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5 key areas to invest in for eRetailing

5 key areas to invest in for eRetailing

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According to the “e-Conomy SEA 2020 report” by Google, Temasek and Bain & Company, the internet economy has remained resilient despite the global slowdown, standing at US$100 billion in terms of gross merchandise volume. As consumers and more SMEs come online, it will stand at US$300 billion by 2025, according to Lim Ben-Jie, head of eCommerce, AirAsia. “This year alone, 40 million new internet users will be added in Southeast Asia (SEA). Internet users in SEA stand at 400 million, out of a population of about 600 million; which shows our economy in SEA is truly promising at over 70% in terms of internet users,” he said. 

This led to a shift in marketing decisions towards being a mobile-first experience. Various promotions, deals and product launches are now mobile-focused, and it is expected that everyone would own a mobile in the near future. 

Based on AirAsia’s journey in eRetailing as a mobile-first platform, Lim said that businesses will benefit from investing in these five areas - search, livestreaming, online communities, customer experience and on-demand services. 

Search

Around 75% of the time, users will look for a search bar when they enter an app or website, as they would like to immediately identify the products they want. However, Lim said that the power of search is above and beyond just looking for a specific product. “It gives users ideas on what they’d like to purchase, provides alternatives and gives personalisation to their shopping experience,” he added. In addition to shortening user journeys, the search function also acts as a hive of data for businesses to know what their consumers want and what their preferences are; which makes it crucial for businesses to build a mobile search strategy.

Livestreaming

Many players in the market have rolled out livestreaming - but not all are successful, Lim said. Livestreaming is now increasing in demand, especially now that many usually work from home or limit their outdoor interactions due to the pandemic. This has allowed many businesses to leverage on borderless shopping experiences to stay afloat during the pandemic. Livestreaming is an experience that will remain with consumers due to its high consumer engagement, and because consumers can get to see their desired products in action as well. According to Lim, industries such as grocery will be able to profit from livestreaming, especially now that many consumers purchase their groceries via a delivery service. Customers will be able to see the freshness of the products, such as vegetables and fish, before they decide to make a purchase. “It is important for anyone who has a mobile business to incorporate live streams in future, and it is a race against time for everyone to remain relevant,” Lim said.

According to a report by App Annie, the total time spent on the top five social apps with an emphasis on livestreaming are predicted to surpass half a trillion hours on Android phones alone, outside of China this year. Titled “The Evolution of Social Media report”, the report said that livestreaming apps increased market share of consumer spend by 24 percentage points from 2018, forming 76.24% of consumer spend now compared to chat apps (18.81%) and photo and video apps (4.95%). Meanwhile, social apps that offer livestreaming as a prominent feature accounted for US$3 of every US$4 spent in the top 25 social apps for the first half of this year.

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Online communities

Furthermore, to leverage on their online communities, businesses will need to utilise the chat function on their apps. According to Lim, successful mobile app and super app platforms have a very strong chat feature function that allow users to engage one another within the app. This will also enable businesses to learn more about their users - what they think about the products, what they think could be improved, and their overall sentiment of the company. Furthermore, chats will provide more user-generated content; which in turn drives more engagement and builds a strong mobile presence for businesses. 

Customer experience

Next, in providing a superior customer experience, Lim said it ties back to incorporating artificial intelligence (AI) chatbots, to ensure that customers get the needed attention for whatever queries they may have; even when there is no customer service personnel to attend to them. “As part of a mobile first strategy, AI will form an integral part of marketing - it will involve personalised and targeted messages to ensure they remain relevant to consumers,” he added. AI chatbots as shopping assistants will also result in a quicker user journey as will spend less time browsing; with shortlisted suggestions from the chatbot assistants.

An opinion piece by Shopify Plus said that according to PwC, 73% of customers cite experience - be it face-to-face or online - as an important factor in their purchasing decisions, behind price and product quality. Meanwhile, 43% of consumers would pay more for greater convenience, 42% would pay more for a friendly welcoming experience, and 65% of customers find a positive experience with a brand to be more influential than great advertising.

On demand services

Lastly, on demand services are booming on mobile. According to Lim, 62% of Southeast Asian consumers said fast delivery speed will drive a positive experience and will be the sole reason why they will be loyal to a platform. 55% of consumers said they will switch retailers for faster delivery. More than eCommerce, Lim says businesses have to pay heed to users’ demand for “quick commerce”. “Customers like it “now and today”, so businesses’ mobile experiences will have to incorporate this convenience as much as possible in order to keep users attracted to their platforms,” he added. Quicker service will also translate to happier customers, who will become “brand ambassadors” by sharing their positive experience to others. 

In AirAsia, Lim said these factors culminated in the launch of AirAsia Digital. AirAisa Digital offers AirAsia’s eCommerce platform “AirAsia Super App”,  logistics business “Teleport”, financial services "BigPay'' and "BIG Rewards", and an upskilling portal, “Redbeat Academy”.

AirAsia has also developed new channels, especially on social media. According to Lim, AirAsia has been aggressively building its brand presence on TikTok, alongside other social media platforms such as Clubhouse.

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