Six aspects, including payment preferences, age- group preferences, sustainability-mindedness in consumers, and e-commerce personalization, were reflected in the data

Based on data gathered from about 7,000 people on October–December 2023 from across 14 markets* constituting parts of the Asia Pacific region (APAC) on emerging retailing and retail technology trends, several qualitative generalizations were gleaned from the responses.

First, at the point of the survey, the e-commerce landscape in the region was still marked by a lack of a dominant platform, amid intense competition to capture the  consumer’s dollar. Key priorities that respondents wanted when choosing a platform were: a wide variety of products and fast, reliable delivery. 

Second, among the Gen Z respondents, social commerce was gaining popularity due to their fast-paced showcasing of regional and international trends. This group of consumers could be showing reduced purchasing behavior, leading to brands reassessing their supply chain strategy. 

Other findings

Next, the data suggests that retailers among the respondents were embracing AI, mainly to enhance the relevance and accuracy of product recommendations. Among the consumers, there were concerns around privacy and lack of human interaction in AI functions. Also:

  • The nature and prevalence of digital payments varied across the markets. While digital e-wallets were increasingly gaining traction in South-east Asia, respondents from Australia, New Zealand, Singapore, and South Korea still predominantly preferred debit/credit cards for transactions, while those in China most preferred Alipay.
  • Among retailers in the survey, loyalty programs were being recognized as a source of data.
  • Respondents indicated a sentiment that their brands must stitch diversity, ethics and social responsibility into their core, offering sustainable experiences without charging a premium for the eco-friendliness.

Finally, eight organizational capabilities were identified to boost customer-led transformation:

Insight-driven strategies and actions; innovative products and services; experience-centricity by design; seamless interactions and commerce; responsive operations and supply chain; an aligned and empowered workforce; digitally-enabled technology architecture; and integrated partner and alliance ecosystem.

The survey report was jointly produced by KPMG and the non-profit organization GS1 of Australia.

*Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam