Tag: Social Commerce

Asia Pacific – Social commerce and conscious consumerism have emerged as top contributors to online shopping behaviours in Asia-Pacific, according to logistics company DHL’s latest report. 

In a survey including Australia, China, India, Malaysia, and Thailand, more than 90% of respondents reported that they have purchased from social media platforms. In China, Douyin, WeChat, and Kuaishou users also purchase from the platforms. In Thailand, 7 out 10 shoppers use the TikTok application, while Instagram and Facebook are used for online shopping in India.

Meanwhile, conscious consumerism is also on the rise with 70% of online shoppers viewing sustainability as an important factor before purchasing items online. Finding sustainability as a significant consideration are 83% of Indian shoppers, 77% of Thai shoppers, 67% of Malaysian shoppers, 59% of Chinese shoppers and 57% of Australian shoppers.

Consumers also prefer to know if their deliveries are climate-friendly with 73% of social media shoppers saying they want to know the carbon dioxide emissions of their delivery. 

Consequently, 75% of shoppers report knowing their delivery provider before purchasing online in pursuit of efficiency and reliability. 

“Online shopping behaviors are changing rapidly, driven by the rise of social commerce, conscious consumerism, and increased consumer spending. These present both opportunities and challenges for e-commerce businesses looking to penetrate and thrive in a dynamic Asia-Pacific market. With the region’s e-commerce market expected to reach over $3 trillion by 2028, businesses must tailor their strategies to target and engage online buyers, who have a plethora of shopping platform alternatives. This also means voluntarily offering information on carbon emissions and providing reliable delivery options to differentiate from competitors,” Pablo Ciano, chief executive officer at DHL eCommerce, said.

“Asia Pacific consumers will only continue to transact more online. With virtual reality, artificial intelligence and metaverse anticipated to redefine customer engagement and online shopping, companies must be quick to adapt to consumer expectations, by reducing the business’s environmental impact and picking a trusted delivery partner. Only then can companies expand their customer base and foster customer loyalty,” Ciano added.

The outlook for e-commerce marketing strategies is more dynamic and complex than ever, as digital transformation accelerates and consumer behaviours continue to evolve. As marketing leaders, it’s crucial to recognise the shift from traditional, one-size-fits-all approaches to more personalised, data-driven strategies. 

The rise of artificial intelligence and machine learning enables businesses to analyse consumer data at unprecedented depths, offering insights that drive more targeted marketing efforts. Moreover, the increasing importance of mobile shopping and social media integration requires marketers to adopt a multi-channel approach, ensuring a seamless and engaging customer experience across all touchpoints.

Looking ahead, marketing leaders must prepare for a landscape where agility and adaptability are key. The growing demand for sustainable and socially responsible business practices also impacts e-commerce strategies, pushing brands to align their marketing messages with these values. 

As part of our E-Commerce Marketing 2024 series, we invited industry leaders to share their insights and advice on how to traverse the ever-evolving landscape of e-commerce marketing. From improving customer experience, hyper-personalisation, social commerce to influencer marketing, these are the insights various industry marketing leaders have shared to push forward the e-commerce marketing scene further into 2024 and beyond.

Check out the line-up of published insights by marketing leaders under the series:

For our first byline under this series, Eleanor O’Dwyer-Duggan, CX solution strategist for Southeast Asia at Qualtrics shares her insights on why delivering a superior CX is one of the most impactful, sustainable, and efficient ways to achieve greater business impact in challenging market environments. Learn more about her insights here.

To succeed in the world of digital commerce, Annie Yao, head of growth and market intelligence at Flywheel offers up advice of having a winning recipe that requires a data-driven approach, operational efficiency and the seamless integration of omni-channel strategies. Check out her piece here.

Brick-and-mortar stores and online versions are continuously growing in APAC–but how can brands create a seamless integration between the two? For Keith Ho, strategy lead at NP Digital Malaysia, the answer lies on finding the right model that fits both the needs and interests of a brand’s target demographic and meets them at their convenience. Check out his byline here.

Speaking of seamless commerce, Anson Bailey, head of consumer & retail at KPMG APAC notes in his piece that 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.

When it comes to retail media spend for brands, Sebastian Diaz, head of media innovation at Bench Media explains that marketers recognise the need to provide a personalised shopping experience and retailers are increasingly monetising access to ad spending across their websites and in-store activity. Check out his piece here.

In this piece by Vikram Kharvi, CEO at Bloomingdale Public Relations, he explains that AI-driven hyper-personalisation in e-commerce marketing offers numerous benefits, but it’s essential to address the concerns it raises and find a middle ground that satisfies both the business and its customers. Learn more about it here.

Speaking of AI-driven solutions, David Ko, managing director at Ruder Finn Interactive Asia (Ruder Finn Asia) notes that by embracing transparent and responsible AI practices, companies can unlock the full potential of personalised marketing while building and maintaining the trust of their customers. More of this here.

Ynes Nar, head of account, marketing strategy & client servicing at Tomato Interactive Singapore (BlueFocus company) focuses her piece on the fact that as this new era of social commerce unfolds, those who understand and harness its potential will not just survive but also lead the way in this new era of social commerce–thanks to KOLs who support their campaigns.

The future of e-commerce marketing–according to Francis Dy, head of innovation at Wavemaker Philippines–is set to be defined by an intricate blend of advanced technology, personalisation, and a commitment to sustainability, all while maintaining a human-centric approach. Learn more about this outlook here.

For Glenn Gore, chief executive officer at Affinidi, as the latest technology trends diving into how consumers’ lives continue to merge with the digital realm, personalised experiences are beginning to see even stronger demand. Check out his piece here.

Should marketers channel more resources into attracting the right audience, or should they optimise their websites to convert visitors into customers? In this piece by Sebastian Klett, general manager at Balance, he explains that brands must evaluate current strategies, make the necessary adjustments, and ensure that every step of the digital experience guides their audience toward becoming loyal customers.

APAC is witnessing a significant shift in consumer behaviour, with the rise of direct-to-consumer (DTC) brands becoming a major disruptor in the retail landscape. To ride this growing trend, Kevin Daniel Kuntoro, regional commerce head at Summer International explains that to ride this success, this depends on their ability to adapt to changing consumer behaviours; prioritise key trends and insights; utilise social media and influencer marketing to build trust. Check out his piece here.

In this last–but not least–piece of this series, Sorrel Kesby, head of global commercial operations at GumGum explains that capitalising on the e-commerce boom of recent years calls for a strategy that meets customers in the right place and in the right mindset.

As we move into 2024 and beyond, the outlook for e-commerce marketing strategies is both exciting and dynamic. Businesses will need to adapt to rapid technological advancements, such as AI-driven personalisation, voice search optimisation, and augmented reality, to create more immersive and tailored shopping experiences. The emphasis on data privacy and ethical marketing practices will also grow, as consumers demand greater brand transparency and trust.

Additionally, leveraging social commerce and influencer partnerships will continue to play a crucial role in driving engagement and sales. Overall, successful e-commerce strategies will be those that blend innovation with a deep understanding of consumer behaviour, ensuring brands remain agile and relevant in a constantly evolving digital landscape.

Singapore – As consumer behaviour shifts towards online shopping, retail brands must develop robust e-commerce strategies to engage their target audience, drive sales, and build brand loyalty. Effective e-commerce marketing allows brands to reach a global audience, personalise the customer experience, and utilise data-driven insights to optimise their marketing efforts. With the vast amount of data available, retail brands can understand consumer preferences, predict trends, and tailor their marketing messages, ensuring they resonate with their audience and lead to higher conversion rates.

As more brands enter the e-commerce space, standing out requires a blend of innovative tactics, such as social media advertising, content marketing, influencer partnerships, and search engine optimisation. By leveraging these strategies, retail brands can enhance their online visibility, create engaging shopping experiences, and foster strong customer relationships.

For our latest E-Commerce Marketing Series interview, we recently spoke with Esther Chan, director of marketing at Love, Bonito to learn more about why a well-executed e-commerce marketing strategy is no longer optional but a critical component for success and growth in the retail industry.

These are the trends shaping fashion retail’s e-commerce marketing strategies

For Esther, the key trends influencing e-commerce marketing strategies for fashion retailers like Love, Bonito include influencer marketing, social commerce, and AI integration.

For influencer marketing, she notes that the growth has been apparent, given various factors including the proliferation of social media, authenticity, trust as well as the individual’s ability to trendset.

“Specifically to retail, it is key that our influencers are able to showcase the products in their own way – be it through occasional styling, highlighting thoughtful design benefits or even showcasing our fit as part of their daily lives, all of which makes it relatable to the everyday consumer. For us, it’s crucial to choose influencers whose values align with the brand and who connect with the target audience,” she explains.

As for social commerce, she added, “The integration of shopping features into social platforms has provided immense convenience for customers, given the increased usage of mobile phones across the globe. For brands, this smoothens the transaction process through shoppable posts and live selling sessions.”

Meanwhile, she notes that brands are leveraging AI for creative production which aids in solving customers’ pain points and personalising the shopper’s experience.

“There are many tools in the market, all of which present opportunities to hasten the creation process and to enhance customisation by automating the permutation of items a customer views when they visit the website, all of which is ultimately done to elevate the customer’s browsing experience and solve their pain points,” she added.

How Love, Bonito integrates emerging technologies to e-commerce marketing strategies

Esther explains that emerging technology enhances the customer experience while marketing strategies remain core and should be tailored to the brand’s needs during the specific period of growth. At their end at Love, Bonito, she says that they specifically look at technologies like machine learning, progressive web apps, live-stream commerce and of course, AI. 

“For us, we have been leveraging data science and machine learning to improve our customer’s shopping experience as well as to better predict product preferences. In 2022, we launched our first-ever virtual shopping assistant, LBStylist, which was created to provide personalised style recommendations at scale on the website,” she said.

She also added that they have launched their progressive web app for a seamless and responsive user experience on mobile, as well as started doing more live streams and plans are underway for live-selling too. Moreover, they are also looking into onsite solutions that allow for customers to virtually try outfits via diverse models to determine the fit.

“As we cater to an array of Asian women in different markets, we are aware that an outfit can look different on women with different body types, skin colour, height. As such, in line with our mission to create thoughtful experiences, the aim is to provide customers the ability to envision themselves in the outfit before a purchase is made,” Esther noted.

Integration of efficiency and human centricity

When asked about what she can suggest to companies in striking a balance between efficiency and human centricity in their e-commerce marketing strategies, she remarks that it’s not necessarily a balance but an integration of efficiency and human centricity.

In Love, Bonito’s case, she says that they focus on their customers needs and pain points and develop e-commerce marketing strategies around that.

“So, while utilising such technology allows brands to be quicker and more efficient in executing marketing strategies at scale, it also provides an opportunity for us to be more human-centric through personalisation to meet the customers’ needs (e.g. LB Stylist), ease of browsing barriers through VR tools and live-streaming to connect with our community,” she says.

Apart from technology, Esther also says that the company also invests in local efforts such as ground-up community events and social media channels like Instagram, Facebook and Tiktok to connect with our community, while LinkedIn, YouTube showcase more about our corporate storytelling and culture. 

“Not forgetting the engagement of local influencers that resonate with our target audience to garner more brand love amongst our audiences,” she said.

The future of e-commerce marketing in fashion retail

In the realm of e-commerce, Esther foresees social commerce as an up and rising sales channel, alongside influencer marketing. On top of that, AI, machine learning, AR and VR are expected to grow in this space to create a seamless and personalised online journey for customers. 

“At Love, Bonito, we’ll continuously test and learn with these new technologies and marketing strategies, which is especially important in high-potential markets where we do not have a physical store yet. 

She added, “While the e-commerce scene continues to grow, we also expect customers to be channel agnostic – going offline to try on apparel and potentially shopping online for the items, or discovering our latest drops on social media and website and going in person to try the items out.”

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As we look ahead, the future of e-commerce marketing strategies in fashion retail promises to be an exciting blend of technology and personalisation. The integration of advanced AI, augmented reality, and data-driven insights will continue to reshape how brands engage with consumers, offering hyper-personalized shopping experiences and immersive virtual try-ons. 

Social media and influencer partnerships will remain pivotal, but their roles will evolve with emerging platforms and changing consumer behaviours. Brands that successfully harness these innovations while staying true to their unique identity and values will not only drive growth but also set new standards for consumer engagement in the ever-evolving fashion landscape.

Singapore – Klook is advancing its social commerce strategy by introducing a new booking feature on TikTok and investing in Kreator Labs workshops to empower Gen Z and millennial travellers.

Klook’s new partnership with TikTok enables users in seven Southeast Asian markets and Japan to discover and book travel attractions directly within the app, streamlining the process from inspiration to booking.

This new booking feature underscores Klook’s dedication to leveraging social media through its expanding Kreator influencer program. 

Klook is also investing in Kreator Labs workshops and partnerships to boost authentic user-generated content and expand the Klook Kreator program. Following notable growth in markets such as Taiwan, Australia, and the US, the program will now incorporate platforms like YouTube, allowing it to explore a broader range of formats to meet the increasing demand for genuine UGC.

With over 20,000 Kreators across 16 global markets, Klook will further invest in empowering these creators by enhancing their content creation journey. This includes supporting Kreator Labs workshops, facilitating discussions, and partnering with merchants to offer firsthand experience of activities.

Additionally, Klook will host a major gathering of travel content creators in September, bringing together over 130 global Kreators. 

Klook aims to leverage these advancements in social commerce to create new opportunities for its extensive network of merchants to connect with and engage the next generation of travellers.

Marcus Yong, vice president of global marketing at Klook, said, “Social media has become the go-to channel for travellers seeking inspiration on destinations and things to do. Klook is now able to bridge these travellers directly to the activities they discover on their feeds, enhancing our social-first approach in meeting the needs of the next generation of travellers.” 

In today’s rapidly evolving digital landscape, social commerce has emerged as a pivotal factor for brands, particularly in Southeast Asia. This dynamic region is witnessing a surge in online shopping driven by social media platforms and the influential presence of key-opinion-leaders (KOLs). Brands that can tap into this synergy are well-positioned to thrive in the competitive e-commerce landscape.

The Rise of Social Commerce

As it stands, social commerce was already reshaping the ways in which consumers discover and engage with products. Unlike traditional e-commerce, where the journey begins on a retail website, social commerce integrates the shopping experience directly into social media platforms. This seamless integration allows consumers to shop while interacting with content they love, creating a more immersive and personalised shopping experience.

In Southeast Asia, where social media penetration is exceptionally high, platforms like Instagram and TikTok have evolved into powerful sales channels. Consumers are highly influenced by social content, making it critical for brands to develop robust social commerce strategies. According to McKinsey, the social commerce market is expected to expand to $145 billion by 2027, up from $67 billion today. This growth is largely driven by Gen Z and millennials, who are four times more likely to make purchases through social platforms than older generations, highlighting this demographic’s crucial role in driving the trend.

The Key Trends of Social Commerce

Several trends are shaping the future of social commerce in Southeast Asia. Platforms are evolving to make shopping more intuitive and integrated within social apps. Features like in-app purchases and shoppable content are making it easier for consumers to purchase products directly from their social media feed. However, contrary to the assumption that young consumers would be keen to impulse buy on social commerce due to its convenient in-app shopping process, many Gen Z consumers are not making impulse purchases at the point of inspiration. Instead, young consumers are increasingly using social media as a search engine to research products they’ve seen online or heard of in real life, seeking detailed information on the quality, fit and more. This research phase is crucial for building brand trust. 

As shoppers increasingly demand authenticity, they want to see products being used in real life by other consumers—understanding who is using them, how they’re being used, and how they fit into their own lives, both practically and psychologically. The desire for authenticity and relevance is reshaping how brands must engage with consumers.

Building a sense of community around a brand is becoming increasingly important, as today’s consumers seek connections and engaging experiences that go beyond mere transactions. Platforms like YouTube, TikTok, and Instagram have become essential channels where Gen Z and millennials discover new brands, products, and trends, emphasising the need for brands to create meaningful interactions on social media.

The Synergy of Influencer Marketing with Social Commerce

Given these audience behaviours, it’s clear that strategically utilising influencers is essential for brands to bridge the gap between their products and the consumers, maintaining their social commerce momentum. KOLs, or influencers, play a vital role in driving social commerce. Their ability to connect with audiences authentically and persuasively makes them invaluable assets for brands looking to enhance their online presence and boost sales. Effective KOL partnerships can transform a brand’s e-commerce performance by driving significant traffic to social media pages and leading to substantial increases in online sales. The influencers’ authentic endorsements resonate with their followers, highlighting the power of genuine connections in social commerce.

This often begins by analysing the client brand’s market situation, using AI to craft effective strategies. For instance, this involves guiding a client into launching their social commerce site on Shopee and Lazada, and being their first time engaging with KOLs. For this to work out, this strategy focused on partnering with niche influencers to build awareness and trust.

Key Trends and Insights in Influencer Marketing

In the evolving landscape of influencer marketing, micro-influencers with smaller but highly engaged audiences are becoming increasingly valuable. Their niche appeal and close-knit communities often result in higher engagement rates and more effective conversions. Today’s consumers value authenticity, favoring brands and influencers that prioritize transparency and genuine interactions. This trend highlights the importance of selecting influencers who align with a brand’s values and messages. Influencers now have greater creative control over how they present a brand or product as well, knowing what provides value to their followers.

For example, fintech brand WorldFirst, a subsidiary of Ant Group, partnered with Kian Golzari, a renowned product sourcing expert. Kian, already a user of WorldFirst before the collaboration, rolled out campaigns educating his followers on how he conducts cross-border transactions with his suppliers. This allowed his followers to get an authentic glimpse into the WorldFirst’s product through Kian’s valuable content, fostering genuine interaction with his community.

User-generated content (UGC) is also gaining traction due to its authenticity and relatability, providing a cost-effective alternative to traditional influencer marketing. It allows brands to tap into real-life experiences and perspectives of their target audience. Moreover, brands are also shifting towards long-term partnerships with influencers rather than one-off campaigns, aiming to build sustained relationships and deeper trust with the audience.

The Future of Social Commerce and Influencer Marketing

Looking ahead, the future of social commerce and influencer marketing is promising and full of potential, driven by advancements in technology. Innovations like augmented reality (AR) and artificial intelligence (AI) are set to transform the consumer journey, making it more immersive and personalised. Aside from enabling marketers to tailor personalised contents more effectively, AI is also revolutionising the landscape by enhancing campaign precision, predicting consumer preferences, and enabling actionable insights.

We will see even deeper AI integration within platforms, such as TikTok’s generative AI avatars and AI-powered dubbing for multilingual content, which are expanding the reach and impact of social commerce. At the same time, virtual reality (VR) technologies are enabling users to visualise products in their own environment, greatly enhancing the shopping experience and influencing purchasing decisions.

Brands that can strategically adapt to and leverage the synergy between KOLs and social commerce are poised to unlock new opportunities and drive significant growth in the e-commerce space. As this new era of social commerce unfolds, those who understand and harness its potential will not just survive but also lead the way in this new era of social commerce.

This thought leadership is written by Ynes Nar (YJ), Head of Account, Marketing Strategy & Client Servicing at Tomato Interactive Singapore (a BlueFocus company)

Singapore – Southeast Asian retailers are placing big bets on social media as 68% plan to increase investment in social commerce over the next 12 months, according to the latest data from Shopify. This dovetails with the finding that social media is now the biggest driver of brand and product discovery in Southeast Asia, with more than 4 in 5 consumers (82%) discovering new products through social media. 

According to the report, social commerce platforms are seeing staggering growth in the region, with platforms like TikTok projected to grow their user base in Asia-Pacific by 11.3% in 2024. In line with this, 39% of retailers surveyed for the report said social media engagement is one of the most crucial metrics for determining the ROI of commerce infrastructure, ranking just behind profit margin (44%). 

Moreover, the current economic climate has greatly impacted purchasing behaviour. Inflation and the rising cost of living have led the majority of Southeast Asian consumers (83%) to cut back on non-essential expenses, with over half seeking the best value when they shop. 

When it comes to making a purchase, price is the top factor for shoppers in Southeast Asia. Nearly all consumers surveyed (96%) said that they would stay loyal to a brand if it offered them an incentive, with consistently low prices or promotions being a top draw for 70%. In line with this, contextual real-time pricing (71%) is the number one area in which retailers plan to increase their technology spending so that they can drive conversions while maintaining favourable margins.

It is also worth noting that business websites, also referred to as brand.com sites, are important to shopping journeys in the region. Around 81% of Southeast Asian shoppers agree that a company with a brand website is more trustworthy and credible, compared to those without one. This trust factor is especially important to shoppers when making large purchases – two in five (42%) of SEA consumers prefer making large purchases on a company’s website instead of its online marketplace store.

While online channels are the stand-out preference for Southeast Asian shoppers, physical stores remain an important channel. Over a quarter (28%) said they enjoy in-store shopping as much as online shopping, and another 19% prefer in-store shopping. This highlights the importance of creating omnichannel shopping experiences. To succeed in omnichannel, a unified commerce platform that provides a holistic view of customer engagement, inventory, and fulfilment across channels is key. Testament to this, more than 3 in 5 retailers (66%) surveyed said they will increase tech investment in a unified commerce platform. 

The report also highlighted that around 85% of retailers face operations-related challenges, with efficiency issues stemming from manual processes and complex business systems. Almost all retailers surveyed (99%) believe that technology will remedy these struggles and are planning to invest about 20% of their total revenue into innovation initiatives in the next year. Topping the list of increased tech investments: contextual real-time pricing (71%), social commerce (68%), business intelligence (67%), unified commerce platform (66%, and composable stacks (65%). Given that technology is set to reshape the retail landscape, an overwhelming majority (93%) of retailers believe that the chief technology officer will contribute to the evolution and/or revenue growth of the business. 

Shaun Broughton, managing director for APAC and Japan at Shopify, said, “In this current economic climate, the imperative for both shoppers and retailers to achieve more with less has never been greater. Retailers are turning to advanced technology solutions to not only meet evolving customer demands but also to fortify their long-term resilience.”

He added, “Unified commerce is set to be a key growth catalyst, enabling retailers to harness comprehensive data and insights across their customers, inventory, and operations to make informed and strategic decisions. With technology being the linchpin to the future of retail, Shopify is the partner of choice for retailers across Southeast Asia, from large enterprises to small businesses, with solutions that are purpose-built to cater to their unique needs.”

In Asia-Pacific retail, everything is a storefront and the door sign is never turned ‘closed’. This is the reality of commerce and marketing today whereby consumers can shop for over 24 hours without leaving their homes. However, this is not to say the brick-and-mortar experience is dead; far from it in fact, but is ripe for significant transformation. 

Despite the mass explosion of digital and social media commerce, APAC consumers still enjoy the physical shopping experience. Indeed, the majority of consumers prefer to mix both online and offline shopping. Indeed, many consumers no longer even see them as separate pillars. Brick-and-mortar, e-commerce and social commerce are, in fact, just commerce. The question is, however, how do brands and marketers merge them to provide a seamless omnichannel experience to consumers?

Over the past decade, e-commerce and social commerce have exploded, with many traditional stores pivoting rapidly to meet online demand. However, the COVID-19 pandemic laid bare humans’ fundamental need for sensory experiences, especially touch. Indeed, according to a report from IBM, touch and product interaction influence the purchase decisions of over half of consumers. As a result, retailers are now increasingly re-embracing the physical shopping experience – albeit with a digital twist.

Notably, RPG Commerce Group, a direct-to-consumer (DTC) startup home to drinkware and cookware brands Montigo and Cosmic Cookware, began purely online business at the height of the pandemic lockdowns but has since ventured into physical retail. Today, it has physical stores in Malaysia and Singapore that feature interactive displays, demonstrations, personalised customer service and customised products such as engravings and hand-drawn limited editions by Malaysian artist Fawwaz Sukri.

Bistro Bytes, meanwhile, has perfected the omnichannel experience by allowing customers to mix and match orders from either in-person at various kiosks in the mall or through a single mobile application – KLIK by Keppel. 

Any retail vertical can benefit from these kinds of hybrid experiences. The trick is to find the right model that fits both the needs and interests of your target demographic and meets them at their convenience. 

The rise of ‘retailtainment’

Traditionally, storefronts have aimed to entice visitors through lavish, eye-catching window displays. But anyone who has gone and bought a bag of cookies after passing a Famous Amos store knows that humans are a highly multisensory species. Gone are the days when visual merchandising was enough to stimulate shoppers. Now, according to recent research, almost two-thirds of consumers want brands to immerse them in experiences that hit all senses.

 However, for many consumers, the physical shopping experience largely falls flat. As many as 70% of shoppers admit that they can’t recall the last time a brand excited them. That is not to say consumers no longer want to shop physically — they just want more from these spaces.

Marketers should not be surprised by these sentiments. Nobel Prize-winning economist and philosopher Daniel Kahneman famously researched that 95% of human decisions are made emotionally. A brand cannot expect to have an emotional impact on a customer without appealing to their senses.

There are multiple ways to achieve this, whether through music, decoration or signature scent. Brands like Nike notably took this to another level with the creation of its Air Max Listening Room, an immersive listening experience designed to capture the music that inspired the product.

Temporary pop-up shops are a hugely powerful tool for digital-only brands or for retailers looking to experiment with new concepts or create a buzz. Pop-up shops and augmented reality experiences can be used to deliver product information, reviews and virtual try-ons.

Marketers can achieve this by creating AR window displays in busy areas where passersby can use their smartphones to interact with products displayed, get detailed information and make purchases without entering the store. To drive conversions, marketers can pair these with an RFID tag for customers to scan to add products to their online cart and buy within a matter of clicks.

Experimenting with this type of experience can have significant brand benefits. Around 80% of retailers that set up a popup said it was a success and nearly 60% intend to do it again.

The AI revolution

Generative AI exploded into our lives less than two years ago and today it remains a top talking point for marketing leaders. Yet, most are still figuring out exactly how to use it. Marketers, technology and business leaders are still to create tangible business cases for building effective GenAI models. Moreover, many are still grappling with its safety implications. 

Nevertheless, 67% of marketers feel positive about the possibilities of GenAI and more than half of marketers are looking to invest heavily in developing A and machine learning capabilities in their business verticals.

Although still in its infancy, retail marketers can still begin exploring genAI and machine learning technology for product discovery and personalisation for consumers based on user history and first-party data. 

Marketers can begin exploring using AI-driven content creation tools to automate product descriptions and marketing copy, but at this stage, will still require a significant degree of human oversight.

Other uses include introducing AI-powered visual search functionality that allows customers to upload images and find similar products on your platform. These can sit alongside voice-activated ads for smart speakers where users can ask questions, hear detailed product descriptions and make purchases through simple voice commands.

Last, but by no means least, marketers can combine AI with AR to provide an immersive shopping experience such as using AR to try on clothes and AI to suggest other recommendations.

Culturally purposeful

Due to the proliferation of information available today, people are hyper-aware of the world around them. As such, brands and companies are held to higher standards and consumers want brands to be purposeful within their cultural context. Globally, 80% of consumers say they make an effort to buy from companies that support causes important to them. However, consumers are also discerning whether a brand is showing genuine support or is simply capitalising on a cause.

Brands are now walking a tightrope of being called out for staying silent on issues and for speaking out and appearing disingenuous. Learning how to navigate this tightrope is still a work in progress.

However, these are some tactics that can help brands take a genuine stand on social causes that matter to them. One is to create dedicated sections for products that support social causes, such as Australian retailer The Iconic’s ‘Consider’ clothing section. Marketers can track these sections with real-time impact tracking to show customers the direct results of their purchases.

Brands can also create transparency reports on sustainability efforts and social impact directly on e-commerce platforms. They can also partner with artists and community leaders to create exclusive product lines that reflect cultural heritage, offering unique stories behind each product.

Staying ahead of the competition is challenging for retailers in 2024 as new retail providers emerge regularly and attempt to undercut the market. Marketers indeed may find themselves in a heated battle between rivals, e-commerce players and even social media influencers. 

However, it is evident that consumers no longer want to simply scroll and click when they shop. The demand for physical experiences is real and marketers are now in a position to use technology to take these to the next level.

This thought leadership is written by Keith Ho, Strategy Lead at NP Digital Malaysia

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.

Manila, Philippines – Tech-driven media company Hepmil Philippines, a regional arm of Hepmil Media Group, has launched a series of new programmes that aim to strengthen the capabilities and skills of all talents and creators under its network.

First on the list of Hepmil Philippines’ new programmes is the launch of its social commerce solutions, which will allow content creators under its network to explore other avenues to monetize their content.

A part of this initiative is the introduction of a new incubation programme that is largely focused on developing the skills of their talents and creators in social selling and forging partnerships with regional e-commerce brands that can support their direct-to-consumer efforts.

The media company has also expanded its list of new and accomplished creators, with big names such as Jico Umali (Jiconyo), Pipay Kipay, and Adam Alejo joining their roster of exclusive creators under their digital creator community, Hepmil Creators’ Network (HCN).

As part of the company’s programmes to support its talents, Hepmil Philippines also rolled out a list of entertainment shows and relatable content for their wide variety of audiences.

The exhilarating travel show ‘Oner Gang’ will feature social media sensations Jico Umali and Risha Rodriguez as they explore the tapestry of local communities and diverse cultures across the Philippines. PGAG, Hepmil’s marketing company, also injected humour into their latest lineup of shows with ‘Sa Office’, a workplace satire that provides a comedic look at office life.

The new programmes come as Hepmil and its partners work on developing communication strategies that are tailored to cater to the newer generation of mobile-first consumers. The company aims to make authentic connections with audiences who want entertainment value, making sure that there is still organic integration of local culture into engaging digital content.

Jel Directo, country manager at Hepmil Creators’ Network, shared, “The unstoppable rise of TikTok Shop in the Philippines has brought a platform for our creators not only to elevate their game in content creation but also to increase their opportunities for monetized content.”

“Since this is fast-growing in the local market, we have trained our creators in effective live selling, live streaming, and also affiliate content building. With this, we continue to be partners of brands that are first-movers in bottom funnel creator marketing, able to support them as they speed up test-and-learn efforts,” she added.

Directo further explained, “We want our creator network to be represented by those who truly understand our passion and skill in content creation. With Jico as our homegrown creator in PGAG; Pipay, known on TikTok for her comedy and wit; and Adam Alejo, a YouTuber known for his most-watched idea-first challenges, we are able to showcase our ability to support brands in creating content that connects and matters to their audience.”

Also speaking on the programme launch, Erwin Razon, general manager at PGAG and Bent Pixels Asia, said, “We continue to innovate new shows with our partner creators to bring engaging and entertaining content to our fans, new and old. The company’s strategic partnerships with rising platforms like Oner Gang and PGAG offer brands a strategic entry point into the evolving realm of digital marketing. As the rules of engagement are being rewritten, Hepmil is poised to author the next chapter in the industry.”

“We strongly believe in the balance of advertising and entertainment on content, a mindset that allows us to thrive in integrating brand messages seamlessly within our content while maintaining the authenticity and entertainment that our fans love,” he added.

Jakarta, Indonesia – Following the recent regulation by the Indonesian government on the use of social media for e-commerce transactions, TikTok Shop has finally announced that it is shutting down its local operations in accordance with local orders.

“Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia by October 4, and will continue to cooperate with the relevant authorities on the path forward,” TikTok said in a press statement.

The ban follows a recent government regulation which prohibits the use of social media for e-commerce transactions, adding that it’s aimed at quashing e-commerce sellers that are purportedly abusing pricing tiers on social media to promote their products.

Following this, a question arises: is there still hope for social commerce in Indonesia?

Social commerce will still exist–even with regulations

For Rolly Pane, managing director for Indonesia at Clozette, despite the new regulations, social commerce will still be around, as the new regulations only prohibits having social media and e-commerce inside one app.

“Social commerce can still be done, promoting products in social and driving people to e-commerce. The only difference is that it will not happen in one ecosystem or app. It just has to cross over apps,” Pane told MARKETECH APAC.

However, he noted that with this regulation, there would be a significant drop in e-commerce transactions which originated from social media posts and engagements.

“The biggest downfall is that there will be a larger amount of drop-offs when it is cross-app compared to being in one ecosystem or app,” he said.

Despite all of thise, Pane says that brands can still implement alternative strategies to make their social commerce strategies still stand out.

“Promotion of products will still be done as it is being done now. The only difference is that when the promotions are clicked, it will no longer be in the same ecosystem. It will drive the consumers to a different ecosystem / app to conduct the transactions,” he concluded.

Who loses this game? Merchants or consumers?

Meanwhile, Anish Daryani, founder and president director at M&C Saatchi Indonesia explained that with 2024 being an election year in Indonesia, showing support for MSME’s by securing their interest is considered as an important move by the government.

It is worth noting that the government said that the new regulations aims to protect the interests of micro, small and medium enterprises (MSME’s), given the lack of adoption of digital platforms on their part, and inability to compete with what has been labelled as ‘predatory pricing’ on social platforms.

“On the brighter side, the regulation removes ambiguity from e-commerce and provides clear guidelines towards the dos and don’ts of running e-commerce businesses, which [was] long overdue,” he said in an exclusive interview with MARKETECH APAC.

However, Daryani notes that other local merchants who have long utilised social commerce will ‘lose’ in this game, who have used it to connect with their patrons. He also added that with the new regulations, the livelihood of about 6 million social sellers and 7 million affiliates on TikTok Shop alone were hugely affected.

He also stated that end consumers are also affected as well, whose support to their social commerce merchants were the driving force behind their success.

“In my view, the biggest loser in this regulation, however, is the end consumer, who would now be deprived of exciting prices that were sometimes too good to be true, and discovering great quality products from skilled entrepreneurs, which in itself was a massive support for local businesses,” Daryani added.

Social commerce barely scratches the surface of the local industry

Despite all of these regulations, Daryani believes that social commerce will continue to move forward in Indonesia, adding that there is more growth for the Indonesian social commerce scene, compared to more mature markets like of China’s.

“Though this regulation would bring social commerce to a stop, there is no stopping commerce from becoming more social,” he quipped.

Looking at the issue from an agency perspective, Daryani believes that continued social media communication will still help amplify e-commerce, with social media and e-commerce now serving separate purposes in the customer purchase journey.

“From a communications perspective, digital content will still continue to fuel demand for products and services through the upper funnel (awareness and consideration), while the objectives of the lower funnel (purchase, retention and advocacy) would be met by e-commerce platforms,” he said.

He also added, “The use of influencers to review and recommend products will continue to expand. Overall, this would make discoverability of content more organic, so the quality of content would have to be better going forward.”

Singapore – Social media conversation within the Southeast Asian region has been focused on topics on the metaverse, social commerce, as well as sustainability–according to the latest report from consumer intelligence and deep listening company Talkwalker and digital-first customer engagement software Khoros.

The topic of the metaverse is trending amongst Southeast Asian audiences with more than 5.9 million conversations recorded on social channels over the past year. Indonesia recorded the highest number of mentions and engagement amongst the countries monitored, accounting for 60% of all conversations and one-third of total engagements on the topic. This is closely followed by the Philippines, which accounts for almost 24% of mentions and 29% of engagements across Southeast Asia.

In addition, brands looking to launch metaverse campaigns need to stay on top of the latest conversation trends, and ensure that these new realities connect with consumers’ real-world needs.

Meanwhile, in Southeast Asia, the pandemic drove more shoppers online last year, with e-commerce and social commerce accounting for more than 50% of online purchases in 2021.This trend is set to accelerate in 2023 and beyond, with social media platforms set on making the social shopping experience more seamless for consumers.

Furthermore, post-pandemic digital growth and rising costs of living are driving an increased demand for affordability. Consumers are becoming more willing to explore new shopping channels such as social as a result. However, some countries are more ready to adopt social commerce than others. 

Lastly, brands are learning to speak the same language as consumers, as both increasingly use the same keywords to drive sustainability conversations. This indicates a unified vision shared by consumers and brands, and suggests that more brands are determined to integrate sustainable practices in 2023, in order to make a genuine difference to the situation. 

David Low, chief marketing officer at Talkwalker, said, “Marketers are constantly playing catch-up with consumers given the rapidly evolving digital landscape. This is particularly apparent in the Asia Pacific region which is home to some of the world’s largest populations of digital consumers, and which leads the way in online spending globally.”

He added, “In this new environment, marketers must focus on forging symbiotic relationships through a better understanding of online conversations and taking quicker action. It’s this new understanding that will help brands create meaningful experiences and become closer to their consumers.”

Meanwhile, Dillon Nugent, chief marketing officer at Khoros, commented, “As marketers, we know the value of data and the importance of listening to our customers. But, we need to be more action-oriented and use those insights more effectively. Consumers’ comfort level for doing things online—shopping, researching, socialising—is not slowing down as the world opens up.” 

She added, “They also care more about their communities—global, local, IRL, and online. Marketers need to tap into these trends and behaviours more deeply to personalise customers’ experiences and create more impactful strategies that empower your brand to stay connected to customers and grow your presence in the market.”