Today’s consumers live in a rapidly digitizing world that is becoming seamlessly integrated into everyday life. In line with this, brands are embracing latest digital technologies and online platforms to create more engaging experiences for young consumers in Asia-Pacific (APAC), says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘TrendSights Overview: Smart & Connected – Engaging with consumers in a hyper-connected, technology-enabled society’, reveals that ‘Millennials’ and ‘Generation Z’ are the main drivers of digital informed consumption in APAC due to their ‘mobile-first’ ecosystem.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData says: “These younger generations will bring their habits with them into old age; therefore, it is vital for brands to adapt to this changing behavior as the next generation of older consumers will begin to behave in a different manner to the ‘Baby Boomers’ and ‘Silent Generation’ of today.”
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GlobalData’s 2018 Q4 Consumer Survey reveals that 52% of APAC consumers are always/often influenced by how digital advanced or smart the product is. In addition, 71% and 54% of APAC consumers believe that online retail and social media, respectively, have positive impact on society in the future.
As a result, brands are now embracing the latest digital technology to cater to these newfound behaviors and expectations. For instance, Japan’s largest e-commerce platform Rakuten launched R Pay application in 2016 and in October 2017 eliminated the need for a screen to display the QR code.
Japanese beauty brand Shiseido launched Internet of Things skincare system in 2019.
Sachdeva adds: “The rise of digitalization has undoubtedly changed the patterns and channels of consumption. The digital economy has spawned the rise of new e-commerce channels, peer-to-peer services and subscription models.”
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Sachdeva continues: “Digital-informed consumption trend is predominantly in the growth stage of its trend lifecycle across key FMCG categories in APAC, as the pace of technological advancement leaves significant room for continued growth and change.”
The personal care sector is in a particularly exciting high-growth phase, typified by sophisticated devices and personalized advice that make professional-grade recommendations accessible to consumers at home. Retail and foodservice operators are yet to fully capitalize on opportunities presented by this trend.
Sachdeva concludes: “Choice complexity and misinformation are the major challenges when it comes to digital-informed consumption. After all, an individual only has a limited capacity for absorbing and analyzing information. The result is that consumers are opting for safer, more established brands.”