Three reasons why Asian retailers are upgrading their e-commerce platforms
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There is currently an almost endless array of technologies and innovations that Asian retailers can invest in as they look to future-proof their business and meet the expectations of the next generation of customers.
But when Tofugear surveyed retail executives across Asia as part of its 2019 Asia Digital Transformation Report, it was striking to see that the biggest technology investment priority for retailers was actually e-commerce platforms.
One in two respondents (53 percent) indicated that they will invest in their e-commerce platform over the next 12 months, while a further 20 percent stated they would do so over the next two to four years. Contrast that to the 2018 edition of the survey, when just one in four respondents said that they intended to invest in their e-commerce platform over the ensuing year. Last year, business intelligence and data analytics were the most pressing investment areas.
In today’s omnichannel age, it may seem odd for Asian retailers to still invest so heavily in their e-commerce platforms. After all, many retail businesses have already had their online stores in place for some time now. However, here are three reasons why e-commerce is being placed at the top of retailers’ ‘to do list’:
Tofugear’s digital transformation survey included responses from retailers based in countries such as the Philippines and Malaysia, where marketplaces such as Lazada and Shopee are dominating the online retail scene. With these marketplaces offering sophisticated personalization and often a wide range of fulfillment services, local retailers have had to invest in their own e-commerce storefronts as they mount a fightback.
“Contrast that to the 2018 edition of the survey, when just one in four respondents said that they intended to invest in their e-commerce platform over the ensuing year.”
When retailers were asked what they thought was the single biggest challenge they are currently facing, one in five mentioned the ability to achieve omnichannel retailing. Consumer expectations have increased dramatically over recent years and shoppers need e-commerce sites to offer functionality such as being able to check stock in specific stores or arranging click-and-collect in any location they prefer.
At the same time, retailers are also looking to use their stores as local fulfillment hubs for online orders. To do so, retailers need to have a single view of inventory and use a distributed order management system. As part of this investment, retailers are making the necessary upgrades to their websites to accommodate such an omnichannel approach.
There was a surge in investment in e-commerce platforms just over five years ago – when many retailers transitioned to mobile-optimized sites – but technology and consumer demands have continued to evolve since then. An increasing number of retailers are now turning to emerge technologies such as artificial intelligence to upgrade the customer experience on their e-commerce platforms.
For instance, visual-search technology is a seamless way for customers to get the appropriate search results based on images of a product they are looking for. AI-driven chatbots and the ability to offer voice-assisted ordering through smart speakers such as Google Home are also being considered by retailers.
Questions & Answers
Q.What proportion of Asian retail executives plan to invest in their e-commerce platform in the near future?
What proportion of Asian retail executives plan to invest in their e-commerce platform in the near future?
More than half, 53 percent, stated they would invest in their e-commerce platform over the next 12 months. An additional 20 percent plan to do so over the subsequent two to four years.
Q.Why is investment in e-commerce platforms particularly crucial for retailers in countries like the Philippines and Malaysia?
Why is investment in e-commerce platforms particularly crucial for retailers in countries like the Philippines and Malaysia?
In these countries, marketplaces like Lazada and Shopee dominate online retail. Local retailers must invest in their own e-commerce storefronts to compete with the sophisticated personalisation and fulfilment services offered by these large platforms.
Q.How do retailers plan to use their e-commerce platforms to achieve omnichannel retailing?
How do retailers plan to use their e-commerce platforms to achieve omnichannel retailing?
Retailers are upgrading platforms to allow functionality like checking in-store stock or arranging click-and-collect. They also plan to use stores as local fulfilment hubs, requiring a single view of inventory and a distributed order management system.
Q.Which emerging technologies are retailers considering to enhance the customer experience on their e-commerce platforms?
Which emerging technologies are retailers considering to enhance the customer experience on their e-commerce platforms?
Retailers are exploring artificial intelligence to upgrade customer experience. Examples include visual-search technology for product searches, AI-driven chatbots, and the ability to offer voice-assisted ordering via smart speakers like Google Home.
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