Retail Archives - MARKETECH APAC

Bangkok, Thailand – Levi Strauss & Co. (LS&Co.) has announced the reopening of its Levi’s store at popular mall CentralWorld, in Bangkok, Thailand. At 364 sqm, the expanded store is now the largest Levi’s store in Southeast Asia, marking yet another milestone in LS&Co.’s footprint within the region.

This reopening also represents LS&Co.’s focus on its direct-to-consumer strategy as the company continues to grow its fleet of fully owned-and-operated stores across key locations in the country.

The Levi’s NextGen Indigo store will offer consumers an elevated shopping experience that brings together style and originality, through a broad selection of products and customisation offerings. Appreciating that originality and self-expression are important considerations to Thai shoppers, especially youths, the store also boasts the country’s second Levi’s Tailor Shop which unlocks a range of personalisation options.

To offer the fullest expression of the Levi’s brand, the store will also house an extensive product assortment across all collections including seasonal exclusives. This also includes collaborations with key cultural figures. To mark the occasion, a limited-edition collection designed in collaboration with Sundae Kids, a rising generation of Thai artists known for their unique and vibrant designs, will exclusively be available on the day of the store opening.

Sameer Koul, general manager for Southeast Asia and country manager for Thailand at Levi Strauss & Co., said, “Thailand is an important strategic market for Levi Strauss & Co. within Southeast Asia, and Bangkok is one of the world’s most popular destinations for international tourists. Levi’s CentralWorld store opens as our largest store in Southeast Asia to date, and represents our commitment to this dynamic market as we continue to build deeper direct connections with both local and international shoppers in Thailand.”

He added, “We always strive to deliver immersive experiences that resonate with consumers, right where they shop. By bringing the fullest expression of our brand to their doorstep, we hope to cultivate lifelong denim fans in Thailand – and the wider Southeast Asia region.”

Singapore – Around nine in 10 marketers in Singapore have noted that they foresee social media channels being the preferred retail channel for its local customers this 2024, according to the latest data from HubSpot.

According to the data, nearly all respondents (93%) predicted that local brands will adopt social commerce strategies in response to this shift as opposed to third-party websites (92%), or from the brand’s website (90%).

Moreover,social media marketers in Singapore are selling on several social media platforms, which each register varying levels of effectiveness. Among marketers already engaging in social commerce, more than 7 in 10 (73%) perceive Instagram’s social shopping features to offer the highest Return on Investment (ROI), followed by Facebook (71%) and YouTube (71%).

The data also stated that nearly 9 in 10 (89%) social media marketers in Singapore believe that an active online community is a vital component to the success of their social media strategy.

Respondents also shared that the top benefits of building a social media community include incentivising user-generated content (31%), improving customer experience (26%), attracting more followers or subscribers (22%), in addition to strengthening brand awareness, customer retention, connections among their customers, as well as trust between the brand and customers (19%).

More than half (58%) of respondents said that their organisations were investing in building communities, laying the foundations to capitalise on social commerce growth opportunities. Of this number, nearly three quarters (72%) are planning to increase their investment into building social media communities in 2024. 1 in 3 (36%) social media marketers who have not begun building social media communities planned to do so this year.

Content-wise, social media marketers in Singapore are currently leveraging an average of three content formats, with the most common being short-form videos (44%), live videos or streaming (41%), and user-generated content (31%). Nearly 8 in 10 (77%) respondents believed that short-form video offered the highest ROI of any format. The focus on short-form video is set to continue growing in 2024, with three quarters (75%) of respondents set to increase their investment into the content format from the previous year.

In terms of AI utilisation, Nearly all (91%) social media marketers in Singapore view Artificial Intelligence (AI) as a crucial component of any successful social media strategy. More than half (59%) of respondents are already using generative AI tools to create social media content. Among social media marketers in Singapore using generative AI to create content, nearly two-thirds (61%) say content made with AI performs better. While Singapore’s social media marketers are leveraging AI for various purposes, the top 3 use cases for generative AI tools include repurposing content to meet the needs of different audiences (35%), writing copy for social media content (31%), and getting ideas or inspiration (30%). AI is most often used to create short-form videos (39%), captions (32%), and images (31%).

Kat Warboys, marketing director for Asia-Pacific at HubSpot, said, “85% of Singapore’s population is estimated to be social media users making it home to some of Southeast Asia’s most avid users. They also have a propensity to use these platforms for brand discovery and research, making social media a key retail channel that marketers cannot ignore. B2B brands in particular need to adapt their approach to match the B2C experience that customers today have come to expect. Moving ahead, we are likely to see B2B brands moving away from factually accurate but often over engineered or very generic material in favour of relatable, authentic and engaging content on social media to win audience attention and influence purchasing decisions.”

She also commented, “Marketers that are constantly challenged by the density of social media content needs can leverage generative AI to alleviate resourcing constraints. Generative AI tools can provide teams with data-driven suggestions for better content ideation, and also help to develop or repurpose content for different audience groups. This approach enables marketers to effectively engage a wide range of customer segments at speed and scale. Automating these time intensive tasks ultimately empowers human teams to dedicate their attention towards augmenting AI-developed content with a level of creative input that is difficult for machines to replicate. Singapore’s continued commitment towards AI in its latest budget will also prove timely, creating a foundation to spur local AI adoption that marketers can also tap on to enhance their competitiveness.”

Singapore – The Carousell Group, a multi-category secondhand goods marketplace in Greater Southeast Asia, has completed the acquisition of LuxLexicon, a Singapore-based luxury bag reseller and accredited luxury consignment platform. This effort intends to strengthen the group’s luxury category by pursuing an omnichannel approach and expanding its premium luxury goods.

The Carousell Group has purchased LuxLexicon’s company and assets in order to add LuxLexicon’s brand, large inventory of premium luxury bags for consignment and resale, and knowledge of offline retail to its portfolio. With this acquisition, LuxLexicon will be able to take advantage of Carousell Group’s expertise in international expansion and online recommerce, which will lead to further growth. Under Florence Low’s direction, LuxLexicon will continue to exist as a stand-alone business, keeping its name, staff, and retail location.

To encourage more consumers to use secondhand choices, the group launched initiatives in 2023 to improve convenience and trust in the purchase and sale of authenticated luxury bags. Carousell Certified Luxury is one such program that gives customers the assurance to buy verified luxury handbags. Since its launch, leads from the Sell to Carousell Luxury program—which allows users to sell or consign their bags directly to Carousell—have increased , more than doubling.

Speaking about the acquisition, Marcus Tan, co-founder of Carousell Group, expressed, “We are excited to partner with Florence and the LuxLexicon team to accelerate our ambition of creating the largest managed marketplace for authenticated second hand luxury bags where users can buy and sell with trust and convenience. We originally met Florence to partner with LuxLexicon for our Carousell Certified Luxury programme. After conversations, we realised that we had a similar vision, and by joining forces with LuxLexicon’s expertise, we could help each other supercharge our luxury bag business in Southeast Asia, Hong Kong and Taiwan over the next few years.”

He added, “We have been strengthening our recommerce foundations to drive our multi-category approach on our top growth categories. Part of these efforts were acquisitions for fashion, mobiles and autos over the years, and we are thankful to have these founders not only continue to partner with us to drive our mission, but also lend their expertise to the wider Carousell Group’s businesses over the years. Beyond growing organically as a top priority, we will continue to seek acquisition opportunities with the right partners across our focus categories and markets to accelerate the future of secondhand in Greater Southeast Asia.”

Meanwhile, Florence Low, founder of LuxLexicon, said, “LuxLexicon and Carousell Group share a common goal of providing a trusted and accessible platform for buying and selling authenticated luxury bags. Additionally, we both see similar strong consumer demand for popular brands such as Hermès, CHANEL and Louis Vuitton. This acquisition allows us to offer more variety of bags and recommend interested consumers to each other. I am excited to further grow the brand with Carousell Group’s scale, investment and regional expertise in the coming years and beyond.”

Singapore – Southeast Asian womenswear brand, Love, Bonito, is redefining womenswear for the Asian woman with a new brand identity and a revamped assortment strategy. The change signifies the brand’s commitment towards its long-term vision of becoming the go-to destination for Asian women.

Fronting the campaign is a line-up of Asian women, specifically chosen for their personal stories and outlook that strays from what a stereotypical Asian woman should be or look like.

To kickstart a new era, the new brand identity includes a sleek heart-shaped monogram that plays to the brand’s initials ‘LB’ and new colours beyond its iconic peach. The brand also challenges the perfect Asian women stereotype by taking on a sassier tone of voice, which will be reflected across the brand’s omnichannel platforms.

Dione Song, CEO of Love, Bonito, said, “It’s high time we celebrate our brand, one that is created in Asia, lovingly made for Asian women, by Asian women. While many of our Asian cultures have been known to be more conservative, we want the world to see who the multifaceted Asian women is in this 21st century. By doing so, we want to let Asian women know that it is perfectly alright to be unabashedly ourselves while keeping to our roots and heritage.”

She added, “Our consistent double-digit year-on-year growth since 2020 has been encouraging and we will be rolling out a new assortment strategy as part of our new brand identity. The vision of being the go-to destination for Asian women is big, and we are just getting started.”

Love, Bonito will also introduce a change in its assortment strategy to ensure a more curated range. Based on over ten years of customer data, combined with machine learning and artificial intelligence, the streamlined assortment includes three key lines: Signatures, Staples and capsule collections. This revamp will provide apparel for work, weekend, casual, holiday and fancy occasions.

Malaysian consumers seek more immersive and convenient shopping experiences. Adyen’s 2023 Peak Season report notes that 55% of Malaysian retailers have observed an increase in customer expectations in response to this behaviour.

This trend is even more pronounced in Malaysia, where 40% of consumers wait for key calendar moments, such as the upcoming Chinese New Year season, to make their purchases, hoping to secure the best deals and discounts.

This peak sales season, Malaysian retailers are standing at a threshold of a major transformation in order to meet these preferences.

Bridging the digital and physical divide

Traditionally, online and offline transactions are treated separately and not integrated, making for a poor shopping experience. Yet, evolving consumer preferences show a demand for seamless integration of online and physical shopping experiences.

To this end, retailers are embracing a unified strategy to elevate the shopping experience. This strategy connects backend systems of a business with its customer-facing channels via a single platform, enabling retailers to gather valuable data insights and help them improve customer experiences.

With these insights, retailers are able to bring a new level of personalisation to the retail experience, such as offering rewards and discounts that are tailored to the customer’s interests. A connected backend also means that retailers are able to recognise returning shoppers easily, thus enabling flexible purchases and exchange processes at the shopper’s convenience.

During peak seasons like Chinese New Year, the focus is also on the convenience enabled by in-store technologies, including portable payment devices, self-checkout kiosks, and flexible payment options. This mirrors the ease of online shopping, offering swift and hassle-free transactions—picture the efficiency of fast mobile checkouts in-store versus the simplicity of one-click online checkout—while minimising queues and wait times.

Innovations such as self-checkout kiosks and mobile apps have become popular among Malaysian consumers, with 52% reporting a happier shopping experience. Beyond this, the rise in usage of portable in-person payment devices in-stores have shown how they open possibilities for more dynamic in-store customer journeys.

For example, Sephora Malaysia revamped their in-store experience, which included removing as many counters as possible in their stores. This strategic move liberated staff from traditional cashier roles, allowing them to serve as roving sales and beauty consultants, providing personalised assistance and value-added services at the retail store floor. Today, staff are now able to help customers complete purchases on the spot without needing to guide customers to a counter or to a queue. This reflects consumer expectations, mimicking online shopping behaviours by busting checkout queues and offering a more personalised and efficient in-store experience.

Consistent data analysis of consumer behaviour also helps retailers better forecast future demand, especially during peak shopping seasons. This in turn can optimise inventory management to avoid shortages or excess stock. Real-time inventory tracking, often facilitated by IoT devices, further aids retailers in ensuring a smooth shopping experience.

Customising experiences to consumer preferences

Malaysian shoppers desire smooth and easy transactions with minimal hassle. A significant 55% of shoppers have no qualms about abandoning their purchase if their preferred payment method is not available. This scenario becomes even more critical during high-traffic sales seasons. As a retailer, the last thing you want is to frustrate a customer who can’t pay how they want, at the very last stage of the purchase.

An overwhelming 79% of shoppers also now seek more personalised discounting from retailers, indicating a clear preference for offers that cater to their specific needs and interests. By leveraging technologies to gather actionable data and insights, retailers can better understand their customers’ behaviours. Through the analysis of purchasing patterns and browsing habits, retailers can go beyond one-off discounts and purchases and drive repeat engagement through more meaningful long-term incentives and rewards programmes.

As we anticipate the peak sales season of 2024, it is clear that continuous technological innovation is shaping the future of retail in Malaysia. While consumers’ needs have not undergone drastic shifts, the evolving dynamics of how retailers meet these needs constitute a dynamic blend of art and science. This highlights the imperative for retailers to consistently innovate to stay ahead of their customers’ ever-evolving preferences. Those who embrace these changes and use data-driven insights gain an edge by turning transactions into meaningful relationships with consumers. Adaptability is key for long-term success in the ever-changing retail landscape.

This article is written by Lee Soon Yean, Country Manager, Malaysia, Adyen

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.

Manila, Philippines – Local telecommunication service provider Converge has announced a partnership with mobile phone and gadget retailer TL Sales and Management Services Inc. (TLSMS) to expand its distribution network, therefore expanding the provider’s retail network reach across 200 stores nationwide.

TLSMS has an expansive footprint in malls nationwide under the brand names Cellboy, Gaming Grounds, Cell Time, Games & Gadgets, Gadget Plus, BOMA Tech, and Cyber Center. These gadget stores are widely available in malls such as SM (in SM Cyberzones) and Ayala Malls.

Jesus C. Romero, chief operations officer at Converge ICT, said, “We are working hard to expand our channels at the moment. We’ve been looking at partners with a wide reach, to get as many customers as we can and we think we’ve found the right partner in TLSMS.”

He added, “Through their vast network of stores under their seven brands, which, by the way, are present in the country’s biggest malls, we will be able to bring our world-class fiber broadband connection even closer to customers.”

Meanwhile, Alvin Chu Teng, CEO at TLSMS, commented, “At the core of our partnership with Converge is a shared vision to empower Filipinos through technology. As a retailer, we offer more than just a mobile device; we offer a solution to enhance and simplify their digital lives. With this opportunity to sell Converge products and services, we are going a step further in this mission.”

Singapore – Retail and e-commerce network Hmall has recently unveiled a new branch in Singapore, marking a stride into the Southeast Asian market.

This action not only establishes a pivotal presence in Singapore but also sets the stage for Hmall’s plan to fully expand throughout the region using its powerful affiliate system.

The strategic move into Singapore underscores Hmall’s goal of reaching a broader audience and becoming a prominent player in the Southeast Asian market. The new branch will be serving as a hub for innovation, collaboration, and customer engagement.

Beyond being a retail space, Hmall recognizes the importance of staying ahead in the ever-evolving e-commerce landscape, and the Singapore branch is poised to become a centre for experimentation, adaptation, and the development of cutting-edge strategies.

Furthermore, Hmall’s affiliate system will play a central role in the expansion throughout Singapore, providing a unique opportunity for affiliates to not only benefit individually but also actively contribute to Hmall’s growth in the region.

For Hmall, this strategic move sets the stage for a comprehensive and influential global presence, marking the beginning of a year that promises numerous branch openings in key markets, including Australia, Hong Kong, Brazil, and more.

Hong Kong – Retail sales in Hong Kong back in November 2023 have by $34.2b, marking a 15.9% increase compared to the same month in 2022, and for the first 11 months of 2023 taken together, it was provisionally estimated that the value of total retail sales increased by 17.1% compared with the same period in 2022. This is according to the latest data released by the Census and Statistics Department (C&SD) of Hong Kong.

According to the data, of the total retail sales value in November 2023, online sales accounted for 9.3%. The value of online retail sales in that month, provisionally estimated at $3.2b, decreased by 16.1% compared with the same month in 2022. The revised estimate of online retail sales in October 2023 increased by 9.0% compared with a year earlier.

Moreover, the provisional estimate of the volume of total retail sales in November 2023 increased by 12.4% compared with a year earlier. The revised estimate of the volume of total retail sales in October 2023 increased by 2.9% compared with a year earlier.

It is also worth noting that jewellery, watches and clocks, and valuable gifts rank the most in the value of sales, amounting to around 60.8%. This was followed by consumer goods not elsewhere classified (29.0%); wearing apparel (54.1%); commodities in department stores (15.0%); food, alcoholic drinks and tobacco (6.3%); medicines and cosmetics (38.7%); footwear, allied products and other clothing accessories (24.4%); Chinese drugs and herbs (33.7%); books, newspapers, stationery and gifts (11.1%); and optical shops (17.8%).

A government spokesman said that the value of total retail sales increased visibly in November over a year earlier alongside the revival of inbound tourism.

Looking ahead, the spokesman added that an expected further recovery of inbound tourism should continue to benefit the retail sector. Continued improvement in household income, as well as various promotional campaigns and activities launched by the Government and the industry should also provide support.

Singapore – Global retail company Muji has recently reopened its Singapore flagship store, MUJI Plaza Singapura, which also comes back as the current largest global flagship store for MUJI in the SEA region.

Spanning 38,400 square feet, the expansive store will feature MUJI’s increased product range across various concepts, scales, and varieties, including the Singapore-first MUJI Renovation.

Comprising over 15 departments and more than 3,000 products, MUJI Plaza Singapura’s new services and ranges include ‘Everyday Good Price’, which are daily essentials priced under $10, and maternity wear. Existing MUJI concepts will also be broadened to show a more complete range.

Specifically, the new flagship store includes clothes and fashion items, health and beauty items, travel goods, stationery, kitchen tools, a food section, a cafe, home related items and appliances, a renovation showcase, a community market with local goods, a bicycle section, refresh zones to relax, and the Everyday Good Price section.

Speaking about the reopened store, Katsushi Onishi, managing director of MUJI Singapore, said, “We deeply appreciate the opportunity to expand and present our increased product range in our revitalised flagship store, situated in the heart of the city.”

“We are eager to introduce MUJI’s new product line and services to Singapore through the new MUJI Plaza Singapura, and hope to extend these offerings to our other stores in the future,” he added.

Singapore – With Singles Day emerging as the top shopping season in Southeast Asia, over 50% of Singles Day first-time shoppers return for more, highlighting untapped potential for retailers according to a report by commerce media company Criteo.

Regionally, the report said that Singles Day emerged as the top shopping season with a 139% increase in sales while Black Friday saw a substantial 42% growth. New buyers surged by 335% on Singles’ Day, emphasising the value of acquiring them.

Specifically, Singles Day (11.11) experienced the largest increase in sales in SEA with Singapore, Malaysia, and Thailand witnessing the largest spike amongst SEA countries, with an increase of 192%, 214%, and 210% respectively. Regionally, other shopping events such as 12.12 saw sales spike by 112%.

Black Friday also rose in popularity as retailers in SEA saw a 42% increase in sales in 2022, compared to 17% in 2021. In Vietnam, retailers experienced the highest sales growth on Black Friday (+141%), which is likely due to Black Friday coinciding with the Vietnam Grand Sale 2022, a national effort to boost domestic consumption and support economic recovery in the post-pandemic period.

The report also stated that new buyer opportunities arise not only before, but also during and after key shopping events as significant spikes in purchases by new buyers rose by 335% on Singles’ Day, and 9% on Black Friday compared to September 2022.

In addition, 51% of 2022 Singles’ Day new buyers made additional purchases from the same retailer between December 2022 and May 2023, highlighting the lasting benefits of acquiring new customers during peak events.

With this in mind, Criteo also provided some actions that brands and retailers can take such as capturing new buyer opportunities through investing in acquiring customers during the peak season, planning early for early shoppers, and launching campaigns earlier for better customer engagement.

Talking about the results, Taranjeet Singh, managing director, enterprise, at Criteo APAC, said, “In the dynamic world of commerce, our insights from 2022’s Double Days reveal a clear trend – seasonal sales are a marathon not a sprint. At Criteo, we eagerly anticipate each year’s insights as an opportunity to empower our brand and retail partners in aligning consumers with the essentials they seek, fostering meaningful connections.”

“By integrating data and technology, supply and demand, and online and offline realms, we empower brands to construct a comprehensive peak shopping season strategy that ensures an unparalleled multi-touchpoints customer journey,” he added.