Source: Genesys.
Thomassain.

This year marks the first time Asia Pacific has surpassed Europe as the biggest online shopping market, according to Genesys, and this upward trend is expected to continue.

The increasing accessibility of the internet, the expanding use of smartphones and tablets, and the potential of the Chinese market are all contributing to a surge in e-commerce throughout Asia. Erwann Thomassain, Head of Marketing, Asia Pacific, at Genesys, notes that by the end of 2014, business-to-consumer e-commerce sales in Asia will reach US$525 billion, representing half of all global online sales. Genesys provides businesses with a platform for customer experience that allows them to leverage customer information and data gathered from interactions with their contact centers.

Thomassain also highlighted the promising future of e-commerce in many Southeast Asian nations. He stated that the Philippines is in a strong position to profit from online retail due to its favorable demographics and the fastest-growing internet population globally, with recent data showing a 530% increase over the past five years. Indonesia is not far behind, with an estimated 430% internet growth.

Thomassain observed that modern consumers are constantly connected and able to make purchases, share content, and consume information from their mobile devices from anywhere. He emphasized that businesses need to proactively deliver the content they want to these consumers. In South Korea, 49% of shoppers already utilize smartphones for online purchase research. Given consumers’ constant desire for quicker and more convenient shopping methods, we can anticipate continued growth in e-commerce as new technologies and trends emerge, all competing for the attention of today’s always-connected consumer.

This year’s ‘Singles Day’ online shopping event, spearheaded by Alibaba, exemplifies consumers’ enthusiastic embrace of mobile and online shopping. Citing data from Forbes, Thomassain highlighted that the November 11th sale saw an unprecedented 278 million orders placed within 24 hours, with mobile devices accounting for 42.6% of the total gross merchandise volume. He explained that, to avoid negatively impacting the customer experience given the constraints of a mobile screen, product suggestions were meticulously tailored for a more streamlined and successful cross-selling and upselling strategy. He considers this a prime example of exceptional customer experience in action.

Consequently, businesses need to tailor their outreach strategies for online and mobile platforms to achieve long-term success.

Thomassain emphasized that the traditional retail model of attracting customers to physical stores is no longer sufficient. Consumers now hold the power, dictating where companies need to be, whether it’s on social media or user-generated content platforms, and they expect a personalized customer journey. Increasingly, businesses are establishing an online presence, while those already established are continuously refining their online experience to maintain a competitive edge.

Thomassain outlined two shopping patterns that highlight the convergence of e-commerce and physical retail. ‘Showrooming,’ the practice of examining goods in physical stores but purchasing them online at lower costs, poses a challenge for traditional brick-and-mortar retailers. He predicts this trend will only intensify with the continued rise of e-commerce.

Simultaneously, a contrasting trend known as ‘reverse showrooming’ is emerging, where consumers conduct product research online before completing their purchases in a physical store. Thomassain pointed out that according to the Google Marketing Shopping Council, 84% of smartphone shoppers utilize their devices to enhance their in-store shopping experience.

Thomassain encouraged retailers to adapt to these evolving customer behaviors as a means of growth, suggesting strategies such as offering incentives to draw online traffic into physical stores.