Undeniably, the biggest region for e-commerce in the world currently in Asia. A lot of large companies are headquartered there, such as Alibaba and JD.com among many more innovative e-commerce and logistics.
Due to the subdued demand in China, retail sales growth in volume is expected to slow, as reported by The Economist Intelligence Unit. However, on a US dollar basis, growth is expected, which 45 percent of the total will be accounted for Asia.
Asia will drive 40 percent of the world’s consumption by 2040, leading the global flows of trade, talent, capital, as well as innovation, according to McKinsey Global Institute’s study. The report also added that Asia will no longer simply rise. Rather, it will lead.
There are 5 trends in the Asia consumer space according to Entrepreneur Asia Pacific that is definitely worth looking into as they will define 2020:
1. Traction in Boutique E-shopping Websites
Behemothic logistics industry played a great role in driving the emergence and boom of e-commerce. Nowadays, anyone can market their product or service online. As the internet has been made accessible to practically anywhere in Asia, boutique online shops that sell across channels are beginning to thrive, however specializing in one type of product such as organic cosmetics, sustainable clothing, recycled footwear, and many others.
E-commerce websites best attract people with deep discounts on everyday items. The median household in the region has been rising in income and disposable income, making easier for online boutique stores to get buyers who are willing to spend extra money on high-quality products.
2. Higher Big Ticket Items Sales Online
The average check out items in the Asian market worth between $5 to $15 for online purchases. Most of their money is spent on groceries and various household items. Most shoppers in the region still prefer expensive items in-store.
CEO of Vietcetera Media, a Vietnamese media company expressed that there will be an increase in payments and logistic systems that will improve trust in purchases of larger ticket items in Asia as opposed to the fact that people still prefer to buy higher valued items in-store presently.
3. Blockchain Involvement in Trust Building
Blockchain will be more capable of tracing consumer goods as counterfeit and low-quality products are one of the biggest problems in many Asian countries compared to countries in North America or Europe. This problem can be found not only for domestic goods but also for exported consumer products as told by Christian Oertel, the global marketing amanager at Singapore’s Conflux.
Oertel added that reliable and trustworthy information regarding the quality and authenticity of the products that are available for purchase is very critical for consumers around the world. That includes not only consumer goods but also for medicine. People demand transparency and information that is reliable as it is extremely important for the health of people.
4. AI Help for Offline Purchases
The offline and online world are starting to merge. With the ever so developing technology including artificial intelligence, things that haven’t been able to be done are becoming possible. Artificial intelligence will become big at brick and mortar outlets, helping shoppers make the decision regarding what to buy and give them suggestions to purchase what they need depending on data, including their consumption patterns and history of online purchases especially for items that they need on a daily basis.
5. A shift in Fashion Consumption
The global fashion industry will face quite an obstacle in 2020. It is expected that growth will slow down to 2 percent to 3 percent, according to a study done by McKinsey. Sustainability will become one of the concerns that affect Asians’ decision in purchase due to the more prevailing climate changes that make people more conscious of what they wear and buy. Environmental issues will become very critical in the upcoming year and shift their preferences.
This is why there are more startups that focus on sustainability, developing greener ways to produce things and provide people’s needs with environmentally friendly products as well as services, such as sustainable farming as well as companies that produce fabrics from recycled plastic.