What Retail Leaders Are Up Against in APAC

Retail in Asia Pacific is undergoing one of the most intense transformations in recent memory. But behind the headlines of growth and innovation lies a much tougher reality one filled with volatility, platform fatigue, rising operational demands, and a new generation of consumers whose expectations brands are still struggling to understand.

Anton Smirnov, Director at Panasonic, offers an honest view of what’s really happening and why many retail leaders are finding themselves on the back foot.

1. Platform Instability and the Erosion of Trust

Retailers have long relied on large marketplaces for reach and infrastructure. But behind the scenes, many are grappling with a deeply frustrating trend: the unpredictable rollout and withdrawal of platform tools. 

"Marketplaces roll out new tools, sellers invest time and budget to adopt them, and then two or three months later, they’re gone. No explanation. No cashback. No thanks."

The impact? Wasted resources, unstable workflows, and a growing sense that platforms are making decisions without regard for the investment brands make to keep up.

2. TikTok Commerce Isn’t Optional, But It’s Not Easy

TikTok is emerging as a powerful sales engine in the region, but Smirnov warns that many brands underestimate what success actually requires.

"Selling on TikTok isn’t like Shopee or Lazada. You need in-house content producers or agency support, daily short-form videos with strong hooks, and livestreaming — five times a week or more."

This is a structural shift, not just a media channel. And for many brands, building the creative and operational muscle to play effectively on TikTok is a major uphill climb.

3. Messaging Apps Are Quietly Becoming Sales Channels

WhatsApp, LINE, Zalo, Telegram: long seen as notification tools or support channels — are rapidly moving into the transaction layer.

"We’re seeing full checkout flows inside messengers. These aren’t just awareness tools anymore, they’re driving conversions, even closing sales."

Brands without a strategy for closed-loop commerce inside messaging apps risk losing out on one of the region’s most organic and trusted customer touchpoints.

4. The Rise of Generative Engine Optimization (GEO)

There’s a new type of search happening — and most retail leaders aren’t prepared for it. Generative AI tools like ChatGPT, Gemini, and Claude are starting to shape product discovery in ways that go far beyond Google.

"Ask ChatGPT what the top three hair dryers are. Where does it pull that from? That’s the next battleground. And right now, no one knows how to influence those recommendations."

Smirnov distinguishes this from AI-enhanced SEO. This isn’t about keywords or blogs, it’s about shaping your presence in AI-driven product decision-making. And the playbook doesn’t exist yet.

5. Influencer Marketing Needs a Rethink

There’s growing scepticism around traditional influencer campaigns, especially those focused on one big-name talent with little strategic depth.

"What’s missing are multi-creator campaigns with clear selection frameworks, aligned messaging, and measurable outcomes. Brands need smarter models, not just flash-in-the-pan activations."

The challenge isn’t just activation. It’s finding the right tools and partners to scale these models effectively across fragmented markets.

6. The Underrated Power of C2C Platforms

Consumer-to-consumer platforms are often overlooked in strategy decks — but Smirnov argues that they’re hiding a major commercial opportunity.

"In markets like Russia, we’ve sold new Panasonic products through C2C platforms, not just refurbished goods. The traffic is massive, and even a 1% conversion can drive real volume."

More importantly, selling directly on these platforms has allowed Panasonic to control the customer experience and protect margin without being dependent on dealer networks or discount-heavy models.

7. Gen Z in APAC Isn’t Just Young - It’s Different

Asia Pacific is one of the youngest regions in the world and its Gen Z population is already shaping how retail operates.

Panasonic ran a large-scale survey across 13 APAC countries with 13,000 Gen Z and Gen Y respondents.

A striking finding: nearly 50% of Gen Z and 35% of Gen Y still live with their parents. That includes many Gen Y individuals in their late 30s and early 40s.

"That completely changes how you build personas. A lot of brands are guessing. But living at home shifts how people buy, what they prioritize, and how much independence they really have."

Too often, customer personas are built on assumptions or outdated generalizations. With this large-scale study, Panasonic is beginning to fill those gaps — and Smirnov believes this kind of foundational data will be essential to shaping effective G2C (Gen Z-to-Consumer) strategies moving forward.

The Rules Are Changing - Fast!

What Smirnov lays bare is this: the most dangerous challenge facing retail leaders in APAC isn’t a single platform or trend, it’s the pace of change across too many fronts at once.

Marketplace instability. TikTok’s content-first commerce model. Closed-loop messenger ecosystems. AI-generated product discovery. Fragmented influencer ecosystems. Rising C2C potential. A radically different Gen Z consumer.

Each of these on its own is manageable. But together, they’re forcing even the most established brands to rebuild retail strategy from the ground up.

"For today’s retail leader, the challenge is no longer about staying ahead - it’s about staying relevant in a region that rewrites the rules every quarter."