Tag: E-commerce

Singapore – A total of 3,711 consumer complaints against e-businesses and e-marketplaces in 2023 have been recorded in Singapore, a sharp increase of 47% from the 2,530 complaints received in 2022. This is according to the latest report from the Consumers Association of Singapore (CASE).

According to the association, they received 13,991 complaints in 2023, a 24% decrease from the 15,144 complaints received in 2022. There was a general decrease in complaints across various industries, except for the motorcar industry which saw an increase of eight per cent, primarily due to an increase in complaints involving rental or shared cars. 

The association also noted that through its assistance in negotiating and mediating the complaints, close to $2.5 million (in-cash and in-kind) were recovered for consumers in 2023, an increase from the $2.1 million recovered in 2022. 

Meanwhile, complaints involving rental or shared cars nearly tripled from 152 complaints in 2022 to 435 complaints in 2023. Common complaints pertained to disputes on pre-existing defects, damages and repair charges imposed by rental or car-sharing businesses on consumers due to alleged damages.

It is also worth noting that the travel industry saw a 38% decrease in complaints, dropping from 757 complaints in 2022 to 471 complaints in 2023. The airlines industry saw a 22% decrease in complaint, dropping from 478 complaints in 2022 to 375 complaints in 2023. The complaints for both industries had stabilised to pre-2020 levels, primarily due to the easing of travel restrictions globally which led to fewer complaints on cancellation of trips.

Melvin Yong, president at CASE, said, “We are happy to see an overall decrease in consumer complaints in 2023. Nevertheless, more needs to be done to strengthen consumer protection and address common consumer pain points. CASE will continue to engage the government and industry stakeholders to strengthen consumer safeguards and put a stop to undesirable business practices.”

India – Gatsby/Gardenia, a lifestyle brand distributor, has announced a strategic relationship with Bidmath, a digital marketing solutions firm. The collaboration intends to strengthen their e-commerce presence and drive significant development across India’s Online market.

This cooperative endeavour, which leverages Bidmath’s expertise in AI-powered programmatic advertising and data-driven marketing techniques, marks a significant turning point in Gatsby/Gardenia’s digital transformation path. 

Through this partnership, Bidmath will be in charge of Gatsby/Gardenia’s marketing initiatives on Amazon, the e-commerce site in India. Later on, it is anticipated that the partnership will develop to include additional major markets, providing a comprehensive plan for boosting online business visibility and encouraging sales growth. 

The team at Bidmath, which consists of digital planners and data scientists, will use AI and machine learning approaches to optimise bids, improve targeting, and customise campaigns to maximise effect and efficiency.

Through the use of data-driven insights and efficient campaign methods, the partnership aims to boost Gatsby/Gardenia’s gross merchandise value (GMV) and overall e-commerce sales. 

Speaking about the partnership, Puneet Motiani, director at Gatsby/Gardenia, said, ”We are excited to partner with Bidmath to unlock the full potential of our online presence. Their innovative solutions and data-driven approach perfectly align with our vision of maximising brand reach and driving sales across Amazon and other major marketplaces. We are confident that this partnership will be instrumental in expanding our customer base and achieving sustainable growth in the Indian ecommerce landscape.” 

Meanwhile, Rakesh Singh, regional managing director at Bidmath, commented, ”We are thrilled to be chosen as Gatsby/Gardenia’s e-commerce marketing partner in India. Their commitment to innovation and excellence resonates with our own values, and we are confident that our expertise in AI and programmatic advertising will deliver exceptional results. We are excited to collaborate with their team to develop data-driven strategies that optimise campaign performance and maximise return on investment.”

Lastly, Pankaj Bhawnani, advisor to the Gardenia Board at Northstar Consultings, stated, “E-commerce marketplaces are completely different environment with immediate impact on ROAS (Return on Advertising Spends) having an international specialized partner like Bidmath who works with Marque brands like Procter and Gamble, Suntory, and many more in the region and now Gatsby male grooming and Nabeel perfumes in India, is a win-win situation.”

Indonesia – The latest YouGov Profiles has noted that Tokopedia holds a 39% share among Indonesian consumers, securing its position as the second most popular e-commerce platform, trailing only Shopee, where a staggering 73% of customers have recently made purchases.

For context, Bytedance’s TikTok plans to return to the Indonesian e-commerce market by purchasing a majority share in GoTo’s Tokopedia for around $840 million. Following the Indonesian government’s prohibition of online purchasing on social media platforms, the firm was forced to close its social commerce service, TikTok Shop, in October. 

Analysing the broader market, Lazada captures the attention with a substantial 22% share among all consumers, ranking third in popularity. Other players, such as Bukalapak (6%), Blibli (5%), and Zalora (2%), follow suit.

For regular online buyers, Shopee emerges as the leading e-commerce platform with 77% popularity. In this category, Tokopedia (43%) and Lazada (24%) secure the second and third positions, while Bukalapak (7%), Blibli (6%), and Zalora (3%) also make notable appearances.

Zooming in on TikTok Shop users, the data indicates that 32% of them engage in shopping on Tokopedia. Although surpassing Lazada (23%), this percentage is notably lower than the overwhelming preference for Shopee, where a substantial 71% of TikTok Shop users make their purchases. As the e-commerce narrative unfolds, the data showcases a dynamic interplay of market forces and consumer behaviours, paving the way for potential shifts in Indonesia’s e-commerce landscape.

Two months later, the Indonesian ministry of trade announced that TikTok and Tokopedia will be launching a pilot program for e-commerce together. The project will take effect in the next months after extensive engagement with regulatory authorities. 

Jakarta, Indonesia – As part of the hype during the popular 12.12 sale period across online e-commerce players, popular Indonesian e-commerce player Tokopedia has engaged with Kobo Kanaeru, the biggest Indonesian virtual YouTuber (VTuber) in terms of subscriber count; and popular online music creator Harry Citradi, also known as Heiakim, to create the platform’s latest 12.12 campaign jingle. First uploaded on Tokopedia’s Instagram and X (Twitter) accounts, the jingle proved to be a viral success, prompting the company as well to upload a 1-hour version on its YouTube channel.

While campaign jingles are pretty common, this was the first time Tokopedia tapped a VTuber for its own campaign. Despite the fact that the jingle borrows cues from popular Japanese pop culture trends like anime and VTubers, it is also worth noting that the company took into consideration its roots of local culture relevance to create the new jingle. In turn, this made the campaign more popular especially to the younger consumer demographic while still rooted to be relevant across Indonesians.

MARKETECH APAC caught up exclusively with Jonathan Locanawan, senior lead for social media at Tokopedia, to learn more about the campaign’s creative process, as well as hear his insights on how brands can be authentic in tapping the younger demographic.

Understanding the roots of Tokopedia’s “Waktu Indonesia Belanja (WIB)” campaign

To fully understand how Tokopedia came up with the new Jingle, Locanawan notes that it is worth noting to understand how its yearly 12.12 campaign came to life.

In 2020, the company introduced the monthly shopping festival, “Waktu Indonesia Belanja” (WIB) or Indonesian Shopping Time. Since Waktu Indonesia Belanja was launched to be an inclusive shopping campaign for all Indonesians across the country, they created the WIB campaign jingle with tunes that took major inspiration from ‘Ampar Ampar Pisang’, a South Kalimantan traditional song that would resonate with most Indonesian people.

“The Waktu Indonesia Belanja campaign and its campaign jingle itself were met with high enthusiasm. This became the impetus for Tokopedia’s continued innovation into providing new ways that cater to the ever-evolving preferences of Indonesian consumers. For example, we continuously try to develop a more ‘personal’ approach between Tokopedia and the audience through social media,” he explained.

And while they believe that the monthly campaign was a success, they believed they need to penetrate the much younger audiences, especially those who are active online in social media. This is where the Tokopedia team found out how fans of Japanese pop culture are one of the most active demographics in Indonesia, and yet remains untapped by the market.

“We saw that Japanese popular culture represents a big yet untapped market in Indonesia, especially in the social media sphere. We also learned that Kobo Kanaeru—a female Indonesian
VTuber or virtual content creator who uses an animated avatar—and Harry Citradi or popularly known as Heiakim, are one of the biggest and well-known content creators in Japanese pop culture in Indonesia, especially amongst younger generations including millennials and Gen Z,” he added.

Why collaborating with Kobo Kanaeru and Heiakim is the correct step for the brand’s authenticity

When asked how the jingle came to life, they said that this was done in-house, alongside active participation with Kobo Kanaeru and Heiakim. It is worth noting as well that while they were the ones that provided that initial ideas, the co-creation of the jingle was mostly done by the duo. For Locanawan, this speaks on their mission of always tapping into these collaborations, providing trust to its consumer base.

“Tokopedia always believes that collaboration with partners, including content creators, always goes beyond the numbers of likes and followers. Tokopedia is a business of trust, so to maintain business continuity, maintaining the trust of Indonesians is the most important thing,” he said.

The new 12.12 campaign jingle from Tokopedia, co-created by popular Indonesian VTuber Kobo Kanaeru from Hololive and popular music producer Heiakim

Moreover, it is also worth noting that Tokopedia wanted a fresher take on its campaigns, hence the brand is willing to explore more niche cultural trends to bring colour and life to its campaigns.

“Appealing to the younger audience is definitely one of the main drivers for this collaboration as we continuously try to stay relevant with the Indonesian consumers. However, we were also aiming for distinctiveness. Amongst the sea of heavy promotions from the entire industry, we knew we needed to come up with something special to really stand out from the crowd yet still maintain the local authenticity, sensibility and voice of ‘Tokopedia’, he explained.

Advice on brands on how to ride niche cultural brands to stay authentic

Tokopedia believes that tapping creators that share the same brand value to the company and creative positive influence to the Indonesian society help them create authentic campaigns while also at the same time being at the top of mind of the younger demographic.

According to Locanawan, with Tokopedia willing to explore unique yet relevant niches, the brand has seen greater increase on positive brand mentions, higher views on its social media
accounts, like TikTok; and even noted an increase in better engagement with their audience through Tokopedia’s social media accounts.

“As brand marketers, we need to always be sensitive with the ever changing trends in pop culture to remain relevant. By fully immersing ourselves in the culture and by having the campaign co-created together with the creators, we were able to launch content that effectively rides the wave while maintaining the authenticity and voice of ‘Tokopedia’,” he explained.

Lastly, when asked what should brands do in terms of exuding authenticity to its consumers, Locanawan had this to say: “Regardless of whatever strategy is used, consumer centricity has always been our guiding star—how we can ensure our consumers can benefit from the products, services and partnerships provided. That is what Tokopedia will always do to keep winning the hearts of Indonesians.”

While there’s no shortage of uncertainty as we countdown to 2024, the crystal ball seems to have a few things in focus for the next trip around the sun. From the long-anticipated shift from third-party cookies to first-party data to the harnessing of AI and the evolution of e-commerce, here are five key tech trends set to shape how brands connect with customers. 

The race for first-party data

2024 is set to be the year of first-party data with Chrome deprecating third-party tracking cookies over 2024, following the lead of other browsers having already implemented similar changes. Brands will be focused on strategies to build their own valuable first-party data, built up from purchasing signals tracked via loyalty programs, registered users, CRM and so on. 

Brands will be turning to publishers to harness their vast contextual and enriched datasets from either registered users or gleaned from the type of content being consumed in real-time. Combinations of both publisher and advertiser data via data cleanrooms have been a topic of interest and will be interesting to see how this is picked up over the year.

The shift promises contextual interest targeting, enabling a more precisely tailored match for brands between creative and audiences. The focus on sharper targeting translates into reaching the right audience with specific intent, ultimately, leading to increased conversion rates and effectiveness.

Focus on innovative advertising

The ongoing adoption of more premium and effective ad solutions is a growing trend, which is only set to continue from an effectiveness and a user experience perspective. Clients are reporting that campaign budgets can be extended up to seven times more just by using more effective formats. 

Brands are demanding more premium sponsorship opportunities and publishers are accommodating via a range of high-impact and bespoke formats. This means more curated and higher quality ad experiences on-site, resulting in a longer-lasting impact from awareness to engagement through to conversion. We’re seeing a further development toward solutions overlaying first-party data or contextual insights with premium ad formats. This delivers more personalised and relevant experiences, which are particularly effective for eCommerce.

And as smartphone users worldwide reach an estimated 4.6 billion, with expectations of surpassing 5.1 billion by 2028, mobile internet traffic already claims nearly 60 per cent of total web traffic. In response to this unprecedented growth, there’s the need for a more expansive, premium mobile ad format that would not only extend the in-ad experience via a seamless, scrolling user experience; it would also drive brand awareness and communicate additional product information in an unobtrusive, impactful way.

Innovative new ad formats like BrandStory outshines competitors with triple the ad space and 2.8 times greater time in view than single scroll ad formats. This addresses the surging demand from brands worldwide for more real estate to drive real results by seamlessly intertwining awareness, exploration and action within one comprehensive solution.

e-commerce to continue upward trajectory

We’re witnessing the takeoff of e-commerce across the board, supercharged from the shift during lockdown as businesses of all sizes realised the value of having a direct relationship with their consumers. On top of the sale, e-commerce is allowing advertisers to own the data relating to the customer and the sale, which is a huge factor in the boom. 

e-commerce will see sustained growth as brands demonstrate a willingness to invest in channels that streamline the conversion process and build that direct line to their customers. We’re seeing a take-up of in-banner transactions, shoppable video, contextual targeting and dynamic e-commerce ads already playing a pivotal role in the transformation.

Harnessing AI

AI is quickly moving from a novelty to being embedded within a multitude of platforms to increase effectiveness and revolutionising the landscape, both on the overall marketing function and the specific ways we engage with technology. This includes from a generative perspective of creating content and messaging to getting a better handle on insights and planning, particularly with the abundance of first-party data. The wealth of information from this data will serve as a fertile ground for extensive learning and the development of models tailored to audience insights.

Surge in digital outdoor and connected TV channels

In the coming year, brace for a significant expansion in alternative advertising channels, particularly digital outdoor and connected TV. We anticipate substantial growth and innovative strategies as these channels evolve to become pivotal players in the advertising landscape. We have even been seeing clients connecting their digital out-of-home and digital display campaigns with live data, meaning interactions with the digital campaign can be relayed to the digital out-of-home screens – another space to watch.

The future of consumer-driven digital experiences

As we step into 2024, the world of advertising is gearing up for some exciting opportunities for publishers, advertisers and consumers alike. The strong focus on first-party data, the use of AI, the evolution of online shopping, the rise of different advertising channels and the march toward new ad formats are all painting a picture of innovation, integration and adaptability. It’s a call for advertisers and publishers to work together, align their strategies with what consumers are looking for and create a landscape where creativity, data insights and modern technology come together for a more engaging advertising experience.

This article is written by Harley Ramien, Director for Asia Pacific at Bonzai

The insight is published as part of MARKETECH APAC’s thought leadership series under What’s NEXT 2023-2024. What’s NEXT 2023-2024 is a multi-platform industry initiative which features marketing and industry leaders in APAC sharing their marketing insights and predictions for the upcoming year.

Jakarta, Indonesia – After multiple reports suggesting business talks between TikTok and GoTo in Indonesia, TikTok has announced that is investing a total of US$1.5b investment into GoTo. In it, Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity.

In an official statement, both entities have said that this arrangement will allow both TikTok and GoTo to each serve Indonesian consumers and MSMEs more comprehensively.

Moreover, GoTo will benefit from the growth of the enlarged entity and will remain an ecosystem partner to Tokopedia, through its digital financial services via GoTo Financial and on-demand services via Gojek.

Going forward, TikTok, Tokopedia and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years. 

Some of those planned joint ventures include promotion of Indonesian products on Tokopedia and TikTok’s platforms, building the capacity of Indonesia’s MSMEs through a holistic program focusing on skills development, supporting merchants to sell products online, helping local brands to promote their products in international markets, amongst others.

The transaction, which is expected to close in the first quarter of 2024, is in line with the GoTo Group’s strategy to strengthen its financial and strategic position by growing its total addressable market.

Moreover, a committee under the enlarged entity will be established to facilitate transition and integration, chaired by GoTo Group CEO Patrick Walujo, with support from members of both businesses.

These talks come after TikTok Shop announced the shutdown of its local operations in Indonesia in October 2023 following local orders. The company was forced to close down after the country’s government passed a regulation prohibiting the use of social media for e-commerce transactions.

Singapore – Independent data and digital transformation company ADA, has recently forged a partnership with data and AI company Databricks, aiming to provide best-in-class technology solutions to boost the company’s corporate value. 

In this collaborative endeavour, ADA intends to combine its data and AI skills with Databricks, focusing on better ecommerce and marketing analytics. Specifically, they are set to establish a data intelligence platform centred around addressing business challenges across the 12 regions in APAC where ADA operates.

For this particular platform, ADA will use powerful data and AI accelerators which encompass bespoke ecommerce data models. As such, this will provide organisations with essential insights and predictive analytics to help them fine-tune their online operations.

Furthermore, ADA’s dynamic pricing model will enable real-time market adaptation, optimizing revenue potential. It will also enhance data marketplace offerings leveraging its proprietary X-ACT data and integrating services like Composable Customer Data Platform (CDP), demand forecasting, and price optimization. 

This provides a versatile framework for businesses to effectively utilize customer data for personalized engagement, underlining ADA’s commitment to equipping businesses with cutting-edge, data-driven tools on Databricks Platform.

Speaking about this venture, Greg Taylor, vice president, partners, APJ, at Databricks, said, “The ability to uncover actionable insights from data has never been more important as enterprises look to adapt, innovate and better prepare for the future in this AI age. ADA has deep industry experience in creating value for both B2B and B2C organisations by leveraging data for applications such as customer acquisition and customer data clean rooms, to name a few.”

“We’re excited to be working with ADA as they leverage the power of Databricks Data Intelligence Platform to help organizations solve their toughest problems with data,” he added. 

Srinivas Gattamneni, chief executive officer at ADA, also shared his enthusiasm for the project, stating, “We’re excited about our partnership with Databricks, a pivotal step in revolutionizing data and digital transformation in APAC. By integrating our Data and AI solutions with Databricks’ cutting-edge Data Intelligence Platform, we are actively redefining the future of data analytics and transformation. 

“This alliance is a testament to ADA’s dedication not only to advancing AI-driven analytics but also to providing comprehensive data transformation services that enable businesses to navigate and excel in an increasingly digital world, ” he concluded. 

By enhancing the company’s data marketplace offers, this particular initiative spotlights ADA’s commitment to provide companies with modern, data-driven solutions as well as flexible frameworks that leverage customer data for personalised engagement.

New York, USA – Global media and marketing holdings company Omnicom has announced that it has agreed to acquire Flywheel, the digital commerce business of Ascential, for US$835m. It should be recalled that Ascential recently integrated its 10 digital commerce sister brands to form Flywheel.

The acquisition is expected to close in the first quarter of 2024 and is subject to Ascential shareholder approval, regulatory approvals, and customary closing conditions.

Moreover, Flywheel will operate as a practice area within Omnicom and will be led by Duncan Painter, who currently serves as CEO of Ascential.

“By connecting Flywheel Commerce Cloud’s product and transaction data with Omni’s audience and behavioural data, we are poised to offer an end-to-end set of services that outpaces the competition. We aim to empower our clients to automate, optimize, and measure their digital commerce and media spend within an increasingly complex marketplace,” Painter said.

Currently, Flywheel’s services enable top brands to sell more goods across hundreds of digital marketplaces, such as Amazon, Walmart, and Alibaba.

With a workforce of more than 2,000 professionals, Flywheel provides services in retail commerce operations, media execution, and market intelligence to over 4500 brands. These services are reinforced by their advanced technology platform, Flywheel Commerce Cloud, which delivers near real-time insights to improve decision-making and boost sales.

Meanwhile, John Wren, chairman and CEO of Omnicom said, “E-commerce sales worldwide are set to increase by 50%, reaching about $7 trillion dollars by 2025. The acquisition of Flywheel significantly broadens our reach and influence in the rapidly expanding digital commerce and retail media sectors, two of the fastest-growing parts of the industry. Together, we will seamlessly integrate our offerings across retail and brand media, digital and in-store commerce, and CRM, ultimately delivering superior results for our clients.”

Seattle, USA – Amazon Ads has launched image generation in beta—a generative AI solution designed to remove creative barriers and enable brands to produce lifestyle imagery that helps improve their ads’ performance. 

For example, an advertiser may have standalone images of their product against a white background, like a toaster. When that same toaster is placed in a lifestyle context—on a kitchen counter, next to a croissant—in a mobile Sponsored Brands ad, click-through rates can be 40% higher compared to ads with standard product images.

According to the company, the solution is helpful for advertisers of all sizes—enabling those that do not have in-house capabilities or agency support to more easily create brand-themed imagery, while also supporting bigger brands, who are constantly looking for ways to be more efficient around creative development. 

In the Amazon Ad Console, advertisers simply select their product and click Generate, with the tool leveraging generative AI to deliver a set of lifestyle and brand-themed images, based on product details, in a matter of seconds. The image can then be refined by entering short text prompts, while multiple versions can be quickly created and tested to optimize performance.

According to Colleen Aubrey, senior vice president at Amazon Ads Products and Technology, with the launch of their image generation capability, any advertiser can now use a simple tool to create unique, lifestyle creative assets that make their campaigns more compelling, and at no additional cost.

“Producing engaging and differentiated creatives can increase cost and often requires introducing additional expertise into the advertising process. At Amazon Ads, we are always thinking about ways we can reduce friction for our advertisers, provide them with tools that deliver more impact while minimizing effort, and ultimately, deliver a better advertising experience for our customers,” she said.

Aubrey added, “Providing tools to make image generation simple and easy is another way for us to support advertisers while also making the ads our customers see more engaging and visually rich. It’s a perfect use for generative AI—less effort and better outcomes.”

Singapore – Global logistics service provider J&T Express Singapore has announced new enhancements to its existing services and collaborations to meet the shifting retail demands of businesses and consumers. 

The new enhancements are part of J&T’s broader move to tap into the latest trends in the B2B retail landscape and better meet the needs of both businesses and consumers. 

First on the list of improvements for the logistics service provider is the launch of an all-in-one delivery solution to provide B2B transportation for businesses. This is an addition to their current e-commerce logistics services and will respond to the increasing demand for flexible logistics services in the retail industry that ensure efficient and cost-effective order fulfilment.

The all-in-one delivery service will offer businesses different vehicle and shipping options, such as single- and multi-way transfer options, warehouse transfers, ad-hoc transfers for parcel deliveries, and less than truck loads (LTL) or full truck loads (FTL), to support varying transportation needs at competitive rates. 

J&T Singapore is also elevating its customer experience as it rolls out a series of new features to its flagship mobile app, J&T Singapore App. The new features include an improved and more user-friendly interface that can now detect the nearest J&T Point to the user based on their location for hassle-free parcel drop-off. 

Furthermore, the logistics service provider is strengthening its ongoing partnership with TikTok Shop and multi-category second-hand marketplace Carousell Singapore. 

On top of its current services, J&T Express Singapore will also work closely with TikTok Shop to provide sales and marketing support. The partnership aims to help drive sales for sellers in the form of competitions and co-funded platform vouchers, showcasing its mission to be “customer-oriented and efficiency-based”.

Meanwhile, as the first logistics service provider to be exclusively integrated into Carousell Singapore’s platform, J&T Express Singapore will bring users more convenient delivery options with fully integrated pick-up service options. This will include the upcoming next-day delivery, self-drop-off at J&T Points located islandwide, and return shipping with complimentary label printing service.

Speaking on the partnership, Doven Yap, head of seller acquisition and incubation at TikTok Shop Singapore, said, “We are pleased to continue our collaboration with J&T Express Singapore. With the support of such a reliable logistics partner, our sellers are empowered to deliver a more seamless shopping experience for customers.”