Asia Pacific consumers have diverse shopping preferences, with both physical stores and online shopping coexisting

It is learned that according to the report "Exploring the Future of Seamless Commerce in Asia Pacific" released by KPMG and GS1, despite the rise of online shopping, consumers in the Asia-Pacific region have different shopping preferences, and most consumers still prefer shopping in physical stores.

The report shows that there are significant differences in shopping preferences among consumers in the Asia-Pacific region. In Indonesia, only 8% of consumers said they can rely entirely on online shopping, while in the Philippines and Singapore, this proportion is only 1% and 2% respectively.

About 45% of respondents listed omnichannel as their preferred shopping channel, with the highest proportion in the Philippines and India, reaching 61% and 54% respectively.

The report points out that factors such as geographical distribution, delivery efficiency and consumer habits will affect consumers' shopping preferences. In markets such as Hong Kong SAR, Vietnam, Indonesia, Singapore and Taiwan, online shopping is becoming increasingly influential. On the contrary, consumers in New Zealand, Australia, Malaysia, South Korea, Japan, the Philippines and Thailand still prefer physical stores.

According to Forrester, online retail sales in the Asia-Pacific region, which includes China, South Korea, Japan, India and Australia, are expected to grow from $2.2 trillion to $3.2 trillion by 2028. Online retail penetration in China and South Korea will exceed 40%.

However, the report also emphasizes that global online retail sales are expected to reach $6.8 trillion by 2028, with a compound annual growth rate of 8.9%, higher than $4.4 trillion in 2023. Despite the continuous growth of online retail sales, 76% of global retail sales will still exist offline in 2028, totaling $21.9 trillion.

The pandemic has accelerated the surge in online activities, the growth of social media use, and the increase in consumer demand for online shopping, and the traditional retail model has lagged behind. Retailers should invest heavily in technology and optimize the supply chain to meet consumer demand, ensure faster delivery and better inventory management.

The report pointed out that consumers not only buy food, groceries and other daily necessities online, but more people are shifting from working in offices to working from home, so the demand for clothing and household goods has also increased. From a regional perspective, e-commerce platforms show significant differences, with e-commerce platforms such as Amazon dominating markets such as India, Japan and Hong Kong. In some Southeast Asian markets, social commerce and live streaming have also become the fastest growing trends.

In summary, consumers in the Asia-Pacific region show diverse shopping preferences, reminding retailers and e-commerce platforms that they need to respond flexibly to meet the needs of consumers in different countries and regions. Competition among various e-commerce platforms in the Asia-Pacific region is very fierce. Rich product variety, reliable delivery, competitive prices and customer service are all key considerations that prompt consumers to choose shopping platforms.

Author✎ Summer/
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