Southeast Asian online shoppers are big spenders via apps

Southeast Asian online shoppers are leading the world when it comes to spending on shopping apps, according to research by tech company Criteo.

Across Asia Pacific, 54 per cent of all online transactions are made in-app, 18 per cent on mobile web and 28 per cent on desktop.

In its Q1 2018 Global Commerce Review (South East Asia), for which the company analysed browsing and purchasing data from more than 5000 retailers in more than 80 countries, Criteo also says shoppers in Southeast Asia are moving across multiple browsing environments before making a purchase.

“Native mobile-shopping apps are now a prerequisite for success in retail and customer engagement,” said the Criteo report.

“Our latest data reinforces how it is no longer just about having multiple channels available to consumers, but about how those channels are connected to offer a comprehensive and consistent shopping experience,” said Alban Villani, GM Southeast Asia, Hong Kong and Taiwan at Criteo.

“Compared to other regions, the Asia-Pacific region now has the highest share of transactions on shopping apps – a natural progression from regional consumers’ mobile-first mindset. To engage shoppers, especially in countries like Indonesia and Vietnam, retailers must make mobile apps the centrepiece of their omnichannel strategies and integrate data across channels, at scale, to personalise content for consumers and drive sales,” said Villani.

“It is crucial for retailers in the region to invest in the optimisation of shopping apps to effectively drive online and offline sales. This includes integrating native mobile-shopping apps into in-store shopping experiences and enabling mobile payments and customer loyalty programs within the app.”

As they move to apps, Southeast Asian online shoppers are buying less on PCs. Year-on-year, online shopping on smartphones has grown 38 per cent while purchases via computers have fallen by 12.5 per cent in the region.

Additional highlights

The report also found:

• Conversion rates on shopping apps in Asia Pacific are five times higher than on mobile websites.

• Omnichannel consistency is key: Southeast Asian omnichannel customers generate 27 per cent of all sales, despite representing only seven per cent of all customers.
• Southeast Asian omnichannel retailers that combine their online and offline data can apply more than four times as much sales data to optimise their marketing efforts.
• Globally, 67 per cent of marketing leaders say that creating a connected customer journey across all touchpoints and channels is critical to the success of their overall marketing strategy.
• In Southeast Asia, 62 per cent of customers worldwide check reviews or ratings before visiting a store.
• The proportion of transactions made on smartphones and tablets in Southeast Asia increased from 28 per cent to 37 percent between last year and this year.
• In Asia Pacific, 72 per cent of all online transactions are made on mobile devices. While desktop usage still dominates in online sales during working hours, mobile wins during nights and weekends.