FIRST ‘BARGAIN HUNTING’ DRIVES CONSUMERS’ ONLINE PURCHASE SOUTHEAST ASIA
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aving money is amongst the crucial factors that drive the online shopping behaviours of Southeast Asian consumers, according to a report. Under the E-commerce Southeast Asia (SEA) Barometer Report Uncovering SEA online shoppers and delivery preferences report conducted by Ninja Van Group and DPDgroup, 72% of the consumers in the region think online shopping saves money. Around four in 10 or 38% of consumers rated free delivery as a key driver for buying online. “Bargain hunting behaviour is a key driving factor for online shopping, and free delivery is one of the tactics to encourage online purchases,” the report read. Reviews drive purchase The report also found that e-shoppers are “heavily reliant” on online reviews to assist in purchase decision making, with 81% choosing websites based on social media influencers, and 94% saying they have shared or published feedback after purchasing. “In a hyper social environment, feedback is a form of currency that cannot be underestimated as more than half of the e-shoppers are likely to discuss their purchase via websites or apps,” the report said. A total of 57% said they have published comments and rated a product on the website or the application itself, whilst 36% make recommendations to friends and family. Around three in 10 or 29% have published comments and rated the product on social networks, 25% published posts and pictures of their purchases on social networks, whilst 6% said they had never done so. Over 9,000 participants in Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam were surveyed in July 2021 for the study. 12
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Tourist demand is expected to remain muted in the coming months
Hong Kong set for rebound in retail activity HONG KONG
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ong Kong’s retail sector is expected to see a rebound in footfall and dine-in activity following the return to office by employees in late April, but a full market recovery remains uncertain in the next few months, according to the latest report from CBRE. The latest COVID-19 wave is expected to be contained by the end of Q2, which would help bring footfall and dine-in activity back to growth. Restrictions on various retail segments are likely to stay for most of the quarter, but most operations could likely resume with vaccine passes by the end of May, the report stated. The rising vaccination rate is also expected to help retail activity in the city regain market momentum. Meanwhile, the COVID-19 pandemic has been growing on the mainland, whilst most other economies have adopted “living with the new normal” policies, which could discourage Hong Kong from relaxing its travelling restrictions. This means domestic demand will therefore continue to drive the retail
Full retail market recovery will have to rely on inbound tourism growth
market for the foreseeable future, the report stated. The government has introduced a rental enforcement moratorium that allows tenants in specific sectors to delay rental payments for up to three months. The distribution of consumption vouchers is also expected to support the sector in the coming months. However, the challenging business environment means many groups will still be unable to pay rents, and some tenants in these sectors are likely to go out of business as dining-in and entertainment venues are likely to remain somehow restricted in Q2 2022, CBRE said. “Full retail market recovery will have to rely on inbound tourism growth, which is not expected to return in the next few months. Uncertainties in global investment market outlook and higher interest rates will also translate into weaker wealth effect and dampen demand for discretionary consumption goods,” CBRE further said. Fifth wave dampens activity Hong Kong's fifth and strongest ever wave of COVID-19 infections dampened leasing sentiment and activity in Q1 2022, with the total number of leasing deals falling by 30% QoQ as business activity was disrupted by the pandemic, the report stated. Leasing activity slowed across all sectors including food and beverage (F&B) and apparel, which were the main demand drivers in 2021. Only a few local F&B and fast-food restaurant chains committed to new leases over the quarter. Weaker leasing activity also pushed up vacancy by 0.8 ppt to 152% this quarter, the report added. Vacancy in Tsim Sha Tsui rose by 4.3 ppt to 20.3%, the highest amongst core submarkets. Causeway Bay saw vacancy climb by 2.6 ppt to 15.8% as backfill space given up by a luxury brand and a bakery store failed to attract new tenants. Meanwhile, Mong Kok vacancy edged down by 0.6 ppt although the proportion of short leases increased. Central remained the most resilient submarket, with vacancy falling by -1.3-ppt thanks to the area's diverse trade mix.
