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FROM THE EDITOR
Awave of "kidults" rediscovering their favorite toys from the '80s and '90s drove Southeast Asia's toy market to $56.6b in 2024. On page 12, Toys “R” Us CEO Leo Tsoi explains how the brand redesigns its stores and product offerings to bank on this nostalgia. Meanwhile, blind boxes are fuelling a collectible toy craze, and our story on page 7 reveals how brands like Funko and Pop Mart are cashing in on the trend.
Meanwhile, shopping on TikTok has become entertainment in itself, with influencer-curated products boosting conversions by 78% and strong livestream scripts increasing engagement by 56%. Head to page 10 to learn strategies for making your online brand stand out.
Similarly, as brands embrace more direct ways to connect with customers, business messaging messaging isn’t optional anymore—90% of Thai shoppers and 45% of Vietnamese consumers use it to shop, and seven in 10 companies are making it a priority investment. On page 14, Meta shares how businesses can integrate these tools into their online storefronts.
Finally, Japan’s beauty industry is fighting back against counterfeit products with blockchain and smart packaging. On page 24, learn how these technologies are reshaping consumer trust and ensuring product authenticity on different e-commerce channels.
To top it all off, we celebrate the region’s best in the FMCG Asia Awards. Turn to pages 30 to 33 to see the innovators and leaders driving the future of consumer goods. Congratulations to the winners!
Tim Charlton
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MOST READ
Malaysia's e-commerce market to grow by 12.8% in 2024
The Malaysia e-commerce market is expected to grow by 12.8% in 2024, driven by increasing consumer preference for online shopping, according to GlobalData. In 2023, the market grew by 15%, reaching $9.8b (MYR44.6b). It is projected to reach $11b (MYR50.3b) in 2024, the report added.
Nestle's Blue Bottle Coffee debuts in Singapore with limited-time pop-up
Nestle’s Blue Bottle Coffee is set to make its Southeast Asia debut with a limited-time gift shop at LUMINE Singapore's new flagship store in Raffles City Shopping Centre. Products on offer include Craft Instant Espresso, New Orleans-Style Craft Instant Coffee Blend, and ceremonial-grade Craft Matcha.
Hong Kong’s K11 MUSEA bridges art, culture, and retail
Hong Kong's K11 MUSEA is blurring the lines between shopping mall, art gallery, and cultural hot spot by blending luxury fashion, vibrant art, and sustainable design under its cultural retail model. Visitors encounter not only top-tier retail brands but also museum-grade art pieces.
Ayala Malls takes bold leap into hightech redevelopment
Ayala Malls, a leading mall operator in the Philippines, is integrating cutting-edge interactive technology and creating immersive shopping experiences in its extensive redevelopment of flagship properties. The properties include Glorietta, Greenbelt, TriNoma, and Ayala Center Cebu.
Philippines’ Ever Bilena rides next wave of cosmetics growth
Ever Bilena continues to keep up with the times by listening to the insights of Gen Z consumers in the Philippines, where skincare and cosmetics have transitioned from being a luxury to a necessity. Most Filipino Gen Zs (51%) now consider beauty and cosmetics integral to their daily lives.
How L’Oréal uses digital technology to become a ‘beauty life companion’
Integrating technology with personalised customer experiences is crucial nowadays where digital innovation and changing consumer behaviours are driving change. L’Oréal is responding to this need by moving from “phygital” services to “beauty life companion,” with e-commerce being a key touchpoint.
MALLS
WHERE THE INDUSTRY CONNECTS AROUND INNOVATION AND INSPIRATION
“ The Inspired Home Show ® 2025 will be the 125th edition of the trade show. Although much has changed since the first event was held in 1939, one quality that has remained consistent throughout the decades is the Show’s dedication to bringing high-quality buyers and sellers together. In March, we will celebrate our past as well as our future as we continue to evolve in order to create the most productive and vibrant home + housewares marketplace possible.
Buyers can easily register for a free entrance badge and take advantage of numerous free events during their stay in Chicago – visit TheInspiredHomeShow.com for more details!
We look forward to seeing you in Chicago, 2-4 March!”
— DEREK MILLER, President & CEO, International Housewares Association
“As an experienced professional with 20 years in the home industry, I can confidently say that The Inspired Home Show is unparalleled in its offerings. From premium kitchenware and tableware to state-of-the-art appliances, the event curates a selection of top-notch brands and products that meet the highest standards of quality and innovation. The opportunity to engage directly with leading brands, manufacturers and suppliers allows for informed purchasing decisions, while the plethora of networking opportunities fosters valuable industry connections. Whether sourcing for department stores or specialized home stores, The Inspired Home Show consistently delivers excellence, making it an indispensable resource for professionals in the field. Great show, very well organised!”
— CHINMAY BHATT, CCA and Head - Home, Shoppers Stop Ltd, India
LUXE ON A PLATE: HIGH-END BRANDS FACE DILUTION
Luxury brands that enter the food and beverage (F&B) market to create steady, long-term income sources that complement their traditional retail operations risk diluting their brand identity without a clear strategy—especially in the social media era, where every customer experience is shared globally, analysts warn.
“Running a luxury goods store and retail store, and running a food and beverage operation are totally different animals, with different margin profiles and operating models,” Nobuko Kobayashi, Ernst & Young Asia-Pacific Strategy execution leader, told Retail Asia.
“A lot of attention to detail is needed, because instantly, the dining experience can be communicated to the world through social media,” the EY expert said.
“The choice of location, the choice of cuisine and the celebrity chef that you may want to work with — all these have to jive," she added.
Forgetting the main course
Kana Shintani, senior food and drink analyst at Mintel Japan, Inc., said the biggest risks in these ventures include losing a brand’s core identity and exclusivity by venturing too far from its original market.
“Entering too many diverse categories can also risk overextending the brand, leading to loss of focus and weakening the brand's core identity,” she told Retail Asia
In 2023, Dior opened its first hotel in Paris, blending its timeless elegance with contemporary luxury. Ralph Lauren’s also entered the hospitality sector with The Polo Bar in New York City, which has attracted loyal customers and new patrons drawn to the brand’s storied heritage.
Louis Vuitton, Chanel, and Gucci have also opened flagship cafes and restaurants in key cities around the world, from Paris and New York to Tokyo and Seoul.
Hong Kong, China told to ban ‘zero-dollar’ tours
Hong Kong should outlaw so-called zero-dollar tours — notorious for price-gouging, forced shopping, and boring tours — if it wants to regain its iconic status as Asia’s shopping paradise, analysts said.
“The solution lies in self-regulation within the tourism industry, as well as legislation from both the source market (Mainland China) and the destination (Hong Kong), to penalise illicit or outlawed business practices," Yong Chen, an associate professor at EHL Hospitality Business School, told Retail Asia.
The tours, which carry a ridiculously low price tag and force tourists to buy stuff at partner retail stores that provide commissions to tour operators, is a disservice to foreigners visiting Hong Kong, he pointed out. “Tourists are the victims, and there is plenty of evidence suggesting this.”
In 2015, a Chinese tourist died in Hong Kong after being attacked during a "forced shopping" tour. Just recently, the Hong Kong government revoked the licence of a local tour guide for threatening mainland Chinese visitors for refusing to shop.
Mario Braz de Matos, CEO at Singapore-based branding consulting firm Flying Fish Lab, said Chinese tourists accounted for almost 90% of Hong Kong’s retail spending in 2023.
However, the zero-dollar tour model has taken a heavy toll on mid-range and mass-market retailers because it channels tourists to partner stores, often bypassing local businesses, he said in an interview.
Market presssure
Braz de Matos noted that whilst luxury brands used to benefit from the influx of tourists, the availability of high-end goods in Mainland China and other regional markets has intensified competition.
Chen said zero-dollar tours have created a “shadow economy” that bypasses Hong Kong’s formal retail sector. “Tourists joining zero-dollar tours are insulated from the formal retailing sector of Hong Kong.”
"In fact, almost all tourist spending is channelled by tour guides and travel agencies to those businesses that are either under the direct control of travel agencies or have some sort of indirect relationship with them,” he said.
As a result, small businesses, including local restaurants, mid-scale hotels, and local retailers suffer the most, Chen said. This is because the spending of tourists on zero-dollar tours are controlled by travel agencies that funnel them to specific stores that usually offer lower-quality goods.
But these cheap package tours are slowly being eclipsed as more mainland Chinese tourists opt for independent travel. “There is an increasing proportion of mainland Chinese taking independent tours in Hong Kong instead of purchasing package tours,” he added.
Hong Kong’s inbound tourism increased 64% year on year to 21.15 million visitors in the first half, averaging 116,000 daily visitors, according to data from Colliers International (Hong Kong) Ltd. Of the total, 16.5 million came from Mainland China.
However, mainland tourists are spending significantly less amidst high joblessness and stagnant wages in China, according to Simon Smith, regional head of research for the AsiaPacific region at Savills Hong Kong.
“It’s a very tough time for Hong Kong at the moment,” he told Retail Asia.
Zero-dollar tours have created a “shadow economy
Tourists are the victims, and there is plenty of evidence suggesting this
Yong Chen
Mario Braz de Matos
HOTELS & TOURISM
Blind boxes spur collectible toy growth in Asia-Pacific market
Collectible toy companies like Funko and Pop Mart are driving market growth through blind boxes — a trend characterised by buyers not knowing which specific product designs they will get upon purchase.
The element of surprise keeps consumers loyal and coming back to purchase until they get their desired product, Andy Clempson, vice president for sales in the AsiaPacific region at US-based Funko, told Retail Asia
Clempson said the microcollectible segment of blind boxes that includes spin-offs of the same product made up roughly 10% of the market last year, growing 35% from a year
earlier.
The global collectible market size was estimated at $294.2b in 2023 and is projected to grow 5.5% annually until 2030, according to Grand View Research.
Also capitalising on the “blind” strategy is Chinese toy company Pop Mart with its Labubu bag charm product line. In 2019, the company worked with Hong Kong-born, Belgium-based artist Kasing Lung to launch the product, which is based on the furry elf character from his story series “The Monsters.”
Since then, Pop Mart has released several Labubu spin-offs, attracting global attention. Revenue from international markets hit $1.9b
(RMB13.5b), accounting for 29.7% of total sales in the first half of 2024.
Global collaborations
Justin Moon, president at Pop Mart International, said collaborating with global designers ensured the success of Labubu. He said the company localises its products by blending these with cultural elements.
Past country-specific collaborations include the Merlion Labubu vinyl plush, Taiwan’s bubble tea mega space Molly figurine, and a UK-exclusive Pop Bean football Labubu.
Clempson said the Philippines holds the biggest market share at Funko. “What we did was release a Jollibee Funko Pop, appealing to its widespread cultural significance in the Philippines.”
Clempson said strategic collaborations are also key to the growing popularity of collectibles in the Asia-Pacific region. Funko has more than 1,100 licences countryspecific such as Disney, Warner Brothers, Universal, and Netflix.
We try to keep ahead by identifying who we can partner with faster than anyone else
“We try to keep ahead by identifying who we can partner with faster than anyone else,” he said. “Every month, we present to our distribution partners 100 new lines, which allow them to bring freshness and newness to the market.”
Both Funko and Pop Mart expect the industry to continue growing in the coming years, driven by tech advancements, the push for sustainability, and more product lines.
THE CHARTIST: ASIA-PACIFIC RETAILERS TAP SUBSCRIBERS TO DRIVE GROWTH
Retailers in the Asia-Pacific region have turned to selling subscriptions over traditional products as they brace for an economic downturn where consumers think twice about spending.
The subscription model is increasingly becoming a way for retailers to ensure stable revenue streams and deeper consumer engagement, according to Erik Almadrones, consulting customer and growth leader at Ernst & Young Asia Pacific, told Retail Asia
“Subscription businesses are growing at a much, much faster rate than traditional product-based businesses,” he said. “Stability and predictability become key to the value proposition for subscription services.”
Almadrones said retailers should consider offering stable pricing for the first few years of a subscription to attract cost-
conscious consumers during uncertain times. Subscriptions replace one-off purchases, allowing brands to engage with consumers continuously.
He noted that subscription businesses can achieve-two-and-a-half times the lifetime value of traditional retail customers, highlighting the potential for long-term customer loyalty.
Consumers in the region are increasingly choosing subscription services to save money and get discounts, according to a study by KPMG International Ld. and GS1.
These services, which involve a fixed monthly fee for regular product deliveries, address key retail challenges such as the need for consistent reordering. Consumers in countries like Australia, Vietnam, Indonesia, Malaysia, Japan, India, and Thailand value “exclusive access to products or deals.”
Source:
The Labubu bag charms are popular items for collectors
Popularity of subscription services across markets
Justin Moon
Andy Clempson
STORES
Starbucks Korea brews an AR-powered coffee escape in Seoul
Its first reserve-only branch features AR art installations and a Mixology Bar.
Starbucks Korea is using augmented reality (AR) technology at its first reserveonly store, Jangchung Lounge R in Seoul, to meet consumers’ growing demand for an immersive coffee experience.
“Upon entering the store, customers are greeted by an augmented reality display that blends perfectly with the series of mural art in the garage,” said Jeong Youn Cho, director of store design for Starbucks Asia-Pacific told Retail Asia.
She said this feature, created in partnership with Seoul-based art and design studio Orbit, acts as a portal that takes customers from the loud and busy streets of Jangchung-dong to a serene space where they can fully immerse themselves in the sensory experience of coffee.
The six mural pieces illustrate the journey of coffee beans — from
cultivation to brewing. The AR technology, meanwhile, highlights the various stages of the process to enhance customer understanding and appreciation for coffee.
Cho said customers could only experience these features in person. “Through technology, we were able to infuse a dose of whimsical fun into a heritage space,” she added.
The Starbucks director said the design of the store respects its original architecture, which dates back to the 1960s, and includes preserved elements that contribute to a more intimate atmosphere through smaller seating areas.
She said the AR display was integrated into the design due to the restrictions on building permanent structures. “AR helped us overcome these challenges, immersing our customers in the coffee story that is activated virtually whilst also tying in
Through technology, we were able to infuse a dose of whimsical fun into a heritage space
with their encounters at the Reserve Bar and Mixology Bar on the second floor,” Cho said.
Starbucks Korea is responding to key shifts in the coffee market by offering a more immersive experience, greater variety, and fast digital ordering options, Akolkar, managing director of Store Development for Starbucks Asia-Pacific, told the magazine.
As a reserve-only store, Jangchung Lounge R exclusively offers Starbucks Reserve coffee, with beans that are sourced from smalllot coffee farms.
“These limited-edition offerings – including some of the most rare, limited availability coffees from around the world – present our discerning customers with a diverse spectrum of flavours and stories, ensuring an elevated coffee experience,” Cho said.
The Jangchung Lounge R spans three floors and has 180 seats
The store design preserves elements of the original 1960s architecture.(Photos from Starbucks Asia)
An AR display showcases the coffee's journey from bean to cup
A mixology bar offers innovative cocktails
Jeong Youn Cho
TikTok ‘shoppertainment’ drives mega-sale hit
Videos on the platform are used not just to entertain but also to drive e-commerce.
Retailers went from product discovery to purchase in a flash by making entertainment part of the shopping experience at TikTok's mega-sale events this year.
Short videos, time-sensitive offers, user-generated content, and influencer partnerships have emerged as key strategies for brands looking to drive engagement and sales on the online platform, Matty Lin, general manager of Global Business Solutions at TikTok Southeast Asia, said in an interview with Retail Asia
“Livestream selling has also become another powerful driver of consumer engagement and purchases in Southeast Asia,” he said.
For example, Malaysian fashion brand ZUCCA used TikTok's content sponsorship packages, boosting the number of e-shoppers who bought stuff by 9.5%, Lin said.
The gross merchandise value — a business metric that measures the total value of sales over a period of time — of brands that go live with TikTok’s LIVE Shopping Ads, which help people on TikTok discover and
Going live helps brands to speed up order growth, provide stable gross merchandise value and higher return on ad spend
watch their LIVE videos, more than doubled compared with those who did not use the feature, he added.
Lin also pointed to trends like #TikTokMadeMeBuyIt, which has amassed more than 10 million posts globally, as significant drivers of awareness and sales.
“Going live helps brands to speed up order growth, provide stable gross merchandise value and higher [return on ad spend], where we have seen LIVE contribute to over 40% of our top-tier sellers’ gross merchandise value,” he added.
He urged brands to conduct live sessions for at least three hours daily, noting that well-structured scripts can boost 10-second view rates by over 56%, whilst curated product assortments could increase conversion rates by more than 78%.
Lin said sellers should tailor their videos depending on whether their target audience is a bargain hunter, effortless, inspirational or purposeful shoppers.
“Many of them gain valuable insights from engaging
demonstrations and Q&A sessions, reviews, unboxings, and promotions, ultimately encouraging them to [buy] within the app environment,” said Ng Chew Wee, head of Business Marketing for the Asia-Pacific at TikTok.
“These communities thrive on interaction and co-creation, with 73% of Asia-Pacific consumers participating in content creation through trends, challenges, comments, and more," she added.
Brands should strive to turn their products into high-demand, bestselling “Hero” stock keeping units (SKU) with more than 30 daily orders for the past 30 days, he said. The most successful products, or “Super Hero” SKUs, surpass 100 daily orders.
For brands selling on TikTok Shop, Lin said increasing online presence through the Shop Tab, which takes users straight to its shopping portal in one touch, is critical. “Users browsing the Shop Tab are high-intent shoppers, and by running [Product Shopping Ads], brands can ensure their listings are featured prominently, engaging users at a crucial point in their shopping journey.”
TikTok’s personalised “For You” feed is also creating tailored product recommendations for its viewers. Ng said half of users find new products through this page, and 61% have bought items directly on TikTok or shortly after seeing them there.
Relatable and credible
Brands that run TikTok’s Product Shopping Ads, a tool that lets them add shopping options to videos, for one, could hit their first sale seven days faster than those who don’t use the feature, Lin said.
Almost 60% of top-tier sellers leverage creator content to boost their gross merchandise value, Lin said. Lin noted that 57% of users seek authentic product reviews and 50% look for product demos, making trust essential for consumer engagement on TikTok.
“Creators play a key role in fostering this trust, as their content is often seen as more relatable and credible,” he said. “Brands can collaborate with creators via the TikTok Creator Marketplace and leverage this authenticity to strengthen their connection with audiences, turning trust into meaningful engagement
Going live contributes to over 40% of top-tier sellers' merchandise value
Matty Lin
RETAIL INSIGHTS: E-COMMERCE
and higher conversion rates.”
Brands should also customise their sales strategies to align with Southeast Asia’s varied cultures and shopping behaviours, Lin said. Seasonal shopping peaks, like Ramadan in Indonesia and Malaysia, present unique opportunities for engagement. TikTok data showed a 75% year-onyear growth in sales of Indonesian food products during this period.
"Southeast Asia is a melting pot of cultures, each with its unique preferences and buying behaviours,” he said. “Brands need to take into consideration these market nuances and adapt their sales strategies accordingly.”
Hero SKUs
One best-selling product out of a hundred is enough to drive an online shop’s gross merchandise value (GMV), according to TikTok.
In fact, only 1% of stock-keeping units (SKU) in TikTok shops contribute to half of their GMV, according to the social media app’s own findings.
Brands should not focus on a product range, Trixie Chua, performance marketing strategy lead at TikTok Global Business Marketing in the Asia-Pacific region, told the recent Retail Asia Summit in Singapore.
“It all boils down to a brand’s ‘hero SKU’ — or its bestseller,” she said. “If a brand can earmark and get the right SKU to continue growing, that is how it can drive up its shop’s GMV.”
TikTok analysed 9,000 sellers in the region and found that when an SKU reaches an average of 30 daily orders,
it can grow as much as 36% in terms of order volume in the next 30 days. Reaching 100 daily means it will scale by more than 60% in the next month.
But Chua said 90% of SKUs in TikTok shops struggle to break through this phase.
“So what can a brand do to reach its first sale?” Chua asked. She noted that brands just need to list their product and let the app boost it whilst it acquires more relevant audiences.
The next stage is growing an SKU to a ‘hero SKU’ through short videos promoting the product. “Brands can partner with several creators and put video shopping ads to extend the life cycle of these short videos.”
She also introduced the company’s latest automated solution called product GMV max, which optimises the total return on investment by taking into account paid channels, affiliates and organic videos.
“And last but not least, moving from a hero SKU to a superhero SKU stage, one of the most crucial factors is in terms of going live,” Chua said.
Sellers who go live at a minimum of three hours daily — an average of 100 hours a month — reach the ‘superhero SKU’ stage three to four weeks faster than those who don’t.
TikTok brands experience more stable GMV via live selling and can also make use of live shopping ads to get more traffic into their live rooms.
“We also have an automated solution for this called GMV Max,” she said. “Brands just need to put in the products during a live selling and it automates reaching the right audiences.”
Xiaohongshu, Taobao can boost brand reach in China
Retail brands should use digital platforms like Xiaohongshu, Tmall Global, and JD Worldwide if they want to reach more Chinese consumers beyond tourists, analysts said.
Tmall Global, Taobao and JD Worldwide sell products directly to Chinese consumers, while Xiaohongshu and REDnote are ideal for brands that focus on lifestyle, beauty, and fashion, Carmen Zhu, consulting director at Frost & Sullivan, told Retail Asia
Diana Shao, category director for China Reports at London-based market research firm Mintel Group Ltd., said Tmall and JD Worldwide are a good starting place for brands and retailers less familiar with Chinese consumers.
Shao said Xiaohongshu could help brands reach young consumers who choose “trendy retail brands.” “A lot of young people use Xiaohongshu to find shopping inspirations and mostly to share their lifestyles," she said in an interview with Retail Asia
About a third of consumers in China use Tmall and JD daily, whilst 66% buy stuff on these platforms at least once a week, according to Mintel. It also said 27% of Chinese consumers access Xiaohongshu daily, and 34% make purchases on the app once a week.
But selling on these apps is not enough; brands should also come up with marketing strategies such as shortform videos to attract more buyers.
In China, Douyin, TikTok's local counterpart, and Kuaishou dominate short-form videos. Six in 10 consumers use these platforms daily, and 33% make weekly purchases, Mintel said.
“Douyin provides an excellent platform for short video marketing and livestream e-commerce,” Zhu said.
David Zhang, insights manager at Euromonitor International, said Singapore retailers are turning to platforms like Douyin, Xiaohongshu, and Kuaishou to connect with Chinese consumers. Scarlett Supermarket is on Xiaohongshu whilst OSIM is on Douyin.
Shao said brands should partner with internet influencers and tap livestreams to boost brand visibility and credibility on these platforms.
Meanwhile, brands could reach a more mature audience on WeChat, Shao said, adding that they could open an account where they could push information daily and use WeChat mini-programmes to do marketing.
Xiaohongshu focuses on lifestyle, beauty, and fashion
CHINA
Users seek authentic product reviews and demos
Toys ‘R’ Us Asia banks on ‘kidults’ to drive toy sales
Teens and adults are buying beloved toy brands from the 80s and 90s.
Picture a toy store where every corner sparks a childhood memory and every display features the latest trends. Toys “R” Us Asia is making that possible with a fresh concept — blending nostalgic favourites with innovations to entice the young and young at heart.
This blend of old and new is evident in their offerings for the growing “kidult” market, where known childhood brands are paired with collectibles.
The goal is to create “a space where anyone — whether they’re reliving a treasured memory or discovering something new — feels at home,” Toys “R” Us Asia (Holding) Ltd. CEO Leo Tsoi told Retail Asia
“We’ve worked hard to modernise our stores whilst preserving the magic that so many of our customers remember from their childhoods,” he said. “Our new designs feature digital elements and contemporary layouts, but we never lose sight of the classics."
Toys “R” Us Asia and its units are separate from all other Toys “R” Us companies globally, including the American toy, clothing, and baby product retailer that filed for bankruptcy in 2017 and 2018 amidst stiff competition from mass merchants and online retailers, and reopened in 2021 under a new owner.
Bold new roadmap
The Asia Pacific toy market was valued at $56.6b in 2024, according to Expert Market Research, with Statista projecting a compound annual growth rate (CAGR) of 3.39% through 2028.
Tsoi said the toy market in Southeast Asia is being shaped by the rise of the segment for “kidults” — adults whose interests or media consumption is traditionally seen as more suitable for children — who are returning to the joy of toys.
Southeast Asia is expected to become the fastest-growing region for traditional toys and games with a 5.4% retail value CAGR, according to Euromonitor International. One of the trends that emerged from the pandemic was the rise of “kidults” — teens and adults aged 12 years and over — buying beloved toy brands from the 80s and 90s such as Transformers, Care Bears, Barbie and more.
Japanese brands are also gaining popularity, Tsoi said. “Consumers are drawn to these beloved franchises, and we’ve been quick to bring them into our stores.”
A shift toward lower-ticket items and smaller basket sizes is likewise pushing Toys “R” Us to change its merchandising strategies. Tsoi cited the need to pivot quickly to meet consumers’ evolving needs.
"Our transformation agenda sets off to meet the latest customer demand and lead to innovative toy and play experience,” the CEO said.
‘Bold new roadmap’ Technology also plays a key role in enhancing the shopping experience at Toys “R” Us stores. Tsoi said the company has been integrating artificial intelligence (AI) into store designs to improve both customer and staff experiences.
Drawing on lessons from the tech-driven Chinese market, the company has refined platforms like point of sale systems, e-commerce, customer relationship management, and order management systems, which are now being rolled out across Southeast Asia.
Tsoi said the aim is to create seamless in-store and online interactions that appeal to all generations.
But there are challenges. “The macro environment was undeniably tough — low birth rates, inflation, and weak currencies were all headwinds,” Tsoi said. “We've had to rethink the way we operate, especially in light of the increased competition from nimble Chinese brands entering the Southeast Asian market.”
Consumers are drawn to these beloved franchises, and we’ve been quick to bring them into our stores
Tsoi said they have embraced “a bold new roadmap” to reimagine their stores and customer experience, moving their brand forward with innovation at the heart of everything they do.
Toys “R” Us managed to clear lingering inventory from the COVID-19 period, allowing it to recalibrate its store portfolio and enhance performance across the region.
A key success was the launch of the Toy+Play concept store at Jewel in Singapore, which has received positive feedback from customers, landlords, and the media. The concept would soon expand across the region, he added.
Leo Tsoi, CEO of Toys "R" Us Asia
SOUTHEAST ASIA
Meta is investing big in business messaging
Companies can boost sales by reaching more customers on Messenger and Instagram.
Meta wants to help more companies in Southeast Asia unlock growth by reaching more clients and elevating customer satisfaction through business messaging on its popular apps — Facebook, Messenger, Instagram and WhatsApp.
Business messaging lets companies meet consumers “where they are most active and comfortable” — on native apps that they likely already know and love, Benjamin Joe, vice president for Southeast Asia and emerging markets at Meta, told Retail Asia.
Gone are the days when the only way to chat with a business was to give it a call or show up at the door. Customers now demand communication options and speed as they shop from a couch.
“Businesses can do much more by tapping into this trend and engaging their target consumers at every touchpoint,” he said. This includes everything from answering questions to finalising purchases through automation.
Joe said seven of 10 large companies rated business messaging, which lets them market to existing customers, manage user-initiated service requests or accomplish a mundane task like resetting a password, as very or extremely important to their operations. Additionally, more Meta advertisers are using click-to-message ads, which redirect people from Facebook or Instagram into one of Meta’s messaging products to chat with a business.
Consumers in the Asia-Pacific region have boosted their use of business messaging since the COVID-19 pandemic, with one in three interacting with companies weekly, according to a whitepaper by Meta and Boston Consulting Group. Tech-savvy Gen Z and millennials message businesses as often as twice a week.
In Southeast Asia, Vietnam and Thailand are leading in business messaging, the VP said. In these countries, messaging has become essential in the customer journey, surpassing its traditional role in personal communications.
In Vietnam, 45% of consumers use messaging to buy things, and almost half use social media to browse products. In Thailand, 90% of consumers message retailers while shopping.
“Consumers increasingly prefer to engage with businesses through messaging apps for everything, from initial inquiries to final purchases,” Joe said.
‘Pushing the boundaries’
Meta recently worked with Shopee in Thailand to integrate shopping features into Messenger, providing a smooth browsing and shopping experience. Instant and personalised messages are key drivers of customer satisfaction, he added.
Meta has also launched a pilot of Meta Verified for businesses across Thailand, Malaysia, Singapore, and
Business messaging lets companies meet consumers where they are most active and comfortable
the Philippines. Subscribers get a verified blue check on Facebook or Instagram, and are promised protection from impersonators and increased brand discovery, Joe said.
He said the early feedback has been positive, with companies appreciating how verification enhances their credibility and customer trust.
“Scalability is key” to maximise the benefits of messaging integration, Joe said, noting that as companies grow, they need to manage high volumes of customer inquiries whilst ensuring consistent communications.
To address this, Meta offers artificial intelligence (AI)powered tools that automate routine tasks such providing FAQs (frequently asked questions) and processing orders.
“Meta’s AI agent powered by Llama 3 can handle a large volume of interactions simultaneously,” Joe said, ensuring that customers get prompt answers without overwhelming service teams. The company plans deeper AI integration and more sophisticated tools for context-aware responses and personalised recommendations.
Meta is also investing in live shopping features to improve livestreams, analytics, and product discovery. “We are committed to pushing the boundaries of what is possible in digital retail,” he added.
Benjamin Joe, vice president for Southeast Asia and emerging markets at Meta
Decathlon adds 37 stores to grow pickup reach
The world’s largest sporting goods retailer plans hubs to be 15 minutes from city homes.
Decathlon is building on the success of its pick-up service in Singapore as it boosts its presence in the city-state by opening 37 more branches in the next two years, its top official said.
“The key to the brand’s expansion is our desire for Decathlon to be as close to the community as possible — to be within 15 minutes from the homes of all Singaporeans,” Decathlon Singapore CEO Stephan Veyret said in an interview with Retail Asia
“Click & Collect is designed to integrate smoothly into the lives of Singaporeans, offering them a flexible way to pick up purchases on the go,” he added.
The French sporting goods retailer, the largest in the world, heavily relies on its brick-and-mortar stores, with 87% of sales occurring in-store compared with 13% online.
About 50% of Singaporeans prefer hybrid shopping, though they tend to make more purchases online, according to a study by KPMG and GS1 released in 2024. A further 26% said they mostly shop online, but visit physical stores for specific items or experiences, whilst 21% prefer physical stores.
KPMG cited the emergence of seamless commerce, “which recognises a brand’s customer journey across multiple platforms and services, encompassing social media, delivery innovations, apps, websites, automated messaging and other digital interactions, all seamlessly integrated with traditional physical stores.”
“E-commerce is something Singaporeans have been accustomed to for many years now,” Veyret said. “With speed and efficiency so ingrained in our daily lives, ‘quick commerce’ is fast becoming the expected service standard.”
Reducing carbon footprint
Beyond convenience, Decathlon’s Click & Collect service aligns with the company’s broader values. “For example, each delivery van carries multiple parcels per trip to each of our 18 stores, bringing deliveries closer to our customers, whilst reducing our carbon footprint,” the CEO said.
In line with its sustainability goals, the company has committed to eliminating single-use plastics from its e-commerce operations. Decathlon's efforts in this area are further supported by a 30% year-on-year increase in awareness of its Second Life product range, highlighting a growing acceptance of second-hand goods.
“As a brand, we understand that both consumers and brands drive each other to be more sustainable, and both play integral roles in moving towards more green practices,” Veyret shared in the interview.
The company aims to produce all its products using renewable energy by 2026, from 65% now. It reduced its carbon emissions by 9.2% in 2023, whilst posting a 4.2%
increase in global revenue. Decathlon's circular business model is also gaining traction, with Singapore leading the way. The company has refurbished and sold more than 2,500 bicycles under its buy-back program, and there are further plans to expand the initiative by including fitness equipment and other products.
Globally, Singapore ranks sixth for circular turnover and second-life sales within Decathlon’s operations.
Future plans
Looking ahead, Decathlon plans to enhance customer experience by working with Enterprise Singapore, Design Singapore, and the Economic Development Board. Future innovations include integrating digital content with instore purchases and launching an upgraded membership programme with benefits such as point redemption and extended returns, the CEO said
The key to the brand’s expansion is our desire for Decathlon to be within 15 minutes from the homes of all Singaporeans
“These digital innovations will allow us to enhance the customer experience not only at the larger Experience stores, but also at the more compact Click & Collect touchpoints,” Veyret said.
Decathlon continues to prioritise product innovation, with designs crafted by sports enthusiasts for enthusiasts. Notable innovations include the Easybreath snorkelling masks, twosecond camping tents, and a one-second folding bicycle.
Additionally, the retailer’s revamped membership program, introduced in July, seeks to deepen customer engagement by offering rewards and exclusive access to Decathlon events and services.
Stephan Veyret, Decathlon Singapore CEO SINGAPORE
Swarovski polishes its TikTok playbook to define luxury for the Gen Z market
The Austrian crystal maker is working with influencers to connect with the younger Singaporean market.
Swarovski has taken its renowned luxury crystals and gems to TikTok as it taps tech-savvy Millennials and Gen Zs as part of a bigger “luxury at scale” strategy, whilst still keeping to its core aesthetic.
The family-owned Austrian crystal maker, synonymous with sparkle, is adapting to changing times by blending opulence and value. To connect with the Singaporean market, Swarovski is working with local influencers and global icons like pop star Ariana Grande, whose charisma and individuality the company believes align with its brand's creativity.
“This trend is not just about representation, but also about creating pieces that resonate with a wider range of customers, making luxury what we call more accessible and relatable,” Nasr Sleiman, managing director for India, Southeast Asia and the Middle East at Swarovski, said in an interview with Retail Asia
Building an online presence
Swarovski's TikTok account has had 1.4 million likes from about 183,000 followers since its first video post in June 2022. It also has 8.5 million followers on Instagram.
Sleiman said they avoid getting lost in the noise by being part of relevant conversations. The marketing strategy “aims to help the brand grow, [to stay] top of mind, whilst at the same time being culturally relevant to all foundations around the world.”
According to Partipost’s 2024 Influencer Marketing Report, 75% of Southeast Asian consumers are more likely to buy products recommended by influencers, highlighting their strong influence over traditional ads. Furthermore, 80% have made a purchase based on an influencer's recommendation.
TikTok is the leading platform for influencer marketing, with 69% of brands utilising it—significantly surpassing Instagram at 47%, YouTube at 33%, and Facebook at 28%.
Sleiman said pop-up and experiential marketing could create a big buzz and attract new customers.
Singapore's luxury jewellery market is worth $301.6m, with an expected annual growth rate of 4.27% until 2029. There is a healthy demand for exclusive and high-end jewellery in the city-state despite its small size.
Sleiman said the younger post-90s generation is a key market for Swarovski, founded in 1895, especially in markets like Singapore where consumer spending remains subdued.
"In Singapore, we’ve seen a rise in consumers who are more selective with their purchases,” he said. “They want the luxury experience, but they also seek value. Our approach allows them to enjoy the best of both worlds.”
“We believe that fashion and jewellery should not be taken too seriously, but rather be an enjoyable extravagance and expression of one's individuality and unique sense of style,” the Swarovski executive said.
He added that Swarovski, one of the largest purveyors of
This trend is not just about representation, but also about creating pieces that resonate with a wider range of customers
crystal and a giant in the jewellery industry, continues to evolve as consumer trends and tastes change.
At the heart of Swarovski’s strategy is the seamless integration of online and offline experiences. “We ensure that luxury experiences transcend from online to offline," said Sleiman.
In 2023, Swarovski launched 12 pop-up stores, including three in Singapore, featuring exclusive products, interactive photo booths, and custom gifts. These events, with live music, refreshments, and local celebrities, drove a 56% increase in sales.
Swarovski Crystal Business, which makes crystal glass, jewellery, rhinestones, watches and accessories, posted 4% growth in global sales to $1.997b (€1.83b) in 2023, and a 10% like-for-like increase amidst a slowing luxury market.
Retail sales rose 4%, whilst business-to-business crystals were up 5%, it said in a statement. Its top 10 markets achieved like-for-like growth, with sales in key cities up 13%. In-store growth was 5% and 4% online.
Nasr Sleiman, managing director for India, Southeast Asia and the Middle East at Swarovski
Raffles City bets big on experiential retail
The mall has revamped 111,000 sq ft of retail space as part of a major redesign.
Raffles City Singapore is doubling down on experiential retail with a major overhaul of its offerings, integrating personalised services, digital touchpoints, and exclusive dining experiences to attract more shoppers.
The mall has revamped 111,000 sq ft of retail space, introducing more than 50 new luxury and cosmopolitan brands, along with immersive, lifestyle-driven experiences that go beyond traditional shopping.
“We constantly work on keeping our finger on the pulse of the rapidly evolving shopping and lifestyle needs of our shoppers,” Marianne Liow, vice president at Raffles City Singapore, told Retail Asia.
“We are always looking out for new and innovative ways to engage our shoppers through unique retail concepts and relatable experiential lifestyle offerings,” she added.
Interactive store concepts
She said a number of tenants have added lifestyle and experiential elements, turning the mall into a destination where shoppers can relax, socialise, seek inspiration, and have fun. “Our tenant mix is carefully curated to cater to the diverse demographics who frequent our mall — from locals to tourists,” she added.
Amongst the standout tenants is Kilian Paris, which opened its first boutique in Singapore at Raffles City. The store features a Kilian Bar where customers can personalise their fragrances.
Swiss luxury watchmaker Breitling SA has also opened its largest boutique in Singapore at Raffles City, showcasing the brand’s travel and lifestyle accessory collection for the first time in Southeast Asia.
Meanwhile, Armani Beauty’s “Red Ribbon” concept store features a UV printing machine for personalised Armani Privé products.
YSL Beauty’s new boutique also introduced the YSL Skin Edge device, offering detailed skin analysis and customised skincare recommendations in under 15 minutes.
Raffles City has also expanded its dining options by partnering with renowned chefs. The highlights include the world’s first Bon Broth restaurant by chef André Chiang, Casa Vostra, an Italian eatery that offers authentic pizzas and pastas, and Mensho Tokyo, a ramen brand.
In response to growing environmental concerns, Raffles City has introduced the Raffles City Green Corner to educate shoppers about recycling and sustainability. The space includes recycling bins, educational displays, and a Bag Sharing Station for unused paper bags.
The mall is also home to Singapore’s only L'Occitane en Provence eco-concept boutique, reinforcing its commitment to sustainability.
Liow said Raffles City’s revamp is a response to the
changing nature of consumer behaviour, particularly amongst younger generations. “We need to keep reinventing ourselves,” she pointed out.
“Today, stores are no longer simply transactional; they are dynamic spaces designed to cultivate community and provide immersive experiences,” she said. “We have observed a growing appreciation for in-person shopping and interaction amongst our shoppers and tenants.”
Events and exclusive programs, such as those for Raffles Prestige members, also help the mall engage more deeply with consumers.
The refresh has led to increased foot traffic, particularly amongst younger shoppers drawn by the mall’s dynamic mix of retail, dining, and lifestyle experiences, Liow said.
‘Phygital’ shopping
She said brick-and-mortar stores would continue to complement e-commerce rather than compete with it.
“Whilst there have long been concerns that e-commerce would overshadow brick-and-mortar stores, recent years have shown that brands are reinventing their physical spaces to stay relevant alongside digital platforms.”
We constantly work on keeping our finger on the pulse of the rapidly evolving shopping and lifestyle needs of our shoppers
“E-commerce and traditional retail spaces need not be seen as opposing forces; together they can offer a more holistic experience where customers enjoy the best of both worlds — visiting stores to explore products firsthand and enjoy unique experiences unavailable online,” she added.
Also at the heart of the mall’s transformation is the integration of both digital and physical elements.
“The flexibility that shoppers look for nowadays when making a purchase has led to the rising popularity of the omnichannel retail experience, also known as ‘phygital’ shopping,” she pointed out.
Marianne Liow, Vice President at Raffles Singapore
SINGAPORE
Kawan Lama merges web carts with real shelves
Visitors to its e-commerce platform who end up buying items increased eightfold.
Indonesian retail giant Kawan Lama Group is trying to engage customers through digital and physical touchpoints to create a consistent experience from start to finish, as part of its push to drive up sales.
The group’s strategy focuses on integrating online and offline customer data for a unified omnichannel experience with its e-commerce platform Ruparupa.com, CEO Teresa Wibowo said in an exclusive interview with Retail Asia.
In-store customers can scan products to add them to their wishlists on the app or even complete purchases without queuing at the cashier. Store staff are equipped with sales apps to assist customers, process orders, and provide detailed product information, including from the videos.
The group trains staff in both offline and online environments to have deep product knowledge to leverage its omnichannel approach.
“For instance, we typically train in-store staff to answer customer questions about which tools are best for cleaning marble,” Teresa said. “That same product knowledge is provided to our online staff to address frequently asked customer questions.”
“We strive to meet customer needs no matter the channel they choose to shop through,” she added.
Adopting VR and AI
To further streamline the shopping experience, the group’s Ruparupa.com has adopted cutting-edge technologies such as virtual reality (VR) to help e-shoppers visualize the furniture they are buying and artificial intelligence (AI) to predict consumer behavior.
“We want to bridge the gap between offline and online shopping, making the experience increasingly seamless,” she told the publication.
Teresa noted that online customers used to find it difficult to visualise how furniture, like a sofa, would fit in their room. “We address this issue with VR. The same approach applies to our customer service.”
Meanwhile, AI tools allow Ruparupa.com to create content for the website and generate buzz on social media including through livestreams.
"AI personalises the shopping experience and encourages consumers to shop more based on their habits,” the CEO said. “Data analytics, aided by AI, also provides better insights into customer behaviour.”
Growth prospects
The e-commerce platform, which oversees more than 600 retail stores like AZKO, formerly ACE Hardware, Informa, and Toys Kingdom, has posted an eightfold increase in online visitors who end up buying stuff, and a threefold increase in sales since it started using AI in 2023.
We strive to meet customer needs no matter the channel they choose to shop through
Teresa is optimistic about growth prospects. Ruparupa. com had 2.1 million visitors in December 2024, according to market researcher Similarweb from 27,000 customers in Ruparupa.com’s first year in 2016.
“Apart from boosting sales, AI has also improved operational efficiency,” Teresa said. The technology helps in product selection, ad management, and targeting the right consumers, she said. AI also cuts down manual processes that used to involve many steps, such as consulting the merchandiser team about the type and use of a product.
“With AI adoption, Ruparupa.com’s productivity has increased significantly, as time-consuming processes can now be shortened. For example, in content writing, we can generate product usage descriptions with AI assistance and get them approved right away,” Teresa said.
Kawan Lama Group encourages every department, not just the technical team, to learn about AI. “The more interaction with AI, the more can be learned, and we push this through training and sharing sessions.”
Despite challenges in the increasingly competitive e-commerce market, the omnichannel strategy implemented from the beginning gives Ruparupa.com confidence that there is still untapped potential in the market.
“With a carefully crafted strategy for adopting innovative technologies and continuously enhancing customer service, Ruparupa.com is ready to face the dynamic future of e-commerce,” Teresa concluded.
Teresa Wibowo, CEO of Ruparupa.com
INDONESIA
Japan’s beauty industry fights online fakes with blockchain tech
Smart packaging helps ensure that consumers are buying the real thing.
Cosmetics companies in Japan are turning to intelligent packaging technologies such as quick response (QR) codes, near field communication (NFC) tags, and blockchain to combat counterfeiting especially in online marketplaces.
Fake cosmetics are rampant in e-commerce sites, where consumers can’t physically verify what they are buying, Ahmad Khan, a senior analyst at GlobalData, told Retail Asia
Counterfeiters use cheap ingredients, copycat packaging, and fake websites to deceive buyers, who also fall prey to quick promos on YouTube, Instagram and TikTok, he pointed out. Khan said 37% of Japanese consumers are influenced by social media ads.
Aside from QR codes and NFC tags that protect consumers from fake products, interactive features such as augmented reality (AR) and product tutorials let brands engage consumers to increase brand loyalty, Khan said.
Japan’s beauty industry is projected to grow 5% to 7% annually through 2028, with online shopping expected to account for 21% of the market, according to GlobalData. As a result, manufacturers are under pressure to adopt anti-counterfeiting technologies such as blockchain.
Scalability is challenging for smaller brands due to high costs and technical requirements
The shift has also made Japanese consumers more discerning, with 72% prioritising product safety, leading brands to provide detailed product information and reviews online, he added.
“As a result, brands hoping to position themselves for strength in the Japanese market often provide consumers with detailed product descriptions, reviews, and certifications on online channels,” Khan said.
He added that the rise of augmented reality and artificial intelligence in online shopping has been crucial for engaging consumers and offering personalized recommendations.
"This is particularly important in the case of the Japanese consumer base, within which 65% of consumers showed an affinity for products based on how well they were tailored to their specific needs," said Khan. "As a result, brands implement such technologies to a greater extent."
But Aya Suzuki, a senior analyst at Euromonitor International, said online shopping has barely made a dent, particularly for toiletries.
“With abundant physical stores and a preference for testing beauty products in person, online shopping is more common for
high-value items like premium skincare, whilst added costs deter the purchase of everyday toiletries,” she told Retail Asia
Whilst intelligent packaging has its benefits, its high cost is a barrier for smaller brands. Khan noted that whilst simple technologies such as QR codes are affordable, more advanced options such as NFC and blockchain need substantial investments in infrastructure.
Suzuki cited the limited adoption of these expensive technologies, with many choosing to rely on retail channels they have come to trust.
"Scalability is challenging for smaller brands due to high costs and technical requirements for solutions like NFC or blockchain,” she said. “QR codes provide a more accessible alternative with similar functionalities."
Improving scalability
To overcome these challenges, smaller brands should focus on low-cost alternatives such as website verifications or partner with tech providers to share the costs, the GlobalData expert said.
Khan also cited limited consumer awareness, privacy concerns, and environmental impacts as key barriers to intelligent packaging.
"Barriers to adoption include high costs, limited consumer demand, and difficulty justifying the return on investment, particularly for lowerpriced products,” Suzuki said.
Still, Khan expects intelligent packaging to evolve with the use of artificial intelligence to personalise consumer experience, wider adoption of blockchain to trace products, and demand for ecofriendly materials.
Suzuki said significant advancements would be limited to premium products.
"Significant advancements in intelligent packaging are unlikely in the next three years,” the Euromonitor expert said. “It is likely to be limited to niche segments like premium beauty and luxury products.”
Counterfeiters use cheap ingredients, copycat packaging, and fake websites to deceive buyers
Aya Suzuki
Ahmad Khan
Thailand’s No.1 listed Retail & Real Estate Developer pioneering world-class development projects
Central Pattana, a premier subsidiary of Central Group, is among global leaders in sustainable development, and real estate management with its core business encompassing retail, residential projects, hotels and office buildings across Thailand and overseas.
The company celebrates its recent successes with significant international recognitions including ranking No. 1 in the real estate industry with the DJSI World 2023, and winning three major awards at the Awards 2024’.
Ms. Wallaya Chirathivat has won the 'CEO of the Year' award first Thai leader to receive this honor. This reinforces the company’s global leadership and vision as a 'place maker', committed to quality projects, enhancing life, caring for the environment, and creating ‘The Ecosystem for All’.
Central World, the company’s flagship, has earned ‘Marketing Initiative of the Year’ awards, solidifying its status as ‘The Largest Lifestyle Shopping & Dining Destination in Asia’.
COUNTRY REPORT: SINGAPORE
Chinese fine dining finds its next course in Singapore
The city-state’s high spending power and big Chinese commune make it an ideal entry point in the Southeast Asian market.
Once dominated by casual Chinese eateries and cafés, Singapore’s streets now feature a growing number of fine dining restaurants from the Mainland.
The opening of Yong Fu, Chamoon Hotpot, and Sushi Zen in 2024, along with KUN's debut in 2023, is a testament to the growing number of fine dining restaurants in Singapore.
Joceline Yong, a Singapore-based analyst at Canvas8, said the growth is tied to the drop in luxury spending in Mainland China.
“Luxury spending is on a downward trend in China, including in the fine dining sector," Yong noted.
The number of fancy restaurants in cities like Shanghai has been halved to 1,300, Yong said, as lacklustre job figures and a prolonged property crisis take their toll on consumer confidence.
“Chinese fine dining F&B brands are thus looking towards overseas expansion to offset the challenges they are facing in China’s domestic market.”
A more attractive market “More Chinese companies have come to Singapore, especially in the last five years,” Joongshik Wang, Asia-Pacific leader at EY-Parthenon, told Retail Asia. “Singapore provides the most transparent and business-friendly environment in the world, with tax benefits and government support to help companies grow in the region.”
He added Singapore's safety, logistical and cultural advantages, as well as its appeal to Chinese expatriates, make it an ideal entry point. Singapore's high spending power and growing Chinese community make it an ideal market for testing new products, Savills Singapore Pte Ltd said in a report.
In 2022, the expansion of Chinese F&B brands accelerated as the market recovered from the pandemic, Savills said. Following the success of Chinese hotpot chains, brands that specialise in hot and fragrant pots — known for their spicy and numbing flavors
from Sichuan peppercorns and chili peppers — have become more popular in Singapore.
Chinese coffee and tea brands like Heytea, Mixue, ChaGee, and Luckin Coffee are also rapidly expanding in the city-state.
Its large Chinese population also plays a crucial role in the success of Chinese F&B brands, Wang said, noting that 70% to 80% of Singaporeans are of Chinese descent. “Singaporean lifestyle and expectations on products are always top-notch, which means Chinese brands can test their quality and brand power in Singapore.”
He noted that if a Chinese F&B brand succeeds in Singapore, it is likely to appeal to the broader Chinese community across Southeast Asia, which has 700 million people.
Chinese fine dining F&B brands are thus looking towards overseas expansion to offset the challenges they are facing in China’s domestic market
Yong added that Chinese F&B brands could hire Chinese-speaking staff in the city-state, whose strong base of ultra-rich people and corporate clientele generates demand for an upscale dining experience.
Still, Chinese fancy restaurants face stiff competition from both local and regional rivals, along with a manpower shortage and high operational costs. “Diners in Singapore have a wide range
of choices, so brands must offer a compelling, differentiated experience,” she added.
Standing out
To stand out in Singapore’s competitive food scene, Chinese fine dining brands offer a distinctive experience for local and expatriate tastes, Yong said.
Yong Fu has introduced the lesser-known Ningbo cuisine, whilst KUN has reimagined Sichuan flavours with an omakase-style dining experience, diverging from the communal meals typical of Singapore cuisine.
“Chinese fine dining F&B concepts like Yong Fu and KUN that have recently entered Singapore’s dining scene are standing out by offering a unique, exclusive, and novel experience for diners,” Yong told Retail Asia.
“Brands like Chamoon Hotpot have launched Singapore-exclusive items like a mala broth and KUN has likewise adapted some of its dishes to suit local palates, but the heart of the brand’s offerings still needs to tie back to its roots,” she added.
Chinese food and beverage brands should prioritise authenticity, exclusivity, and premium quality to sustain growth, Yong said. They also should distinguish themselves through cultural heritage.
They also need a thoughtful pricing strategy, as rising operational costs have prompted several fine dining brands to shift to more casual, lower-priced options.
New concepts like Yong Fu and KUN stand out in Singapore's dining scene with unique and exclusive experiences
Joongshik Wang
Joceline Yong
Brick-and-mortar stores attract shoppers seeking a real-world touch
Still, these brands should boost their online presence amidst the digital revolution.
E-commerce giants like Amazon and Alibaba continue to invest in physical stores, which remain crucial to the retail ecosystem in the age of digital transformation.
“One is the unique customer experience that online can’t exactly replicate,” Shaakir Siraj, managing director at Kuala Lumpur-based Tri Shaas Sdn Bhd, which operates Mydin Mart, told this year’s Retail Asia 2024 Summit in Singapore when asked about why brick-and-mortar stores remain king.
“To capture interest, you need to engage the senses,” he said. “Whilst online shopping can offer sight and sound, it cannot provide the same experience of walking into a grocery store and smelling freshly baked bread.”
Building personal connections
Global brick-and-mortar store revenue is expected to hit $21.8t this year — nearly three times that of online retail, according to German data platform Statista. It is projected to hit $25.1t by 2028.
Siraj noted that whilst online platforms offer convenience, being in an actual store allows customers to buy and use a product right away. “There’s immediate gratification.”
These stores also provide a more personal connection. “Social media has tapped into this need by allowing people to connect without speaking.”
“However, believe it or not, humans like interactions. Brick-andmortar stores capture both the verbal and nonverbal cues of customers who walk in,” he added.
Siraj, who has been managing director since 2012, noted how one of their mini-markets has become a regular place for the elderly. “We started with a small number, but due to word of mouth, the number of visitors grew, and we began to cater to more of them at that store.”
He noted that whilst some would argue that brand visibility might be better online, e-commerce sites could
be overwhelming, making it difficult to get noticed. Algorithms may also lead to brands appearing on the pages of unrelated industries.
“Brick-and-mortar stores offer you the chance to control the story and narrative of your brand,” Siraj said. “You can also connect with partners who share your values.”
“This is why many brands still set up exhibitions, booths, and roadshows — they help communicate what your business stands for.” Still, these brands should strengthen their online presence and evolve amidst the “digital revolution,” Siraj said.
Whilst online shopping can offer sight and sound, it cannot provide the same experience of walking into a grocery store and smelling freshly baked bread
He said building an online presence involves developing apps and tools for better customer engagement. “I’ve seen brands where their physical stores are beautifully designed. Meanwhile, their website is nothing more than a basic landing page with minimal information.”
He said brands often resist going digital because they fail to recognise its value. “Legacy businesses feel it’s just for information’s sake, which
spoils the brand image.”
Siraj said artificial intelligence and new technologies could help businesses become more efficient. “Chatbots, for instance, can handle level-one queries quickly, giving people the information they need. This allows human staff to focus on more personalised and complex interactions,” he added.
Pop-up stores
Online-only retailers could use popup stores to boost brand awareness in China without the expense of a permanent setup.
“Retailers can create a buzz through pop-up stores or offline events that are designed to generate interest and engagement on social media,” Carmen Zhu, consulting director at Frost & Sullivan said.
Chinese consumers are drawn to pop-up stores along popular streets or near landmark buildings (51%), those that offer exclusive products (46%), and free samples or gifts (45%), according to Mintel.
Shaakir Siraj, managing director at Tri Shaas Sdn Bhd, explains the difference in consumer behaviour for physical stores
38 p.a.100M+
Guests served through pharmacy retail and healthcare network
97%
Population reach
years of adding beats to our Guests
Emerging healthcare business population reach
1,150+ Retail pharmacies across the region
560K+
Kingdom wide virtual medical consultations
2.3M
Leading regional e-commerce platform
Consumer goods excellence lauded at FMCG Asia Awards 2024
The FMCG Asia Awards 2024 once again showcased the remarkable achievements within Asia's fast-moving consumer goods sector. This prestigious event honoured companies that exemplify innovation and excellence in delivering outstanding products and initiatives.
Winners were celebrated at a prestigious Awards Ceremony hosted by Retail Asia at the Marina Bay Sands Expo and Convention Centre, Singapore on 19 November 2024. The awards programme highlighted visionaries and leaders who are not only shaping the present but also
FMCGASIAAWARDS 2024WINNERS
Al-Kabeer Group
• Campaign of the Year - United Arab Emirates
B. Foods Product International Co., Ltd.
• Consumer Good of the Year (Ready-to-eat Meals) - Singapore
BETAGRO PUBLIC COMPANY LIMITED
• Health & Wellness Initiative of the Year - Thailand
Bisconni Ismail Industries Limited
• Home Brand of the Year - Pakistan
Brauer Natural Medicine
• Consumer Good of the Year (Vitamins & Supplements) - Australia
Cass & Onboard Group
• Campaign of the Year - South Korea
• ESG Initiative of the Year - South Korea
Coca-Cola Beverages Philippines Inc.
• ESG Initiative of the Year - Philippines
Coca-Cola China Limited & Ernest & Donald Marketing Communications Limited
• Campaign of the Year - Hong Kong
Coca-Cola Far East Ltd (The Coca-Cola Company)
• Campaign of the Year - Malaysia
Pacific Refreshments Pte Ltd (The Coca-Cola Company)
• Customer Experience Initiative of the Year - Singapore
Coca-Cola Refreshments Malaysia
• Digitalization Initiative of the Year - Malaysia
Dabur International
• Digital Marketing Strategy of the Year - United Arab Emirates
DFI Retail Group - 7-Eleven HK & Macau
• Digital Marketing Strategy of the Year - Hong Kong
• Product Launch of the Year - Hong Kong
Diageo Taiwan
• Campaign of the Year - Taiwan
DKSH Malaysia Sdn. Bhd.
• Supply Chain Initiative of the Year - Malaysia
paving the way for a sustainable and innovative future.
A distinguished panel of judges played a crucial role in selecting the winners, including Olivier Gergele, Asia-Pacific EY-Parthenon Consumer Leader; Anson Bailey, Head of Consumer & Retail Asia Pacific, KPMG China; Karin Shenkar, Partner, PwC Asia Pacific Deals Strategy Retail Leader; and David Eu, Partner & Deputy Industry Lead - F&B, Retail and Consumer Products Practice, RSM.
Congratulations to all the winners for their exceptional contributions to the industry!
FairPrice Group
• Home Brand of the Year - Singapore
• Product Launch of the Year - Singapore
• Supply Chain Initiative of the Year - Singapore
Ferrero (Kinder)
• Digital Marketing Strategy of the Year - China
Ferrero Asia Limited
• Consumer Good of the Year (Chocolate) - Hong Kong
Fourth Milling Company
• Digitalization Initiative of the Year - Saudi Arabia
• Home Brand of the Year - Saudi Arabia
FrieslandCampina (Thailand) PCL.
• Product Launch of the Year - Thailand
Galderma Philippines Inc.
• Campaign of the Year - Philippines
HEALTH AND HAPPINESS (H&H)
• Consumer Good of the Year (Vitamins & Supplements) - Thailand
• Digital Marketing Strategy of the Year - Singapore
Hylife Global Food Co., Ltd.
• ESG Initiative of the Year - Thailand
Kao (Hong Kong) Ltd.
• Customer Experience Initiative of the Year - Hong Kong
Kimberly-Clark Vietnam
• Product Launch of the Year - Vietnam
Lion Brewery (Ceylon) PLC
• Excellence Award - Sri Lanka
• Product Packaging of the Year - Sri Lanka
Mannings, DFI Retail Group
• ESG Initiative of the Year - Hong Kong
• Health & Wellness Initiative of the Year - Hong Kong
Mars Petcare (Thailand) Co., Ltd.
• Eco-friendly Initiative of the Year - Thailand
Mars Petcare Philippines
• Excellence Award - Philippines
Mead Johnson Indonesia
• Home Brand of the Year - Indonesia
Mitrphol Sugar Co.,Ltd.
• Product Packaging of the Year - Thailand
Murree Brewery Co. Limited
• ESG Initiative of the Year - Pakistan
Nam Viet Foods & Beverage Joint Stock Company
• Consumer Good of the Year (Juice) - Vietnam
Nestlé La Vie (Vietnam)
• Campaign of the Year - Vietnam
• Digital Marketing Strategy of the Year - Vietnam
Nutrition29
• Product Launch of the Year - China
OH!SOME
• Customer Experience Initiative of the Year - Indonesia
Opella Healthcare Philippines
• Health & Wellness Initiative of the Year - Philippines
Origami Retail Philippines Inc.
• Product Launch of the Year - Philippines
Paragon Technology and Innovation
• Eco-friendly Initiative of the Year - Indonesia
• Product Launch of the Year - Malaysia
Personal Collection Direct Selling, Inc.
• Home Brand of the Year - Philippines
Pharmacity Pharmacy Joint Stock Company
• Home Brand of the Year - Vietnam
Saigon Beer - Alcohol - Beverage Corporation
• Customer Experience Initiative of the Year - Vietnam
Simple Foods Co., Ltd.
• Consumer Good of the Year (UHT Milk) - Thailand
STADA Philippines Inc.
• Consumer Good of the Year (Vitamins & Supplements) - Philippines
Suntory Beverage & Food Hong Kong Limited
• Consumer Good of the Year (Tea) - Hong Kong
SUNTORY TAIWAN LIMITED
• Customer Experience Initiative of the Year - Taiwan
Tipco F&B
• Campaign of the Year - Thailand
Unilever Asia Pte Ltd
• Customer Experience Initiative of the Year - Thailand
• Digitalization Initiative of the Year - Indonesia
• In-store Marketing Strategy of the Year - Philippines
Unilever Sri Lanka Limited
• Eco-friendly Initiative of the Year - Sri Lanka
Vitasoy International Holding Limited
• Consumer Good of the Year (Plant-based Milk) - Hong Kong
YHS (Singapore) Pte Ltd
• Campaign of the Year - Singapore
BETAGRO PUBLIC COMPANY LIMITED
Brauer Natural Medicine
Coca-Cola Beverages Philippines Inc.
Coca-Cola Refreshments Malaysia
Diageo Taiwan
Coca-Cola China Limited
Ferrero (Kinder)
Ferrero Asia Limited
Fourth Milling Company FairPrice Group
EVENT: FMCG ASIA AWARDS
FrieslandCampina (Thailand) PCL.
Hylife Global Food Co., Ltd.
HEALTH AND HAPPINESS (H&H)
Lion Brewery (Ceylon) PLC
Mars Petcare Philippines
Mars Petcare (Thailand) Co., Ltd.
Mannings, DFI Retail Group
Nestlé La Vie (Vietnam)
OH!SOME
Paragon Technology and Innovation
Paragon Technology and Innovation
Personal Collection Direct Selling, Inc.
Saigon Beer - Alcohol - Beverage Corporation
Pharmacity Pharmacy Joint Stock Company
Suntory Beverage & Food Hong Kong Limited
Simple Foods Co., Ltd.
The Coca-Cola Company
SUNTORY TAIWAN LIMITED
Unilever Asia Pte Ltd
YHS (Singapore) Pte Ltd
Riding the health & wellness trend in food with Betagro
Betagro offers examples of what they have achieved in Singapore and Thailand.
Betagro believes that quality food is the key to maintaining good health which leads to an improved quality of life. Therefore, it focusses its innovation on products that are not only healthy but also delicious for both international and domestic markets. The company was lauded in the Consumer Good of the Year (Ready-to-eat Meals) - Singapore and Health & Wellness Initiative of the Year - Thailand categories in the FMCG Asia Awards 2024.
Success in Singapore
In 2020, Betagro launched its Steamed Chicken Breast series in Singapore’s largest convenience store chain.
To successfully penetrate Singapore's market, Betagro needed to understand local consumer behaviour, particularly the trends in meat snacks and the increasing demand for healthy food options. Additionally, establishing strong local partnerships was essential for efficient distribution and timely delivery to meet consumer needs.
Health and wellness trends are especially significant in Singapore, where, according to the 2021 Euromonitor Voice of the Consumer: Lifestyles Survey, 44% of Singaporeans take vitamins and supplements daily, and 26% engage in
physical exercise every day. Recognising this blend of health consciousness and on-thego lifestyles, Betagro saw an opportunity to introduce products that were not only healthy but also convenient and delicious. Partnering with 7-Eleven, Betagro launched its chicken breast range in 2020, targeting busy individuals, health enthusiasts, and gym-goers. The brand became the exclusive supplier of meat products, selling around 450,000 packs of steamed chicken breast in its first year. From 2020 to 2023, sales grew
Betagro saw an opportunity to introduce products that were not only healthy but also convenient and delicious
steadily, with a growth rate of 73%, 82%, and 116%, respectively.
The unique selling point of the product—deliciousness paired with health benefits—resonated well with consumers. Betagro consistently expanded its product range, introducing new flavours to keep Singaporean consumers excited. This variety,
catering to both plain and more adventurous taste preferences, has made Betagro one of the leading players in the meat category in the CVS channel. The partnership between 7-Eleven, Betagro, and its distributor C S Tay Foods, has been instrumental in this success. In recognition of this collaboration, Betagro received several awards. By 2024, over 5 million packs of Betagro's chicken breast had been sold nationwide, cementing its status as one of Betagro’s most successful product launches in Singapore.
Betagro has launched over 10 chicken breast flavours as well as a variety of other chicken products. Notably, the introduction of stuffed chicken wings with sticky rice in July 2024, which is very well accepted by consumers, and the recent rollout of Betagro Thai Style Ready Meals in September 2024. It further enhances Betagro's commitment to the continuous development of exciting new offerings for consumers in Singapore.
The best of S-Pure farm to table Betagro’s S-Pure marketing campaign features a holistic communication plan that introduces S-Pure as the safest and purest protein source. It aims to escalate the S-Pure brand as the safest & purest protein source with synbiotic feed to inspire consumers to have holistic well-being from the best food quality that serves them the best taste. Through this, S-Pure has been relaunched with a healthy concept in products, a new packaging design under sustainable concepts of “paper tray.”
Its key communication strategy is to educate and create trustworthiness in the S-Pure natural production process that turns into the best dish, balancing safety, quality, and taste. It utilises multimedia platforms and personalised content to convey the message of the campaign. This end goal resulted in the inception of the “synbiotic feed” — a synchronisation of prebiotic and probiotic. Given this, S-Pure fresh meat & eggs break through all brands in the market.
Apart from fresh products, S-Pure has launched a meat appetiser under the “Clean Label” concept: S-Pure Prime. It is a premium range of authentic German sausage & ham produced from 100% S-Pure pork with a great-tasting homemade recipe. Key superior differentiation is the Clean Label concept, which is no food additive. S-Pure Prime is the only meat appetiser brand in Thailand that qualified with the Clean Label. The campaign has been very successful as it achieved all media targets and inspired a natural way of living.
Suntory Taiwan Limited takes home win at the FMCG Asia Awards 2024
The ageing of its Kakubin brand brought the need for repositioning and premiumisation.
Suntory Global Spirit Taiwan clinched the Customer Experience Initiative of the Year - Taiwan win at the FMCG Asia Awards 2024 for rejuvenating its signature Kakubin as a classic whisky brand through a pop-up event.
With the need to reposition and premiumise the brand amidst severe competition in the whisky category, Suntory Global Spirit Taiwan has launched the “Kaku-Kansen” campaign, which was conceptualised from the first 1:1 scaled Shinkansen train to deliver an authentic Japanese cultural experience that epitomises the essence of the Kakubin brand. The event has spanned 10 days at the Taipei Performing Arts Centre.
Elevating Kakubin's Brand Image
To bring life to the authentic image of Japanese culture through this immersive journey, the company has collaborated with different personalities, as well as esteemed Japanese bartenders Maguchi Kazunari from the iconic highball Bar
Rockfish and world-class champion Manabu Ohtake. Since the event was inspired by Suntory Whisky's 100-year celebration, the company has also partnered with a new generation of professionals, celebrities, and key opinion leaders in various fields to echo their own characteristics and the combination of the Kakubin brand identity. This aims to give a brand-new image of Kakubin whilst delivering the continuation of the century-old spirit of professionals.
Captivating younger audiences
The company’s initiatives resulted in a growing brand awareness to over 60%, which is dominating both in consumer mind share and market share in the segment. A stronger conversion from awareness to consideration has also been significantly increased amongst below-35-year-old cohorts, achieving the goal of attracting
the younger generation. Kakubin has also become one of the most regularly consumed whisky brands with a 20% growth. This KakuKansen has carried “the truly Japanese whisky” with Suntory founder’s dream to all Taiwan whisky fans.
Organised by Retail Asia, the FMCG Asia Awards celebrates the most outstanding companies in Asia’s fast-moving consumer goods industry, recognising exceptional products, innovative initiatives, and remarkable projects.
Industry experts from EY, KPMG China, PwC Asia Pacific, and RSM played a crucial role in selecting the winning companies.
Award winners for the 2024 awards programme were celebrated at a prestigious awards ceremony at the Marina Bay Sands Expo and Convention Centre, Singapore on 19 November 2024.
Kakubin has become one of the most regularly consumed whisky brands with a 20% growth
Suntory Taiwan Limited at the FMCG Asia Awards 2024
FairPrice Group Supply Chain: Ensuring food resilience and sustainability with SCope
SCope helps maintain a consistent flow of essentials, whilst reducing carbon emissions.
FairPrice Group Supply Chain (FPGSC) ensures Singaporeans have access to daily essentials. Their Supply Chain Operation Centre (SCope), launched in 2021, provides real-time visibility of their supply chain, allowing for proactive planning to stay ahead of potential issues. SCope aggregrates 60 million data points daily, including real-time farm-level tracking and monitoring, allowing for proactive planning to stay ahead of potential issues.
Ensuring consistent food supply
The integration of SCope with FPGSC provides real-time updates on potential disruptions to farms within a specified radius. This empowers FPGSC to take proactive measures to ensure stable supply, in the event of disruption.
SCope's early detection of an avian flu outbreak in North America meant FPGSC could take swift action to mitigate any potential disruption to its poultry supply, by switching its suppliers. SCope's timely detection of potential disruptions in the poultry supply chain not only ensured continuity but also resulted in cost efficiency.
SCope also benefits FairPrice Group (FPG) and other distributors by identifying new procurement channels, ensuring that customers have access to essential food items. For example, SCope added Indonesia and Thailand as poultry sources, guided by insights into market trends and risks.
Sustainable supply chain innovation FPG actively seeks to enhance SCope's capabilities to minimise its carbon footprint. This commitment extends to broader sustainability efforts, such as the adoption of a fleet of electric vehicles. A robust system monitors the performance of these vehicles and tracks the resulting reduction in carbon emissions. FPG’s future vision includes exploring platforms to gain visibility into the carbon footprint of its shipments, contributing to the establishment of an efficient supply chain.
Making every day a little better FPGSC's SCope ensures Singapore's food security through real-time visibility and proactive planning, highlighting FPGSC's commitment to a sustainable and resilient supply chain. By championing innovative solutions, FPGSC is making a positive impact on the lives of every Singaporean.
Supply Chain Operation Centre (SCope)
RATCHATAWIPASANAN
Beyond hygiene: Thai consumers seek innovation in intimate care products
Thailand's intimate hygiene product market has experienced significant growth, ranking amongst the top five in product launches in the APAC region over the past five years, according to data from the Mintel Global New Products Database. However, there is still room for innovation, as Thai consumers are seeking more than just hygiene from these products.
Economic concerns have influenced consumer behaviour, with many Thais tightening their budgets due to a financial slump. Data from Mintel APAC Economic Tracker shows that 45% of consumers have reduced spending on beauty and grooming routines. This budget consciousness may cause some consumers to delay incorporating products especially designed for intimate care into their routines, opting instead to use regular soap.
To sustain growth in the intimate care category, it is crucial for brands to highlight the key benefits and necessity of these products. Short-term opportunities lie in innovations that address major intimate skin concerns, such as uneven skin tone and texture and issues related to hair removal. Demonstrating value in this way can prompt purchases. Brands can develop formulas that not only provide skincare benefits but also balance the microbiome to encourage regular product usage.
Consumers’ preference for hair removal in intimate areas is another opportunity for brands to expand their ranges to address hair removal needs and other skincare concerns, especially amongst younger consumers who favour intimate hair removal and often rely on at-home solutions like shaving.
In Thailand, a significant percentage of Gen Z (57%) use hair removal products for intimate areas, and 55% use shaving products at least once a week. Amongst Gen Z women, over a third (35%) are concerned about hair growth in intimate areas whilst 33% are worried about acne.
Gen Z women are most interested in hypoallergenic claims in intimate care products (59%), whilst 48% show interest in
CHAYAPAT
RATCHATAWIPASANAN
Principal Beauty and Personal Care Analyst
Mintel Reports Thailand
soothing benefits. Thus, brands can help this cohort by innovating intimate care products that prepare the skin for a smooth shave and promoting proper pre- and post-hair-removal intimate care routines. Brand campaigns can also encourage the use of gentle, skin-soothing aftershave.
Another emerging focus for intimate hygiene brands is sexual wellness, which is gaining attention in Thailand. Mintel research shows that the majority of Thai women do not use intimate care products around sexual activity, which may lead to concerns about hygiene. The percentage of women using these products before and after sexual activity is significantly lower than that of men. Almost all women who use intimate care products around sexual activity use wash products at least once a week (95%), and a significant percentage use wipes (85%).
Concerns amongst women regarding intimate areas include odour and cleanliness. Brands can offer post-sex products that promote vaginal health and hygiene and develop lubricants that prioritise vaginal health.
Removing stigma and promoting a sex-positive attitude can create opportunities for innovation in sexual wellness products. In Thailand, smaller brands are leading in introducing products for sexual well-being, such as Femiss, a flavour and scent enhancer for intimate areas, and Hima Spray, which protects skin from irritation during sexual activity. Thai brands can also look to global brands that embrace the growing interest in sexual wellness and market their products accordingly.
Additionally, there is growth potential in the men's intimate care segment, as nearly half (49%) of male consumers express concerns about the appearance of their intimate skin. Brands can develop aftershave products to help with skin discomfort and irritation.By addressing these diverse needs and preferences, intimate care brands can better serve Thai consumers and expand their market presence.
Gen Z women are most interested in hypoallergenic claims in intimate care
Brands can develop formulas that help balance the microbiome
DOMINGO OPINION
Why micro-retail is the way to go to reach Southeast Asian shoppers
Despite their unassuming setups, these family-run stores are a force to be reckoned with. According to a 2023 report by Boston Consulting Group (BCG), “traditional trade” formats make up 73% of Southeast Asia’s grocery retail market. The resiliency of these micro-retail stores came into full display after the pandemic. Whilst hypermarkets saw a 4% decline and supermarkets only grew by 2% from 2018 to 2022, smaller formats took the lead with a 7% annual growth rate within the region. Even when the month-on-month (MoM) inflation rate in the Philippines rose to 6.6% as of April 2023, sari-sari stores still achieved a MoM of 14.4%.
Supermarkets and hypermarkets, defined as “modern trade” by BCG, have actually long been aware of the staying power of micro-retail in the region, establishing their own minimarkets to reach Southeast Asian shoppers. This strategy was proven successful in the past few years: smaller formats now make up ~73% of the total modern trade market in Indonesia and ~58% in share of Thailand’s modern trade as of 2022. Whilst currently lagging behind, major retailers in other Southeast Asian countries are aiming to catch up through efforts such as the Philippines’ SM Supermarkets continued expansion of its minimart chain Alfamart.
An ode to the neighbourhood store
Perhaps the most obvious reason why micro-retail stores still have a stronghold over Southeast Asia is because of the convenience they provide in a region that is still mostly rural, thus lacking robust infrastructures for electricity and transportation. As of 2023, Singapore is the only country in the region with a full 100% urbanisation rate, whilst countries like Vietnam, Thailand, and Indonesia have respective rates of 39.48%, 53.61%, and 58.57%. To provide basic necessities in even the most far-flung areas, there is at least one mom-and-pop store that takes no longer than 10 minutes to walk to in every smaller neighbourhood community.
These neighbourhood stores also serve as community meeting grounds, providing a space for socialisation and a sense of routine for locals. Because store owners tend to be friends or neighbours, regular customers can even easily ask for favours and loans during times of need. In a 2023 study about Vietnamese wet markets, one retailer said that his customers tend to be familiar people who go to the stall daily, so he always aims to nurture good relationships through personal interaction. Whereas self-service tends to be one of the defining features of modern retail, the study concludes that wet markets go beyond by acting as a “place to circulate goods, exchange information, and enhance relationships.” Given the value of community to Southeast Asians, it is no wonder then that 40% are influenced by recommendations from family or friends—just a little more than 38% who are persuaded by influencer marketing and endorsements.
This need for trustworthy, interactive shopping is also prevalent in Southeast Asia’s online shopping preferences. Four in ten Southeast Asians prefer to shop online from a local seller in comparison to 21% who prefer international merchants. Asia continues to lead in e-commerce with a forecasted market volume of $1.8t for 2023, thus
ANN GABRIELLE DOMINGO Junior Cultural Desk Researcher Canvas8
tapping into emerging online shopping behaviours will be key to unlocking new opportunities within the region. Increasing access to the internet and the emerging middle class are also steadily contributing to the growing popularity of e-commerce, especially for fashion, electronics, and beauty product categories.
Another online shopping behaviour that is gaining momentum across the region is livestream shopping, in which hosts talk about their brand’s or store’s products in detail to pique the interest of potential buyers. As 82% of Southeast Asians say they have watched a livestream shopping video at least once, this form of social commerce provides a similar type of affordability and bits of interactiveness that local neighbourhood stores are held in good regard for. When asked about why they enjoy watching livestreaming sale videos, 46% of Southeast Asians answered, “There are many promotions/discounts,” and another 37% answered “I can easily get answers to my questions about the product by posting a comment.”
Recognising the value of mom-and-pop stores to Southeast Asian shoppers, startups are already leading the way in digitising these local neighbourhood stores as e-commerce continues to sweep the region. Filipino startup Packworks, for example, aims to grow the revenue of sari-sari stores throughout the Philippines by providing them access to a digital inventory and point-of-sale systems. With the goal of helping warung merchants adjust to modern needs, Indonesian startup Warung Pintar provides similar solutions by connecting shop owners with brands, warehouses, and same-day delivery access. Major players like L’Oreal are also tapping into livestream shopping via TikTok and Southeast Asian e-commerce apps like Shopee, Lazada, and Tokopedia by assigning employees to answer audiences’ questions about the brand’s' different beauty products.
When reaching Southeast Asian shoppers, bigger is not always better. Dependability may be the biggest strength for Southeast Asian microretail formats—especially as these easily overlooked stores remain standing amidst economic headwinds.
Micro-retail stores are often situated in residential areas or zones with high foot traffic
