Tag: Market Report

Singapore – Pandemic-driven ‘shelter in place’ advisories have pushed the greater majority of Indonesians to try mobile gaming for the first time, making them the new ‘powerhouse’ of said industry, a new report from marketing cloud company InMobi shows.

According to their latest report, over 80% of Indonesian gamers are ‘committed’ as they play once to several times a day, with the 35-44 years old bracket coming out with the highest overall percentage of committed gamers. The gamer demographic is split nearly equally between females and males.

Furthermore, the report also found out that 46% of their Indonesian respondents stated that it is their first time venturing into mobile gaming in general.

In terms of frequency in installing mobile game applications, about 54% of Indonesian respondents have three or more games installed, and 46% of committed gamers download games several times a week. Around 24% of respondents spend over an hour gaming, while the average mobile gamer spends an 11-30 minute ‘snack-sized’ playtime per session.

Rishi Bedi, general manager and vice president of Southeast Asia, Japan, and Korea at InMobi, notes that Indonesia has demonstrated that significant growth potential for mobile gaming in the region was seen due to better accessibility and affordability, as well as the rising demand for ‘snack-sized’ entertainment.

“Gaming is among the biggest opportunities for advertisers across Southeast Asia today. What it provides is not just huge reach, but the ability to access an audience that is highly engaged and receptive to ads in an environment that is completely brand safe and impactful. This, in combination with the richness of mobile, ensures that every brand can drive relevant ad experiences at scale,” Bedi stated.

The report also found that Indonesian gamers are familiar with and receptive to ads during gameplay, with over two-thirds of respondents preferring to watch ads to progress in games instead of paying. At least 62% remembered the ads they had seen when playing mobile games because it catered to their interests, was immersive, or provided them with in-game rewards. 

Within the wider Southeast Asian market, smartphone gaming experienced triple growth in the region during initial lockdowns in April 2020. This also translated into a long-term behavioral shift beyond the pandemic as gaming usage more than doubled year-over-year on average since January 2020 – a significant register as Southeast Asia is home to 250 million mobile gamers.

Taipei, Taiwan – The fast-moving consumer goods (FMCG) scene in Taiwan has been majorly dominated by local-grown brands, with a greater inclination to dairy products and beverages, the latest data from Kantar’s Brand Footprint report shows.

Leading the list is homegrown brand I-Mei Foods, a well-known milk processor company in the country; followed by Kuang Chuan, another milk brand; and Fresh Delight, a beverage company. Coming up next on the list is local food production company Uni-President, dairy company Wei Chuan Lin Feng Yin, and dairy brand Chui Sui, which is part of the Uni-President company group.

Only two global brands made it as the top FMCG brand choice among Taiwanese, which includes Quakers, Kirkland Signature.

Such high preference to local brands, according to Kantar, can be largely attributed to the rise of retailers in the digital age in Taiwan, and coincidentally the top-three choice brands are well-known retailer staples. According to them, retailers drove growth in consumer purchases via a digital approach – apps, payments and CRM to link the consumer journey. This demonstrates that private labels are now able to meet consumers’ expectations and get the balance between quality and price right. In 2020 they were able to recruit and drive repeat purchases.

Uni-President’s beverage lineup CH’UN CHI CHA ranked as the top beverage brand choice in Taiwan, followed by local beverage brand Hey Song and Super Supau. Global beverage brand Coca-Cola followed suit, then Vitalon Ochaen, a tea beverage brand.

In terms of dairy and dairy substitute products, Kuang Chuan takes the lead, followed by I Mei and Fresh Delight. This is then followed by Wei Chuan Lin Feng Yin and Uni-President’s Chui Sui.

Kantar notes that the reason why Coca-Cola managed to be alongside local brands is due to Coca-Cola’s campaign in 2020 focusing on Taiwan’s cities using local languages to build strong engagement with consumers. 

I Mei also takes the lead in the food category ranking, followed by frozen foods manufacturer Laurel and food brand Uni-President, as well as potato chip brand Lay’s and local food brand TAI SUN.

In the health and beauty category, women sanitary brand Sofy takes the lead, followed by global sanitary brand Kotex and beauty brand Carnation (KNH). Toothpaste brand Darlie follows the list, and global hygiene brand Colgate. For the homecare category, on the other hand, global tissue brand Kleenex tops the list, followed by local tissue brand Andante and De Yi. 

“Brands won through agile adoption and disruption, catering to the growing demand for convenience and by accelerating innovation to win new consumers. In an era driven by data, Kantar is uniquely placed to connect the dots through the consumer journey and link everything back to real purchases to uncover your next growth opportunity,” said Jason Yu, managing director for Greater China Worldpanel Division.

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

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

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

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

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

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

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

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

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

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

Hong Kong – As more and more consumers are embracing an online-to-offline (O2O) approach to the retail industry, a greater majority of retailers across Hong Kong and nine key cities in Mainland China, known as the ‘Greater Bay Area’ (GBA), are keeping in mind the importance of digital strategies to their business, specifically in the local setting, a new report from consulting firm KPMG, in partnership with the Hong Kong arm of business communication non-profit GS1, and financial institution HSBC shows.

In its latest report, they note that 73% of GBA retailers are implementing localized forms of their retail digital strategies, keeping in mind that they are increasing their use of both direct-to-consumer e-commerce and third-party e-commerce platforms.

The most common business functions for which 43% of surveyed retailers are implementing a GBA strategy are sales and marketing and communications, as companies look to attract customers in the mainland China market. Thirty percent of those retailers polled are developing a GBA programme for fulfilment, logistics, operations or supply chain management.

Consumer-wise, one in two (50%) of Hong Kong consumers said they felt more comfortable about shopping online since the start of the pandemic, not far behind the 59% of respondents from the nine mainland China GBA cities surveyed. Tellingly, 24% of Hong Kong consumers and 23% of those in the mainland GBA cities say they could live without physical retail stores.

The greater force that the report notes as game-changer for the modern retailer is the choice of Gen Z consumers towards online shopping, as 73% of Gen Z consumers in Hong Kong and 86% in mainland GBA cities expecting a swift response to product enquiries logged on online chat, and expecting brands to use tech including AI to help shortlist new products. 

They also expect augmented reality (AR) functions to help them make better purchases online, with 61% in Hong Kong, and 82% in mainland GBA cities. The research also shows Gen Z consumers prefer contactless shopping (60% in Hong Kong and 77% in mainland GBA cities). Around 76% of retailers surveyed are adopting at least one type of Gen Z-specific strategy.

In the mid of the rising population of shoppers moving towards online, GBA retailers need to act fast to respond to the consumers’ O2O needs. The research shows a vast gap between customer expectations and what retailers are delivering, with 77% of Hong Kong and 85% of mainland respondents in the GBA indicating that retailers need to have a better connection between channels and create a seamless customer journey. Among retail executives that were surveyed on their actions to enhance customer experience, only 39% of businesses were currently focusing on the integration between physical stores and online, suggesting a significant gap in retailers’ O2O propositions.

Alice Yip, partner at head of consumer and industrial markets for Hong Kong at KPMG China, notes that these results cement the fact that more consumers are buying more online than ever before, and the retail brands who have best survived this rapid transition are those who have proven agile in their response to the growing demand for digital engagement.

“Hong Kong and mainland China GBA retailers are already implementing strategies for regional growth across the region while also looking to expand into Southeast Asia, with industry leaders emphasising the need for adequate localisation of products, services and marketing approaches to attract the growing pool of digital-savvy consumers,” Yip stated.

For Anna Lin, CEO at GS1, she explains that consumers expect a seamless transition from an in-store experience to an online experience. She added that consumers also want to engage with brands across social media and other digital media and they expect brands to use technology to improve customer service, ease of payments, flexible delivery options and convenient returns.

This is also agreed by Lewis Sun, head of product management for global liquidity and cash management for Asia Pacific at HSBC, who commented, “In order to deliver a seamless customer journey, more retailers in the Greater Bay Area are looking for a single platform that can take payments from multiple channels – from credit cards, bank transfers to e-wallets.”

As retailers and brands develop more complex digital channels and deploy new technologies, sourcing, upskilling and reskilling talent to build a future-ready workforce will be a key priority for retailers in navigating the new normal and capturing growth opportunities. With technical areas such as IT and systems support (38%), data analytics (35%), and research & development (31%) identified as top areas demanding more workforce, professional development programs as well as talent exchange within the GBA will provide opportunities to fill the gaps.

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

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

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

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

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

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

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

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

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

Hong Kong – With the rise in popularity of virtual banks such as Ant Bank, ZA Bank, and Mox Bank in Hong Kong, data company Vpon has recently published a report on the current state of virtual banks in Hong Kong, how they strategize their marketing strategies, and what traditional financial institutions can learn from them.

In the report, Vpon noted that virtual banks have a greater tendency to spark immediate gimmicks to promote their services through promotional campaigns. ZA Bank was the first to offer a promotional package upon Government’s Cash Payout Scheme to attract users, which resulted in a 500% growth rate of new installs. 

Fusion Bank, on the other hand, collaborated with a TV channel by sponsoring digital red packets and cash coupons worth over HK$20M that has resulted in an 1800% increase in growth. Meanwhile, Mox Bank leveraged strategic cooperation and became the first virtual bank in Hong Kong to launch credit on card service, aiming to turn loss into profit as a mid-to-long-term market strategy.

In addition, Vpon also noted that virtual banks have a pattern of ‘go viral, go deep’ in their marketing strategy, wherein they maintain a sustainable install rate and retain loyal users, and then mastering Big Data to understand their current customers and uncover their potential customers.

Demographic-wise, the report noted that the larger demographic of virtual bank users in Hong Kong are 69% male and 31% female, and are prevalent in Hong Kong’s residential areas such as the Southern District and Tai Po District.

Virtual banks tend to be more popular among the younger generation. Zealous Youth and ‘digital learners’ ranked first and second respectively, as they can be seen as more digitized and keen on exploring new technology. Meanwhile, traditional bank users are usually retail lovers and automotive enthusiasts, and their consumption hinges more on life utilities. Besides, they also tend to be more finance-oriented and show interest in other banking and finance services.

With the large majority of virtual bank users being tech-savvy, they mainly engage in toys and games and electronic gadgets ads. In addition, they show interest in food and drinks. Traditional bank users, meanwhile, are more interested in retail and automotive-related ads. They also engage in house care products and tend to fall in cosmetics-related ads. 

In terms of mobile usage, virtual bank users are mainly concentrated in morning to lunch hours during weekdays. Not surprisingly, 24/7 operation hours are also a possible reason for the midnight activeness of virtual bank users. On the other hand, traditional bank users are generally more active in the early morning till the end of the lunch hours during weekdays. Comparatively, the usage rate is lower during weekends due to limited office hours for offline customer service.

Despite the challenging business environment, the report projected an impressive growth of the virtual banking sector over the past year by launching various initiatives for brand building to lure potential customers. Some of them have acted in concert with different market pre-conditions and government benefits to formulate specific offerings, such as account opening rewards, high deposit interest rate and maximum cashback to attract new customers.

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.

Singapore – Southeast Asia brands still see ad networks Google Ads and Facebook Ad Networks holding significant relevance in achieving retention among target consumers as well as in applying remarketing, a new report from mobile marketing analytics company AppsFlyer showed.

According to the report, Google Ads ranked number one when it comes to retention in Southeast Asia (SEA), while Facebook Ads fare better when delivering high-quality users from remarketing campaigns across Asia Pacific (APAC).

Google extended its lead over Facebook at the top of the index report, claiming first spot in all gaming and non-gaming categories, especially finance-based apps. Indonesia’s financial consultant app, Pendanaan Teknologi ranks third place in the overall finance-based apps in SEA, followed by Cashcash and Akulaku. 

Meanwhile, in all lifestyle non-gaming categories such as shopping, life, and culture, as well as social, Facebook ranked first in SEA, followed by Google Ads and Apple Search. 

As the report stated on the high index ranks of finance-based apps and well-known gaming apps, share of non-organic installs (NOI) on iOS dropped 17% in the second half of 2020 in Southeast Asia compared to the first half of the year, while NOI on Android saw the opposite effect — increasing by 9% in the same period. This is especially relevant in Southeast Asia, where AppsFlyer’s data from July to December 202 shows that Android users contribute 84% of organic installs, versus just 13% for iOS.

“2021 is going to be significantly different to previous years for marketers with end users enabling Limited Ad Tracking (LAT), and growing attention around user privacy alongside Apple’s privacy changes. iOS reliant networks and advertisers using them need to start thinking of active solutions to limit impact now,” said Beverly Chen, marketing director for APAC at AppsFlyer.

AppsFlyer also noted a 30% jump in the cost per install (CPI) on iOS in July to December 2020 which was a key factor behind the significant drop (Android cost increased by only 10%). As a result, mobile app marketers generated fewer installs for the same budget. The rise in media cost for iOS users was driven by two main elements: an increase in demand due to accelerated digital transformation caused by Covid-19, and a decrease in supply due to a 40% rise in the share of users who enabled Limited Ad Tracking (LAT). 

Other key insights noted in the report are TikTok Ads’ significant growth on iOS (+52% in its share of the pie). From 2019 to 2020, TikTok Ads recorded 82% more NOIs in APAC, climbing five spots in the global iOS gaming power ranking to reach an impressive 9 position from 14. Meanwhile, Unity Ads is still establishing its dominance in the gaming battleground, specifically in hypercasual gaming.

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.

Sydney, Australia – Australian business leaders are stating their dissatisfaction with their current customer relationship management (CRM) solutions, new research by global software company SugarCRM shows.

According to the report, 49% of Australian sales professionals believe their CRM systems are costing them revenue, suggesting that sales leaders are struggling to ensure teams are spending enough time with customers and can access the data required to build and maintain these vital relationships.

Furthermore, the report shows that 52% of sales professionals in Australia believe that their CRM systems are unfit for purpose, while customer churn is costing mid-market companies an average of US$5.5M each per year. 

For Craig Charlton, CEO of SugarCRM, the recent data reflects the greater change in customer behavior, and businesses around the world are facing a customer relationship crisis.

“Sales teams are bogged down with administration and stuck with an inaccurate picture of the customer with little advance notice or insight into customer churn. These findings are a wake-up call for companies relying on the market-leading incumbents in CRM with software that is tuned to steady-state and known customer behaviors,” Charlton said.

The research also found that 53% of sales leaders are fatigued and frustrated with the CRM admin burden placed on their sales teams, which is taking them away from customer-facing activities. Indeed, sales reps are only spending 54% of their time selling. Furthermore, over half of sales reps in Australia (52%) reported their customer churn increased in the last 12 months, with 52% of respondents having trouble predicting when customers would churn. 

Lastly, upon reflection, almost half (48%) of those sales professionals reported not knowing why customers churned, while 50% of Australian sales leaders admit that they cannot access customer data across marketing, sales, and service systems, leaving customer-facing team members without a clear picture of their customers.

“The gap in customer data, the millions of dollars lost to churn, and the lack of insight, prevents sales and business leaders from acquiring the intelligence they need to make both vital strategic and tactical decisions. Companies that close the data gaps and improve the accuracy and completeness of their customer data, stand to improve retention, increase revenue, and gain more predictable business outcomes,” SugarCRM said in a press statement.