Growing And Maintaining Your Customer Base In Crowded Markets
Introduction
One of the most disruptive effects of the digital transformation brought on by the pandemic is the ease with which new players can enter existing markets. With minimal expenditure and the click of a mouse, aspiring vendors can set up an eCommerce site, and begin engaging in digital transactions. The upshot of this is that a raft of new brands and entrepreneurs have been able to penetrate the retail space, offering goods and services in competition with more established players.
Both in Asia and the rest of the world, traditional retailers are struggling to differentiate themselves -- not only from the new arrivals, but also from their peers, in a landscape overcrowded with marketplaces and stores.
In this atmosphere, the key to survival and prosperity is to distinguish yourself from the rest of the pack. And one of the keys to standing out in crowded markets is understanding how consumer psychology is key to unlocking new consumption paths.
Digital-native new arrivals are well positioned to achieve this goal, as they are using technologically driven, direct-to-consumer approaches for personalisation, and to weave compelling brand stories on social media. Successful retailers are mastering influence to leave traces and impressions in the minds of their customers.
Meeting the Challenge of Standing Out in Crowded Asian Markets
In this new reality that is redesigning Asia’s consumer map, brands must appreciate the significance of understanding the distinctive qualities of consumers and diversity in different markets. Retailers face the challenge of delighting Asian shoppers who seem to be more connected, better informed, and more demanding by the day. Opportunities to meet these challenges exist in several areas, such as:
Implementing Zero-Waste Policies
Rapid urbanisation and the accelerating pace of consumption mean that China, Indonesia, Philippines, Thailand, and Vietnam now contribute to over 80% of the plastic waste in our oceans. Asian consumers now expect retailers to be proactive with solutions that contribute to waste reduction. This opens the door for organisations prepared to adopt sustainable and environmentally friendly policies to distinguish themselves from the competition.
Introducing Magic Point Of Sale (MPOS) Technologies
With their increasing reliance on mobile phones, smart speakers, QR codes, and related technologies, Asian shoppers are coming to expect retailers to provide “Magic Point Of Sale” options. Brands that can deliver such facilities will create new avenues for customer engagement, and enable consumers to search for products, test them out, and purchase in new ways.
Expanding Your Reach With Kiosks and Small Shops
Whether it’s warungs in Indonesia, or kiranas in India, small shops and kiosks understand local preferences more clearly than online platforms and large stores, and are often more convenient for consumers. Large retailers who collaborate with these smaller outlets can equip them with digital tools and expand their reach to local and regional markets.
Jumping on the Gaming Bandwagon
In-app challenges and real-world experiences with a gaming twist have been proving extremely popular in China -- and enthusiasm for such interactive experiences is spreading throughout Asia. Smart luxury brands in China are using gaming techniques to reach out especially to female consumers, and this is a tactic that retailers in other parts of Asia may wish to emulate.
Promoting Wellness Through Omni-channel Retail
Health and wellness are high on the agenda for consumers, in these pandemic-stricken times. Brands that can provide solutions concerning health (physical, mental, and spiritual) -- and embed them across their omni-channel offerings -- stand to gain, and stand out, in a healthconscious market.
Navigating the Spheres of Government Influence
China’s government has announced that it will stop importing the world’s plastic and recyclable wastes. The government of Taiwan will ban single-use plastics entirely by 2030. Although these are positive steps, not all mandates laid down by governments in the region are favourable to retailers looking to stand out in crowded markets.
As Sanjay Roy, General Manager, SEA, PUMA Sports observes: “[From an outside perspective] the expectation of eCommerce in Southeast Asia looks very big. But it’s not, because it’s fractured into so many countries, and there are different regulations for each of the other countries. So I think what kind of government policies are being thought through or required to help? I mean, sitting in Singapore, it’s very easy to say it’s a nice little bubble. But I think beyond Singapore and Malaysia, most of the other countries are a little more complicated in their structure. So again, what kind of government policies are being brought in?”
Looking to see how others in the industry are finding success despite the status quo? Download our full eBook "Shaping Retail" to see how Love, Bonito is attracting investment and expanding globally, and also more from Sanjay Roy, General Manager, SEA, PUMA Sports as we explore how Puma Sports makes direct connections with its consumers through e-Commerce.