Southeast Asia's online shoppers drive retail reinvention: Zalora

23 Nov '21

2 min read

Pic: Global Fashion Group

Zalora, part of Global Fashion Group (GFG) and Southeast Asia’s leading fashion and lifestyle e-commerce player, forecasts robust growth and reinvention in Southeast Asia’s retail landscape going into 2022. According to Google, 40 million new internet users came online in 2021, bringing the internet penetration in Southeast Asia to 75 per cent.

In fact, 8 out of 10 Internet users in the region are digital consumers. Recognising this shift in adoption, brands quickly expanded their online presence to reach these new digital consumers, and Zalora reported a 19 per cent increase in new brands that joined the platform in 2021.

In its latest Trender 2021 report, the company has outlined key technological shifts in digital payment and consumer experience that come hand in hand with shoppers’ rising digital savviness and taste for luxury and sustainability, among others.

The report has published findings against the backdrop of the region’s gradual travel resumption and retail recovery, especially as vaccination continues gathering pace across markets like Indonesia, the Philippines, Malaysia, and Singapore.

Forecasting key megatrends and demand patterns to inform retail strategies for 2022, the report is based on a comprehensive analysis powered by Zalora’s retail intelligence and data analytics solution, Data by GFG. It includes intel from over 59 million monthly visits, complemented by insights gleaned through a partnership with Google and other partners.

“The dawn of a new era of retail is already here in Southeast Asia. As consumers become more discerning and connected, we are seeing incredible innovations happening in the retail sector that completely re-imagine the shopping experience,” said Gunjan Soni, chief executive officer, Zalora Group. “Our flagship state-of-the-industry report helps facilitate the industry’s evolution by allowing more brands to understand the changing market and anticipate what the future holds. Our focus continues to be on consumer behaviours (vs. market size outlooks) and how it’s evolving”

Consumers are investing more in casual wear and focusing on their fitness. As demand for dressier pieces went down, both men and women across the region have spent more on sportswear compared to other product categories, the report stated.

Close to 90 per cent of Southeast Asians referred to at least one digital channel while researching their online purchase, according to Google data. The average shopper browses across 7.9 websites before making a decision, from 5.2 in 2020. Filipino shoppers spend the highest average number of hours online, at close to 11 hours, and are most likely to make purchases based on sustainability considerations.

Fibre2Fashion News Desk (RR)

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