Singapore – Coffee shops in Asia are increasingly turning to social media to boost customer loyalty, particularly among younger consumers who are drawn to personalized marketing and interactive experiences. According to GlobalData, a data and analytics firm, leveraging social media platforms has become crucial for coffee shops looking to foster a sense of community, drive repeat visits, and build brand loyalty in an intensely competitive market.

The survey found that 82% of consumers are influenced by how well a product or service is tailored to their needs and preferences, underscoring the growing importance of personalised marketing.

Parthasaradhi Reddy, consumer lead analyst at GlobalData, highlighted the role of social media in keeping customers engaged and informed. 

“Social media not only makes in-store visits more seamless but also keeps customers updated on special offers and new products. Encouraging interactions, like asking for feedback or running polls, helps customers feel involved and valued,” Reddy said. 

He also pointed to Starbucks as an example, noting that the coffee giant has used platforms like Instagram to connect with younger, digitally savvy customers. For instance, Starbucks launched a social media campaign in several Southeast Asian countries to celebrate International Coffee Day on October 1, offering new recipes and exclusive souvenirs.

Meanwhile, Deepak Nautiyal, consumer and retail commercial director for APAC and the Middle East at GlobalData, emphasised the importance of loyalty programs integrated with social media. 

“Starbucks’ rewards program, which allows customers to earn points through purchases and redeem them for rewards, fosters a community of repeat customers who feel valued,” Nautiyal said. 

He also noted that Asian consumers are increasingly drawn to brands that promote social responsibility and ethical practices, a trend amplified by social media. “Brands that align with consumers’ values, like social inclusion and environmental sustainability, are more likely to win their loyalty,” he added.

As the market continues to evolve, experts believe coffee shops must adapt their digital strategies to stay competitive. Reddy concluded, “By integrating social media strategies effectively, coffee shops can enhance customer loyalty and maintain their relevance in the fast-changing industry.”

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.

Manila, Philippines – Alternative payment tools have emerged as mainstream for e-commerce payments in the Philippines and accounted for 30.7% in total e-commerce value in 2021. This was according to the latest data from data and analytics company GlobalData.

According to the data, the share of alternative payments in the total e-commerce payment value in the Philippines stood at 30.7% in 2021, up from 21.0% in 2017. Alternative payments were followed by cash and payment cards, which accounted for 29.8% and 23.5%, respectively.

In addition, the Philippines’ e-commerce payment market is crowded with several domestic and international alternative payment solution providers with GCash, Maya , PayPal, and GrabPay leading the space. According to a previous 2021 financial services consumer survey, GCash alone accounted for 18.2% share of the total e-commerce payment value in 2021.

Nikhil Reddy, payments senior analyst at GlobalData, said, “Although ‘cash on delivery’ continues to remain one of the preferred payment methods for Filipinos, alternative payment solutions have surpassed cash to become the most preferred payment tools for e-commerce purchases over the last few years. This is supported by the rising internet and smartphone penetration, growing consumer preference and rising merchant acceptance.”

He added, “The COVID-19 pandemic has pushed the adoption of e-commerce payments in the country, as wary consumers increasingly favoured online shopping to avoid getting exposed to disease vectors. This has also benefited alternative payment tools, with consumers citing convenience, speed, and reward benefits as key factors.”

The rise of alternative payment methods allows the e-commerce market in the Philippines to grew at a compound annual growth rate (CAGR) of 19.8% between 2017 and 2022, is expected to further grow at a CAGR of 15.8% over 2022-25 to reach PHP495.2b (US$9.7b) in 2025.

“While alternative payment tools lead the Philippines e-commerce payment space, they are also now increasingly being used for in-store payments. With the growing adoption of QR code-based solutions among merchants and government initiatives to push electronic payments, alternative payments are poised to disrupt the country’s overall consumer payments space,” Reddy concluded.

Kuala Lumpur, Malaysia – In terms of which brands in the Malaysian market lead the seasoning, dressings and sauces market, they would be Nestle, Lee Kum Kee and Mars Incorporated. This is according to the latest data released by global data and analytics company GlobalData.

According to the report, the Malaysian seasonings, dressings and sauces market is projected to grow from MYR2.2b (US$527.4m) in 2021 to MYR2.7b (US$664m) by 2026 at a compound annual growth rate (CAGR) of 4.5% over the five-year period of 2021 to 2026.

It also noted that the per capita expenditure on seasonings, dressings and sauces in Malaysia increased from US$6.4 in 2016 to US$7.8 by 2021, and is further forecast to reach US$9.4 by 2026, which will be higher than the regional average of US$9.1, and lower than the global average of US$13.8.

In terms of where these products are distributed, hypermarkets and supermarkets were the leading distribution channel in the Malaysian seasonings, dressings and sauces sector in 2020, followed by convenience stores, and F&B specialists.

For Siddhartha Rodrigues, consumer analyst at GlobalData, the rise in home cooking since the onset of COVID-19 is driving the demand for seasonings, dressings and sauces, which serve as cooking sauces, table sauces, and as ready-to-consume table dips. He added that consumers are looking for high quality products in convenient formats that can easily endow the flavour of restaurant-quality dishes to home-cooked meals and snacks

“As the pandemic wanes, consumers are poised to venture out of their homes more frequently. Owing to their hectic lifestyles, young consumers are seeking healthier seasonings, dressings & sauces with novel flavours in convenient formats that can help them reduce the time spent in preparing and cooking dishes at home,” he said.

Rodrigues added, “They are seeking traditional and innovative flavours that can elevate the taste of home-cooked dishes and snacks and enhance the overall at-home consumption experience. Manufacturers need to expand their product portfolio with multiple flavours to meet the varying demands of consumers.”

Jakarta, Indonesia – The e-commerce market in Indonesia is expected to grow by 23.8% in 2022, and will be valued at IDR420t (around US$30b), according to insights from data and analytics company GlobalData.

According to the data, e-commerce payments in Indonesia are forecasted to rise further at a compound annual growth rate (CAGR) of 22.0% between 2021 and 2025, to reach IDR753t (US$53.8b) in 2025. Part of the forecasted growth’s reason is due to factors such as rising Internet and smartphone penetration, the growing middle class population, and proliferation of online merchants and payment tools.

In addition, the insights also noted that the rise in local e-commerce is also supporting the emergence of new payment models such as buy now pay later. The Indonesian buy now pay later market is crowded with several players including banks and payment service providers offering this service.

Nikhil Reddy, payments senior Analyst at GlobalData, commented, “Online shopping is popular in Indonesia, a trend that has become more prevalent amid the COVID-19 pandemic. The recent outbreak of the Omicron variant has further led to the resurgence of new cases, the highest in the last six months, which is likely to drive online shopping.”

He added, “The COVID-19 outbreak has accelerated consumers’ shift from in-store to online payments. The uptrend in e-commerce sales is likely to continue over the next few years, supported by government initiatives, growing consumer preference and improvements in payment infrastructure.”