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Foreword

The Asia-Pacific (APAC) e-Commerce market is thriving. By the end of 2019, eMarketer estimates that the APAC
region will account for 64% of global online retail spend with further growth forecasted through to 2022. The scale
and impressive growth of the APAC e-commerce market makes the region highly desirable for international brands.

At Rakuten Advertising, we are committed to helping our partners expand beyond their borders into Asia-Pacific
by capitalising on the e-commerce growth opportunities in this region.

It is our hope that this report will assist brands and marketers in developing a deeper understanding of the APAC
e-commerce market to help identify opportunities for expansion and make informed decisions on how to best
engage and operate within APAC markets.

Anthony Capano
Managing Director, International

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Inside this report:
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Chapter One: Where are consumers shopping? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter Two: What are consumers buying?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Chapter Three: How are Asia-Pacific consumers engaging with brands?. . . . . 17

Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 3


Introduction
According to eMarketer, the global e-commerce market is forecasted to grow 21% in 2019 to $3.54 trillion. The Asia-Pacific (APAC) region alone will account for
64% of total e-commerce sales worldwide this year, a 25% Year-on-Year (YoY) growth. In addition, the APAC market will drive 78% of global m-commerce sales
in 2019. For brands to succeed in APAC, understanding the nuances of device use, consumer behaviour and consumer preferences within the region is key.

This is why Rakuten Marketing surveyed 4,500 consumers across nine key markets within APAC. Responses are featured from Australia, China, Hong Kong,
Singapore, South Korea, Malaysia and New Zealand. In addition, this year responses from Japan and India were added.

The research delivered findings in the following three sections:

1) Where are consumers buying?


2) What are consumers buying?
3) How are Asia-Pacific consumers engaging with brands?

Each section is broken down into each of the nine markets, to highlight both the unique and shared behaviours and preferences of shoppers in APAC.

RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


C HA P T ER 1

Where are consumers shopping?


In order to determine where and how consumers are shopping in Asia-Pacific (APAC), survey respondents were asked to
outline their split of total online spending across in-store, desktop, mobile and tablet.

To understand what drives this split of spend, consumers were also asked to identify the barriers that prevent, or discourage
them from completing online purchases.

K EY I N SI G HTS:
• m-Commerce has eclipsed desktop or laptop sales in five out of nine markets and as a whole region, accounts for a larger
portion of total online sales (46%) compared to desktop or laptop purchases (41%).

• Throughout APAC, in-store purchases continue to account for the largest portion of total retail at 53%.

• The number one barrier to online shopping in APAC is high-shipping fees, followed by concerns over the ability to return
items, lack of payment options and security.

Tablet
Mobile
6%
21% In-Store

53%
Desktop
or Laptop Percentage

19%
breakdown of total
retail spend in APAC

5 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


AU ST R A LI A
eMarketer anticipates Australia to exceed $309 billion in retail sales by the end of 2019, up 2.1% from 2018. Tablet
Australians are spending 64% of their total retail spend in-store. When shopping online, desktop continues
to be the device of choice, accounting for 50% of online spend, followed by mobile driving 37% and then
Mobile

13 % 5%
In-Store

64%
tablets at just 5%. Consumers aged 18-24 are spending the most on desktop or laptop (27% of total retail
spend), followed by people aged 45-55 (20%). Australians aged 25-34 are driving the largest share of
Desktop
mobile sales (22%). or Laptop
The reason for such a high preference to shopping offline? Fifty-two percent of consumers said high
shipping costs are the main barrier preventing them from shopping online. This is a 14% increase from
18%
AUSTRALIA
2018, when 38% of consumers highlighted shipping costs as their main barrier to online shopping.
Percentage breakdown
Other reasons include concerns over the ability to return items (27%), lack of payment security (22%) of total retail spend
and website legitimacy concerns (22%). Despite being a growing multi-hundred-billion-dollar economy,
Australians remain wary of online shopping.

CHI NA
With over 543 million digital buyers, China leads the way amongst APAC countries in e-commerce.
Tablet
Chinese consumers are spending $1.935 trillion on e-commerce, three times more than US consumers.

Mobile is the device of preference among Chinese consumers Mobile


8%
32%
accounting for 32% of total retail spend, and 52% of online spend. In-Store
Mobile is the device of
preference among Chinese
Comparitively, Desktop & Laptop account for 21% of total retail
spend, and 34% of online spend. Chinese consumers aged 35-44
39%
and 45-55 are driving the highest amount of desktop or laptop
consumers, accounting for spend at 21%, while consumers aged 18-24 are spending the most Desktop
52% of online spend. on mobile (43%). Interestingly, Chinese consumers aged 55+ are or Laptop
spending more on mobile than any other consumer in the same
age bracket throughout APAC (30%) highlighting the extent of
21% CHINA
Percentage breakdown
of total retail spend
mobile penetration and use in this market.

Although online penetration in China is amongst the highest of all APAC consumers, in-store still accounts
for 39% of total retail spend. The strongest blocker to online shopping is concerns about the return of items
(49%), followed by concerns over lack of payment security (36%) and poor online experiences (34%).

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 6


H ON G KON G
Hong Kong retail sales are expected to slowly decline over the next few years, with eMarketer projecting retail Tablet
sales to exceed just over $60 billion by the end of 2019. This represents flat growth of just 0.8%.
Mobile 8%
21%
Fifty-seven percent of total retail spend in Hong Kong is made in-store, while mobile has eclipsed desktop or In-Store
laptop as the online device of choice accounting for 49% and 33% of online spend respecitvely. Consumers
aged 18-24 are more likely to shop in-store than those aged 25-34, however consumers within both age brackets 57%
are spending the highest percentage of their total retail spend via mobile (25% and 24% respectively). For older
generations in Hong-Kong, shopping in-store is preferred. Consumers aged 45 and over choosing to spend Desktop
more than 60% of their total retail spend in-store. or Laptop

Hong Kong consumers are most concerned with high shipping costs, with 52% citing this as the biggest 14% HONG KONG
Percentage breakdown
blocker to online shopping. This is a change from 2018, when the biggest concern was lack of payment of total retail spend

security. Payment security is still a concern for consumers (43%) ranking as the third highest deterrent of
online shopping, followed by concerns over returns (47%).

S IN GA P ORE
According to eMarketer, Singapore is expected to generate over $50 billion dollars in total retail sales in 2019,
Tablet

5%
with a projected 2% growth every year through to 2021. Singaporean shoppers are spending 55% of total
retail spend in-store and bucking the trend of the region, are spending a greater portion of spend via desktop Mobile
or laptop (21% of total retail spend, 46% of online spend) than mobile (19% of total retail spend, 42% of online
19 % In-Store

54%
spend). Only 5% of total retail sales are made using a tablet.

Singaporean consumers aged 18-24 are shopping in-store more than those aged 25-34 (45%) and 35-44 (48%).
Interestingly, older consumers aged 55+ spend more on mobile (15%) than those aged 45-54 (13%). Desktop
or Laptop
In 2019, high shipping costs is the biggest barrier to online shopping in Singapore. Fifty-seven percent of
consumers state that shipping fees are a major deterrent and 43% have concerns about being able to return 21% SINGAPORE
Percentage breakdown
purchased items. Payment security is still a major factor for Singaporeans choosing not to shop online, of total retail spend
increasing 21% since 2018. Similarly, concerns over the legitimacy of a website have more than doubled
in 2019 from 14% to 32%.

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S O UT H KO R E A
South Korea is expected to exceed over $395 billion in retail sales in 2019. Growth in South Korea is steady at 2.5%
from 2018 and will continue on a similar trajectory through to 2021 when it is projected to exceed $410 billion.
Tablet
Only 47% of retail spend in South Korea is conducted in-store, one
of the lowest rates across the APAC region. When shopping online, Mobile 4%
South Koreans in the consumers are most likely to do so on mobile (49%) rather than
25% In-Store

35-44 age bracket are less


desktop or laptop (44%). South Koreans in the 35-44 age bracket are
less likely to shop in-store than younger consumers aged 18-24 who 47%
likely to shop in-store than are making 49% of their total retail purchases in physical stores.
younger consumers aged Desktop
Of all the countries surveyed, consumers in South Korea are less or Laptop
18-24 who are making 49%
23%
likely to purchase from a website if they need to register an account. SOUTH KOREA
of their total retail purchases Overall, South Koreans are most concerned with being able to Percentage breakdown
of total retail spend
return an item (39%) and high shipping fees (29%). In addition to
in physical stores.
returns and delivery fees, consumers have stated that poor online
experiences area major discouragement to shopping online (29%).

M A LAYS I A
Malaysia is projected to exceed $176 billion in retail sales by the end of the year, a 9% growth from 2018’s total annual retail sales. According to eMarketer,
retail sales in Malaysia will continue to grow at one of the fastest rates in the region, exceeding $230 billion in annual retail sales by 2021.

Malaysians are the third largest drivers of m-commerce in APAC, with Tablet
24% of retail spend taking place via mobile (representing 50% of
total online spend). Malaysian consumers aged 18-24 are spending Mobile
8%
According to eMarketer,
24%
the most on mobile (30%) followed by people aged 25-34 (28%). In-Store
retail sales in Malaysia will
continue to grow at one of the
Fifty-one percent of spend is still taking place in store with consumers
spending 16% on desktop or laptop and 8% via tablet. 51%
fastest rates in the region, Fifty-seven percent of Malaysian shoppers said the cost of shipping is
Desktop
the main reason holding them back from shopping online, a change or Laptop
exceeding $230 billion in
annual retail sales by 2021.
in sentiment from 2018 when legitimacy of digital storefronts and the
ability to return an item were the key reasons for not shopping online. 16% M A L AYS I A
Percentage breakdown
of total retail spend
Although the legitimacy of a website and returns are high on the list of
concerns for consumers in Malaysia (29%), payment security is also a
factor preventing people from making online purchases (36%).

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 8


N EW Z E A L A N D
The New Zealand market continues to grow steadily and is expected to exceed $100 billion in annual retail sales Mobile Tablet

13% 3%
for the first time by 2020. In 2019, New Zealand retail sales will exceed $98 billion, a 3% increase from 2018.

New Zealanders are spending more in-store than any other country in APAC, with in-store In-Store
purchases accounting for 67% of total retail spend. New Zealand shoppers are least likely
to shop via mobile with only 13% of shopping taking place via mobile devices, representing
Desktop
or Laptop 67%
18%
New Zealanders are spending
38% of online spend. Desktop or laptop make up 18% of retail purchases (38% of total online
more in-store than any other spend), and tablet accounts for just 3%. Consumers aged 18-24 are spending more on
country in APAC, with in-store desktop or laptop than older New Zealanders, whilst mobile spend is dominated by those
aged 25-34.
purchases accounting for 67% NEW ZEALAND
Percentage breakdown
of total retail spend. Cost of delivery is the main reason people in New Zealand choose not to shop online, with of total retail spend

60% of consumers being deterred due to high fees. Concerns over the legitimacy of digital
storefronts prevents 26% of sales from taking place online and the ability to return items
impacts 25% of consumer purchase decisions.

JA PA N
Tablet

4%
Total retail sales in Japan will grow to $1.3 trillion in 2019. Retail sales in Japan are currently experiencing flat Mobile

14 %
growth of 0.8% YoY and are expected to remain flat through to 2021.
In-Store

62%
Of the total retail spend in Japan, 62% is driven by in-store purchases. Desktop or laptop are still the device
of choice for Japanese consumers shopping online, accounting for 20% of total retail spend and 54% of online
Desktop
spend. Mobile drives 14% of total retail spend, and 35% of online spend. As with all APAC markets, purchases or Laptop

20%
made via tablet accounts for the lowest amount of total retail spend at just 4%.

Japanese consumers are more likely to shop in-store due to high delivery costs (62%), uncertainty about
JAPAN
returns (20%) and a lack of payment security (19%). The need to register an account and an absence of
Percentage breakdown
payment options are further deterrents to online shopping in this market. of total retail spend

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I NDI A
In India, total retail sales will exceed $1 trillion in 2019, growing more than 12% from 2018. Though retail Tablet

9%
sales in India are expected to continue experiencing double digital growth through to 2022, sales growth
will decline slightly each year.
Mobile In-Store

29 40%
After China, India has the highest mobile penetration of all APAC
countries, driving 29% of all retail sales, and 47% of online sales.
%
This mobile first market sees one-third of all retail spend from
This mobile first market consumers aged 18-24 and 25-34 made on the device. In-store
sees one-third of all retail purchases are responsible for 40% of retail spend, while desktop Desktop
or Laptop
or laptop drives 22%. Although it only accounts for 9% of total retail
22%
spend from consumers aged I N DI A
spend, Indian consumers spend more on tablets than other APAC
18-24 and 25-34 made consumers.
Percentage breakdown
of total retail spend

on the device.
Consumers in India are most concerned with high shipping
costs (39%) and the ability to return items (37%) when it comes to
purchasing online. Limited payment options (24%) and payment
security (23%) are further discouraging factors to online shopping in India.

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 10


C HA P T ER 2

Where are consumers buying?


To determine what products consumers in APAC are buying online, survey respondents were asked to provide a percentage
breakdown of spend across product categories. With the borderless nature of e-Commerce, consumers were also asked to
identify the types of products they preferred to purchase from international versus local brands.

K EY I N SI G HTS:
• Groceries & Household Goods and Travel are the most consistently popular categories across APAC for consumers
shopping online.

• Overall, shoppers in Hong Kong and Singapore show a stronger preference to shop internationally compared to other APAC
countries.

• Shoppers in Australia, South Korea, New Zealand and Japan show an overall stronger preference to shop domestically.

• Across the region, consumers prefer to shop internationlly for the below categories:

ALL OF APAC
Luxury Beauty Watches & Sports & Consumer
Goods Products Accessories Outdoors Electronics
(e.g. bags, shoes, (e.g. makeup, (e.g. watches, (e.g. exercise (e.g. mobile phones,
accessories, skincare, jewelry, clothes, shoes, tablets, cameras,
jewelry) fragrances) sunglasses) sports equipment) computers)

Prefer
International 40.0% 39.5% 39.4% 37.1% 36.3%

11 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


PERCENTAGE OF ONLINE EXPENDITURE AUSTR A LI A
18-24 25-34 35-44 45-54 55+ TOTAL
WOMEN’S GROCERIES & TRAVEL & WOMEN’S TRAVEL & TRAVEL &
Australians shopping online are spending the most on Travel (14%) compared to other verticals.
FASHION HOUSEHOLD SERVICES FASHION SERVICES SERVICES
Travel is followed closely by Groceries & Household Goods (12%) and Women’s Fashion (10%).
21% 15% 16% 12% 22% 14% In 2019, the most popular category for online expenditure for 18-24-year-olds and
CONSUMER CONSUMER GROCERIES & GROCERIES & GROCERIES & GROCERIES &
ELECTRONICS ELECTRONICS HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD 45-54-year olds is Women’s Fashion, garnering 21% and 12% of wallet share respectively.
11% 11% 13% 12% 11% 12% For 18-24-year-olds this represents an 11% YoY increase in spend in this category.
Consumer Electronics are also among the highest areas of online expenditure for
Preference for Australian
brands is strongest in the
MEDIA & WOMEN’S CONSUMER TRAVEL & CONSUMER WOMEN’S
GAMES FASHION ELECTRONICS SERVICES ELECTRONICS FASHION consumers aged 18-24 (11%), 25-34 (11%) and 35-44 (8%).
categories of Groceries &
9% 10% 8% 11% 8% 10% Shoppers aged 25-34 are spending the most on Groceries & Household Goods, accounting Household goods (78%),
for 15% of total spend. For older Australians, Travel is capturing a large portion of wallet
Home Improvement (64%)
share with people aged 55+ spending 22% of online expenditure on the vertical.
and Wine, Beer &
Shoppers in Australia largely prefer to shop from Australian brands than international ones. Preference for Australian brands is strongest in the categories Spirits (63%).
of Groceries & Household goods (78%), Home Improvement (64%) and Wine, Beer & Spirits (63%). Categories for which Australians have no preference
shopping at local or international brands include Sports & Outdoors (42%), Men’s Fashion (42%), Watches & Accessories (44%), Women’s Fashion
(46%), Media & Games (44%) and Luxury Goods (47%). The Media & Games (22%) and Watches & Accessories (21%) verticals were found to be the
two highest preferences to shop for internationally.

PERCENTAGE OF ONLINE EXPENDITURE CHI N A


18-24 25-34 35-44 45-54 55+ TOTAL Groceries & Household Goods (17%), Consumer Electronics (12%) and Beauty (10%) account for the
BEAUTY CONSUMER GROCERIES & GROCERIES & GROCERIES & GROCERIES &
PRODUCTS ELECTRONICS HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD largest share of online expenditure among Chinese consumers. Regardless of age, in China Groceries

13% 13% 18% 20% 32% 17% & Household Goods rank in the top three categories when shopping digitally. Consumers aged 55+
have overtaken those in the 18-24 age bracket as the highest spenders in this category, spending 32%
GROCERIES & GROCERIES & CONSUMER WOMEN’S CONSUMER CONSUMER
HOUSEHOLD HOUSEHOLD ELECTRONICS FASHION ELECTRONICS ELECTRONICS of their total digital spend on groceries.
11% 11% 14% 10% 12% 12% Since 2018, there have been changes to the way Chinese consumers are spending online. Both Women
CONSUMER
ELECTRONICS
BEAUTY
PRODUCTS
BEAUTY
PRODUCTS
SPORTS &
OUTDOORS
TRAVEL &
SERVICES
BEAUTY
PRODUCTS and Men’s Fashion were strong performers across all age brackets in 2018. In 2019, Beauty is where

10% 11% 10% 9% 8% 10% young Chinese consumers are spending most of the money online, taking 13% of wallet share from
those aged 18-24 and 11% for in the 25-34-year-old bracket.

Preference for shopping at local versus international brands is split across categories for Chinese consumers.
Strong local preference is shown for brands in the Groceries & Household Goods (70%), Travel (55%) and Home Improvement (55%) categories. Conversely, Chinese
shoppers have a strong preference to shop at international brands for Beauty Products (62%), Luxury Goods (56%), Wine, Beer & Spirits (48%), Watches & Accessories
(45%) and Health Products (42%).

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 12


PERCENTAGE OF ONLINE EXPENDITURE HON G KON G
18-24 25-34 35-44 45-54 55+ TOTAL
Unchanged from 2018, Travel (21%), Groceries & Household Goods (11%), and Women’s Fashion (10%)
WOMEN’S TRAVEL & TRAVEL & TRAVEL & TRAVEL & TRAVEL &
FASHION SERVICES SERVICES SERVICES SERVICES SERVICES are the most popular categories for Hong Kong consumers. Travel remains one of the most popular
18% 19% 22% 26% 32% 21% categories in every age bracket among Hong Kong shoppers. Significantly, those aged 55+ are
spending 32% of their online expenditure in this category.
TRAVEL & WOMEN’S GROCERIES & GROCERIES & GROCERIES & GROCERIES &
SERVICES FASHION HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD

16% 11% 14% 13% 10% 11% Groceries & Household Goods have overtaken Women’s Fashion as the second most popular category
for ages ranging from 35-44 and 45-54, accounting for 14% and
BEAUTY GROCERIES & WOMEN’S CONSUMER HEALTH WOMEN’S
PRODUCTS HOUSEHOLD FASHION ELECTRONICS PRODUCTS FASHION 13% of spend respectively. Shoppers aged 18-24 continue to

14% 11% 10% 10% 5% 10% spend the largest portion of their online spend (18%) in the
Women’s Fashion category. Of all markets, Hong Kong
Of all markets, Hong Kong shows the highest overall preference for shows the highest overall
shopping at international brands, with Groceries & Household Goods being the only category where Hong Kong shoppers have preference for shopping at
a strong preference to shop locally (45%). Strong preference for international brands is shown when shopping in the Beauty
Products (68%), Consumer Electronics (64%), Sports & Outdoors (57%), Electronic Accessories (56%), Watches & Accessories
international brands.
(55%) and Luxury Goods (55%) categories.

PERCENTAGE OF ONLINE EXPENDITURE SI N GA POR E


18-24 25-34 35-44 45-54 55+ TOTAL Travel & Services is the most popular category for online expenditure for Singaporeans across almost
WOMEN’S TRAVEL & GROCERIES & GROCERIES & TRAVEL & TRAVEL &
FASHION SERVICES HOUSEHOLD HOUSEHOLD SERVICES SERVICES every age bracket. Ages 25-34 and 35-44 spent 17% and 18% respectively of their total online spending in

16% 17% 19% 23% 23% 19% this category, while ages 45 and above spent over 22%. 18-24-year-olds spent 13% of their total budget in
online travel, up from 8% in 2018.
TRAVEL & CONSUMER TRAVEL & TRAVEL & GROCERIES & GROCERIES &
SERVICES ELECTRONICS SERVICES SERVICES HOUSEHOLD HOUSEHOLD

13% 13% 18% 22% 19% 17% Groceries & Household Goods are the second most popular category for Singaporean online shoppers
garnering 17% of total online expenditure, followed by Consumer Electronics at 9%. Other popular
MEN’S
FASHION
GROCERIES &
HOUSEHOLD
CONSUMER
ELECTRONICS
WOMEN’S
FASHION
CONSUMER
ELECTRONICS
CONSUMER
ELECTRONICS categories for Singaporean shoppers included Beauty Products (7%) and Health Products (5%).

13% 11% 8% 9% 8% 9%
Young Singaporean shoppers favour Women’s Fashion, which was the top overall category for ages
18-24-year-olds at 16%, unchanged from 2018. It’s interesting to note that Men’s Fashion garners 13%
of total online expenditure for Singaporeans aged between 18 and 24. Excluding Japan, this is the only
country where Men’s Fashion ranks in the top three categories for online expenditure throughout APAC. Groceries & Household goods is the only category where
Singaporeans show strong preference for purchasing from local brands (62%). For many categories, the majority of shoppers have no preference in shopping
internationally or locally. However, Singaporeans purchasing Beauty Products online, prefer to do so via international websites (51%), and international preference
is also shown for Watches & Accessories (49%), Luxury Goods (48%), Consumer Electronics (46%) and Electronic Accessories (46%).

13 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


PERCENTAGE OF ONLINE EXPENDITURE SOUTH KOR EA
18-24 25-34 35-44 45-54 55+ TOTAL
Online Groceries & Household Goods sales in South Korea more than double that of the second
BEAUTY GROCERIES & GROCERIES & GROCERIES & GROCERIES & GROCERIES &
PRODUCTS HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD ranking category for online spend at 22%. This is followed by Beauty Products, generating 10% of
16% 16% 23% 30% 23% 22% digital sales, and Women’s Fashion and Travel both responsible for 9% of sales.
TV & HOME
APPLIANCES
WOMEN’S
FASHION
BEAUTY
PRODUCTS
TRAVEL &
SERVICES
HEALTH
PRODUCTS
BEAUTY
PRODUCTS Outside of the Groceries category, online spend varies for younger versus older shoppers

13 %
14 %
9 %
10 %
14 %
10 % in Korea. Younger shoppers are spending more on Beauty, TV & Home Appliances,
Consumer Electronics and Women’s Fashion categories. Expenditure in the Beauty Luxury Goods is the only
GROCERIES & BEAUTY WOMEN’S CONSUMER TRAVEL & CONSUMER
HOUSEHOLD PRODUCTS FASHION ELECTRONICS SERVICES ELECTRONICS category for people aged 18-24 increased 2% from 2018 to account for 16% of spend, vertical where preference to
13 %
13 %
8 %
8 %
13 %
9 % whilst Women’s Fashion declined from 14% to 12% in 2019. Older shoppers are spending
proportionally more on Travel and Health Products. shop internationally (33%)
was stronger than preference
For the majority of product categories, South Koreans prefer to buy from local brands,
to shop locally (32%).
but when buying Baby Products, Pet Supplies and Luxury Goods, the majority of shoppers show no preference between domestic versus international
brands. Luxury Goods is the only vertical where preference to shop internationally (33%) was stronger than preference to shop locally (32%).

M A LAYSI A
PERCENTAGE OF ONLINE EXPENDITURE
18-24 25-34 35-44 45-54 55+ TOTAL Malaysian shoppers gravitate primarily towards Beauty Products and Groceries & Household Goods
BEAUTY
PRODUCTS
CONSUMER
ELECTRONICS
BEAUTY
PRODUCTS
GROCERIES &
HOUSEHOLD
CONSUMER
ELECTRONICS
GROCERIES &
HOUSEHOLD each accounting for 10% of digital spend, followed by the Women’s Fashion (9%) and Consumer

17% 11% 11% 12% 14% 10% Electronic (9%) categories. These categories are most often ranked the highest for digital spend
among each age bracket with Malaysian consumers.
CONSUMER GROCERIES & WOMEN’S WOMEN’S BEAUTY BEAUTY
ELECTRONICS HOUSEHOLD FASHION FASHION PRODUCTS PRODUCTS

16% 10% 11% 9% 12% 10%


Online expenditure for the Travel sector decreased 2% from 2018, down from 10% in 2018 to 8% in
2019. Women’s Fashion also declined slightly down 1% YoY to account for just 9% of spend.
GROCERIES & BEAUTY GROCERIES & BEAUTY TRAVEL & WOMEN’S
HOUSEHOLD PRODUCTS HOUSEHOLD PRODUCTS SERVICES FASHION
Beauty is the category consumers 18-24 and 35-44 are shopping from most, with Consumer Electronics
11 %
9 %
9 %
9 %
11 %
9 % being the highest area of spend for 25-34-year-olds and people aged 55+.

Preference for shopping domestically versus locally is split across categories for Malaysian consumers.
Domestic brands are the preferred choice for Malaysian consumers for Groceries (80%), Home Improvement (55%), Health Products (50%) and Travel (49%). Strong
preference for international brands is shown when shopping for Watches & Accessories (52%), Sports & Outdoors (52%), Electronics Accessories (48%) and Beauty
Products (47%). International preference is also shown for Luxury Goods, Media & Games and Women’s and Men’s Fashion.

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 14


PERCENTAGE OF ONLINE EXPENDITURE N EW ZEA LA N D
18-24 25-34 35-44 45-54
18-24 55+ TOTAL New Zealand shoppers are spending heavily on Travel (20%), Groceries & Household Goods (9%)
TRAVEL & TRAVEL & TRAVEL & TRAVEL & TRAVEL & TRAVEL &
SERVICES SERVICES SERVICES SERVICES SERVICES SERVICES and Media & Games (9%). Across all age brackets, Travel generated the highest online expenditure

16% 15% 16% 23% 30% 20% accounting for 15%-30% of digital shopping in New Zealand.

GROCERIES &
HOUSEHOLD
GROCERIES &
HOUSEHOLD
CONSUMER
ELECTRONICS
GROCERIES &
HOUSEHOLD
MEDIA &
GAMES
GROCERIES &
HOUSEHOLD
Travel has overtaken Media & Games as the highest category for online spending amongst younger

13 %
12 %
12 %
10 %
7 %
9 % shoppers 18-34. Although growing from 10% to 11% in 2019, the Media & Games vertical dropped to
the third highest driver of online spend for New Zealanders aged 18-24. The category was overtaken
MEDIA &
GAMES
WOMEN’S
FASHION
GROCERIES &
HOUSEHOLD
MEDIA &
GAMES
HEALTH
PRODUCTS
MEDIA &
GAMES by Travel (16%), Consumer Electronics (13%) and Groceries & Household Goods (13%).

11% 10% 10% 9% 7% 9% New Zealand consumers show a strong preference to shop locally for a majority of product categories,
followed by a number of categories where no preference is shown to shop locally or internationally. The
categories that indexed the highest for international shopping preference were Media & Games (23%),
Women’s Fashion (24%) and Luxury Goods (22%).

PERCENTAGE OF ONLINE EXPENDITURE JA PA N


18-24 25-34 35-44 45-54 55+ TOTAL
Sixteen percent of online expenditure in Japan comes from Groceries & Household Goods, with
BEAUTY MEDIA & GROCERIES & GROCERIES & TRAVEL & GROCERIES &
PRODUCTS GAMES HOUSEHOLD HOUSEHOLD SERVICES HOUSEHOLD Travel (14%) and Beauty Products (8%) rounding out the top three categories for online spend. Across
18% 14% 16% 16% 17 % 16% all consumer age groups in Japan, Travel and Groceries are high areas for digital expenditure. Travel
delivers between 11%-17% of spend, whilst Groceries & Household Goods are responsible for 13%-16%
GROCERIES & GROCERIES & MEDIA & TRAVEL & GROCERIES & TRAVEL &
HOUSEHOLD HOUSEHOLD GAMES SERVICES HOUSEHOLD SERVICES of online expenditure.
14% 13% 13% 14% 16% 14% Unlike other APAC countries, Japan is the only country to have Pet
WOMEN’S TRAVEL & TRAVEL & MEN’S BEAUTY BEAUTY
FASHION SERVICES SERVICES FASHION PRODUCTS PRODUCTS Supplies as a top contributor for online spend within an age bracket.

14% 12% 11% 9% 7% 8% Consumers aged 18-24 are spending 12% of all online spend in this
category. Japanese consumers aged 45-54 are the first across APAC
Japanese consumers aged
45-54 are the first across
to spend more on Men’s Fashion (9%) than Women’s Fashion (5%).
APAC to spend more on
Across all categories, Japanese consumers are more inclined to purchase from local brands than they are to purchase from Men’s Fashion (9%) than
international brands. Japanese consumers are most likely to buy Luxury Goods from overseas brands, with 30% of respondents
Women’s Fashion (5%).
preferring to buy internationally within this category. Twenty-six percent of consumers also prefer to buy internationally when
purchasing Watches & Accessories and Sports & Outdoor products.

15 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


PERCENTAGE OF ONLINE EXPENDITURE I N DI A
18-24 25-34 35-44 45-54 55+ TOTAL Shoppers in India are spending big on Consumer Electronics (16%), Groceries & Household Goods
CONSUMER CONSUMER CONSUMER CONSUMER GROCERIES & CONSUMER
ELECTRONICS ELECTRONICS ELECTRONICS ELECTRONICS HOUSEHOLD ELECTRONICS (13%) and Women’s Fashion (8%) when purchasing online. Consumer Electronics was the largest

20% 17 % 16% 15% 19% 16% category for online spend with Indians aged 18 to 54 driving between 15 and 20% of all spend.
Those aged 55+ are the only consumer age bracket in India to spend the most on Groceries (19%).
GROCERIES & GROCERIES & GROCERIES & GROCERIES & CONSUMER GROCERIES &
HOUSEHOLD HOUSEHOLD HOUSEHOLD HOUSEHOLD ELECTRONICS HOUSEHOLD

14% 10% 12% 14% 11% 13% The 18-24-year-old bracket is the only age bracket to feature Beauty Products in the highest three
categories of online expenditure, beating out Women’s Fashion to account for 8% of all online spend.
BEAUTY
PRODUCTS
WOMEN’S
FASHION
WOMEN’S
FASHION
TRAVEL &
SERVICES
TRAVEL &
SERVICES
WOMEN’S
FASHION Similarly, Travel only features as a top 3 category for online spend in the 45-54-year-old age bracket,

8% 9% 9% 9% 11% 8% driving 11% of purchases

In India, preference for shopping domestically versus internationally is split across categories. While
strong local preference is shown for Groceries & Household Goods (70%), Home Improvement (57%)
and Health Products (52%), strong preference is shown for international brands when shopping in Consumer Electronics (55%), Luxury Goods (53%) and Watches &
Accessories (50%) categories.

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 16


C H A P TER 3

How are Asia-Pacific consumers


engaging with brands?
To better understand how and why consumers in the Asia-Pacific region are engaging with brands, the survey asked shoppers
to detail how they discover brands, and how they interact with them. Furthermore, to understand the decision drivers behind
Asia-Pacific consumers, respondents were asked about the perceived experience of shopping with international retailers, and
what drives them to purchase from a certain website.

K EY TA K EAWAYS:
• Consumers throughout Asia-Pacific have higher engagement with local brands than international brands, with most
engagement being via social media.

DOMESTIC vs. INTERNATIONAL

AUSTRALIA CHINA HONG KONG SINGAPORE SOUTH KOREA M AL AYSIA NEW ZEALAND JAPAN INDIA

DOMESTIC
60% 83% 76% 62% 69% 85% 59% 58% 80%
INTERNATIONAL
50% 80% 75% 64% 63% 81% 54% 50% 78%

17 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


C H A P TER 3
K EY TA K EAWAYS (CON TI N UED):
• Overwhelmingly, consumers in APAC agree that international websites provide faster access to new products.

• When looking for new brands or places to shop online, search is the number one method used for discovery across APAC,
followed by referrals from friends and family.

• Product price point is the strongest driver of purchase decisions for APAC consumers, followed by the breadth of products
offered and delivery times.

Price of products 80.9%


Variety of products 64.9 %
Delivery times & updates 46.9%
Recommendations from friends & family 43.0%
User-friendly website and design 40.6%
Availability of local payment options 33.2%
Customer Service 30.6%
Seeing online advertising for the website 30.4%
Availability of vouchers and promotions 30.4%
Availability of a mobile app or mobile site 28.2%
Cashback & rewards options 24.6%
Availability of website in my local language 17.0%
Product packaging 10.9%
Other (Please specify) 1.3%

18 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


AU ST R A LI A

Engagement with brands amongst Australian consumers is low, with 40% of consumers stating they do not engage with local brands and 50%
not engaging with international brands. When consumers do engage with brands, they tend to do so on Facebook (31% local, 26% international), Facebook has overtaken email
Instagram (20% local, 19% international) and email (32% local, 23% international). Facebook has overtaken email as the most popular way for
Australians to engage with brands in 2019.
as the most popular way for
Australians to engage with
It’s interesting to note that while Snapchat is growing in popularity with marketers as a way to reach consumers, only 3% of Australians are engaging
brands in 2019.
with local and international brands via the platform.

Australians are choosing to shop internationally based on the perception that websites from overseas offer faster access to products (46%) and a
wider range of products (66%).

When looking for new brands or places to shop online, search is the number one method used for discovery (77%). Referrals from friends and family is the second
largest driver of brand introduction (35%), while social media advertising accounts for 27%. Influencer marketing is responsible for just 7% of brand discovery.
Fifteen percent of Australian consumers are on the hunt for
a bargain, utilising deal and coupon sites for brand discovery
while cashback and reward sites introduce 9% of consumers
Availability of mobile app 24 % to new brands.

AUSTRALIA
User Friendly Website 50% The strongest purchase driver for shoppers in Australia is
Variety of Products 63 % product price point, with 81% of decisions based on this.

81%
The breadth of products offered impacts 63% of purchase
Product Price
decisions, followed by delivery time (55%) and website
Vouchers/Promotions offered 20% usability (50%).

Availability of local payment options 28% If vouchers or promotions are offered, 20% of consumers
Delivery time & updates 55 % are more likely to purchase, whilst 16% of consumers said the
availability of cashback and rewards influence them to buy.
Product Packaging 11 %
Cashback/Rewards offered 16%
Customer Service 28% Breakdown
of purchase
Availability of website in local languages 16% drivers

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 19


C H IN A
Brand engagement in China is high, with 83% of consumers in China engaging with local brands and 80% engaging with
international ones. WeChat and Weibo are two critical platforms for Chinese consumers – 62% of Chinese consumers engage WeChat and Weibo are two
with local brands on WeChat and 42% on Weibo. For international brands, Chinese shoppers will engage with them on these
critical platforms for Chinese
platforms 44% and 38% of the time, respectively. Engagement on WeChat and Weibo more than doubles the engagement via
Facebook (18% local, 21% international) and Instagram (8% local, 13% international). consumers – 62% of Chinese
consumers engage with local
Over 60% of Chinese consumers agree that international websites offer both a wider range and more genuine and better quality
products than local brands. Fifty-six percent of shoppers in China also agree that international shopping websites offer faster brands on WeChat and
access to new products, however having international website available in local languages is a deciding factor for 21% of 42% on Weibo.
consumers in China when choosing where to shop.

China is the only country in APAC that doesn’t site search as the biggest driver of brand discovery. Instead, recommendations
from friends and family is the largest driver of brand discovery (68%). Social media advertising introduces 42% of consumers
to new brands, followed by deal and coupon sites (19%), cashback and reward sites (18%) and influencers (17%).

Payment options are key for Chinese consumers as 45% want


to be able to pay for purchases using local payment options.
Availability of mobile app 31% When choosing a website to shop with, 71% of decisions are

40%
based on product pricing. The variety of products available
User Friendly Website impacts 53% of purchases and recommendations from family
CHINA
Variety of Products 53% and friends influence 56% of purchases. Additionally, 31%

71%
of decisions are made based on whether there is a mobile
Product Price
app available.
Vouchers/Promotions offered 46% Forty-six percent of Chinese consumers are more inclined
Availability of local payment options 45% to purchase from a website that provides vouchers and
Delivery time & updates 32% promotions, and 20% are more likely to purchase if

12%
cashback or rewards are available.
Product Packaging

Cashback/Rewards offered 20%


Customer Service 36% Breakdown
of purchase
Availability of website in local languages 22% drivers

20 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


HO NG KO NG
A majority of Hong Kong consumers interact with brands on Facebook, whether they be international (53%) or local (54%). These numbers have
increased significantly from 2018 when 34% of consumers used Facebook to engage with international brands and 35% for local brands. Consumer
engagement via Instagram is higher among Hong Kong shoppers (29% local, 31% international) than most other APAC markets, with the exception Hong Kong consumers are
of Malaysia. Outside of China, shoppers in Hong Kong are the most likely to engage brands on WeChat and Weibo.
also more inclined than their
Twenty-five percent of Hong Kong shoppers don’t engage with local or international brands at all. Fifty-three percent of Hong Kong shoppers say neighbours in APAC to buy
that international brands provide products of a higher quality and are more likely to be genuine than local brands. Sixty-four percent of Hong Kong
from a website that offers
shoppers say international brands offer a wider range of products, with 52% saying shopping internationally allows faster access and shipping of
these products. vouchers and promotions,
with 46% of consumers
Search continues to be the channel most responsible for brand discovery (66%) followed by referrals from friends and family (59%). In this mobile-first
market, social media drives 37% of discovery, whilst Influencers account for 8%. Savvy consumers in Hong Kong are more likely to discover new stating this as a
brands via deal and coupon sites (17%) than cashback and reward sites (9%). determining factor.

Product price point is the key factor for 80%


of shoppers in Hong Kong when deciding
whether to purchase from a website. The ability to use
Availability of mobile app 24% local payment options is highest in Hong Kong than in

HONG KONG
User Friendly Website 41% other APAC markets, with 48% of consumers making
decisions based on this. Hong Kong consumers are also
Variety of Products 47 % more inclined than their neighbours in APAC to buy from
Product Price 80% a website that offers vouchers and promotions, with 46%
of consumers stating this as a determining factor. The
Vouchers/Promotions offered 46% ability to earn cashback and rewards drives 23% of
Availability of local payment options 48% purchase decisions.

Delivery time & updates 42%


Product Packaging 10%
Cashback/Rewards offered 23%
Customer Service 23% Breakdown
of purchase
Availability of website in local languages 20% drivers

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 21


S IN GA P ORE
Thirty-eight percent of Singaporean consumers don’t create relationships with local brands, and 36% say they don’t form one
with an international brand, a 16% change from the 23% of consumers who weren’t engaging with international brands in 2018. Forty-two percent of
When Singapore-based shoppers do connect, it’s most common for them to do so through Facebook (37% local brands, 35% shoppers in Singapore
international brands), email (29% local, 27% international) or Instagram (24% local, 23% international).
believe that international
Seventy-eight percent of Singaporeans believe that compared to shopping locally, international brands provide a broader range brands offer a better
of products and 59% believe they offer faster delivery. Forty-two percent of shoppers in Singapore believe that international brands
overall shopping
offer a better overall shopping experience compared to local websites .
experience compared
In comparison to other APAC countries, Singaporeans are more likely to use influencer marketing to discover new brands than to local websites.
their neighbours (16%). Online search (77%), referrals from friends and family (55%) and social media advertising (38%) remain
the strongest drivers of brand discovery in Singapore. Savvy Singaporean consumers are using cashback and reward sites
(24%) more often than deal and coupon sites (20%) to find new places to shop online.

Cashback usage in Singapore is one of the highest through-


out APAC, driving 30% of purchase decisions by consumers.
The availability of vouchers and promotions drive 38% of
Availability of mobile app 22% decisions, whilst product price point continues to be the

47 %
strongest factor in the decision process (82%).
User Friendly Website
SINGAPORE
Variety of Products 64%
Product Price 82%
Vouchers/Promotions offered 38%
Availability of local payment options 26%
Delivery time & updates 48%
Product Packaging 10%
Cashback/Rewards offered 30%
Customer Service 25% Breakdown
of purchase
Availability of website in local languages 13% drivers

22 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


S O UT H KO R E A
More than 60% of South Korean consumers engage with brands (69% local, 63% international). Local social media platform KakaoTalk is one of the
highest drivers of engagement for South Korean consumers, although Facebook (19% local, 21% international) and Instagram (19% local, 20%
international) are the highest drivers of overall engagement. Engagement via Facebook has shifted from 2018, increasing by 6% for local brands
South Korean shoppers
and 9% for those based overseas. are more influenced by
the availability of cashback
Sixty-six percent of South Koreans agree that international brands offer a wider range of products than local brands while 35% said that overall,
brands based overseas offer a better online experience. and rewards than other
APAC shoppers, with
Delivering 87% of brand introductions to consumers, online search rates are higher in South Korea than all other APAC markets. In a mobile dominated
market, 33% of consumers still discover brands from family and friend recommendations, with social media driving 21% of brand discovery. Twelve 32% saying this impacts
percent of consumers discover new brands via deal and coupon sites, while 11% of shoppers are using cashback and reward sites as a discovery tool. their purchase decision.
More so than any other country in APAC, consumers in South Korea are making purchase decisions based on product packaging, however product
price point (89%) and product variety (82%) are still more important deciding factors for South Korean shoppers.

South Korean shoppers are more influenced by the


availability of cashback and rewards than other APAC
shoppers, with 32% saying this impacts their purchase

33%
decision. The availability of vouchers and promotions
Availability of mobile app
also impacts 27% of purchase decisions in South Korea.

SOUTH KOREA
User Friendly Website 26%
Variety of Products 82%
Product Price 87 %
Vouchers/Promotions offered 27 %
Availability of local payment options 24%
Delivery time & updates 50%
Product Packaging 14%
Cashback/Rewards offered 32%
Customer Service 40% Breakdown
of purchase
Availability of website in local languages 26% drivers

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 23


M A L AYS IA
Malaysian consumers have the highest brand engagement in APAC, with over 80% of consumers engaging with both local and
international brands. The highest engagement rates for Malaysian shoppers is via Facebook, where 69% follow local brands and Of all APAC countries
63% follow international brands. Aside from Facebook, consumers follow brands on Instagram (37% local, 36% international) and
email (27% local, 25% international). In 2019, Instagram overtook email as the second highest driver of brand engagement. surveyed, discovery via
social media advertising
More than 70% of Malaysian shoppers said international shopping websites offer a wider range of products, with 60% agreeing
(65%) and influencer
that overseas brands also offer faster access to new products. Over 50% of shoppers said international websites provide better
quality products, while 45% say the overall experience is better when shopping with international brands. marketing (21%) is
highest in Malaysia.
Of all APAC countries surveyed, brand discovery via social media advertising (65%) and influencer marketing (21%) is highest in
Malaysia. Similarly, consumers in Malaysia are among the highest in APAC to use cashback and reward sites to find new brands,
doing so 28% of the time. Although Malaysians are utilising other channels to find new brands, online search (78%) and referrals
from friends and family (53%) remain the strongest drivers of brand discovery with deals and coupons following (23%).

For Malaysian consumers, the ability to purchase using local


payments (36%) and the availability of a mobile app (38%)
influences shoppers’ purchase decisions more than most
Availability of mobile app 38% other APAC countries. Like other countries in the region,

36%
Malaysian consumer decisions are driven primarily by price
User Friendly Website point, with 77% of shoppers citing this a major influence in
M A L AYS I A
Variety of Products 62% their decision making. When it comes to promotional

77 %
incentives, 35% of consumers are influenced by websites
Product Price
offering vouchers and promotions, and 33% look for
Vouchers/Promotions offered 35% cashback and rewards.
Availability of local payment options 36%
Delivery time & updates 42%
Product Packaging 12%
Cashback/Rewards offered 33%
Customer Service 21% Breakdown
of purchase
Availability of website in local languages 9% drivers

24 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


NE W Z E A LA N D
Behind Japan, consumers in New Zealand are the least likely to engage with brands. Forty-one percent of shoppers don’t engage with local brands and
46% aren’t engaging with any brands from overseas. When New Zealanders do engage with brands, they are most likely to do so via email (38% local,
32% international), more so than any other APAC country. Facebook drives 30% of engagement for local brands and 24% for those based overseas. When New Zealanders
do engage with brands,
New Zealand shoppers value breadth of choice when shopping internationally, with 79% of shoppers agreeing that international shopping websites
offer a wider range of products. Fifty-six percent of shoppers also agreed that they get faster access to new products when shopping internationally. they are most likely to do
Differentiating themselves from most other APAC countries, 36% of consumers disagree that international websites offer more genuine products. so via email (38% local,
When shopping online, New Zealanders use search 78% of the time to discover new websites. Recommendations from friends and family drives 44% 32% international), more so
of brand discovery and social media drives 27%. Compared to their neighbours across the Tasman Sea, consumers in New Zealand are more likely to than any other APAC country.
discover brands through Influencers (NZ 9%) than Australians are (AUS 7%).

Unchanged from 2018, 88% of New Zealand shoppers said the price of products is the most crucial criteria when choosing a shopping site followed
by the variety of products (67%). Delivery times are also important, although website usability is a more prominent driver of purchase with 56% of deci-
sions being based on this factor, the highest of any APAC country.

App availability is the least important element impacting


purchase decisions with New Zealand consumers, with only

18%
17% of consumers seeing this a determining factor when
Availability of mobile app
purchasing online.

NEW ZEALAND
User Friendly Website 56%
Variety of Products 68%
Product Price 88%
Vouchers/Promotions offered 22%
Availability of local payment options 27%
Delivery time & updates 55%
Product Packaging 7%
Cashback/Rewards offered 14%
Customer Service 27% Breakdown
of purchase
Availability of website in local languages 19% drivers

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 25


JA PA N
Of all the consumers in APAC, Japanese shoppers engage the least with brands. When Japanese consumers do interact with
brands, they do so predominantly via email (30% local, 22% international). Facebook delivers just 14% of interactions with both
domestic and international brands, whilst Instagram is responsible for 16% of local engagement and 14% of exchanges with
Of all the consumers
international sites. in APAC, Japanese
shoppers engage
Forty-seven percent of shoppers in Japan say that international brands offer a wider range of products, and 33% agree that they
offer faster access to new products. Overall, only 25% of consumers agree that international brands offer a better consumer the least with brands.
experience than local brands, compared to 33% of shoppers in Japan who disagree with this sentiment.

Online search remains the most popular method for discovering new brands, following by recommendations from family and
friends.

Product price (90%), delivery and updates (57%) and customer service (44%) are the key purchase drivers among consumers, with Japanese shoppers placing a
higher emphasis on these factors than other countries in APAC when considering their online purchases.

For websites looking to incentivise savvy consumers


to purchase, cashback and rewards influence 23% of
Availability of mobile app 28% shoppers, while vouchers and promotions are
considered important by 11% of consumers.
JA PA N
User Friendly Website 24%
Variety of Products 77 %
Product Price 90%
Vouchers/Promotions offered 11%
Availability of local payment options 32%
Delivery time & updates 57 %
Product Packaging 13%
Cashback/Rewards offered 23%
Customer Service 44% Breakdown
of purchase
Availability of website in local languages 22% drivers

26 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


I NDI A

Indian consumers are more likely to engage with local brands (80%) than international (78%) ones. In this mobile first market, social media drives the
most engagement through Facebook (56% local and international) and Instagram (28% local, 35% international). Consumers in India are engaging Thrifty Indian consumers
with brands via YouTube (42% local, 44% international), Twitter (22% local, 25% international) and Snapchat (6% local, 7% international) more so are using cashback and
than any other APAC country.
rewards (28%) and deals
More than 70% of shoppers in India either agree or somewhat agree that international websites give them quicker access to new products and and coupon sites (22%) to
provide better quality items. Sixty percent also state that customer service is better when shopping internationally, than shopping locally.
find new places to shop
Thrifty Indian consumers are using cashback and rewards (28%) and deals and coupon sites (22%) to find new places to shop online more than online more than other
other shoppers in APAC. Indians are utilising social media advertising to discover new brands 50% of the time, though search is still the key driver
shoppers in APAC.
for discovery, being used 82% of the time.

Compared to other APAC countries, Indian consumers place more value on mobile app availability as a determinant to purchase (40%), Product
price impacts 70% of purchase decisions for Indians, the lowest of any APAC country.

Brands wanting to incentivise consumers to purchase are


best doing so using cashback and rewards (31%), although
vouchers and promotions still drive 29% of purchases.
Availability of mobile app 40%
INDIA
User Friendly Website 45%
Variety of Products 68%
Product Price 70%
Vouchers/Promotions offered 29%
Availability of local payment options 34%
Delivery time & updates 42%
Product Packaging 12%
Cashback/Rewards offered 31%
Customer Service 32% Breakdown
of purchase
Availability of website in local languages 6% drivers

RAKUT E N A DVE RT IS IN G ECOM M ERC E RE P ORT 27


C H A P TER 4

Summary
The research conducted for this report reveals that while there are commonalities in consumer preferences and habits across the
Asia-Pacific region, the inidivdual markets surveyed are also unique and nuanced.

The opportunity for brands in APAC is significant, but consideration must be given to where consumers are shopping, how they’re
discovering and choosing brands, and what is influencing their purchase decisions. Some key takeways from this report include:

K EY I N SI G HTS:
• As a region, mobile devices are used more frequently than dektop or laptop when shopping online, but mobile adoption
by consumers remains lower in certain markets.

• Groceries & Household Goods is the category where most APAC shoppers are spending, and overwhelmingly these
purchases are being made via domestic brands.

• While preference to shop internationally versus domestically varies across countries, high shipping fees is the main
deterrent for shopping at international retailers.

• When APAC consumers do purchase from international brands, they’re most likely to buy Luxury Goods, Beauty Products
and Watches & Accessories.

• Across the board, APAC consumers agreed that international websites offered faster access to new products.

• Online search remains the number one tool for brand discovery, and when consumers engage with brands, they’re
more likely to do so via social media (although platforms differ between countries).

• APAC consumers are price conscious – the price of products is the main determinant of where they’ll shop.

28 RAKUTE N ADV E RTISING ECO MME RCE RE P O RT


About Rakuten Advertising
Rakuten Advertising connects leading agencies, brands and publishers to active and engaged consumers around the world. With access to Rakuten’s
diverse media properties and audiences, combined with an award-winning performance network and proprietary consumer research, Rakuten Advertis-
ing creates the right conditions to reach new customers and sustain long-lasting loyalty. Its foundation of advanced technology, data and strategic ser-
vices positions Rakuten Advertising to offer a differentiated suite of marketing and advertising solutions, while constantly pushing the industry forward. It
is a division of Rakuten Inc. (4755: TOKYO), one of the world’s leading Internet service companies. The company is headquartered in San Mateo, CA, with
offices throughout EMEA, APAC, LATAM and North America.

Learn more at www.RakutenAdvertising.com.

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