Tag: E-commerce

Kuala Lumpur, Malaysia – Ipsos has recently launched new data reflecting on the e-commerce landscape as well as the non-cash payment economy in Malaysia, highlighting how locals are becoming more adept at using non-cash services to make purchases for their online shopping.

Approximately 50% of Malaysians have made purchases on e-commerce platforms in the past six months, up from 39% in 2023. The popular product categories for online shopping include fashion items, groceries, accessories, and electronic devices.

In terms of market share, Shopee retains market leadership but experienced a 6% decline in market share. Meanwhile, TikTok Shop gained an 8% increase in market share, indicating strong competition. It is worth noting that 72% of respondents shopped in Shopee while 43% of respondents used TikTok Shop. Other platforms like Lazada and social media sites saw lower engagement.

Over at non-cash payment options, around 55% of Malaysians have used non-cash payments in the past three months, an increase of 4% from 2023. Moreover, e-wallet usage has increased by 14% compared to 2023, with 92% of e-wallet users reported using e-wallets in the past three months. Daily usage of e-wallets has also risen, with 51% of users aged 25-34 and 42% of users aged 45-74 using them daily.

Touch ‘n Go is the most widely used e-wallet, followed by MAE. There is a notable increase in MAE usage among those aged 35-44 and in the East region .

It is also worth noting that the increase in e-wallet usage is accompanied by a slight decrease in credit card usage, while debit card usage has increased by 2%. Moreover, the most significant growth in e-wallet usage is for retail purchases, food and beverage outlets, and online purchases,

Lastly, younger generations (18-24 years old) show a significant increase in e-wallet usage, with a 21% rise, while online bank transfers are more popular among those aged 35-44.

In today’s competitive environment, it’s critical brands adapt to the rapidly changing digital landscape, leveraging data-driven and results-focused strategies to stay ahead. Heading into 2025, leading Melbourne digital marketing performance agency Impressive’s team of experts has shared key insights into the shifts they predict will shape the digital marketing industry, with innovative approaches set to drive smarter, more targeted growth for businesses. 

Robert Tadros – Impressive’s Founder & CEO: “As we move into 2025, more and more brands will need to adopt a ’work smarter, not harder’ approach to stay competitive. The digital landscape is evolving rapidly, and large retail and eCommerce platforms must embrace programmatic SEO as a key solution to streamline and automate traditionally labour-intensive processes. 

As an example, our Skailed platform was purposefully designed to effectively transform months of meticulous work into a fraction of the time, enabling brands to optimise thousands of pages with minimal manual intervention. By leveraging data-driven automation, companies can better meet customer demand, stay agile in a crowded market, and drive sustainable growth without overextending their resources.”

Sam Makwana – Head Of SEO: “My SEO prediction for 2025 is that keyword value will matter more than volume. For a long time, SEO agencies and in-house SEO teams have focused on organic traffic growth as a main measure of success. However, this often doesn’t consider whether the visitors are at the top or bottom of the sales funnel. As a result, even if organic traffic goes up, conversions or revenue often stay the same.

At Impressive, we’ve always valued traffic quality over quantity. That’s why our main goal is to drive traffic to high-value landing pages. With Generative AI now part of Google in Australia, we expect a major drop in top-of-the-funnel, volume-focused queries, as Google will deliver many answers directly on the search results page. Instead, the focus will shift to value-based traffic, and SEO teams who know how to attract this kind of traffic will lead the way.”

Nicholas Simonsen – Head Of Content: “AI has taken the digital world by storm over the last few years, and as a result, I have found that everyone is starting to sound the same, no matter the industry in question. Don’t get me wrong, ChatGPT and AI, in general, have changed the game in so many ways, but it’s reached a point now where I can pinpoint ‘ChatGPTisms’ in the first sentence or two of website copy. It all sounds so lifeless and generic.

Heading into 2025, I think we’ll see brands refocus on human content and on fostering that human connection between brand and consumer. With the market so saturated and spending down across the board, buyers wanted to feel connected to their favourite brands, so let’s make sure we’re giving it to them.”

Jasmine Allen – Head Of Performance: “The rise of online e-commerce marketplaces will continue to shape the future of retail, creating an environment where shopping is even more seamlessly integrated into social apps and digital platforms, allowing users to browse, compare, and complete purchases without ever leaving their preferred sites. 

This shift will continue to make the buying process more efficient and appealing. We’ve already seen major players such as Amazon continue to dominate in Western markets, while marketplaces like Shopee and Lazada continue to lead across Asia, each capturing significant market share.

As these platforms evolve, they continue refining search functionality and user experience, making it easier for shoppers to find exactly what they’re looking for at the lowest price. However, this convenience will continue to present new challenges for retailers housing non-exclusive brands, especially those relying on paid ads to maintain visibility. With intense competition from established marketplace giants, a more strategic approach is essential for these brands to stand out. To navigate this crowded digital landscape, tailored, data-driven strategies are crucial to ensure marketing efficiency and to be able to maximise return on investment amidst increasingly dominant platforms.”

Ready to Future-Proof Your Marketing Strategy?

These insights underscore Impressive’s commitment to helping brands stay agile and competitive. As 2025 approaches, Impressive is ready to help businesses navigate these transformative trends, offering expertise and forward-thinking strategies to achieve sustainable growth.

Last week, Singapore and Kuala Lumpur were surprised with a troupe wearing red spandex, wandering around the city while pushing carts and carrying big boxes. In Singapore, individuals dressed in red spandex roamed iconic spots like Orchard Road, the Merlion, and Raffles Place, pushing red trolleys and carrying boxes emblazoned with ‘Shop more. Save more. Meanwhile, across the border in Kuala Lumpur, a similar group made their way through areas around the Petronas Towers, Putri Heights, busy shopping districts, and train stations.

As social media buzz intensified, regional fashion and lifestyle e-commerce platform ZALORA has revealed that they are the ones behind the ‘IRL’ execution as part of its promotion for the platform’s 11.11 sale.

In an exclusive conversation by MARKETECH APAC with Neha Bhasin, director of marketing and brand communications at ZALORA, she stated that given that the 11.11 Sales period is their biggest event of the year, they wanted to capture attention with something that would resonate with people offline and create buzz online as well. This is on top of recognising how there is increased competition nowadays between e-commerce players locally.

“Guerrilla marketing was the perfect choice because it allowed us to break through the noise, turning everyday public spaces in Singapore and Kuala Lumpur into interactive touchpoints with our audience. The spandex-suited troupe and vibrant red carts symbolised the energetic and diverse world of ZALORA, which offers everything from fashion to beauty and sports, creating an immediate, fun connection to the massive savings offered on 11.11,” Neha explained.

The campaign, done by ZALORA’s in-house team, drew inspiration from the energy and vibrancy of the digital shopping experience and the universal excitement around a good deal.

“The concept of spandex suit-clad individuals pushing red carts with bold messages like “Shop More Save More” aligned well with the 11.11 Sale’s spirit. Each cart was curated to represent a major category on ZALORA, like fashion, beauty, sports, and luxury, reinforcing the variety of our offerings and amplifying the idea that there’s something for everyone in this sale. It was about making a direct, impactful statement to the public while maintaining the fun, engaging tone that our customers associate with ZALORA,” Neha added.

When asked how important it is for ZALORA to create an ‘IRL’ campaign despite its e-commerce offerings, Neha noted how they always wanted to create a bridge between the online and offline worlds.

She also stressed that while ZALORA’s core is e-commerce, the brand recognises that real-world, tangible experiences deepen customer engagement and trust. 

“An IRL campaign makes our online sales event more relatable and approachable, especially to those who may not be active digital shoppers. By presenting a memorable, shareable spectacle on the streets, we’re not only expanding our reach but also creating content that is likely to go viral, which complements our digital strategy for a full 360-degree approach to the 11.11 sale,” she said.

In terms of what the ZALORA team learned from this guerilla marketing campaign, Neha stated that one of the biggest takeaways was seeing firsthand the value of disruptive, creative marketing in building brand visibility. For them, this campaign taught them the power of experiential engagement and how it can amplify an online event. 

“We found that people are eager for novel, share-worthy experiences, and this campaign delivered on that front by generating organic conversation both on the streets and across social media. This experience reinforced the importance of a holistic approach to our campaigns, where every activation — online or offline — works in synergy to create a cohesive and memorable brand experience,” she concluded.

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Offline campaigns remain essential for e-commerce players like ZALORA because they bridge the digital and physical worlds, creating memorable, tangible experiences that resonate with a wider audience. By capturing attention in high-traffic, real-world locations, brands can engage new customers, increase brand visibility, and spark organic social media buzz as people share their encounters online. 

These offline touchpoints generate excitement, foster brand loyalty, and amplify digital engagement, making them a powerful tool to drive traffic and sales in a highly competitive e-commerce landscape

Singapore—The latest ‘e-Conomy SEA report’ from Google, Temasek, and Bain & Company has been recently released and highlights that in 2024, the digital economy will reach $263b in Gross Merchandise Value (GMV), a 15% increase over last year. Revenues have also grown 14% and are projected to reach $89b in 2024. The report suggests that the digital economy can achieve both profitability and growth in tandem, marking a significant step towards achieving sustainable economic value.

Why SEA is primed for AI-powered acceleration

Southeast Asia is quickly becoming a global center for AI innovation and adoption. With substantial investments in AI infrastructure and a dynamic ecosystem of startups and developers, the region is on track to harness AI’s transformative potential across a wide range of industries. 

In the first half of 2024 alone, SEA attracted over $30b in AI infrastructure investments. Additionally, consumer interest in AI solutions is surging, with AI-related searches increasing 11-fold in the past four years. The region’s young, growing population, high levels of digital literacy, and widespread smartphone usage make it an ideal market for AI-powered products and services. 

From AI-driven travel planners to generative AI-based fraud detection, AI is delivering value across SEA’s digital economy, with applications spanning various industries. Pro-innovation policies that encourage AI growth and responsible governance will further expand opportunities within the region’s digital economy.

From transport, e-commerce, and online travel–these are the sector redefining SEA’s digital economy

After years of investment and development, leading players in the region’s digital economy are now progressing toward profitability while maintaining strong double-digit growth in both gross merchandise value (GMV) and revenue. Continued growth is expected to be driven by deeper digital engagement among users, effective monetisation strategies, and the recovery of sectors affected by the pandemic. E-commerce has also regained momentum, fueled by the rise of video commerce.

E-commerce, projected to reach $159b in GMV by 2024, is now primarily driven by existing customers, who contribute up to 70% of its growth. This marks a shift from previous years when first-time shoppers were the main drivers. Established players are reinvesting to boost GMV and defend their market share, as international competitors disrupt the market. Revenue is expected to increase 13% year-on-year (YoY) to $35b in 2024.

Meanwhile, video commerce has rapidly grown to account for 20% of e-commerce GMV, a significant jump from less than 5% in 2022. This trend is reshaping the e-commerce landscape in Southeast Asia, transforming the consumer shopping experience. From live shopping events to content created by influencers, video has become an essential component of online shopping.

Food delivery is also gaining traction as dining-out habits stabilize and new monetization avenues, such as in-app advertisements and subscriptions, emerge. Revenue in this sector is forecasted to rise by 54% YoY to $1.7b in 2024, while GMV is set to grow by 7% to $19b. Platforms are experimenting with strategies for future profitability, such as improving restaurant visibility and using AI to optimize operations.

In another industry seeing growth, the transport sector has surpassed pre-COVID levels, with revenue expected to grow by 36% YoY to $1.5b, driven by increased demand and strategic pricing. GMV is projected to rise by 18% to $9b. Despite inflationary pressures, consumer demand remains strong due to the expansion of established players into second-tier cities and rural areas, along with aggressive promotions by new entrants seeking user growth.

Online travel is outpacing the broader digital economy in terms of Gross Travel Bookings (GTB) growth, fueled by intra-regional travel within Asia-Pacific. Higher airfares and a growing preference for luxury travel options are expected to push GTB to $46b in 2024, a 21% YoY increase, while revenue is set to grow 18% to $20b. While direct booking channels remain dominant, online travel agencies continue to successfully monetise their core services as well as adjacent offerings, such as financing and insurance.

Meanwhile, online media is on track for significant growth, with GMV projected to rise to $30b, an 11% YoY increase. Video-on-demand and gaming are key drivers, with SEA developers gaining recognition in casual gaming and hyperlocal content. Advertising remains a reliable revenue stream, while hybrid models incorporating in-app purchases, subscriptions, and ads are becoming increasingly popular to cater to diverse player segments. The rise of gaming influencers has fueled a thriving creator ecosystem, with livestreaming becoming a key tool for facilitating real-time interaction between sellers and consumers.

Lastly, Digital Financial Services (DFS) are expanding rapidly, with revenue expected to grow by 22%, from $22b in 2022 to $33b in 2024. Digital payments and lending, which make up more than 90% of DFS revenue, are the primary growth drivers. E-wallets have become widespread, partnering with major payment card networks, while QR code usage continues to rise. 

It’s worth noting that a generational shift in investor behaviour is reshaping the wealth management landscape, a trend that is likely to persist as more merchants accept digital payments, risk assessment improves, and consumers increasingly seek online solutions for insurance and wealth management.

Increase in investor confidence in SEA’s long-term potential

Despite the ongoing challenges in the funding landscape, investors have demonstrated cautious optimism, channelling nearly 50% of their investments into emerging sectors. Although the exit environment remains difficult, early-stage companies in Southeast Asia have made substantial strides toward profitability. There is also a growing emphasis on fostering cross-border collaborations and improving IPO regulations to enhance capital market conditions.

Last year, the report highlighted four key factors to revitalise the funding landscape: realistic entry valuations, proven monetisation models, a clear path to profitability, and reliable exit strategies. While the first three have been successfully achieved, creating dependable exit pathways is still a work in progress due to the continued challenges in capital markets.

Singapore continues leading SEA’s increased appetite in AI products, services

Singapore’s digital economy has shown impressive resilience and is expected to reach $29b in GMV by 2024, marking a 13% increase from 2023. E-commerce has bounced back, growing from $8b in GMV in 2023 to $9b in 2024, while sectors like online media and travel have experienced double-digit growth, driven by strong infrastructure and pro-business policies.

Singapore ranks among the top 10 countries globally in terms of interest in AI-related topics, with sectors such as education, marketing, and travel leading AI search trends. There is a high demand for mobile apps featuring AI capabilities, including content creation tools, photo editing apps, and AI-powered virtual assistants. 

AI has also played a pivotal role in boosting Singapore’s tourism industry, enabling chatbots to provide personalised recommendations, analyse visitor data to optimise marketing strategies, and enhance visitor experiences through interactive exhibits and customised guides.

To meet the growing demand for AI infrastructure, investments in AI-ready data centers reached $9b in Singapore during the first half of 2024, second only to Malaysia, which attracted $15b in similar investments.

Digital Financial Services (DFS) have also become a key driver of growth, with digital payments and wealth management leading the way. Singapore’s status as a regional financial hub has drawn substantial venture capital and private equity investment. To stay competitive, the Singapore Exchange (SGX) has introduced initiatives to improve exit options and attract investor capital and IPOs. Singapore’s favourable business environment, political stability, and tax incentives have further strengthened its position as a leading economic hub.

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For Sapna Chadha, vice president for Southeast Asia and South Asia Frontier at Google, Southeast Asia’s digital economy is rapidly evolving as businesses adopt innovative strategies to achieve profitability, fostering a more sustainable and resilient ecosystem. 

“The rise of video commerce is supercharging e-commerce growth, with live shopping and creator-led content reshaping how people discover and buy products. Southeast Asia is emerging as a global hub for AI innovation and adoption. With significant investments in AI infrastructure and a thriving ecosystem of startups and developers, the region is poised to unlock the transformative power of AI across various sectors,” she said.

Meanwhile, Fock Wai Hoong, head of Southeast Asia at Temasek remarked how it is encouraging that SEA’s digital businesses are now focusing on achieving the appropriate balance between growth and profitability.

“Investors have also started looking for the next wave of growth by investing in nascent sectors such as software and services as well as AI, demonstrating confidence in the long-term potential of SEA’s digital economy. Temasek remains committed to deploying catalytic capital to the region’s digital economy to achieve sustainable and inclusive growth so that every generation prospers,” he said.

Lastly, Florian Hoppe, partner at Bain & Company stated that Southeast Asia’s digital economy continues to do well, with continued double-digit GMV and revenue growth and a surge in profitability across sectors led by key players. He also remarked how the region is also attracting significant AI investment, with over $30b committed to AI infrastructure in the first half of 2024.

“To fully harness the transformative potential of Generative AI, businesses must advance beyond experimentation and invest in foundational elements—aligning AI initiatives with core business objectives to address real-world problems and create tangible value, strengthen AI talent, and building scalable, adaptable infrastructure for sustained growth,” he said.

China – JD Global Sales, JD.com’s international e-commerce division serving Chinese consumers worldwide, announced it has extended its services to Malaysia and Thailand. 

Consumers in both countries will now have access to JD.com’s extensive offerings, with added benefits for this year’s Singles Day (Double 11) shopping festival, including convenient free shipping options.

JD.com’s global sales business focuses on serving overseas Chinese consumers with a wide selection of high-quality branded products, including electronics, small appliances, home goods, apparel, beauty products, books, food, and more.

With this, Malaysian customers can enjoy free shipping on orders over RMB 399, with coverage for up to 6 kg by sea and 2 kg by air. In Thailand, free shipping is available on orders over RMB 199 by land, covering up to 2 kg. These options apply to self-operated (1P) products ordered through JD.com’s app.

This expansion follows JD Global Sales’ recent enhancements to shipping options, which introduced free delivery for consumers in the US, Japan, and Singapore in August. During Singles Day, U.S. customers will benefit from free economy sea shipping for small item orders of over RMB 888, with coverage up to 10 kg. 

Additionally, expedited free air shipping is available for select products such as phones, tablets, and computers in the U.S., Japan, and Singapore, with delivery as fast as four days.

Jakarta, Indonesia – E-commerce company Bukalapak has addressed reports of an alleged acquisition by Temu on the local e-commerce player. It is worth mentioning that various reports have stated that Bukalapak’s share price increased by over 22% in the past 5 days, from 120 rupiah on Oct 2, 2024, to 147 rupiah per share on October 8 over alleged acquisition talks.

In a letter to the Indonesian Stock Exchange (IDX) reviewed by MARKETECH APAC, Bukalapak stated that they are not aware of any information regarding its acquisition plans by TEMU.

“The increase in share price on October 7th, 2024 reflects the market’s reaction to unverified information regarding the Company’s acquisition plans, which has not been confirmed by the company’s management. Market speculation is beyond the company’s control,” wrote Cut Fika Lutfi, corporate secretary at Temu.

Bukalapak has advised public shareholders and investors to observe official disclosure of information by the company before making any investment decisions on the company.

It is worth mentioning that this news follows the Indonesian government mandate to ban Temu in the country in a bid to safeguard the standing of local SMEs in the country.

Jakarta, Indonesia – Popular Chinese e-commerce app Temu has been blocked from entering from Indonesia, according to a statement from Fiki Satari, Special Staff to the Minister for Creative Economy Empowerment at the Ministry–and confirmed by the country’s Ministry of Cooperatives and SMEs.

According to the ministry, should Temu enter the country, it will result in jeopardising sustainability of MSME players in the country.

“If Temu enters, it will greatly threaten local MSMEs. This application from China allows direct transactions between factories in China and consumers in Indonesia, which has the potential to kill small businesses here,” Fiki said in a statement.

Fiki explained that Temu’s business model enables goods to be sold directly from factories to consumers, eliminating the need for intermediaries like sellers, resellers, dropshippers, or affiliates. Furthermore, the platform offers subsidies, which significantly lowers product prices.

“They have entered the US and European markets, and are now expanding into Southeast Asia, including Thailand and Malaysia. Therefore, we must remain vigilant and ensure Temu does not enter Indonesia,” he added.

It is worth noting that since September 2022, Temu has tried to register its trademark in Indonesia three times. On July 22, 2024, they again applied for registration at the Directorate General of Intellectual Property Rights (DJKI), Ministry of Law and Human Rights.

“Temu App has tried to register trademarks, designs, and others with the DJKI. However, they have not been able to enter because there are already companies from Indonesia that have similar names and business categories. Even so, we must remain vigilant and continue to monitor,” Fiki explained.

Fiki hopes that various relevant agencies, including the Ministry of Law and Human Rights, the Ministry of Trade, the Ministry of Communication and Information, along with other stakeholders, will collaborate to prevent the entry of the Temu marketplace into Indonesia.

Singapore – TikTok, Instagram, and WhatsApp shops are preferred by Southeast Asian (SEA) consumers due to convenience, a new report from martech company Netcore Cloud recently revealed. 

While TikTok shop use is in the lead, Instagram and WhatsApp shops show a rise in consumer preference with 90% of respondents applauding its convenience.

In addition, 70% of chief executive officers plan on augmenting product personalisation through generative artificial intelligence (Gen AI) investments. The initiative is in response to the rising demand for personalised shopping experiences. According to the report, consumers want their product recommendations to be more relevant.

“As the Southeast Asian e-commerce market grows, personalisation and innovation remain critical for brands aiming to differentiate themselves. Gen AI is at the forefront of this transformation, empowering brands to create more immersive, tailored consumer experiences. This report outlines essential strategies for marketers to stay competitive and capture the opportunities presented by this dynamic market,” Saket Kumar Jha, chief revenue officer of emerging markets at Netcore Cloud, said.

Hong Kong – Alternative payment solutions are the preferred payment method for e-commerce purchases in Hong Kong (China SAR), collectively accounting for 41.7% share in 2023, according to data and analytics company GlobalData.

The report reveal that e-commerce market in Hong Kong grew by 10.5% in 2023 to reach HKD160.3b(US$20.5b), as increasing number of consumers shifted from offline to online purchases. The e-commerce market is estimated to grow by 13% to reach HKD181b ($23.1b) in 2024.

Amongst the various tools used for e-commerce purchases, alternative payments are the most preferred. They collectively accounted for 41.7% share in 2023, a trend that is prevalent in many Asian markets. This is mainly owing to factors such as simplicity, speed, and convenience.

Moreover, alternative payment solutions are followed by payment cards, which accounted for 38.6% of the total e-commerce transaction value in 2023. This can be attributed to convenience, pricing benefits such as cashback, discounts, and reward points as well as instalment payment options available with these cards.

Alternative payment solutions are followed by payment cards, which accounted for 38.6% of the total e-commerce transaction value in 2023. This can be attributed to convenience, pricing benefits such as cashback, discounts, and reward points as well as instalment payment options available with these cards.

Ravi Sharma, lead banking and payments analyst at GlobalData, said, “The e-commerce sales in Hong Kong have been growing at a robust pace, supported by the rising internet and smartphone penetration, robust online payment infrastructure, coupled with increasing consumer confidence in online transactions.”

Ravi added, “Hong Kong’s e-commerce landscape continues its upward trajectory, poised for substantial growth between 2024 and 2028, with an anticipated compound annual growth rate of 9% in transaction value to reach HKD 255.7b (US$32.7b) in 2028. Alternative payment solutions are expected to continue their growth and lead e-commerce payments in Hong Kong.”

According to the Office of Communications Authority, 96.9% of the households had broadband internet connection as of April 2024. Furthermore, online shopping festivals such as Black Friday, Cyber Monday, and Singles’ Day have also contributed to the overall growth of e-commerce in Hong Kong.

The retail industry is primed to continue its growth trajectory, with the global consumer class (comprising of consumers spending US$12 or more per day) reaching 4 billion in the previous year, and 5 billion people by 2031. In Asia-Pacific, the retail e-commerce market size is expected to grow by 8% CAGR from 2023 to 2028. These numbers reflect a growing appetite around consumer spending, but are retailers able to keep up? 

With the latest technology trends diving into how consumers’ lives continue to merge with the digital realm, personalised experiences are beginning to see even stronger demand, with 90% of businesses acknowledging that these experiences play a pivotal role in increased sales and even repeat business. However, figures show that only 35% of marketers say their customers have personalised experiences, illustrating a gap between perceptions and reality.

Personalisation – How Challenging Is It, Really? 

For retailers to even begin looking towards personalised experiences, they need valuable data and insights which they can tap into to develop their marketing strategies. However, the concrete data they require from their customers are stored in existing silos such as social media platforms or respective e-commerce sites, leaving the wider pool of retailers with a fragmented view of a customer’s behaviour, and in turn, inaccurate data.

Imagine a tailor creating a suit without considering the client’s budget, the suit’s purpose, skin conditions, or the climate it will face. This is akin to businesses ignoring key consumer insights. Without understanding these crucial factors, they struggle to offer truly customised solutions. Relying solely on partial data leads to misguided marketing strategies and product offerings that miss the mark, resulting in wasted resources and lost opportunities. Just as a perfectly tailored suit requires more than a good fit, businesses need a holistic view of their customers to deliver truly personalised experiences that resonate and satisfy.

In the competitive retail landscape, where standard data is widely accessible, retailers must differentiate themselves by offering exceptional consumer experiences and personalisation through deeper insights. Failing to do so risks leaving consumers feeling undervalued, dissatisfied, and disengaged, while competitors who prioritise up-to-date customer data will excel and dominate market share.

The Band-Aid Solution At Present 

To grasp any form of insights about consumers, retailers at present typically turn to first-party, second-party, and third-party data. First-party data, collected directly from customers, is highly accurate and compliant with privacy regulations like GDPR and CCPA, making it a reliable source. However, its scope is limited to the existing audience database, and it can become outdated if not regularly refreshed. Second-party data, shared between trusted partners, provides additional perspectives but may not perfectly align with a company’s specific needs and can also suffer from data staleness. Third-party data, quite commonly used, is often viewed as a cost-effective method for expanding audience reach, is collected from a wide array of sources across the digital landscape, including websites and social media platforms.

However, third-party data is fraught with challenges. It often contains incomplete or outdated information, making it less reliable for strategic decision-making. Additionally, it raises significant privacy concerns, as it is typically gathered without direct consent from the individuals, making it far less accurate and trustworthy than first-party and second-party data.

The Gold Standard of Data Collection

For the uninitiated, zero-party data, a term that has gained traction in recent times, is defined as information shared directly by customers, with transparency and knowledge on how their data will be used. Differentiating this from first- to third-party data, zero-party data is intentionally shared by customers themselves, delivering unmatched precision and relevance in grasping their needs, preferences, and expectations. 

Consider Lily, a fashion enthusiast who visits an online apparel site to cart out new outfits. By sharing past shopping information, and current style preferences with the site, Lily gives the company valuable insights into her interests – a prime example of zero-party data.

On a grander scale, businesses that utilise zero-party data will be able to foster healthier and more positive relationships with their customers, increasing their brand loyalty and building trust. 

Holistic Identity – What Is It? 

The Holistic Identity concept is designed to return data ownership from centralised platforms back to individuals, allowing them to securely manage, store, and share their information. This approach empowers individuals to control what they share and with whom, ensuring a unified and accurate representation of themselves are shared.

For e-commerce businesses, these solutions also streamline onboarding by enabling efficient identity verification and data sharing with a. single click, providing customers with a frictionless experience. This approach allows companies to gain deeper insights into their customers, enabling personalised product recommendations and marketing, which enhances satisfaction and loyalty.

Businesses that adopt Holistic Identity technologies into their technology stack reduce their liability by gathering only necessary customer data through zero-knowledge proof methodology, minimising the risk of data breaches, and ensure compliance with privacy regulations. 

The Future and Beyond

In today’s competitive and rapidly evolving market, businesses must be proactive in meeting consumer demands for personalisation and privacy. By leveraging zero-party data through Holistic Identity, businesses can unlock new opportunities, craft highly effective marketing strategies, and build stronger brand loyalty—all while ensuring strict adherence to privacy regulations. Embracing these advanced technologies is not just an option; it’s essential for retailers aiming to pivot effectively and lay the groundwork for sustainable, long-term growth.

This thought leadership is written by Glenn Gore, Chief Executive Officer at Affinidi