07 May 2021
Posted in Retail
Overflowing opportunities for e-commerce retailers with 87% APAC consumers spending more time online, says GlobalData
The COVID-19 pandemic has made online shopping appealing and safe, as wary consumers in the Asia-Pacific (APAC) prefer to stay at home to avoid social contact. Against this backdrop, online channel (e-commerce retail) is benefitting and is overcrowded with prospects as 87%* respondents are spending more time online, according to GlobalData, a leading data and analytics company.
GlobalData’s Q1 2021 survey reveals that 43%* of respondents in the APAC are extremely concerned about the impact of the pandemic in general and 32%* of them are extremely worried about their financial situation.
The survey also suggests that 72%* of the respondents are working from home during Q1. In addition, restrictions and fear of transmission led shoppers to spend more time at home browsing the Internet. The survey also indicates that 40%* of respondents spent time online more frequently while 32%* bought groceries online more frequently.
Ankita Roy, Retail Analyst at GlobalData, comments: “As the pandemic forced majority people to work from home, the prominent change in consumer behavior has been the willingness to cook more meals at home. This has created an opportunity for the brands to target this behavior with affordable grocery options, or to provide recipe inspirational videos online to attract more customers and promote their range of products.”
Convenience (73%*) and time-saving aspect (67%*) are the two primary drivers of online shopping in the APAC region. Shoppers also relied on online channels to take benefit of lower prices (48%*) and variety & choice available (47%*).
Ms Roy continues: “The shift to online has become more of a permanent lifestyle as people embraced the joy of shopping online. Retailers must continue to focus on personalization as a differentiating factor to stand out in a crowded market. This will help the retailers to attract 83%* consumers who are always/often influenced by how well a product is tailored to their needs and personality.”
The pandemic has led consumers to become health conscious and most respondents revealed that health & wellbeing are among the most influential factors that determine their purchase decisions. This is indicative from GlobalData’s survey where 86%* of consumers in APAC are always/often/somewhat influenced by how a product/service impacted their health/wellbeing.
Ms Roy concludes: “Consumers are looking for products made from natural ingredients now compared to pre-COVID-19 times. Furthermore, 86%* of consumers always/often/somewhat placed importance on how familiar/trust-worthy/risk-free a product or brand feels. In line with this, brands must focus on increasing the level of transparency as trust in produce and authenticity will be key going forward.”
*Data taken from GlobalData’s survey of 6,000 APAC consumers, aged 16+ conducted in early February 2021