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Thursday. 31 October 2024

Seamless retail sets new benchmarks in Asia Pacific, according to KPMG report

KPMG's report reveals that seamless retail, integrating digital and physical shopping, is the new standard in Asia Pacific.

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KPMG's latest study, ‘Navigating the Future of Seamless Commerce in Asia Pacific', details the transformation of the retail sector across the Asia Pacific. This transformation, driven by digital advancements, has shifted focus from traditional multichannel and omnichannel strategies to a highly customer-centric approach. The report, produced in collaboration with GS1, explores how retailers are leveraging technology and sustainability to enhance the customer experience.

Digital transformation at the heart of retail evolution

According to the study, seamless retail, which allows a brand to unify the customer experience across various platforms and services, has become a fundamental expectation in most of the markets surveyed. This shift has positioned customer experience at the forefront, necessitating an integrated approach combining both digital and traditional brick-and-mortar store interactions.

“Putting consumers first by adopting seamless, connected capabilities across the entire organisation is no longer just a competitive edge, but a necessity for those who want to lead the market,” said Anson Bailey, Head of Consumer & Retail, for KPMG in Asia Pacific.

The report draws on a survey of about 7,000 respondents from 14 markets in the Asia Pacific region, including China, Hong Kong SAR, Taiwan, Australia, New Zealand, India, Japan, South Korea, Singapore, Malaysia, Thailand, Indonesia, the , and Vietnam. It also reflects insights from interviews with senior C-suite-level executives from leading retailers, brands, and e-commerce marketplaces.

Key trends identified in the report include:

  1. E-commerce landscape: With no single dominant platform, the region sees fierce competition among players vying for consumer spending. Consumers prioritise a broad selection of products and fast, reliable delivery when choosing a platform.
  2. Generation Z and : Platforms like TikTok, known for their dynamic nature, are becoming increasingly influential among Generation Z. This demographic's swift changes in preferences are pressing brands to adapt their supply chain strategies quickly.
  3. Use of artificial intelligence: AI is increasingly used to improve the relevance and accuracy of product recommendations. However, this raises concerns about privacy and the diminishing role of human interaction in retail.
  4. Digital payments on the rise: While digital wallets are popular in Southeast Asia, more established markets like Australia, New Zealand, Singapore, and South Korea prefer debit and credit cards. In China, Alipay remains the top choice.
  5. Loyalty programs and data collection: Retailers are realising the importance of loyalty programs not just for rewards but also as crucial tools for gathering consumer data to enhance direct-to-consumer strategies.
  6. Sustainability as a baseline: The report underscores that sustainability should be integrated into the core values of a brand, not just as a marketing strategy. Millennials and Generation Z, in particular, are driving demand for transparency and genuine sustainability practices in retail.

“Product sustainability, supply chain transparency, and circularity are becoming central to overall business operations. Soon, ESG reporting will be indistinguishable from the need for a seamless exchange of trusted product data,” stated Patrik Jonasson, Senior Director of Global Retail at GS1.

The report highlights that understanding these trends is crucial for retailers aiming to excel in the evolving market landscape, particularly as consumer spending patterns adjust in the post-pandemic era.

The full ‘Navigating the Future of Seamless Commerce in Asia Pacific' report is available for download at kpmg.com/ASPACseamlesscommerce.

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Nurin Sofia
Nurin Sofia
Nurin Sofia is a news editor at Tech Edition. Her interest is in technology and startups, occasionally crunching news for gaming. Sofia enjoys playing video games, going on bike rides, and gardening when she isn't behind a keyboard.

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