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CMOs Take Note: Everything about Property Marketing in the Big 5 of ASEAN

As we all know the traditional forms of marketing property has  fizzled out ages ago the new era of digital marketing has dawned. Thanks to the global connectivity hub known as the internet, people no longer have to turn to traditional media to market a property or any other form of real estate. Gone are the days where consumers lack transparency into a market that once used to confuse and perplex everyday average individuals looking to buy or sell a property .

 

How property marketing looks in the ASEAN region?

THE BIG 5 OF ASEAN. Photo credit, Kavitha Manimaharan.

There is no doubt that ASEAN’s property market holds great potential in all the 10 member countries. The region as a whole remains as a bright spot amid a subdued global economic outlook, as ASEAN economies continue to grow at 5% per year compared to a global growth rate of 3.5% per year especially with its young people eager to make their mark in the world. However, Global consultancy firm CBRE’s ‘ASEAN Economic Community noted that conducting business in each member country is different. While it’s generally transparent and relatively easy to do business in Singapore and Malaysia, other countries like Myanmar, Laos and Cambodia have a lot of catching up to do in terms of creating a more conducive environment for property businesses.

Due to various reasons like profit margin difference, demographics and so on, it is very difficult to adjust the same property marketing strategy for all of the member states.  This can lead to pricing issues like for higher margin product needs price adjustment downwards. However, like mentioned earlier, the market as a whole in the region is very prospective because Asean on a whole is no longer seen as merely an emerging economies, but it is and need to be  considered bona fide global player that has entered a phase of explosive growth. Real estate market here is experiencing another decade of sustained growth, while there will be market corrections in some cities there is no denying the healthy long term prospect.

Right now let’s take a long at how individual member state of the region is doing in term of property marketing. Take would give you a better picture of the performance of the region as whole. We will be focusing on the top 5 Asean countries which are Singapore, Malaysia, Thailand, Indonesia and the Philippines.

 

ASEAN-5 Property Marketing Insights

Singapore

Singapore- ASEAN’S biggest metropolitan

Singapore is Southeast Asia’s hottest real estate market. Property sales volumes in Singapore has rose by 50.0% in Singapore in the first half of the year to US$5.8 billion which is higher than Asian tigers like Hong Kong and Tokyo who struggled with excess stock, soaring prices and economic uncertainty.Singapore in fact is the  only property market in Asia region in which government efforts to contain price rises have actually been successful.

The outlook for retail property is also though clouded by a drift toward online purchases but the shopping malls are still drawing big investment. Most part of the country is over-supplied with especially with office space, but investors are generally optimistic of Singapore’s prospects because of consistently strong economic growth, rising incomes and urbanization.

Another major factor is the rash of redevelopment deals inked by developers who are looking to replenish their land bank. This has released huge amounts of liquidity and unleashed cash-rich investors in to the Singaporean property market. Research by RHB shows that 87% of property buyers in the second quarter of this year are local residents. The main concern here is that many local buyers are over-committing themselves to loans without thinking about how rising interest rates could affect their ability to service the debt

So, what to expect in future?With rising interest rates and increasing vacancies, investors who bet on rental income are now realising that their investment cash flow is weak, and expectations of capital gains are far out in the unforeseeable future. Try to cool the market is harsh though it may be is the correct thing to do. Reports suggest that, the Singaporean property market to go quiet for the next half of the year as developers and investors wait for the dust to settle.

Malaysia

Kuala lumpur infrastructure

Malaysia has extremely liberal policies related to foreign investment in commercial property and can offer attractive yields.  The prospects of appreciation in the currency which is ringgit and strong economic growth now make Malaysia an outstanding regional investment opportunity. However, the property consultancy cautions that there will be a period of adjustment and consolidation to clear existing stock before any price increases can be seen.

This year for instance has been a challenging year for the property market in the Malaysia. With the political swift within the country the many questions arise such as is whether the uncertainties are finally over? Will the new government’s pledges do the property sector any good? And when will the market glut finally end? It is anticipated that the Malaysian market to have a knee-jerk reaction following the current political situation and the second quarter of 2018 is predicted to be relatively quiet for property transactions. However, the outlook for Malaysia appears to be promising, as the new government sets to work to address some of the institutional problems that have held back Malaysia’s long-term prospects and deterred foreign investment,” it says.

As for the future, what can be foreseen is  that property marketing will firm up in 2019, and it will be early 2020 before developers can respond by stepping up supply. In short, particularly the country’s capital Kuala Lumpur will be the best the spot for property investors and the city has already attracted big names to it site.  In summary, there never been a better time to invest in Malaysia then the coming future.

 

Thailand

Thailand looking bright as ever

Thailand has grown into a very popular place property investment . Main two reasons are the central location and investor friendly government policies. Thailand economy is doing very well especially from last year onwards and their currency the Baht is relatively high to US Dollar.  Thanks to a good economic growth Thai property market is going strong and expect to grow at this rate.

In the first half of the 2018, many consumers delayed their purchases due to economic uncertainty within the country, and were waiting for the government to launch a stimulus package for them so they could buy a property at a lower price but regardless of the slight downfall the Thailand’s GDP growth could end this year at 3.8 percent and top 4 percent in 2018, according to The Centre for Economic and Business Forecasting. Developers are poised to spread their investment across the property  market by the end of 2018 with an increment of 15 percent from the pervious year.

In fact, Thailand property market has been the brightest this year among the other countries in the region. It is expected that even more projects and foreign developers penetrating through the market. The overall market outlook is very good with a very low-risk factor. The key is readjusting the business plan to the constantly changing Thai people buying pattern.

 

Indonesia

Prospectful Indonesia

Indonesia’s economy has to lifted off, with the property sector garnering investor interest. Historically speaking, property market in Indonesia was held back by infrastructure and regulatory challenges. However, the Indonesian administration is making headway in improving infrastructure, easing bureaucracy and encouraging investment.

A recent report by the Indonesian Infrastructure Organization says, the potential has been there for some time as Indonesia offers the scale in terms of demographics and population that is required for logistics to grow. With increased political and economic stability alongside a growth in demand for consumer products, property market is on demand.

Most of the property companies in Indonesia has recorded net profit increases in the double digits this year and THE property market is expected to expand at least 5 % by end of this year. While the government has moved to prevent a real estate bubble, and a commodities price crash and macroeconomic slowdown weighed on growth the sector began to regain its footing in past few years and its property sales forecast to rise for the first time in six years in this year .The biggest contributor to the growth of property market in Indonesia is the  growing middle class and rising levels of urbanisation have. This has been a huge support for the growth of real estate in Indonesia, and there remains substantial room for expansion in the coming years.

Though most part of Indonesia are still untouched but the capital, Jakarta is expected to see more emerging high-quality projects in this coming year. Nevertheless, the Indonesian foreign investment policy is relatively strict, with local developers being in full command, this may turn a few intentional investors away as the law refrains them from profiting off property buying.

 

The Philippines

Philippines going steady

Though  Philippine economy has not  grown in a big margin like the rest of the countries in the list but it has been growing up  by 6 to 7 per cent in the last five years. The country’s foreign policies and incentives that attracted foreign investors especially to major cities like Manila and Cebu. The real estate industry’s steady growth in the past decades is attributed to the increase in demand for residential and commercial properties driven by various factors. These demand drivers, are including rising urban population growth which leads to increased needs of  house in the big cities.

Oxford Business Group (OBG) stated in their annual report that years of investment and strong economic development in the Philippines have fostered a robust real estate sector that now extends outside of the greater Metro Manila region and into secondary markets around the country. Economic development and a growing middle class continue to fuel demand for new, high-grade residential units, while commercial investment drives an ever-increasing amount of retail and office space.”

 

What is the future for property marketing in ASEAN Region?

As further liberalisation takes place down the road among the 10-member Asean states, the region, which currently is the fastest-rising economy in the world, will be the best place to scout for properties due to its huge upside potential, It is the time to take cross border investment and ASEAN is the best spot for that thanks its rich cultural and diversity background. Commercial properties such as shopping malls, hotels and student accommodation will also be a great investment as ASEAN has a huge young demographic. Another advantage to Asean favor is it  could turn out to be the biggest beneficiary because of the current global economic slowdown as many American and European companies decide to cut costs and relocate to cheaper destinations.

Though the vast globalisation in the region made it more lucrative for propertY  investment but it is also challenging to be honest. Today, ASEAN consumers are savvier than ever. As the internet evolved, so has our unfiltered access to information across the spectrum. This has been very beneficial to the real estate market, which has always been one of the most profitable lines of business since the dawn of time. Now we can see an explosive growth of in the field. The are more agents and owners and everyone’s ultimate goal is to get  the buyer’s attention through any form of digital marketing means.Just like every other highly-saturated field, it is no longer simple to gain the customer’s awareness. They’ve learned to weed out the nuisances and cancel the noise as they search for the perfect home on the web. With fierce competition in the marketplace, potential buyers are armed with all the data they could possibly need, forcing real estate agents to compete and set themselves apart more fortuitously than before.

So, that is the the truth there. It’s difficult to sells property today. It’s become excruciatingly painful to set yourself apart from the fray. With the biggest players in the market aggregating themselves through multiple site , most have come to realize that real estate marketing is an extremely complex field that requires weaving together a number of online marketing disciplines. While much of this has little to do with the everyday consumer, real estate agents are constantly searching for ways they can gain an edge in digital real estate marketing.

 

 

 

 

The Future of Retailing in ASEAN that CMOS Should Know

The biggest change and the most obvious one in ASEAN retail market in past five years year is the switch from offline to online. Online retailing or also known as retail e Commerce is a unique opportunity to connect millions of merchants and consumers across the ASEAN region. To secure future growth, however, further intervention is needed. This article is going to provide and educate you the three things which are the challenges faced by the retailers in the market, the current trends that you need to pay attention to and lastly the future trends which are the opportunities out there. It will be very comprehensive and allows to examine a holistic approach that can help the region unleash the full potential of e-commerce.

e Commerce- The Future of Retail

 

What is retail eCommerce ?

eCommerce refers to any form of business transaction conducted online. The most popular example of e Commerce is online shopping, which is defined as buying and selling of goods via the internet on any device. However, eCommerce can also entail other types of activities, such as online auctions, payment gateways, online ticketing, and internet banking. eCommerce is typically classified into three different types based on the type of participants involved in the transaction: business to business (B2B), business to consumer (B2C) and consumer to consumer (C2C). e Commerce is the fastest growing retail market in the region projected to hit $4.058 trillion in sales in 2020. Mobile commerce, or in short known as Mcommerce, is a rapidly growing in the region too which is largely due to the the expanding market and influence of smartphones and millennials’ comfort with shopping online.

 

What are the current trends in the retail market in ASEAN?  

1)Hyper-personalisation

 According to a recent study by Salesforce 58% of Asian consumers identified personalisation as a crucial factor in purchase intention. That means people are more brand conscious. So, building a bond with  your customer is a crucial part of the company’s strategy. The goal would be to build more loyal customer base and ASEAN is looking bright for that.

Strategies:

  • Identify more clearly which customer segments should be included or excluded from campaigns.
  • Deliver hyper personalised segment-of-one experiences and better match products to customers.
  • Pre-empt customers’ needs and behaviour to take tactical decisions to drive desired behaviour.

2) High access to broadband

WIFI all over ASEAN

ASEAN certainly is enhancing cross-border connectivity, and increasing efforts to raise online awareness. Mostly everywhere there is Wifi accessible hence people are always on the internet. The is great for retailer as you can constantly keep in touch with your customer but remember to always stay updated and come up with creative and interesting content each time

Strategies:

  • Improving access to finance for small and medium enterprises, fostering the integration of digital talent into businesses, and promoting awareness of e-commerce marketplaces.
  • Reinforce online security. For example, like increasing information sharing and bilateral assistance, harmonizing existing legislative frameworks, and creating a regional online dispute-resolution facility.
  • Encourage non-cash transactions, establishing e-payment-specific regulations, and harmonizing e-payment regulations regionally.
  • Make sure  your company is working towards the development of online retail logistics services, facilitating logistics players’ partnerships, accelerating the integration of logistics systems, and ensuring full implementation of the ASEAN Single Window.

 

What are the challenges in ASEAN Retail Market?

 

1)Modern Consumerism in ASEAN: An Ever Evolving Retail Landscape

In contrast with the stagnant retail sectors in many developed markets, the ASEAN retail market is underpinned by optimistic consumers and growing demand. The consumer goods retail sales value of ASEAN-5 which is Malaysia, Singapore, Thailand, Indonesia and the Philippines alone is expected to reach US$900 billion in 2018,which is  about a quarter of that of China. While retail in ASEAN-5 countries largely comprises the informal sector, especially in the Philippines and Indonesia, large shopping malls housing supermarkets, department stores and international brands are increasing in numbers. Many ASEAN consumers visit large shopping malls not only to purchase goods, but also for leisure, social activities and the enjoyment of air conditioning. Middle-class and affluent consumers in ASEAN-5 countries favour imported goods and international brands, and such lifestyle preferences are driving growth in organised retail in major ASEAN cities. Kuala Lumpur, Manila, Bangkok and Jakarta are ASEAN-5’s retail hubs, with Ho Chi Minh City (HCMC) and Hanoi in Vietnam, and Surabaya in Indonesia, rapidly catching up. However, the struggle here would be to always stay in tune to the constant changing evolving consumer patterns.

 

2)ASEAN must demonstrate its relevance

Since its founding 48 years ago, ASEAN has grown to see greater integration among its members and attracts interest, including from global business powers around the world but ASEAN still faces identity crisis in the image of the world. Unlike the European Union(EU), ASEAN is still not worldly recognize. There is still a lack of a sense of ownership of ASEAN among our populations. Our citizens do not as yet identify themselves as ASEAN, unlike the citizens EU, who increasingly identify themselves as Europeans first and their national identities second. ASEAN does not have a common foreign policy, common economic policy, or common security policy. This is perhaps understandable given the history of the association and the diversified political culture of its member countries. So, for a investor it is going be hard to work under one roof to fit all the differences between member states.

 

3)The availability of a secure online payment platform is limited

Though the idea of Ecommerce is widely spread across the whole region but credit-card usage is not as common as in more mature markets. However, this situation is improving with more payment options catering to the needs of ASEAN consumers. As the popularity of credit cards remains low in ASEAN-5 countries and online payment security is a concern, cash on delivery, payment at convenience stores and ATM transfers are available for e-commerce transactions. However, online payment systems for local markets are being developed, such as Tokopedia in Indonesia and Mobivi in Vietnam.

 

The Prediction for the future of Retail in ASEAN?

Mobile phone taking over young Asean

ASEAN has become a major power in its own right. It is an economic leader, and a regional agenda and norm setter. It is becoming a vehicle for change. International brands have spearheaded wide across and there will be more market penetration in the market on the strategies to best exploit the pent-up consumption power of ASEAN consumers. While store-based retail outlets are likely to remain dominant in the top 5 of ASEAN, but each country within the group is going to have increase level of retail development.Countries like Thailand, Singapore and Malaysia which already have a more developed and organised retail sector compared to the rest of the region will see a prospect growth in retail. Large shopping malls and international and local retail chains are common in their urban areas and big cities. Store-based retail growth in these two countries is comparatively moderate as their markets are more mature hence they expect relatively lower economic growth among the other countries.

Even though there is a huge gap between the major platforms in ASEAN and the world giants, online shopping in ASEAN countries has huge potential considering the market of 630 million  people. E-commerce, through mobile devices and social-media platforms, is poised for rapid growth. For example, more than 50% of Lazada’s orders are generated from mobile. ASEAN has an overall mobile penetration of 110% across the region and smartphone penetration is expected to be more than 55% by 2020 in ASEAN-5 countries, which are also increasingly open to 3G and 4G networks.ASEAN is also the world’s second-largest Facebook user community. With its tech-savvy youngsters accounting for a sizeable chunk of the population, online shopping and Facebook shops are gaining popularity in ASEAN countries. This trend is especially noticeable in second- and third-tier cities where the varieties of goods in physical stores are very limited. ASEAN-5 countries are expected to experience a retail boom, with an evolving retail landscape comprising an increasing number of large shopping malls in major cities and a fast-growing e-commerce sector.

The future for retail certainly looks bright in ASEAN region. Remember the key is to always stay updated and keep an eye of the consumer as the rapid growth of young people is the driving factor of the market. If this topic, is something interesting do attend our Digital Marketing Conference #DMICON which will be taking place in September in Singapore. The conference will be featuring some of the most renowned people in field such as Ashley Ong, from Google, Pedro Uria Recio, the Vice President of AXIATA Group and many more. It will a great platform to discover ideas that’ll transform your marketing, your content, and your business. It will allow you to  make connections with the industry’s top digital marketing pros, creators, and people just like you and the perfect place to build a professional network, find business partners, generate new growth ideas, and learn.

 

 

Below are the  #DMICON event details:

Dates: 26-27 September 2018 (Wednesday & Thursday)

Time: 9am – 5pm

Venue: Singapore

Early bird tickets available here: https://talentcap.com/digital-marketing-2018-singapore/

For latest info and update, please visit: www.talentcap.com

 

 

 

 

Key Things CMOs Need To Know About ASEAN Retail Market

Retail sector in the ASEAN region still remains as one of the most remarkably flexible, despite a blowout of sluggish prospects in many industrialised economies and a slowing Chinese economy. Though there are challenges to the retail sector which is mainly due to customer loss of confidence in the company and operating costs plus number of tourists visiting all as some of the reason but there region offers compelling growth opportunities anchored by rising domestic demand and fast-growing incomes.

The expansion of the market  is highly being driven by the strong fundamentals of the ASEAN market including which is a young and fast-growing population, emerging middle-class consumers, and strong GDP growth in each individual member country. Other factors that are stimulating the retail sector include falling unemployment numbers amid a tight labour market and increasing urbanisation. Employment growth clearly adds to a country’s consumption ability, while urbanisation prompts demand for the development of organised retail outlets.

Among the major ASEAN economies, Indonesia and Malaysia appear to be in a strong position to have a booming retail sector.  The four ASEAN biggest retail market nations in the region are Singapore, Indonesia, Malaysia and Thailand. The economies in the region are at significantly different stages of development, with all offering unique opportunities for retail investment. All the countries in the region are in the rapid urbanisation phase where the infrastructure is improving with relatively young populations. Most of the government in the countries are making retail friendly policies to drive the retail growth. Singapore for example, represents a mature retail market with the presence of a high number of international retailers.

Fun facts about ASEAN retail market:

  • Retail sales in Thailand, Singapore, Malaysia, and Indonesia is estimated to grow by an average rate growth of 6%. (The Edge Market, 2018)
  • For the same four countries mentioned above, domestic consumption is expected to increase  to 75% of GDP by 2025. (WorldBank,2016)
  • Singapore, Malaysia, Thailand and Indonesia’s GDP per capita figures are expected to achieve compound annual growth rates (CAGRs) of 5.4%, 9.8%, 5.0%, and 5.0%. (IMF,2018)
  • Countries such as Vietnam, Laos, Myanmar and Cambodia have the lowest labor cost (Canasean, 2016)

What Makes ASEAN the best retail hub?

Malaysia- Asean Pride

1.ASEAN is a powerhouse of economic power

If ASEAN was a country on its own , it would already be the seventh-largest economy in the world, with a combined GDP of $2.57 trillion in 2017 . It is predicted to rank as the fourth-largest economy in the world market by 2050. What makes it the powerhouse though is definitely the labor-force expansion and productivity improvements. It is  home to more than 600 million people, it has a larger population than the European Union (EU) and the United States of  America (USA). Another advantage of the ASEAN region is its youthful population which makes it the best spot for your retail brand

2. ASEAN is not a monolithic market therefore one strategy doesn’t fit all

Monolithic mean big and one however ASEAN is very diverse. Each country is different and each market is needs different strategy. For example, the  GDP per capita in Singapore is more than 30 times higher than in Laos and more than 50 times higher than in Cambodia and Myanmar. While Malaysia and Thailand are seeing positive growth in the retail market, Indonesia and Brunei are falling. For a fact, the standard deviation in average incomes among ASEAN countries is more than seven times that of EU member states. That diversity extends more than just economic. The cultural, language, and religion difference should all be taken in consideration before diving in the ASEAN market. Indonesia, for example, is almost 90 percent Muslim, while the Philippines is more than 80 percent Roman Catholic, and Thailand is more than 95 percent Buddhist. To come up with one for all strategy will not work in the ASEAN Market.  Although ASEAN is becoming more integrated, investors should be aware of local preferences and cultural sensitivities; they cannot rely on a one-size-fits-all strategy across such widely varying markets.

Youth of ASEAN

3. ASEAN is highly E-commerce consumer driven

Believe it or not, ASEAN has outpaced the rest of the world on growth in GDP per capita even since the late 70s. The income growth in most of the countries has remained strong and stable since 2000 . In 2000, 14 percent of the region’s population was below the international poverty line of $1.25 a day but by 2013, that share had fallen to just 3 percent. More than half of the population are part of the working class, with incomes exceeding poverty rate. According to the World Bank report, that number could almost double to 125 millions by 2025. This make ASEAN crowd a pivotal consumer of the future. Though people thinks the consumer are all single minded but  make the words there is no typical ASEAN consumer, though there is a growing preference for modern retail formats, and increment in brand awareness which is largely due to its young demographics.

Singapore- ASEAN Tiger

4. ASEAN is home to many globally competitive companies 

ASEAN includes 227 of the world’s companies with more than $1 billion in revenues, or 3 percent of the world’s total income. Singapore is a standout in the region , ranking fifth in the world for corporate-headquarters density and first for foreign subsidiaries.Consistent with this growth, foreign direct investment in ASEAN has boomed, surpassing the levels of EU. In fact, the ASEAN nations like Indonesia, Malaysia, the Philippines, Singapore, and Thailand attracts more foreign direct investment than China and India. In addition to attracting multinationals, ASEAN has become a launching pad for new companies; the region now accounts for 38 percent of Asia’s market for initial public offerings.

5 ASEAN is united hence easier to penetrate through the market

Despite their distinct cultures, histories, and languages, the ten member states of ASEAN share a common goal. It focuses on prosperity and development as a whole rather than just one nations. Which means investing in one country gives you a easy flow lead into another member state. Household purchasing power is rising, transforming the region into the next frontier of consumer growth. ASEAN’s goal of becoming globally competitive in a wide range of industries an opportunity to create a seamless regional market and production base. If its implementation is successful, ASEAN could prove to be a case in which the whole actually does exceed the sum of its parts.

In conclusion, the urbanization and consumer growth  in ASEAN’s cities are booming. With 22 percent of ASEAN’s population living the in metropolitan cities ASEAN consumers are increasingly moving online, with a heavy mobile penetration and Internet penetration across the region. Its member states combined makes up the world’s second-largest community of Facebook users, behind only USA. All these, makes ASEAN the hub for retail venture.

To learn more about the ASEAN Markets, Strategies and the Opportunities out there, do attend our Digital Marketing Conference (#DMICON)  this September in Singapore. It is aimed to provide a better picture of the industry and the opportunity in the market for the CMOs and marketers. It will be a great platform to meet people from various industries which will help learn new things and improve your company. Could also land you potential business partners or investors.

Below are the  #DMICON event details:

Dates: 26-27 September 2018 (Wednesday & Thursday)

Time: 9am – 5pm

Venue: Singapore

Early bird tickets available here: https://talentcap.com/digital-marketing-2018-singapore/

 

For latest info and update, please visit: www.talentcap.com

 

5 Reasons Your Retail Business Needs an Omnichannel Strategy?

Retail Marketing

Retail basically is the sale of goods and services from businesses to an end user known as a customer. Retail marketing is the process by which retailers promote awareness and interest of their goods and services in an effort to generate sales from their consumers. There are many different approaches and strategies retailers can use to market their goods and services.Retailers use various advertising and communication tools to grow awareness and considerations with future customers. Finding the right marketing mix can lead to a profitable growth and a higher return on investment. By considering the right advertising strategy retailers can persuade consumers to choose to do business with their retail brand.

With iconic organization in ASEAN region such as Toy R’ Us, Blackberry and such are fighting against bankruptcy, you can’t help but assume that some organizations out there are looking at an omnichannel strategy as a luxury rather than a necessity. This is called the era of “retail apocalypse” where everyday we hear news of companies collapsing. Some of the companies are victims of the e-commerce era and falling prey to the new generation. But as we cruise deeper into the era of IoT, can any major brand truly afford to neglect implementing this type of strategy? In the digital era where consumers are just as likely to purchase online as in a brick-and-mortar location, delivering a seamless channel experience has become the new competitive imperative. Retailers are ramping up their investments in omnichannel and multichannel strategies to deliver exceptional experiences, wherever and whenever today’s consumers choose to interact with brands.

 

What is an Omnichannel?

Omnichannel seeks to provide the customer with the optimum seamless experience by gathering context and information across all engagement channels throughout the entire customer lifecycle. An omnichannel strategy is not synonymous with a multichannel strategy. A multichannel strategy means that your customer experience spans multiple channels. So, you might have a website, an app as well as a physical store. Then, you  are a multichannel! But, an omnichannel experience means that your brand has a presence across channels and all of those experiences are integrated in a way that enhances customer experience. For example, your customers can sign up to your retail app in their bedroom, become a subscriber on the train by signing up to your email list, and then activate their resulting discount at your flagship store in the city. Multiple channels are involved, but the customer is getting one, seamless experience.  

Omni-channel marketing is a must as customers and organizations have unprecedented access to digital technologies and channels. This fast paced world has created mounds of customer data for companies, if they use it correctly, they will be able to key into customer affinities and behavior to adopt omni-channel strategies and solutions to better manage the data, understand customers, and exceed customers’ expectations at each and every interaction.

Why Your Business Needs an Omnichannel Strategy?

If the words above haven’t yet convinced you to go omnichannel in 2018, maybe these numbers will.

  1. 89 Percent Average Customer Retention In Asia innovation is seen as the process of creating new and novel solutions to fulfil unmet customer needs. Asian businesses prioritise innovation that empowers them to retain their customers (70%) and more than half (53%) are likely to adopt innovation that achieves this goal. Companies in ASEAN region  like in, Singapore (88%), Philippines (88%) and Malaysia (82%) are most likely to invest in technology to boost customer retention.Technology is viewed as a valuable tool in accelerating productivity (62%) and providing better customer support (38%). Hence, organizations with omnichannel customer engagement strategies retain on average 89 percent of their customers, compared to 33 percent for companies with weak omnichannel customer engagement.
  2. Asians Use An Average of 4.3 DevicesYou might think that as new devices emerge, existing ones fade into the background. However, studies showed that the average adult uses 4.3 devices, with 70 percent using smartphones. According to Google, Southeast Asia is poised to be a leader in mobile internet usage in 2018. On average, consumers in Southeast Asia spend 3.6 hours per day on the mobile internet. Thailand leads the pack with 4.2 hours per day, followed by Indonesia at 3.9 hours per day.
  3. Omnichannel Customers Spend 208 Percent MoreOmnichannel customers spend 208 percent more on their gifts than those customers who shop in-store (Deloitte, 2018). It would be fair to link this increase in spend to the greater availability of information and reviews surrounding online shopping, all of which help to enhance a consumer’s confidence in the products they’re considering.
  4. 89 Percent of Customers Left FrustratedOutside of retailing, study have found that 89% of customer get frustrated when they need to repeat their issues to multiple customer support representatives (Accenture,2018). When it comes to overall digital experiences. Customers think brands need to put more effort into providing a consistent experience. Hence, With new channels emerging for retailers, it’s easy to be overwhelmed when trying to prioritize investments. It takes time to understand what channels are right for you and how to best take advantage of them. Instead of scrambling to piece together offerings on the hottest new channel, invest in a solid foundation that can adapt to whatever market changes occur, without requiring major overhauls to your existing infrastructure.
  5. 85 Percent of Retailers Say Omnichannel Is A Top Priority — It’s clear from the numbers above that consumers want omnichannel experiences, and are reaching deeper into their pockets when done correctly. Studies indicate that 85 percent of retailers are making omnichannel experiences their top priority. Which likely means your competitors are building an omnichannel strategy, if they haven’t already.

 

In conclusion, as new technology emerges, agility is crucial for competitive brands that don’t want to fall behind. This requires a cloud-based solution that can be improved upon quickly to handle new challenges, regardless of what those might be.Without establishing a firm foundation, brands can’t handle the challenges that a smooth omnichannel experience entails. However, brands that invest in the right technology and implement proactive measures are more likely to succeed regardless of how sales channels or customer expectations evolve.

So, are you going omnichannel in 2018? We’d love to hear about your efforts!  Join the conversation to learn more about omnichannel Strategies by attending our very exclusive  Digital Marketing Conference in short know as #DMICON. The #DMICON is an extensive assembly of ASEAN’s biggest names and influencers. It is going to be all about the basics of marketing focusing on leadership, strategy, tech and innovation while will also touch different aspects of digital marketing . Our annual event attracts key players in the field from across different industries such as technology, employment, property, telecommunications, banks, e-commerce, automotive, advertising, media, radio, government agencies and more. This would be a golden opportunity to build your networks, find potential business partners and most importantly branch out your name. It will also help to generate new ideas, learn more the current market and ultimately grow through greater heights.

For those who are interested for the #DMICON, please refer to the below on event details:

Dates: 26-27 September 2018 (Wednesday & Thursday)

Time: 9am – 5pm

Venue: Singapore

Early bird tickets available here: https://talentcap.com/digital-marketing-2018-singapore/

 

For latest info and update, please visit: www.talentcap.com

 

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