Anxious consumers to hold back APAC retail spending

Two in three respondents still continue to work from home and are more heavily online.

Despite growing adoption of e-commerce by customers, retail spending in Asia Pacific is still expected to be held back by lingering concerns on the pandemic, as 83% of consumers in the region are still worried about its impacts, according to a report from GlobalData.

Two in three or 66% are still extremely or quite worried about their financial situation. Furthermore, 61% of respondents in the region are still concerned about their physical fitness and health due to COVID-19.

“The survey results suggest that the economic impact of COVID-19 on the region has been weighing on the minds of consumers due to which they are inclined towards products that provide more perceived value for money,” said GlobalData’s retail analyst Ankita Roy.

The concern for health has encouraged more of them to start exercising at home more often in the last three months, which could provide an excellent opportunity for sportswear brands as the region is strongly expected to retain the habits they formed during the pandemic, Roy said.

While some began to go back to normality, 66% of respondents continued to work from home in Q3, leading to an increase in their online presence with 90% of respondents started or continued to spend more time online in general.

This suggested that online demand will remain strong after the pandemic, Roy said. As a result, e-commerce giants will rush to grab market share in emerging digital economies, with India particularly set to be the primary battleground.

Consumers who had been reluctant for the longest time to shop online have embraced e-commerce, especially older generations, as 85% of the respondents above the age of 65 years in the region are spending more time online in general.

“To meet the needs of these new online shoppers, brands and retailers must provide user-friendly websites and apps that work effectively on both mobile and desktop devices,” Roy said.

About 67% of respondents reported that they are socialising virtually with friends/families. With over half the population in the region connected to the internet, retailers were advised to understand the power of developing a robust digital media presence.

“Retailers must communicate with consumers on a personal level in real-time, utilising social media platforms that have seen a surge in usage as populations turn to apps for round the clock entertainment. Making this digital transition will be beneficial for retailers in the long-run to gain customers, drive global reach and leap ahead of others in the evolution of retail,” Roy said.

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The proposal is expected to be completed in 2022.
Its location is expected to be renovated to make way for a haute restaurant complex.
The volume of parcels shipped to South Korea was the highest amongst all countries.
And China’s state-owned paper rebukes Canada Goose over alleged consumer law violation.
These stores will sell a variety of household goods and beauty products.
Over 50% of the Chinese consumers engaged in sharing economy in 2019.
These mega trends include the rise of smart cities and homes, and shifting market frontiers, among others. 
By 2026, e-commerce exports revenue is expected to skyrocket to $3.5b.
Demand for air cargo will likely rise at a faster rate than the supply until 2022, UPS said.
The system can detect customers collapsing or signs of property damage.
The company noted that luxury beauty items tend to be popular on Black Friday.
The development seeks to be a gathering place for leisure, entertainment, and retail in India.
Alibaba has expressed plans to roll out green-shelf spaces across its platforms.
The store will be an upgraded version of JD’s E-space omni-channel store.