Tag: Retail

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. 

Singapore – Online fashion and lifestyle retail company ZALORA has announced the launch of ‘The Terminal By Zalora’, its newest omnichannel retail experience that aims to play a part in kicking off the year-end shopping season. 

Inspired by the magic of the year-end travel season, The Terminal by ZALORA is a week-long offline pop-up experience that showcases the latest and greatest from ZALORA’s top global brands in fashion, beauty, luxury, and lifestyle.

Located at Wisma Atria within Singapore’s shopping district at Orchard Road, The Terminal will be open to the public from 2 to 13 November. The pop-up store will kick off ZALORA’s campaign for 11.11, one of the world’s largest shopping events, with Zalora’s 11.11 sale going live from November 8th till November 13th.

The Terminal features over 40 specially curated international brands across the fashion, beauty, luxury and lifestyle categories, from over 3000+ global brands that Zalora carries on its app and web platforms. The experience store also features the latest arrivals and an exciting array of products from popular global brands such as The Ordinary, Paula’s Choice, & Other Stories, Nike, Monki, and Adidas, to luxury brands like Kate Spade, Coach and Gucci.

Talking about the campaign, Achint Setia, chief revenue and marketing officer at ZALORA, said, “In today’s retail landscape, consumers increasingly crave for immersive and seamless omnichannel shopping experiences. Our commitment at ZALORA has always been about creating WOW moments by innovating and elevating the customer journey.”

“We are thrilled to launch ‘The Terminal by ZALORA’ to mark the exciting start to the year-end shopping season and in partnership with featured well-loved global brands. This pop-up embodies our dedication to providing shoppers with a curated, and immersive experience, ensuring our valued customers enjoy not just the finest fashion for one and all in the family, but also unmatched ease and unbeatable prices,” he added. 

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

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

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

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

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

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

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

Singapore – GrabAds, Grab’s advertising division, announced a new strategic partnership with Tomato Interactive, a subsidiary of BlueMedia and component of the BlueFocus Group, today. Tomato Interactive, a global influencer and integrated marketing agency based in China, specialises in travel, lifestyle, gaming, and technology.

This collaboration will enable Tomato Interactive’s clients to use GrabAds’ comprehensive retail media tools, allowing them to connect with valuable users across Southeast Asia through the Grab super app ecosystem. It also marks GrabAds’ first collaboration with a global marketing agency in the Greater China region.

Brands working with Tomato Interactive are given access to hyperlocal first-party data from the actual spending patterns of valuable consumers in Southeast Asia by working with GrabAds. Through the entire marketing funnel, the strength of Grab’s retail media network will help Tomato Interactive’s clients’ clients increase brand awareness and consumer engagement.

Speaking about the partnership, Jiao Li, general manager of Tomato Interactive and vice president of BlueMedia, said, “As a leading superapp in the region, Grab knows Southeast Asia best. Our partnership comes very timely, as we see keen interest from our clients across travel, lifestyle and technology looking to expand and grow their brand within Southeast Asia’s growing and digitally-savvy consumers.” 

He added, “We believe that GrabAds’ retail media network capabilities – whether access to first-party insights or Grab’s end-to-end ecosystem, will allow us to support our clients better across their marketing needs.”

Meanwhile, Dave Yang, regional head of sales and GTM at GrabAds, expressed, “We’re thrilled to embark on this journey with Tomato Interactive. We’re confident that our tie-up will support their clients in gaining better awareness and brand building in Southeast Asia. This is also a milestone for GrabAds, as we expand our reach to brands in the Greater China region through Tomato Interactive’s strong network of clients.”

Singapore – The Southeast Asian markets Malaysia and the Philippines are seen to have its retail sector thrive with 63% and 45% in retail growth, while Singapore reports a -2% decline, new data from foundit has revealed

In terms of job demands, Malaysia demonstrated a relatively consistent result over the past three months, signifying a stable market. Malaysia has shown a positive resurgence with 1% month-over-month (MoM) growth and a robust 7% year-over-year (YoY) growth across various industries.

In contrast to this, Singapore is facing challenges with a decline of -1% MoM and a significant -14% YoY in hiring demand. Additionally, the tracker showed a 4% decrease in job demands over the last three months. These numbers signal a sign of vulnerability in the job market and a reduced pace of hiring.

Similar to Singapore, the Philippines has also witnessed volatility in its job market, with a 5% decrease in job demand over the same three-month period and negative 9% YoY trends. However, despite the decline, the country’s small MoM increase of 3% suggests a reviving job market and a potential recovery in the future.

Meanwhile, Malaysia experienced an extraordinary YoY growth of 88% in the hospitality sector, while Singapore and the Philippines reported more modest figures of 8% and 0%, respectively. The high numbers can be attributed to strategic government initiatives, including substantial investments in overseas promotions and digital content on international television channels.

In the retail sector, Malaysia (63%) and the Philippines (45%) both witness remarkable growth, with the latter undergoing a robust double-digit month-on-month increase. Luxury e-commerce and the expansion of retail outlets contributed to this surge. On the flipside, however, Singapore’s retail sector reported a -2% decline for August 2023, but an optimistic outlook prevails for the upcoming quarter in the industry.

Additionally, the logistics sector also saw increased demands in Malaysia (25%) due to significant e-commerce growth, but Singapore (-4%) and the Philippines (-35%) continue to face challenges in the same sector.

Also worth noting, however, is that despite Malaysia showing growth in other sectors, it is showing a decline when it comes to IT, telecom/ISP, and BPO/ITES, like Singapore and the Philippines. The unpredictable global landscape impacted these sectors, with the Philippines showcasing a unique pattern of IT, telecom (-22%), and BPO/ITES (0%).

But even so, data from the report showed Malaysia demonstrating growth and resilience in the tech sector, with a 3% YoY growth in software, hardware, and telecom roles. This growth reflects the ongoing digitization efforts across industries, demanding professionals with technology expertise to drive innovation and efficiency.

The country’s sales and business development roles show the same impressive 34% YoY growth, signifying a proactive approach by businesses to expand their market presence and seize emerging opportunities.

In the customer service sector, Malaysia witnessed a substantial -44% YoY decline due to evolving dynamics and automation’s increasing role.This is in contrast with the Philippines experiencing growth in the domain with a 6% YoY trend, which is in line with its position as a hub for customer service outsourcing activities within the BPO sector.

Based on the report, Singapore and the Philippines also share a -18% and -23% YoY contraction in the marketing and communications roles, possibly reflecting adjustments in marketing strategies amidst evolving market dynamics.

Regarding hospitality and travel roles, Malaysia continues to see a remarkable surge of 133% YoY growth, contrasting that of Singapore and the Philippines, with more conservative figures of 8% and 0% YoY growth for the same roles, respectively.

Meanwhile, the purchase, logistics, or supply chain professionals face diverse challenges, with Malaysia showing a slight 2% YoY increase, while Singapore (-9%) and the Philippines (-24%) report declines.

Commenting on the report, Sekhar Garisa, CEO at foundit, said, “Skill enhancement is crucial to navigating the ever-changing job market in this digital age successfully, and it is imperative that we remain flexible and well-prepared to embrace these changes. Malaysia is currently experiencing a favourable hiring environment, but there is an increasing demand for new skills across various sectors.”

He added, “On the other hand, Singapore has a moderated economic outlook, which provides a valuable opportunity for job seekers to enhance their skills and plan for the future proactively. Meanwhile, the Philippines exhibits a recovering job market, underscoring the continuous need for learning and growth in alignment with changing hiring trends. Across these three diverse markets, the constant remains re-skilling and upskilling. The common thread connects job seekers and employers on their journey to success and progress in this rapidly evolving landscape.”