Southeast Asian consumers prioritise price above all else when it comes to shopping, The Peak reported, citing a new report from e-commerce platform Shopify.
The report was produced with the support of YouGov, a UK-based international online market and data analysis company. The experts surveyed 269 professionals and more than 2,000 people over 18 living in Indonesia, Malaysia, the Philippines and Singapore.
The findings reveal that Southeast Asian consumers prioritise prices above all else when shopping. Whether choosing a familiar or new brand, the primary driving factor is prices or discounts. Product quality ranks second in importance. Consequently, retailers must carefully balance these two factors to meet consumer preferences.
However, maintaining this balance is becoming increasingly challenging for retailers, as 83% of consumers in Southeast Asia are cutting back on their spending due to rising inflation in the region. Buyers are primarily reducing expenditures by eating out less and opting for cheaper alternatives.
Despite Southeast Asians cutting spending, the report indicates that only a fifth of retailers view it as a significant issue. Additionally, only 10% of retailers are reducing prices, while 26% are increasing due to rising costs.
The report suggests that retailers should seek alternative ways to add value to customers’ lives. One effective strategy is offering rewards, such as gifts or special discounts from partners.
The report highlights a significant increase in digital spending in Southeast Asia, with approximately 80% of consumers now shopping online. According to the data, 82% of people discover new products through social media, while only 30% rely on word of mouth. Now, the most popular social commerce platforms in the region are Facebook Shop for the older generation and Instagram and TikTok Shop for youngsters.
‘In this current economic climate, the imperative for shoppers and retailers to achieve more with less has never been greater. Retailers are turning to advanced technology solutions to meet evolving customer demands and fortify their long-term resilience,’ said Shaun Broughton, Managing Director of Shopify, APAC and Japan.
The survey also found that consumers trust retailers with their websites more. In fact, 81% of respondents believe that a company with its domain is more trustworthy than one without. This increased trust is attributed to the ability to receive more personalized service and participate in loyalty programs when visiting a company’s website.
The Spotify report concludes by stating that unified commerce can enhance the shopping experience for consumers in Southeast Asia.
