Global e-commerce, which enjoyed a surge during the pandemic, continues to be a booming sector in Asia.
NielsenIQ 2022 data shows that e-commerce accounts for nearly 20% of
FMCG sales in Asia Pacific, and that it is the second biggest retail
channel in South Korea and China. More than 30% of FMCG sales are made
through e-commerce and the sector in both countries and the rest of Asia
is being driven by the rise in digital wallets and super apps -
so-called one-stop-shops that include a wide range of virtual products
and services. Examples include PayNow and Paylah! in Singapore, Gcash in
the Philippines, and China’s WeChat Wallet and Quick Money as well as
retail landscape differ region to region, according to a December 2021
report from Kantar focused on the factors transformingIt. It said:
“Retailers in North Asia need to augment their brick and clicks offer to
meet the needs of different shopper segments and habits. In Southeast
Asia, online marketplaces or retailers need to focus on expanding reach
to connect with rural, lower income shoppers.”
Kantar identified beauty and personal care items as products that
shoppers buy most online, especially facial care products such as
moisturisers and make-up .
The recent Etail Asia 2022 event, which returned to Singapore for the
first time in two years in June, focused on how Southeast Asia is
leading digital transformation in the Asia-Pacific region, with
e-commerce sales growing at a rapid pace.
This, in turn, fuels digital payments and paves the way for
cross-border solutions within the region, with some having already been
announced. In December, Singapore and South Korea finalised plans on a
digital economy agreement, with both nations joining forces across
several areas, including cross-border online payments.
The future of retail
Singapore will host eCommerce Expo Asia, the region’s largest
e-commerce event, on 12-13 October at Marina Bay Sands. Topics under
discussion will include cross-border e-commerce, how consumers’ shopping
behaviours are changing, with an expectation of more immersive,
personalised experiences, and how to reinforce a sense of loyalty in the
age of "faceless retail".
Meanwhile, the latest retail technology will be on show at Retail
Asia Conference & Expo, taking place from 6-8 September at the Hong
Kong Convention and Exhibition Centre.