Tag: Southeast Asia

Ecommerce Insights

Fears of Virus Outbreak Open the Door to the New Adoption of Online Shopping

As people are trying to stay healthy and escaping virus outbreak, Ecommerce industry strive to its best to ensure that we are all kept virus free.

Amids COVID-19 crisis that wreak havoc to the world’s economy, one industry is standing above all to help people escape deadly virus and might change landscape of Ecommerce forever.

COVID-19, the official name for the latest emerging Coronavirus dubbed by World Health Organization (WHO), is feared to become a new pandemic. As of the beginning of March, the number of infected rises above 95,000, with more than 200 identified in Southeast Asia, particularly Singapore, Malaysia, and Thailand. Southeast Asia economy is inevitably driven by China where trades, transportation, and excursion are unavoidable from the alleged origination COVID-19, and unfortunately, we are expecting numbers of confirmed patients to grow significantly.

Impact of the outbreak on Southeast Asia

BrandIQ investigate the growth rate of the epidemic in various regions and found that Southeast Asia numbers are fairly suppressive. From the 1st of February to 5th March 2020, numbers of the confirmed patients only increase by 372% while in China, South Korea and Europe numbers are 582%, 47950%, and 19127% respectively.

Southeast Asian culture seems to involve limited human to human contact whilst westerner greetings are either handshake or kiss on the cheeks. Countries like Thailand and Singapore are also absorbing East Asian habit of wearing a mask in public (despite the main reason is to battling the region’s pollution level). This coincidentally helped slowing COVID-19 dissemination.

If you live in Southeast Asia, it is impossible to not notice the thinning visitors in malls these days, public transportations are also less crowded, and food delivery service such as GrabFood and Foodpanda are flourishing. GrabFood recorded 4 million orders in the first month of 2020 comparing to a total three million orders in 2019, supporting our hypothesis that consumers are preferring to stay home amidst the outbreak.

Online marketshare insights are provided by digital shelf on BrandIQ

BrandIQ dives into our Digital Shelf to determine reflective factors on Southeast Asia’s top marketplace from the first week of the outbreak until the beginning of March to see the impact on people’s purchase behavior. As anticipated, every category regards to self-cleaning, healthcare, virus protection has massive growth in sales.

BrandIQ is the first Ecommerce Analytics Platform to launch in Southeast Asia. The platform covers data collection from top regional marketplaces, spread over 6 countries.

We are responding to the outbreak and try to stay healthy

Thermometers revenue is growing 705% prior to outbreak period. It resonates consumers responsibility to ensure their safety and staying on offence. Hand Care including sanitizers & soup also experienced significant uplift. Overall every product related to virus prevention and protection are on positive Dollar Growth side.

When look closely we will see inverted Unit Growth on Groceries and Body Wash. This could be articulated by two plausible explanations; (1.) customers are willing to pay premium for better/high-end product during the outbreak period (to ensure cleanliness & safety) or (2.) sellers and merchants are taking advantage of the situation by raising and speculating price.

Dollar Growth vs Unit Growth (%) from Southeast Asia’s top marketplace during virus outbreak.

Mask & Filter Dollar Growth are undermined due to stock and product distribution backlog. The real reason behind significantly higher Unit Growth than Dollar could be explained by average order value. Southeast Asia, especially Thailand and Indonesia, has been the victim of PM2.5 since November 2019. The order value of filters is monstrous compared to a piece of mask. Prior to the outbreak, the filter is a dominant product, while during the epidemic – mask became a survival tool. Therefore, Unit Growth value is over-representation while Dollar Growth reflects production and distribution problems (Dollar Growth does not catch up to Unit Growth).

As of now, we are starting to see some level of surgical mask shortage whereby there are several news outlets reporting mask scarcity on both public & private health organization including hospitals and clinics. Some local SMEs aggravated and worsened this incidence by price speculating this lifesaving item. However, ecommerce leaders such as Lazada & Shopee have taken a step of responsibility to not condone such actions and began to take out, ban, and off-board sellers who taking advantage of this global catastrophe.

We put our health first and budgeting other expense

BrandIQ indexing outbreak period online shopping growth by selecting the categories that performed well during normal circumstances (Electronics, Beauty, Petcare, and Fashion) to compare growth index against Healthcare and Groceries products.

The number speaks for itself; Southeast Asian consumers are tightened up their personal expense. Both categories yield positive growths are COVID-19 preparation and protection item (food, medicine, health accessory). Extravagance items, for instance, beauty and fashion are inverted whilst unnecessities such as Mobile, Laptop & other electronics are receding to hibernation. Nevertheless, Alkaline batteries, as a subsidiary to Electronics, are growing 38% (Index +0.76) during the outbreak.

Online Shopping growth index during COVID-19 outbreak

Pet food and medical is expected to yield positive index

Through recent breaking news from Hongkong, a Pomeranian is tested to have “weak positive” immune for novel coronavirus.

“The Pomeranian’s owner was infected with COVID-19 but the dog itself was not showing symptoms,” authorities said.

Hong Kong has said residents should not kiss their pets after a dog tested ‘weak positive’ for coronavirus. Photograph: Jérôme Favre/EPA

However, the famous news outlet also warns the readers to adopt good hygiene practices for both humans and pets, therefore, we are also anticipating incline of pet care products sales via online channel.

Southeast Asia’s commercial landscape as we know might forever altered when consumers, who has been negligence of online shopping, has been forced to step into Online Shopping world. BRANDIQ team hope this crisis resolve quickly but until that time, please stay conscious, stay safe and follow official announcement from WHO.

Need assistance on locating market opportunity, gaining more insight on where you rank against your competitors?

Reach out to [email protected] to know how you can improve your ecommerce presence.

L'Oréal Social Commerce aCommerce
Case Study, Client News

How L’Oréal Uses aCommerce’s Social Commerce to Simplify Transaction and Increase Customer Engagement

For most consumers in Southeast Asia, social shopping is not a new concept. In the region where social media penetration rate is at 55%, the line between social networks and ecommerce is completely blurred. It has also become a key platform for B2C and C2C transactions. Unfortunately, only 17% of the analyzed brands around the world have made use of Facebook’s shoppable page.  

Our explanation to the surprisingly low number is rather simple — brands tend to shy away from social commerce because of the lack in integration to its existing ecommerce system.

But L’Oréal is an exception.

All over the region, the French cosmetics company has been fore-fronting at employing technologies to enhance the experience of its shoppers, including the recent partnership with Watsons which allows consumers across Asia to try on makeup virtually. In Southeast Asia, L’Oréal is capitalizing on the burgeoning Facebook of 338 million through the launch of the social commerce platforms with the region’s leading brand ecommerce enabler, aCommerce.

Why Social Commerce by aCommerce?

Given that social commerce in Southeast Asia is expected to flourish even more, it makes now the prime opportunity for brands and retailers to jump on board, experiment and lead ahead of the curve of social shopping.

aCommerce introduces the social commerce service to help brands find the right way to convert the existing followers on the brand’s social platforms into potential purchasers by allowing the targeted audiences to discover, browse, and buy directly from Instagram, Facebook, or LINE posts. The service also provides on-demand communication and a virtual interaction through chats, whether it be Facebook Messenger, Whatsapp, or Line. Keeping all of the brand’s communication in one thread.

Growing social commerce demand pushes L’Oréal to look for an integrated tool

Understanding the growing demand for social shopping and the numerous introductions for features such as Facebook Marketplace and Instagram’s shoppable features, L’Oréal turns to aCommerce, who has been overseeing L’Oréal’s Facebook page in terms of ads and posts from the beginning, for a solution.

The brief from L’Oréal was straight-forward. The company wants a consolidated platform that will be able to integrate the orders and fulfillment of the social commerce demand into its existing ecommerce system.

The Implementation and Success from L’Oréal Social Commerce Facebook Page

With an integrated social commerce tool, L’Oréal is able to allow its potential shoppers to make a purchase via Facebook, Facebook Messenger, LINE official account. They will be able to order through discreet chat windows (as opposed to a phone call or a website).

L'Oréal Social Commerce - Facebook Platform
L’Oréal’s shoppable facebook page enables shoppers to order and make a purchase with the assistance on Facebook Messenger; L’Oréal Thailand

aCommerce also supplements the brand with content, messaging and tone-of-voice that are exclusively personalized to the consumer. It also allows them to have a direct chat with a Customer Service agent or “Beauty Expert”. In return, L’Oréal is able to secure the customer data that can be used to strengthen the relationship between the brand and customers, as well as increasing the engagement with the brand.

By offering a quick and responsive response through Facebook Messenger, L’Oreal is able to fasten the process of transactions and lower the Cost to Serve (CTS). The presence of its shoppable features also reduces the amount of investment that goes into setting an ecommerce website.  

Over a period of 5 months since its initial launch, the new social commerce platform powered by aCommerce seen a surge in customer engagement on L’Oréal Facebook fan page, with an average inquiry-to-sale conversion rate of 22%.

Want to learn more about what social media can contribute to your sales performance? Contact [email protected] for more.


Company Update, Press Release

aCommerce Launches BrandIQ to Help Brands Understand Online Shoppers and Increase Ecommerce Sales with Data

BrandIQ is the first SaaS solution that offers brands and retailers the most comprehensive ecommerce insights in Southeast Asia

Southeast Asia’s leading brand ecommerce enabler, aCommerce, introduces BrandIQ, the company’s new ecommerce measurement and analytics suite. BrandIQ will enable brands to understand and visualize more than 11 million SKUs across 600 brands and 160,000 sellers online across Southeast Asia, enabling global consumer brands and retailers to grow online sales and market share.

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Company Update

aCommerce Celebrates its Milestone Fifth Anniversary

aCommerce kicked off its fifth-anniversary party across the region with 1,400 members of the #ateam recently. Founded in 2013, the company has come a long way to be the leading ecommerce enabler in Southeast Asia with a presence in five countries Thailand, Indonesia, Philippines, Singapore, and Malaysia, serving over 260 clients.

The celebrations coincided with our Group CEO and CO-Founder, Paul Srivorakul‘s birthday on August 16th. It was filled with surprises, fun activities, and a big feast. The #ateam from all the offices as well as fulfillment centers across the region gathered to participate in the milestone celebration. Check out some fun highlights below.

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#LifeataCommerce, Company Update

Unboxing aCommerce with the #ateam

aCommerce is always looking for great talent to help us transform ecommerce for brands in Southeast Asia. We are a regional ecommerce enabler providing full-service ecommerce solutions to over 260 brand clients such as Samsung, Unilever, Nestlé, L’Oreal, Philips and Mars. Founded in June 2013, the company has over 1,400 staff in offices across Singapore, Indonesia, Thailand, Malaysia, and the Philippines.

We interviewed a few in the #ateam to help unbox aCommerce for you and here’s what we found. Have a sneak peek below!

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