In February, global trend forecaster WGSN boldly declared that “economic optimism is driving Asia’s consumers back in stores as they step away from their screens and live it up in real life” in its annual Asia Shopper Forecast report. According to WGSN senior consultant Jess Tang, consumers in the APAC region will be looking for “sensory adventures”, and this will in turn drive a comeback for physical stores. These consumers are craving for real experiences after spending too much time
ime online.
“Consumers are now looking for memorable happenings that enrich their lives and bring people together, and especially feel the need to feel and be awed,” Tang told Inside Retail.
She believes that brands, retailers and marketers can help consumers overcome digital fatigue by focusing on amplifying the tangible and inspiring returning consumers through engaging experiences that are beyond transactional.
“IRL experiences can offer a visceral counterpoint to our now constant experience of consuming through the filter of the digital sphere, helping brand experiences and interaction stand out and become more noteworthy,” she added.
Immersive shopping experiences
According to Tang, due to the uptake of digital technologies across different age demographics during the pandemic, including first-time digital shoppers, consumers in APAC have grown accustomed to contactless self-services despite returning to in-store shopping.
“Customers now expect to compare stock in other locations and order products in real-time in the store, and also look to the help of extended reality (XR) and virtual fit technologies,” she observed.
She feels that brands and retailers will need to audit and refresh their omnichannel strategies to ensure connected commerce systems are in place, and also ensure in-store technology is accessible to allow consumers to shape their own journey when shopping.
New consumer profiles
Consumers are more cautious than ever, and Tang feels that there is now an emergence of “thrifty indulgers,” consumers who are looking for creative solutions to retain a sense of lifestyle, whilst enjoying little moments.
“Despite being budget-conscious, these consumers are not looking for the cheapest prices available, and are instead trying to maximise value by balancing quality and price,” she stressed.
As value for money becomes a key driver, brands and marketers can offer subscriptions and membership programs to cultivate customer loyalty and allow access to benefits for essential items that warrant repeat purchases.
“Present hedonists” are another emerging customer profile, according to Tang. These consumers are determined to live more intentionally and in the moment. These consumers will make the most of the present and enjoy life to its fullest.
“They want to be made to feel like they deserve to treat themselves, and they crave curated and tailored shopping experiences. There are opportunities for retailers and brands to help these consumers feel joyful, by creating a sense of escapism and optimism,” she said.
She feels limited-edition products and unexpected collaborations that take creative risks can also spark delight and excitement among consumers in the APAC region to drive demand.
The conversationalists
Another interesting customer profile are “the conversationalists,” which is probably more attuned to the Gen Z and Millennials.
“At WGSN, we’ve been tracking the global rise of ‘texters’ and saw how the APAC digital ecosystem has evolved where its super-apps are now offering in-app messaging to elevate both pre-and-post purchase customer service offerings,” she explained.
She is of the opinion that brands can make more connections to these audiences by introducing business messaging to offer personalised experiences and foster deeper interactions with consumers.
“Brands can also create chat groups across messaging apps to generate private traffic to communicate intimately and directly with this hyper-connected cohort without social media noise,” she stated.
Embracing diversity
Interestingly, Tang believes that the APAC region has also been paying attention to the global social justice movements that have gathered pace since the early 2020s.
“Issues of accessibility and inclusivity have never been more magnified in the wake of the pandemic, with ongoing conversations around healthcare, gender and race and the implications of a globally ageing population,” she elaborated.
This has led to the emergence of “inclusivity advocates,” a new customer profile, that are not defined by age or generation, refuse to be stereotyped, and expect to be understood as the unique person they are today.
“Through prioritising diversity and inclusivity, community involvement and rebranding as a socially conscious business, retailers can clarify their brand identity to consumers, driving brand loyalty, customer retention and a consistent customer experience, ” Tang concluded