Tag: consumer behavior

Sydney, Australia – Despite Amazon being a well-known global e-commerce giant, online shoppers across Australia still find Amazon not to be a top choice for their online shopping needs, a new survey from digital experience management company Sitecore shows.

According to their latest data, only a fifth of their overall Australian respondents say Amazon as their top choice for online shopping. Despite such findings, Amazon is mainly gaining traction from their younger generation customers. Through the platform’s online retail service, Sitecore notes that adoption of Amazon as the go-to site is higher among Gen Z, compared to older generations (31% v 21%).

This finding is strengthened by the fact that the platform’s online retail experience has resulted in nearly one in three Australian consumers finding Amazon’s shopping experience to be more personalized when compared with other retailers. On aggregate, Amazon shoppers in Australia would move to other retailers if they provided the same incentives, discounts and purchase experience as Amazon.

Amid positive notes of high trust and personalization of Amazon’s shopping experience, 4 in 10 Australians—and half of Gen Z (53% vs. 39% among older gens) – would like to reduce the amount of shopping they do on Amazon. The research also said that Gen Z in Australia are more likely to shop directly from brands online, rather than Amazon (75% vs 66%).

Part of the reason for this consumer behavior of moving away from big brands is due to the fact that many Aussies fear low-quality and/or counterfeit products, which might be more evident in the larger platforms.

Paige O’Neill, CMO at Sitecore, comments on the findings, “The battle for digital retailer brand preference is in its early days in Australia. There is an opportunity here for Internet commerce players to expand their share of the market, but it won’t be an easy win. They’ll need to offer comparable levels of service and personalization throughout the customer journey as the fight for market share heats up.”

Singapore – As the Muslim tradition of Ramadan this year has been held twice in the mid of a pandemic, there has been an uprise of indexed traffic online, as well as sales pushed forward by online channels, new research from adtech Criteo shows.

According to the SEA-centric study, the online traffic surge was evident last 2 May, with a 26% increase in traffic and 21% increase in sales, respectively. Despite the uptick, the research noted that a notable dip was observed in the final week of the Ramadan period, with sales and traffic dropping below the baseline, which may be indicative of consumer’s caution in spending amid the ongoing economic downturn.

The large majority of SEA consumers used mobile apps when shopping during the Ramadan period, as mobile sales saw the largest lift throughout the Ramadan period this year, marking a 107% increase in sales at the end of the Ramadan period on 12 May. App sales also rose by 60%, earlier on 1 May. Meanwhile, desktop sales saw the smallest spike of 40% during the second week of Ramadan.

Criteo’s research data revealed that the growth in purchases this year have only been in two categories: fashion/luxury, and mass merchant products. Criteo also found that the fashion/luxury category outperformed mass merchants during Ramadan, with a 50% increase from baseline from 23 April to 5 May.

In 2019, however, top product categories were in health and beauty, electronics, toys, and games as well as home and living items. The trends observed this year are likely to be due to consumers not being able to commemorate Hari Raya in large social settings or house visitations, as a result of distancing measures.

Another distinct trend observed during Ramadan in previous years was a consistent rise in web traffic and sales for travel players. Before the COVID pandemic, prospective travelers usually searched travel websites during Ramadan, before making their bookings late in the month and after Ramadan, to make trips to celebrate Hari Raya with their family and friends. This was noticeably absent from this year’s data. 

“As a result of the ongoing COVID-19 restrictions across our region, worshippers had to adjust their observance of the holy month of Ramadan. With social distancing measures deterring gatherings in large groups, consumers are rethinking their buying patterns, regarding areas such as gift giving. It is key that marketers and brands understand these shifts and engage consumers with what they need the most, especially during important observances,” explained Taranjeet Singh, managing director for Southeast Asia and India at Criteo.

Sydney, Australia – As e-commerce company Shopify brings to Australia its latest suite of integrated retail hardware and payments for retailers in the country, the company has recently published a study on the status quo of the local retail scene.

According to the study, despite online shopping likely to double, most Aussies still prefer to shop in-store. However, retailers are having to cater to and accommodate new ways of shopping such as contactless payments, local delivery, and click-and-collect that have been accelerated by the global pandemic.

Furthermore, Aussies are increasingly turning online to make their purchases. The research shows the number of shoppers buying mostly online will likely double post-pandemic vs. pre-pandemic, from 7% pre-pandemic to 15% now that many COVID-19 restrictions have started to ease. 

Shopify also noted that buying in brick-and-mortar stores, still tops Australia’s shopping preference with 64% of people choosing to buy mostly in physical stores post-pandemic, compared to 79% before COVID-19.

“We are experiencing a fundamental shift in how people shop following the global pandemic. This new retail renaissance is forcing retailers to adapt to new business models, as digital disruption is fueled by rocketing customer expectations for convenience, personalization, experience, and safety,” said Shaun Broughton, managing director APAC at Shopify.

The report also reveals the number of Australians buying online for click-and-collect or local delivery will continue to grow compared to pre-pandemic. The former increased from 17% pre-pandemic to 23% post-pandemic, and deliveries from online purchases grew from 37% to 43% accordingly. On the other hand, buying through social media is predicted to stay relatively low among Aussies, sitting at 5-6%.

In other data, Shopify noted that the top 3 expectations of consumers are free shipping (64%), easy returns (58%), and efficient customer service (57%). About 8 in 10 shoppers say buying local is important to them, with proximity (77%) and supporting local business owners (60%) cited as the main reasons why. 

Meanwhile, 29% of online shoppers would select pick-up from a physical store location if free-shipping is not available, and 52% expect retailers to offer ‘click-and-collect’. Furthermore, 93% have used a non-cash means of payment while shopping in-store (e.g debit card, credit card, mobile wallet).

“Australia has quickly become an important market for Shopify, so bringing integrated retail hardware and in-store payments to our Australian retail merchants is a pivotal step in future-proofing their businesses,” Broughton added.

Shopify’s hardware launch, categorized under the Shopify Point of Sale (POS) and Shopify Payments suite, aims to bring said benefits:

  • The ability for retailers to accept all major payment methods, however, and wherever they need to in order to make the sale
  • Secure and reliable checkouts for both retailers and customers when completing a sale, all through a single POS system.
  • Unified back office to track and manage sales, payments, and payouts across online and in-person retail all from a single location
  • Returns and exchanges helping retailers assist customers with purchases made online or at other locations
  • Upfront pricing with a single rate for all credit cards and no hidden fees or hardware rental fees

Manila, Philippines – Courier services in the Philippines, whether for food deliveries or for package logistics, have been an integral part of the Filipino e-commerce shopping. With the heightened usage locally, media intelligence and insights company Isentia has recently published a study noting the local status of courier players, and how their ups and downs can help them strive for local competition.

The Philippine arm of Grab has seen its fair share of the positive limelight after it capitalized on the infamous ‘lugaw incident’, which other brands have also banked into. For context, last 31 March, a law enforcer confronted a GrabFood driver for delivering lugaw, a local rice porridge meal that the latter deemed non-essential, which has earned flak from netizens. 

Grab banked on this trend by releasing a promo that uses the code “LUGAWISESSENTIAL”, generously applying no delivery charges off their GrabFood orders.

On the other hand, food delivery courier foodpanda in the Philippines had a minor backlash from the Filipino netizens following its partnership with fast-food chain McDonalds last 20 March for a ‘50% discount for food purchases’. Netizens were quick to point to the misleading promo campaign, as the fine print of the campaign said that the maximum discount for the purchase is capped at PHP75. 

According to Isentia, compared to just headlining ‘max PHP75 off of your food purchase’, consumers will still see this as a win and will prompt more positive feedback than complaints from being misled to getting a smaller discount. Said promo debacle garnered 5,176 buzz during the day it was announced.

“Delivery services are now needed more than ever. But what delivery service should you avail? This trendspotting report incorporates the inputs of all consumers and translating them not just into actionable insights that brands can use, but also into informed decisions consumers can make when choosing which delivery courier is best for them,” Francis Angelo Calucin, insights analyst at Isentia Philippines said.

On a different spectrum, local courier Lalamove has prevailed in the local market due to its recognition of its employees who strive in their work even during the pandemic. However, many netizens are disappointed with the company’s culture of employees only receiving low standard rates and insufficient incentives.

Just recently, a Facebook group called “Lalamove Riders Group” has been flooded by mixed sentiments with engaged netizens commenting and contributing to discussions. With over 18,000 members, it serves as space for Lalamove riders to share and exchange information regarding company updates and their own experiences as drivers for Lalamove.

Meanwhile, a new local courier player has been noted to stand out from its competitors due to its unique offering of online franchising. With ads suggesting that one can earn up to PHP60k a month, it is not a wonder why app downloads reached 153,644 within just four months from its launch. According to Isentia data, there was a total of 1,898 buzz and Toktok-associated mentions in March 2021.

According to Victoria Bernadette Lazo, insights analyst at Isentia Philippines, the e-commerce and logistics industries have boomed and continued to thrive, and with tighter community quarantine guidelines in the country, more people realize the convenience of having things delivered to their doorstep.

“Now, more than ever, is the right time for e-commerce companies to listen in on the buzz surrounding their industry. On top of listening, these companies need to look for ways to make the conversations work in their favor,” Lazo stated.

Rowelyn Bigaya, insights analyst at Isentia Philippines, added that brands have shifted towards a more digital aspect so customers can buy their products from the convenience and safety of their homes amidst the pandemic. 

“Despite contact restrictions and lockdown regulations, companies could continue operation and provide jobs while adapting to the new normal. The use of trendspotting studies will highlight how brands can leverage the potential of digital transformation and optimize conversations to understand and cater to the needs of the public,” Bigaya stated.

Manila, Philippines – As the initial wave of the COVID-19 pandemic swept the country, pandemic-relevant items such as face masks, face shields, and hand sanitizers have surged in demand. With this new ‘essentials’ in market, a new study from media monitoring and insights solution provider Isentia notes that Philippine retailers need to listen to the clamor of consumers regarding these essentials, especially through social media channels.

Isentia notes that face masks have naturally garnered high attention from the general public on social media, as buzz online has peaked at 75,715 impressions at least during March 2021. The demand has been also amplified with three local events, as follows:

  • The initial announcement from the Department of Interior and Local Government (DILG) last 13 March where the agency stated that face masks should be worn, even inside of their homes. The statement was met with ridicule from the general public on social media, stating that wearing face masks at home was unnecessary. Some had sarcastic reactions saying that they should then wear masks while bathing, that policemen should be assigned inside their homes to monitor, and that they might as well require wearing a face shield at home.
  • A video of a woman onboard the Metro Rail Transit-3 Train line (MRT-3) last 23 March was met with outrage from netizens after not wearing a face mask and face shield on board the train, where she was met with confrontation from other passengers.
  • An online news report from 30 March stated that people from the English territory Gibraltar are no longer wearing masks due to the absence of COVID-19 cases in the territory. Filipino netizens perceived the news in awe and envy, while others expressed skepticism on how the Philippine Government has been handling the pandemic in the country.

In addition, Isentia notes that the most discussed face masks in the country are N95 masks and the brand Coppermask, as many netizens complain online about using disposable surgical masks when wearing makeup. Some netizens reacted negatively towards the Philippines’ vaccine expert panel’s suggestion that wearing two face masks reduces the risk of getting COVID-19 by 90%. Others praised Doc Adam, an Australian doctor and YouTube personality, for his critique of the Coppermask – saying that wearing the mask is just a fashion statement for most people. 

“Since the pandemic, what the public deems as essential has very much shifted. Masks are now a must-have and retailers and producers have found ways to cater to different tastes,” said Victoria Bernadette Lazo, insights manager at Isentia Philippines.

In regards to face shields, conversations about them were driven by multiple events during the month of March, garnering a total of 43,599 total buzz during the month. The highest momentum was on the Department of Health (DOH) Secretary Francisco Duque III who went out on the streets of Baclaran to hand out face shields. The majority of the comments were highly unfavorable in nature, with netizens dubbing that it was a ‘failed PR attempt’ for the government arm and its top official.

Lastly, ‘hand sanitizers’ garnered 1,605 total buzz in the social media. One news article that included the mention of sanitizers struck out on 13 March when Thailand Prime Minister Paruth Chan-ocha sprayed hand sanitizer on the reporters of his press conference to avoid answering questions. Filipino commenters still found a way to correlate the news to Philippine government leaders such as President Rodrigo Duterte and Vice President Leni Robredo. 

“With the threat of COVID-19 still lingering, you can never underestimate any measure when it comes to your safety. A lot of luxuries were taken away from us but what we still have is a choice, an option to choose your face masks, face shields and even the hand sanitizer that goes along with your bag,” Francis Angelo Calucin, insights analyst at Isentia Philippines, said.

The report uses the example of Coppermask which engaged in a so-called ‘Streisand effect’, where the brand attempted to hide, remove, or censor information about negative reviews of their product, such as those of Australian doctor/YouTuber Doc Adam, which in return has the unintended consequence of further publicizing that information, often via the Internet.

“Social media, given its volatile nature, is a good avenue for retail brands to gain insights into customer preferences. Amid the clutter in online platforms, trendspotting reports unlock relevant organic conversations that may be leveraged by brands in devising strategies that will impact their consumers.” Kate Dudang, insights manager at Isentia Philippines, explained. 

Meanwhile, Gladys Mae Ruiz, insights analyst at Isentia Philippines added, “A critical situation like the COVID-19 pandemic has pushed human behavior in different directions. Trendspotting studies such as this will help brands and businesses better understand and respond to the ever-changing consumer behaviour.”

Singapore – As the Muslim religious holiday of Ramadan draws to its conclusion, new report from e-commerce company iPrice shows that three products are most sought by Muslim consumers in Singapore, Malaysia and Indonesia, namely perfumes, skincare products and ‘kaftan’, a type of robe worn by Muslims and has been a distinct clothing article of Muslims in Southeast Asia.

According to the report, demand for perfume among SIngaporean consumers skyrocketed to 6078% compared to last year’s Ramadan. Other goods most-searched in Singapore include supplements, kurtas, cooktops and cookies, all which saw a huge spike in search at a rate of 2090%, 1974%, 1529%, and 452% in increase from last year respectively.

Meanwhile, skincare leads in the search history among Malaysian consumers, which increased by 8140% compared last year. Other sought-after products include perfume (6183%), Baju Melayu, a form of Malay clothing garment worn mostly by men (4241%), and even sofas (1262%).

Lastly, the Muslim-rich country of Indonesia saw that kaftan saw the highest surge of online searches, with a 8773% increase since last year. Other items include Gamis (a Muslim female clothing garment), Rok Muslimah (a casual version of Muslim female clothing), and Sarung (an Indonesian skirt), all of which saw a surge of 2813%, 1532%, 1850% respectively when compared to the same period last year.

iPrice also noted in their report that consumers in Singapore started their online shopping journey as early as 5 am, after a morning lull. Shopping activities reached its peak at lunch break at 2 pm and after Taraweeh (the night prayer) period at 9 pm up until 11 pm before bed.

Surprisingly, it was even earlier in Indonesia and Malaysia where people began to shop as early as 2 am and 4 am respectively. After the morning period, shopping sessions peaked again at 10 am in Indonesia and noon in Malaysia.

Smartphones have frequently been pulled out by consumers to purchase products online. This is evident because mobile emerged as the most used device for consumers in Singapore (55%), Malaysia (68%), and Indonesia (93%) to shop online than other devices within the first two weeks of Ramadan.

By comparison, the usage of desktops only showed 43% in Singapore, 31% in Malaysia, and 6.41% in Indonesia. This also proves that the mobility and the convenience of mobile transactions eclipsed tablet and desktop usage.

Singapore – Singaporean Gen Z consumers are now expecting that their favorite brands to be more responsible and transparent in their business strategies in an age where fake news and information is rampant, new study from consumer communications agency DeVries Global shows.

According to the study, a whopping 96% of respondents indicated that they “are willing to pay a premium for brands they deem transparent”, which best reflects the fact that the digitally native generation has a growing appetite for authenticity and honesty among brands. 

Despite the evident doubts raised among Gen Zs, 57.8% of the respondents said that they are bothered to filter out what is true or not on what they see online, and only 10.8% of the respondents said that they are ‘pros’ at filtering false information.

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Furthermore, the report also revealed a surprising finding that while Gen Z has a global reputation of being possibly the most environmentally conscious generation, it seems that only 7% of Singaporean Gen Zs see environmental impact as an essential factor when making a purchase decision, as compared to other considerations like reviews and price.

Singaporean Gen Zs have a higher tendency as well to be willing to boycott the brand over several negative factors, with unethical corporate practices (55%), false advertising (44%), animal testing of products (41%), negative personal experience (33%), lack of transparency (13%) and negative impact on the environment (12%) being the well-known factors Gen Z consumers will frown upon.

“A generation unafraid to speak out and rally for causes they believe in, the study also reveals that Gen Zs do not hesitate to boycott brands over unethical business practices, false advertising and more. It is time for brands to do an internal check-in for hypocrisy before they speak out on issues or make big claims. Otherwise, they run the risk of getting cancelled by the razor-sharp Gen Z,” the company said in a press statement.

DeVries-Global-Singapore-Gen-Z-Study-Transparency-2

The study also noted that the current generation has also a greater inclination to check reviews before buying products online, with 77% of the respondents saying so. Other purchasing factors that influence Gen Zs include price (55%), brand reputation (39%) and recommendation from friends and family (38%).

For Li Ting Ng, director of innovation and client experience at DeVries Global Singapore, transparency has become the norm among Gen Z consumers, and are questioning brands that are jumping on conveying transparency in their marketing, despite doubts of making change in their business strategies.

“This is a smart and informed generation that values and demands transparency but understands that businesses aren’t perfect. The challenge then is to figure out what transparency means to your business and how you can commit and communicate it in a way that builds trust and credibility. Not transparency for the sake of it,” Ng stated.

Meanwhile, Rafidah Rashid, managing director at DeVries Global Singapore, commented, “The Gen Zs are at the very forefront of culture, and there is no better time than now for brands to get a head start by getting ahead of what matters to them.”

Sydney, Australia – Being digital natives themselves, Gen Z consumers in Australia are now demanding greater service from brands online, new survey from digital experience platform Sitecore shows.

About 1 in 10 will switch their loyalty after a poor online shopping experience – most (55%) will give multiple second chances. However, Australian Gen Z shoppers have a low tolerance for browsing online stores, as most will give up after no more than 10 pages of browsing (on average, five pages of browsing).

Meanwhile, a quarter or more Gen Z in Australia also rank same or next day delivery, easy site navigation, and having items in stock as their top three criteria of shopping online. More than four in ten Gen Z in Australia say that having a free delivery option is most important to them in online shopping. However, free delivery is less important to Gen Z (44%) compared to older generations (55%). Gen Z are also more likely to say that an app or website that works well on mobile is critical to their shopping experience (60% vs 49% for older generations).

“The pandemic has tested the loyalty of Gen Z shoppers in Australia, leading them to become digital converts who show less loyalty to their pre-pandemic ‘go-to’ brands. They are also opting to shop more via mobile and direct from brands. Australian Gen Z treats online shopping as an experience to enjoy and expect highly personalized, exciting online experiences that work on mobile and can offer same-day delivery,” said Paige O’Neill, chief marketing officer at Sitecore.

In addition, despite huge patronage to online e-commerce sites, top physical retail outlets will remain attractive to Gen Z, particularly for exploring such as shopping local, socializing, and window shopping—but Gen Z shoppers said online brings the convenience factors such as advantages of availability of products, lower cost, time-saving, predetermined purchases, or just simply being able to stay in. 

Socializing as a reason to go back to retail stores and malls is particularly strong for Gen Z (47% vs. 30% among older gens). Gen Z is more likely to say their online experience with local retailers was not as slick as they expected it to be (40% vs. 26% among older gens).

Sydney, Australia – As the country has experienced disruptive events in the past year such as the country-wide wildfire in 2019 and flood crisis aside from the global COVID-19 pandemic, more and more Australians want the brands they feel an attachment to be of value, sustainable, and able to navigate through business disruption, a new report from Kantar Australia shows.

The report noted that 3 in 5 of Aussie customers now pay more attention to product origin, and 54% still think it is important that brands have plans in place to protect supply chains. In addition, one-third of respondents want brands to proactively advertise how they’re helping the community and offer products and services that help adapt to the ‘new normal’, as well as 37% of respondents wanting brands to tackle plastic pollution in packaging and products.

According to Jonathan Sinton, chief commercial officer at Kantar Australia, they see a new trend among Aussies to look among brands that pay more attention to brands that act responsibly, transparently, and honestly towards their community and employees; and will focus on those brands that act in a responsible, transparent, and honest way.

“Brands need to stay across changing consumer attitudes. Those that build and market a relevant, differentiated offer underpinned by real purpose are more likely to be resilient during this and future disruptions,” said Sinton.

“While we’re largely more optimistic now, it’s important to continue to have active conversations with Australian consumers. Be authentic, bold, and brave. Definitely no ‘sadvertsing’. However, as we know that the bushfire crisis and pandemic escalated already existing consumer tensions, the current flood catastrophe will only serve to accelerate concerns,” Sinton added.

Sinton noted the data consistently shows that brands “with a strong brand purpose” are more resistant to and are able to recover more quickly from disruption, growing brand value at a rate that is around 2.5 times faster than those with a weak brand purpose.

“This means that it’s more important than ever to have a conversation with your consumers and understand what they’re feeling and needing in this rapidly changing world,” said Sinton.

New Delhi, India – An increasing number of Indian consumers are showing willingness and interest to purchase electric vehicles, new report from auto-tech firm CarDekho and marketing company Omnicom Media Group (OMG) shows. 

According to the survey, 66% of customers are willing to buy electric vehicles, out of which 53% said they were strongly inclined to go electric. Among those surveyed, 13% are not yet ready for the transformation whereas 19% decline to go either way.

In addition, 68% of the customers showed their concern towards the environment and believe switching to EVs will help reduce air pollution, whereas 11% and 6% of respondents considered driving pleasure and lower maintenance cost respectively as the main reason for considering a shift to EVs. 

“The core objective of this survey was to gauge the consumer psyche and understand what sort of information or services from automobile original equipment manufacturers (OEMs) could help in the buying decision. Respondents suggested manufacturers offer a full list of service stations in any city, accessories for easy and fast home-charging, and an extended service warranty assurance for the car,” the companies said in a press statement.

The survey also showed that despite the optimism shown among respondents, certain percentages of consumers are also raising doubts about EV usage. In the survey, 43% of respondents stated that frequent recharging will be a big concern, with 20% raising concerns on the reliability of EVs during long drives or inter-city travel, and 16% considering inadequate infrastructure (charging stations) a bigger hurdle. Meanwhile, nearly 12% of those surveyed said that pricing was an important consideration.

CarDekho and OMG conducted the survey across India among potential 4W vehicle buyers. Almost 40% of the respondents owned an SUV with 29% owning a hatchback, followed by 25% with sedans.