by Kathy Tan
September 29, 2021
4 minute read
Southeast Asia is a dynamic region with a diverse range of cultures and identities and its young people are especially open to cross-border purchases.
👥 Consumers in Southeast Asia are ultimately motivated by community. Social media and word-of-mouth have a significant impact on how they shop.
💬 Shoppers in the region have reciprocal connections with sellers, and businesses that provide value and utility will be rewarded, typically through reviews and brand endorsement.
📦 While Southeast Asians perceive that foreign-made products are of superior quality, their purchasing decisions are nonetheless influenced by localised contents and behaviours.
Reaching socially-driven consumers in SouthEast Asia
The three most common reasons cited by Southeast Asians for visiting a new online store are:
🛍 An interest in the products being sold
🏷 The availability of good deals and promotions
💬 Peer reviews
Grow your business with conversational commerce
69% of the region’s consumers reported discovering they were able to purchase items via chat through advertisement and social media posts.
95% of existing conversational commerce customers are expected to maintain or increase their spending on chat platforms.
60% of conversational commerce users are already open to interacting with chatbots, for straightforward enquiries such as product details and delivery status updates
Ensure content is localized for individual markets
Brands can establish a stronger connection with foreign audiences by running campaigns and advertisements that demonstrate a sensitivity to local cultures and beliefs. Here are some content best practices for selected Southeast Asian markets:
⭐️Up to 75% of consumers in Southeast Asia prefer to shop in their native language.
⭐️High impact of social media influencers – influencer-generated content is among the top three types of videos that determine purchasing decisions.
Value is a key purchase consideration
Armed with a keen eye for bargains and a preference for convenience, Southeast Asian shoppers are loyal to brands that provide value — both in terms of product Quality, Price, Rewards and shopping privileges.
Southeast Asian shoppers expect seamless shopping experiences and convenience
16% of shoppers abandon the checkout process if their payment methods are not provided.
62% of Indonesians stated ‘much faster than international shipping’ as
a reason for choosing domestic products over cross border online shopping (vs 49% average).
72% of Indonesians cross-border shoppers surveyed who pay for shipping expect delivery within six days.
Capitalising on major holidays and shopping events
Sale-shopping is a prime buying period for Southeast Asian consumers, and a pivotal time for cross-border expansion — 64% of global shoppers explore new products during the holidays than the rest of the year. In addition to festive season, international shopping festivals such as 11/11 and Black Friday have also been widely adopted across the region.
-Facebook IQ, "Riding the Digital Wave: Capturing Southeast Asia’s Digital Consumer in the Discovery Generation” by Bain & Company (Facebook-commissioned survey of 12,965 respondents from ID, MY, PH, SG, TH, VN), Jun 2019”
-"Cross Border Advertising Insights Study" by GfK (Facebook-commissioned survey of 10,149 people in BR, GB, ID, IN, MX, SA and US), Sep 2019. This article refers to people who have made cross-border purchases in Mar and Apr 2019.
-Facebook IQ, “Conversational Commerce: the next gen of E-com” by BCG (Facebook- commissioned study of 8,864 people across BR, ID, IN, MX, MY, PH, TH, US and VN), Aug 2019. Base: Total adult internet population of the country. % transaction through Conversational Commerce for buyers. Base: Total transaction for Conversational Commerce buyers (offline and online).
-YouGov syndicated tracker (SG, MY, ID, PH, TH, VN), April 2020
-APAC Market Snapshot, Global Web Index
-Market Snapshot, Global Web Index
-Facebook IQ, "Digital consumers of tomorrow, here today" by Bain & Co (Facebook-commissioned survey of 16,491 respondents from ID, MY, PH, SG, TH, VN. Survey data only includes digital consumers who are defined as: Respondents who selected 2 or more online retail categories: Consumer electronics and accessories; household appliances and furnishings; clothing, footwear, and accessories; personal care and beauty; toys and baby care; groceries and food delivery.) Data analysed by Bain & Company. Survey conducted May 2020.
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