prices are the top motivator for online shopping, it comes as no surprise that 23% of shoppers rely on product comparison sites when making online shopping decisions.

“Customer obsession has always been at the heart of Amazon’s business globally. By keeping our finger on the pulse of changing consumer trends and behavior, we ensure the user experience is optimized for customers’ shopping preferences,” said Henry Low, country manager at Amazon Singapore.

Manila, Philippines – With the taboo belief of consuming alcohol and tobacco products now vanishing due to the open acceptance in our modern society, the alcohol and tobacco industry has since thrived in the Philippine market, as media intelligence company Isentia notes in its latest report how the so-called ‘sin’ products are perceived in the social media space.

In the bigger realm of the alcohol scene, recent buzz about alcohol drinks can be attributed to the rise of brand endorsements represented by K-pop artists and K-drama personalities. For instance, when South Korean beer brand Kloud Beer announced that K-pop boy band BTS were to represent the Lotte Chilsung-affiliated brand, Filipino ‘ARMYs’ or BTS fans took to social media to express anticipation for the announcement.

Isentia notes that a total of 1,761 social buzz was recorded on 15 April, the day the brand ambassadors were announced, and a total of 1,362 social buzz on 23 April when Kloud Beer released a short promotional video showing all of the members of BTS.

Social buzz pertains to the keyword or ‘trend’ frequently mentioned by social media users in a day. The social buzz used by Isentia are based on their existing Isentia Workspace, as well as Google Trends statistics.

Aside from garnering a high traction in April, the keywords ‘chicken and beer’ also dominated the social media space, possibly attributed to the well-known chicken combination of ‘chimaek’ which is a colloquial word of chicken and ‘maekju’ (beer in Korean).

“Considering the current health crisis and the rapid changes in consumer behavior specific to the industry, it is important now more than ever to not just be aware but have the numbers to back decision-making in communicating brand messages and fortifying the brand-to-audience relationship. It is not enough to know the issues. Knowledge gained from observing buzz peaks, determining breakout conversations, and deciphering social trends equips brands with data they can use to maximize media space they exist in,” Marla Edullantes, senior insights analyst at Isentia Philippines, said.

Veering away from the K-pop spotlight, local alcohol brand giant in the Philippines San Miguel Corporation (SMC) also gained positive traction this April following its recent CSR initiative on funding the historic cleanup of the Pasig River, a well-known river in Metro Manila. Said initiative gained praise from netizens, with some users even jokingly saying that they will support SMC’s positive efforts by ‘buying and consuming beer’, as well as ‘buying all of their available products’.

Despite these ‘glowing’ notes, the alcohol industry is also a facet for backlash among Filipino netizens.

One notable case was a community pantry located in Muntinlupa City in Metro Manila that gave soju, a popular Korean alcoholic drink, as part of what people can get for free. The negative flak was heightened due to the fact that the initiative was set by the ‘Sangguniang Kabataan, a local equivalent of a youth-oriented civil organization. According to the netizens, despite the heightened popularity of ‘soju’ due to prominence in K-drama shows, there is still a line as to who the target audience be, and it makes sense that youth members are still not allowed based on age restrictions.

Another notable case is the sentiment shared by Brett Tolhurs, president of the Wine Depot, who commented that Filipinos are not drinking the right wine pairing for the tropical season. His suggestion of pairing ‘lechon’, a well-known Filipino delicacy of slow-roasted pork, to be paired with rose wine, was met negatively by Filipinos, criticizing him for his lack of awareness on the Filipino pairing scene.

“What brands can leverage from this is that spokespersons should be able to balance commentaries without coming out with sweeping generalizations that could trigger netizens to veer away from product consumption and instead focus on personalities representing the brand. By mining data-driven insights, brands should be looking at not only how positive or negative the discussions are, but also the manner how their audiences engage with them and their stakeholders,” Isentia said in a press statement.

For cigarettes, there was a notable theme from consumers that smoking after intercourse is something that they do. This sharing of behaviors and experiences is something alcohol and tobacco industry players could look into in terms of user-generated content to bolster ideas in content marketing, advertisements, and promotional sales.

Another pairing people mentioned by netizens is no surprise: cigarettes and coffee. Similarly, these suggestions can open doors to co-branding that could benefit both brands from different industries.

“It is vital for brands to have a good grasp of the trends and consumer behavior in their industry. Given the alcohol and tobacco brands’ defined customer base, looking into the digital public’s organic conversations relating specifically to their industry may cull out fresh and data-driven ideas that will help in deciding how to improve the brand’s appeal to their intended audience,” said Kate Dudang, insights manager at Isentia Philippines.

Manila, Philippines – As more and more Filipinos are using digital banking services, a large part of this new breed of users are now also showing a heightened interest in exploring the use of biometric-authenticated payment systems, a latest study from digital payment company Visa shows.

According to the study, awareness on using these types of digital payment services rose to 80% in 2020, in contrast to 60% in 2019. Furthermore, around 8 in 10 among Filipinos showed interest in biometric-authenticated payment systems, with a greater inclination to the younger and tech-savvy generation demographic in the country.

Biometric payment is perceived as a quick (62%) and innovative (61%) way to pay. In addition five in 10 Filipinos (55%) think it is a more secure way to pay. However, usage is low at 23 percent since its accessibility depends on market availability. 

Finger scan as one of the biometric authentication methods is most popular amongst Filipinos (59%) especially for making bill payments or purchases at the convenience stores. This is followed by facial recognition (31%) and retina scan (16%).

“As more digital-based solutions and trends emerge in the market, Filipinos are more open to new innovations that make payments and banking more convenient, accessible and seamless. There is opportunity in the country for traditional banks and new players to launch digital banking services in the country that will better serve the needs of underserved and underpenetrated segments,” said Dan Wolbert, country manager for the Philippines and Guam at Visa.

The study also noted that over eight in 10 Filipinos (83%) are aware and interested (81%) in using digital banking services. However, only 32% of respondents are currently using services offered by a digital bank. Top interest drivers for Filipinos to use digital banking services include access to banking services anytime of the day (68%), time saved from not having to queue at bank branches (68%) and convenience (67%). 

The general status quo of the Filipino digital payments scene

The study also showed that Filipinos are most keen to work with a financial services brand for digital banking services (93%) and traditional banks (92%), followed by new start-ups with digital banking services (72%). 

Filipinos interested in banking with digital banks are keen to use services such as paying bills (84%), transferring money locally (78%), making deposits and withdrawals (76%), and making payments for purchases at local retail locations (71%). However, the preference of using digital banking for traditional bank services such as investments (52%), international transfers (48%) and loans (46%) is lower.

In addition, 86% of Filipino respondents would switch current banking services to digital banking services if the bank provided better rewards and 85% would do so if they can benefit from lower costs for their banking transactions. Filipinos’ interest to use digital banking services increased to 80% compared to 70% in the previous year when the same research was conducted.

“We believe this will transform the banking and payments landscape in the country and at Visa, we are keen to work with all our partners to help them create better user interface and experience when they create and enhance their digital banking solutions,” Wolbert added.