Tag: Retail

Against the backdrop of the post-pandemic recovery, consumers across the Asia Pacific region have been adapting to many challenges: inflation, a cost-of-living crisis, and supply-chain-related instability of product availability, to name a few.

The pandemic has disrupted traditional in-store shopping patterns for three long years, but a recent return to a more ‘normal’ shopping environment has put into focus how much consumers driven online over that time would return to stores.

Amid the current saturated e-commerce landscape, as well as the current climate of economic uncertainty, there is therefore an even greater need for retailers to know how to better engage consumers to gain market share, particularly as consumers recalibrate their spending.

KPMG and GS1’s latest research of 7,000 consumers across 14 markets in the region reflects multiple patterns and expectations among consumer groups, but one over-riding conclusion is clear: The era of seamless commerce has arrived and while both online and offline channels remain popular throughout the region, traditional retail business models are unlikely to meet the expectations of many consumers today. Retailers and brands will have to adapt or face potential consequences of not moving with the market.

From omnichannel to seamless retail

We’re witnessing a third wave of digital disruption in the ever-evolving retail landscape. Previously, multichannel approaches—such as online and brick-and-mortar stores—operated independently within the same retail umbrella. However, the omnichannel era, fuelled by data analytics and AI, has prompted retailers to build bridges across these silos, encouraging collaboration.

Now, with seamless commerce, we’re entering a new evolutionary phase. The seamless commerce approach recognises that consumer interactions span multiple channels, blurring the lines between online and offline. To deliver a truly seamless experience, retailers must adopt an end-to-end perspective, making decisions through a fundamentally different lens. If they don’t deliver a truly seamless experience and don’t adapt their businesses to meet the expectations of the next generation of consumers, they will struggle to survive.

Innovative retailers are striving towards seamless commerce – which recognises a brand’s customer journey across multiple platforms and services, encompassing social media, delivery innovations, apps, websites, automated messaging, and other digital interactions, all seamlessly integrated within traditional physical stores.

The concept of seamless retail was fuelled by the pandemic, where consumers across all generations were driven to shop online, unable to visit physical stores due to movement restrictions. Not only did they head online to purchase food, groceries, and other essential goods, but the migration from working in offices to working from home saw demand in categories such as apparel and home furnishing.

With this shift, seamless commerce – once a differentiator – is now a baseline expectation from consumers; retailers and brands will have to adapt or face potential consequences of not moving with the market.

It’s never a one-size-fits-all in Asia-Pacific

In recent decades, the Asia-Pacific region has been at the forefront of retail transformation, notably in its early and extensive adoption of online platforms which have played a much larger role compared to the rest of the world.

Although COVID has accelerated online shopping across the region, results tell us that consumer habits in terms of how, where, and when they shop remain highly varied. On average, 45% of respondents preferred the ‘omnichannel’ approach, while in a boost for physical-first retailers, relatively few respondents said they could live with only shopping online.

In fact, the e-commerce landscape in the region is marked by a lack of a dominant platform – although various solutions and marketplaces are prevalent in individual markets. There is intense competition among platforms to capture the consumer’s dollar, and these figures identify a wide variety of products and fast, reliable delivery as two of the top three priorities for consumers when choosing a platform.

In terms of desired improvements, competitive pricing ranked as the foremost expectation in Asia-Pacific, cited by 38% of respondents, while promotions and discounts ranked third at 25%, highlighting the need for retailers to implement price strategies that ensure they remain competitive in the market.

Despite these aggregated results, the study reveals that although online is now more important than ever as a retail shopping channel, others such as livestreaming and social shopping are growing at differing rates in many locations. Marketplaces, once at the vanguard of retail transformation, are now coming under attack from new players, including department stores and other multi-brand retailers developing sophisticated, personalised platforms to recover market share they may have lost online.

More notably, a one-size-fits-all retail strategy – if ever it made sense – is becoming less and less meaningful.

How AI is shaping customer experiences and driving sales

With consumer preferences in Asia-Pacific being ever-varied, retailers are embracing AI at an unprecedented speed, resulting in improved customer experiences and increased sales.

In fact, our interviews with senior executives suggest that the adoption of AI by retail enterprises is faster than any previous technology – both at customer-facing points and behind the scenes. Analysis from Stocklytics predicts the generative AI market will hit US$1 trillion in value by 2031, representing a cumulative annual growth rate of 48.05%.

Front-of-house, AI is being used to refine customer experiences in automated chat platforms by developing a better understanding of consumer experiences and behaviour to provide more accurate responses and information.

Responses to customer enquiries can be based on relevant help centre content – directly provided within the conversation, rather than just sharing relevant FAQ responses as is typically done.

Back-of-house, AI has become an indispensable tool in functions such as demand forecasting, supply chain management, and developing marketing content. We have seen how ChatGPT has taken the world by storm, with a user base of more than 180 million people in November 2023.

There is a huge opportunity for AI to help companies understand purchasing trends – sudden spikes or drops in volume, for example – to maintain optimum inventory levels. It can contribute to significant efficiencies in sourcing, shipping, and inventory optimisation by predicting product demand, thereby mitigating issues like out-of-stock inventory or overordering. Currently, such decision-making processes may be delayed or predominantly manual, but the leverage and scalability that AI brings can greatly amplify the output traditionally managed solely by human personnel.

Incorporating seamless commerce strategies for sustainable business growth

Across Asia-Pacific, retailers who limit themselves to one channel face significant risks. Online-only retailers may lack the personal touch and might encounter difficulties in establishing reliable delivery systems, while traditional brick-and-mortar stores are not only missing out on reaching a broader audience but also on leveraging their physical presence for innovative solutions like ‘click and collect’ services or using their locations as local distribution hubs.

To meaningfully address these dynamics, focusing on a frictionless customer experience as the ultimate benchmark for measuring success is crucial. Insight-driven retailers need to utilise data and analytics to predict, strategise, and tailor their product offerings and service delivery, backed by a deeper understanding of their customers’ needs.
Technologies such as AI and Gen AI are increasingly helping retailers to yield actionable insights and interventions that improve customer experiences – from enhanced demand forecasting and customer service to optimising product availability and fine-tuning pricing and promotions.

Indeed, a seamless online-offline customer experience has now become a baseline expectation. Only by excelling in this domain can retailers expect to lead the market.

This thought leadership is written by Anson Bailey, Head of Consumer & Retail, for KPMG in Asia Pacific

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Kuala Lumpur, Malaysia – Global skincare brand SK-II celebrates a reimagined retail experience by paying homage to its heritage in the brand’s first-of-its-kind concept store in Kuala Lumpur, Malaysia.

Through this store, SK-II’s retail experience is reimagined for guests to immerse in the miracle world of ‘PITERA’, SK-II’s prized component, as they uncover the stories behind the house of SK-II – from the fabled origin story of SK-II to the decades of craftsmanship, skin science discoveries and skincare innovations.

SK-II’s concept store tells the story of SK-II’s origin, which started in the 1970s when a team of scientists began a fervent quest to uncover a revolutionary ingredient that would make beautiful skin a reality.

Every detail in the concept store has gone through meticulous deliberation to bring to life the different facets of the world of PITERA. Each element in the store is carefully crafted from naturally inspired materials and artfully designed to tell the intricate stories of SK-II’s heritage and the miracles of PITERA that continue to unfold today.

Inspired by the spirit of ‘omotenashi’, or ‘wholehearted hospitality’, SK-II is also elevating the skincare counselling experience to a ceremonial level. For the first time ever, consumers can luxuriate in the SK-II Skin Ceremony with skin experts that reflect the unparalleled SK-II omotenashi-inspired service that delivers memorable and meaningful moments for every guest.

Furthermore, the store’s grand opening on June 22 was joined by some of Southeast Asia’s biggest names in beauty, featuring an exclusive appearance from SK-II’s global celebrity ambassador MINA of global girl group TWICE.

Talking about the opening, Sue Kyung Lee, president, P&G Global Skin & Personal Care, said, “This first-ever SK-II concept store in Kuala Lumpur, Malaysia, marks a momentous milestone for the house of SK-II. Consumers are at the heart of all we do at SK-II, and this is a testament to our commitment to elevating skincare experiences for her and transform.”

“More than a retail store, we want to provide a sanctuary for her to switch off from the world and immerse in the miracle world of PITERA. This is the beginning of a new era to elevate the SK-II shopping experience, and we look forward to sharing it with the rest of the world,” she added.

Singapore – The emergence of seamless retail, with digital transformation propelling remarkable advancements in the sector, has put the customer squarely at the centre of attention, marking a new era.

With this, concepts such as multichannel and omnichannel, have lost their relevance, with a highly customer-centric approach taking the lead, according to a report by KPMG Asia Pacific and GS1 which examined how businesses and consumers in the Asia Pacific are embracing these seamless commerce strategies across diverse markets and geographies.

The report notes that once a differentiator, seamless retail – encompassing a brand’s ability to recognize and integrate the customer journey across multiple platforms and services – is now a baseline expectation in a majority of the markets surveyed, making it the new benchmark for tomorrow’s sellers.

The expectation is that social media, delivery innovations, apps, websites, automated messaging, and other digital interactions – all seamlessly integrate with traditional brick- and-mortar stores.

Highlights of the report include six key trends transforming retail, with retailers progressively expected to deliver on seamless retail, through integrated, connected capabilities to meet consumers on their terms.

Firstly, the report highlighted key priorities that consumers are looking for when choosing a platform, which are a wide variety of products and fast, reliable delivery amidst an e-commerce landscape in the region marked by a lack of a dominant platform. This comes alongside the prevalent application of AI in enhancing the relevance and accuracy of product recommendations, though there are concerns among consumers around privacy and lack of human interaction.

The report also highlighted trends such as social commerce gaining popularity among Gen Z, with fast-paced platforms such as TikTok, the consistent prominence of digital payment platforms as digital e-wallets gain traction in APAC, the recognition of loyalty programs for data collection, and sustainability placing itself forward as the baseline of marketing.

Notably, the report also stated that consumer expenditure is likely to start slowing down in APAC this year. With consumers feeling the impacts of rising costs, some markets are seeing muted growth while others are experiencing downtrends. Therefore there is a greater need for retailers to know how to better engage consumers in the current climate and beyond to gain market share, particularly as consumers recalibrate their spending.

Talking about the findings, Anson Bailey, head of consumer & retail, for KPMG in Asia Pacific, said, “PuttIng consumers first by adopting seamless, connected capabilities across the en4re organisation is no longer just a competitive edge, but a necessity for those who want to lead the market. ‘Navigating the Future of Seamless Commerce’ seeks to play a key role for the industry to identify opportunities, spurring innovation to better develop more successful customer experiences and journey maps.”

Meanwhile, Patrik Jonasson, senior director of global retail at GS1, commented, “Product sustainability, supply chain transparency, and circularity are becoming central to overall business operations. Soon, ESG reporting will be indistinguishable from the need for a seamless exchange of trusted product data. Companies will need to exchange information that is trusted and can be understood by all of the actors across today’s complex global supply chains, including the consumer.”

With the rapid expansion of online shopping and the increasing number of businesses establishing an online presence, having effective e-commerce marketing strategies has become paramount. These strategies are crucial for attracting, engaging, and retaining customers in a crowded marketplace. 

Effective e-commerce marketing goes beyond simply having a website; it encompasses a variety of tactics including SEO, social media marketing, email campaigns, content marketing, and data analytics.

As part of our E-Commerce Marketing Series interviews, we spoke with Eddie Teng, head of e-commerce for APJ at ASUS to learn more about his insights on how e-commerce marketing strategies play out in the consumer electronics industry, as well as detailing the various e-commerce trends many brands are implementing to supplement their online retail strategy.

First-party data as a cornerstone of e-commerce marketing strategies

While many would mention how first-party data would primarily apply to digital advertising strategies, it is also worth noting that first-party data is now also being utilised by businesses–especially those with online retail components–to personalise the experience to their online shoppers and give them the right choice to buy.

In Teng’s case regarding the use of said consumer data, he notes that in recent years where privacy concerns are amongst the talks of consumers, it has been observed that data collection has been one of the challenges faced by third-party data management platforms. This has then resulted in the increased efforts and cost of leveraging third-party data, making it tough and costly for brands to invest.

“This is one of the reasons why for brands within the consumer electronics are going back to their own users’ data, remarketing to them and drive the demand for repeat purchases. This approach makes great sense for consumer electronics brands given that [one] its product nature is individually driven where the device are usually attached to a single user, [then] its products have a usage period where an upgrade maybe required with the advancement and evolvement of technologies and [lastly] users data are more actively and voluntarily collected as part of the device activation and manufacturers’ warranty,” he explained.

Teng also noted that by enhancing and leveraging first-party data, brands–especially those in the consumer electronics scene–not only engage their users in a cost-effective and efficient manner, but also allow them to personalise their engagement to each of its single users with relevance to their likings, interests and behaviours.

“The other benefit is also the improvement in the consumer-to-brand experience since conversations and engagements are tailored to each individual, directly from the brand. With enhanced first-party data, brand marketers can now suggest and promote the right product or device to their users when its time for an upgrade of their current and old devices,” he further added.

Social commerce and conversational marketing hand-in-hand

In terms of more trends that have become more prominent for e-commerce marketing strategies, Teng notes that usage of social commerce and conversational marketing have also skyrocketed, especially in a post-pandemic age.

He notes that since the pandemic, the idea of purchasing a product within social livestreams has been widely accepted by consumers, hence why e-commerce brands have been actively engaging KOLs and influencers to promote and sell their products on their brands’ social pages in the recent years.

“This idea has evolved and have let marketers to realise that this success is not because of the act of selling across social media, it is the demand from consumers to have a more direct and authentic conversation with the brands and merchants on products they want to purchase. This is especially true for brands within the consumer electronic industry because its products can be complicated and require more education on its usage and its benefits. Which is why a direct conversation with the brands will address this effectively,” Teng stated.

Teng also added that these heightened demands and behaviour have led consumer electronics brands to expand how and where they sell their products. For him, It is no longer enough for a consumer to just visit the brand’s website, add the desired product to the shopping cart and check out. Instead, consumers nowadays want more flexibility and accessibility when making a purchase.

“It can be as straightforward as a consumer firing up a web chat, enquiring more about the desired product, asking for the best offer on it, expressing his or her intention to purchase and making the order and payment directly through the chat. As previously mentioned, personalised communications and engagements from brands to consumers are what drove growth in e-commerce, and with enhanced first-party data, brand can effectively converse with its users and push them to make the purchase socially,” he explained.

Harnessing new technologies with a human touch

Teng also foresees the rise of AI-powered solutions empowering e-commerce marketing strategies while noting that the personal computer (PC) industry has been actively designing and implementing AI solutions into their products and workflows with the understanding these benefits.

“AI technologies have been shaping our industry in the way we work. From empowering data scientists and analysts to tackle big data, to form accurate insights and recommendations for management to make informed decisions, to enhance and fill up knowledge gaps of stakeholders of the marketing strategies – the leverage of AI has driven marketing competency and allow brands and businesses to produce well-thought off plans with the same human resources,” he stated.

With that being said, he adds a caveat that with the reliance on technologies to drive productivity, marketers can be complacent and over-rely on technology tools nowadays and this can lead to seeing more cookie-cutter strategies within the e-commerce industry.

“To better strike a balance between efficiency and human centricity, marketing technologies can also play a stronger role in driving marketing competency. These competencies can include data analysis for insights that allow for better decision-making, the enhancement of quality of work and the fillers of knowledge gaps of marketers. While efficiency with technologies is helpful, competency on the other hand will complement,” he added.

E-commerce as a continuing supplement to retail

Speaking on the outlook of e-commerce marketing strategies, Teng says in the near future within the consumer electronics sphere, e-commerce will play an even more complementary role to retail. This means that it will continue to cater the needs of omnichannel shoppers, in which they experience and shop across multiple channels, offline and online, and ultimately providing consumers the ease of access to owning their products.

“Different touchpoints such as offline stores will be an avenue for consumers to experience and purchase the product, online marketplaces will be the point of comparisons and purchases, affiliated websites and media sites will be the source of reviews and referrals, and while brand.com will be the source of information and the point of purchase,” he says.

He added, “In this landscape that I envision, ASUS across APAC will unify sales and information channels to ensure a synergy across them, facilitating the decision-making along the consumer journey while easing the process of purchase with variety options of payments and hassle-free collection or receipt of their orders. With that, this is how ASUS in APAC will play in this transformation.”

The importance of these strategies lies in their ability to create a seamless and personalized shopping experience, build brand loyalty, and drive sales. By leveraging the right mix of marketing techniques, e-commerce businesses can not only increase their visibility and reach but also convert casual browsers into loyal customers. Moreover, in an era where consumer behaviour and technology are constantly evolving, staying ahead with innovative marketing approaches is key to sustaining growth and staying competitive.

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Singapore – Global retail holding company FJ Benjamin, through its local subsidiaries F J Benjamin (Singapore) Pte Ltd. and F J Benjamin (M) Sdn. Bhd., have signed an exclusive franchise agreement with South Korean The Pond Group to distribute the clothing brand Superdry in Singapore and Malaysia.

Through the agreement, FJ Benjamin have entered into a three-year exclusive franchise agreement for the retail and distribution of Superdry products in Singapore and Malaysia with options to renew with The Pond Group, effective 1 June this year.

Moreover, the agreement allows the group to continue operating its Superdry franchise stores in Singapore and Malaysia, and the group is looking positively to developing this business with the new owner of Superdry. 

Said agreement is not expected to have an impact on the financial performance of the group for the current financial year ending 30 June 2024.

Superdry was created in 2003 by Julian Dunkerton and James Holder. With its roots based around Japanese imagery and vintage American sportswear, Superdry has evolved into a diverse British lifestyle brand with a true global reach. Superdry is poised for continued success with continued global expansion and daring designs that propel the brand each season.

Singapore – LVMH Group, the global creator of high-quality products, and Alibaba Group, China’s e-commerce and technology firm, have announced an expanded partnership to push the frontiers of luxury experiences in China. This collaboration will take advantage of Alibaba’s cloud technologies and AI-powered advancements in retail and online via Tmall. 

The strengthened partnership is a testament to both businesses’ goal of leading retail innovation and providing outstanding, tech-driven luxury experiences. Through this partnership, LVMH will be able to improve its data, omnichannel, and technological footprint in China. 

LVMH has started incorporating Alibaba Cloud’s generative AI capabilities, such as Model Studio (Bailian), an extensive AI model-building platform, and Qwen, Alibaba’s proprietary large language model, as part of its innovation quest. The luxury Maison’s dedication to remaining innovative is highlighted by the innovative apps and services that have been made possible by this integration. LVMH wants to drive innovation-driven growth in its global retail businesses and enhance its premium offers for consumers worldwide by utilising technologies. 

This partnership extension for an additional five years demonstrates a shared commitment to explore new markets, products, and technical frontiers among the more than thirty Maisons and Divisions located within mainland China and Southeast Asia, including Sephora APAC and DFS. In the future, LVMH will have access to a wider range of technology and tested goods from Alibaba Cloud. In order to better serve the Chinese market, this will improve consumer insights, expedite supply chain management procedures, and further optimise corporate operations.

The announcement of the partnership’s global expansion comes after Tmall was first included in Tiffany’s and Chaumet’s premium retail ventures. Up to now, LVMH has unveiled about thirty esteemed Maisons that are presently collaborating with Tmall Luxury Pavilion to make use of Alibaba’s digital capabilities for captivating experiences, including virtual try-ons, 3D product displays, and live streaming. 

Both companies have also increased their cooperation on a number of omni-retail projects, such as membership programs, product launches, digital replicas of famous luxury locations, and one-on-one consultations. Millions of Chinese consumers will now have access to the LVMH luxury experience. 

The strategic partnership between the two companies began in 2019. Since then, LVMH has used Alibaba Cloud’s data management tool, Dataphin, to power “LVMH ATOM” China, a platform built by LVMH to provide individualised services to its growing Chinese consumer base. Furthermore, LVMH has used Alibaba Cloud’s machine learning platform, PAI, to create tailored services that respond to the diverse tastes of Chinese consumers across all of its brands. 

Speaking about the partnership, Stephane Bianchi, group managing director of LVMH, said, “Alibaba is already a key and valuable partner of our Maisons and the Group. The reinforcement of our partnership with Alibaba aims at helping us accelerate omni-channel business growth and enhancing premium luxury experiences driven by the transformative capabilities of cloud and AI technologies, along with its world-leading expertise in e-commerce operations. Our synergetic and forward-looking collaboration will deliver unparalleled experiences to our global customers throughout their premium shopping journey.”

Meanwhile, Eddie Wu, chief executive officer of Alibaba Group, expressed, “Alibaba is pleased to enable a transformation of the high-end consumption experience with retail leaders like LVMH through our world-class technologies in cloud computing and AI. This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall. We look forward to continuing to build on the strong partnership and innovation journey with LVMH.”

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.