Tag: Work from Home

Ecommerce Insights

aCommerce’s BRANDIQ reveals the Top 100 fastest growing Ecommerce categories after COVID-19 outbreak

New Growth Industries and Trends in Thailand After COVID-19

Bangkok (30 April 2021) — aCommerce, Southeast Asia’s leading End-to-End Ecommerce Platform and Solutions provider, reveals the BrandIQ Flash Insights report on the Top 100 fastest growing Ecommerce categories after the COVID-19 outbreak. The company launched BrandIQ in 2018 to help brands understand online shopper trends and apply data analytics to increase e-commerce sales.

BrandIQ is the first SaaS solution that assists retailers and brands in consolidating product and channel information and getting granular views on Seller’s activities, Brand’s Share of Shelf, Share of Categories, and Market Share comparison. The company calls the report Flash Insights as it provides a quick overview of trends that are growing in the Thai e-commerce landscape.

Because of the restrictions and COVID-19 preventive measures, Thai people have been avoiding visiting offline stores. They stay home and order goods from stores and retailers to fulfill their needs. This “new normal” way of living persuaded brands to start investing in online marketplaces to drive store visits, and BrandIQ’s Flash Insights reports confirm that Digital Vouchers saw a growth of +1,237% since last year in Thailand. In addition to driving sales, voucher programs present a solution for brands to optimize their inventory amid the COVID-19 crisis. Another trend that surged during the pandemic was cooking at home. As the coronavirus pandemic continues to cause disruptions, many Thais have settled into a routine that involves a lot more home cooking, increasing the demand for refrigerators and cookware. Online groceries also surged with Dairy & Chilled products growing 2,637% including Dry & Package goods growing 389% and breakfast cereals & Spreads growing 271%. This shift in behavior is not only because consumers working from home no longer stop for breakfast or coffee on their commute, but also because they feel unsafe going to restaurants. Last year’s report revealed a surge in the food supplement and furniture categories, and with many people in the country still working from home this year, the trend has continued. The pandemic highlighted the need for comfortable and productive spaces during quarantine whilst creating a growing demand for supplements as consumers prioritized wellness and health. Finally, the report also shows a significant increase in demand for Arts & Crafts for kids. This category includes activities and products which enable kids to learn while they are at home studying.

BrandIQ explains the overall increase across these categories due to the restrictions on out-of-home activities on the one hand, and retailers’ needs to sell their products on the other. As a result, the businesses had to adjust their strategies, and the changes in consumer behavior have accelerated the speed with which companies have to undergo a digital and e-commerce transformation.

“Granular data and analytics of your e-commerce business is important for brands, but getting access to real-time data on your competitors’ sales, promotions, and orders is a game-changer,” said Paul Srivorakul, Group CEO of aCommerce.

“Providing brands with end-to-end data is important in optimizing their e-commerce business and automating processes that help save costs and grow sales. For example, when a particular brand or product starts selling well, our system immediately alerts marketing to increase advertising spend, then triggers customer service to increase support, then contacts the supplier to place a larger order, and alerts logistics to prepare for an increase in orders.”, he added.

aCommerce’s vision has always been to enable brands and retailers to innovate and successfully execute their e-commerce vision for Southeast Asia. The company has also added regional platforms such as Shopee and Lazada, including local marketplaces such as Tokopedia in Indonesia, Qoo10 in Singapore, and soon Sendo and Tiki in Vietnam. 

About aCommerce

Headquartered in Thailand, aCommerce is the largest e-commerce enabler in Southeast Asia with operations also in Singapore, Malaysia, Indonesia, and the Philippines. Fortune 500 clients such as Samsung, Unilever, Nestlé, L’Oréal, Philips, Adidas, Mars, and many more trust us as their partner for the entire digital commerce journey. Founded in June 2013, aCommerce provides the full end-to-end suite of eCommerce technologies and solutions including Omni-channel retail, performance marketing, unified data analytics, channel management, webstore development and operations, content production, warehousing, order fulfillment, delivery, and localized customer care. Coupled with our “EcommerceIQ” software suite which strengthens, connects, and unifies all Ecommerce data under one end-to-end cloud platform we enable brands and retailers to connect, engage, and transact with their customers anywhere, any time, and in any way. For more information, please visit www.acommerce.asia.

Ecommerce Insights

How Indonesian React to Work from Home Policy

WFH: IS WORKING FROM HOME A NEW NORM?

On March 11, the World Health Organization (WHO) officially declares the latest evolving novel coronavirus or COVID-19 as a global pandemic.

Earlier on March 2, Indonesian authorities had identified the first case within the borders, resulting in the Government’s responding policy to rapidly evolve whilst recommending “work from home (WFH)” policy along with other preventive measures such as temporary cease of business, taking leave, travel restriction, etc.

As of March 31, with the number of positive cases has reached 1,528 and the total death toll of 136, President Jokowi has declared COVID-19 a health emergency and imposes large-scale social restrictions.

From the previous BrandIQ report, we discussed how the COVID-19 situation shines the light on certain Ecommerce categories such as Health & Homecare, Groceries, etc. Southeast Asia shopping behavior has been shifting fast during the virus outbreak and staying home seemed to be the only way to get around it.

With WFH policy seems to be encouraged and enforced in Indonesia, we will walk you through the preparation of Indonesians we saw from their shopping habit.

ADAPTATION: INDONESIANS ARE GETTING REALLY GOOD ON WORK-LIFE BALANCE.

We use BrandIQ as a tool to collect data from 1st November 2019 – 26ht March 2020 on top categories related to work-life balance essentials to WFH. The variables include 11.11, 12.12 sales campaigns to display growth during the WFH period. However, Lazada Birthday on 27th March 2020 is excluded to reflect customer purchase behavior without steep discount influence.

Laptop is definitely not an everyday purchase; in fact, some might only buy a new one every half a decade. Nevertheless, growth in February purchase is fascinatingly reflective of the preparation of WFH policy. As essential as a laptop is for everyday operations, nevertheless, not every firm or business offers a laptop as personal equipment. One of our assumptions is small businesses making purchases for their employees to smoothen out the operation and maintain efficiency.

COVID-19 makes people read!! Yes! We finally crack the code on how to make people take up reading. Books sold massively in consecutive months. Staying home left us with not much to do so most of us find a way to occupy ourselves. Some buy recipe books, some read novels, and for those who can’t seem to relax with more time on their hands may have bought books for self-development in order to brush up new skills or further their careers.

Month-on-Month growth of categories related to WFH (period 1st Nov 19 – 26th Mar 20).

Working from home means you also have extra 2-3 hours a day. Yes, that is your daily commuting time from home-work-home if you live in the Greater Jakarta Area. This actually provides one essential life element, work-life balance, which we doubt Jakartans ever enjoy much. Some spend their leisure time shopping, some play games; and it seems to us that Indonesian loves to do both. Digital Games & Software and Digital Shopping Voucher have positive growth for consecutive months. Games top-up in March have dropped 100% Month-on-Month but this number is irrelevant when huge growth in February, 6900%, is the denominator. Online Game Top-up is a big thing.

Ultimately, working from home means you have to stay home. With the tropical climate in Indonesia, Air-conditioner has become a necessity. Most of the time, Indonesians can get away with the daylight heat because the office has an air-conditioning system or escape to the malls on weekends. COVID-19 eliminates our options and forces us to be at home on a wet-hot summer day. We see the growth from February and March for those who need a replacement for newer models or never had one installed.

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.

STEREOTYPE: MEN CARE LESS ABOUT SKIN WHEN STAYING HOME.

BrandIQ also found distinct behavior between women vs men during WFH. The chart below displays the sales index of Skincare categories on both genders. We clearly see a trend of panic buying in February where everyone foresees the inevitable of COVID-19. However, buys of Men Skincare drastically drop in March while Women Skincare performs slightly better than in January. It rather resonates with gender stereotyping whereby men generally do not take care of their body and skin as much when they aren’t leaving the house.

Sales Index of Women vs Men’s Skincare from 1st Jan 2020 to 26th Mar 2020.

GROWTH: RAPID BEHAVIOUR SHIFTS INDUCE NEW REVENUE

As mentioned in our previous report, COVID-19 coincidentally promotes Ecommerce. However, in retrospect, the Ecommerce community is also making a tremendous effort to grow in this unfortunate event. The bubble chart below displays the share of new products – that has never been listed in a month before, against total sales of their own category. The recognition must be given to the community as they are very well responded to the situation by introducing brand-new products to the market in disastrous hours. 81% of Air Conditioner sales in March are new products as well as 60% and 93% of books in February and March, respectively.

Revenue Share of new product to shelf on 1st Jan 2020 to 26th Mar 2020.

There are lots of new brands and sellers emerging in Marketplaces during January to March 2020. “Gross” column displays total sales of new brands against the total of categories in the aforementioned period. Nonetheless, the nature of Laptop and Game Console & Software are very difficult to produce in pressing time hence, meager the growth.

DELAY THE INEVITABLE: New product listings strategy is possible in Indonesia because of the delay in the penetration of novel coronavirus. Neighbors such as Thailand, Singapore, and Malaysia had identified their first patients in late January, therefore Indonesian sellers are already running the business with anticipation when they have been hit and the outcome is as we’ve seen.

Until this moment, we should all accept that COVID-19 will change the way of life as we knew. Working from home could potentially become the new social norm. Work-life balance will no longer be just a word everybody takes for granted. Home entertainment might be the next big thing in the Ecommerce ecosystem.

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