Digital platforms make consumption experiences more convenient and exciting, especially for young consumers who are often more influenced by technology and social media when making purchase decisions. This is in line with 43% of Asians who revealed that they are very/quite likely to purchase a product based on recommendations or endorsements based on social media influencers*. To catch up with this trend, consumer brands are increasing their focus on digital marketing to drive sales, says GlobalData, a leading data and analytics company.
Parthasaradhi Reddy, Consumer Lead Analyst at GlobalData, comments: “Social media and digital platforms have become the main facilitators of self-branding, as consumers look to control the image they want to portray, which often manifests in brand and product choices. E-commerce is already deeply embedded in consumer shopping decisions, as admitted by 67% of Asian respondents who either started/continue to or more frequently buy non-grocery products online, while 68% do the same for grocery*.
“Brands are now embracing the next-generation shopping trends such as m-commerce (mobiles), t-commerce (tablets), and s-commerce (social media). S-commerce is particularly prominent today, with TikTok increasing the speed of trend cycles while offering a seamless in-app method of purchasing products linked to such trends. The proliferation and speed of social media trends are pulling consumer attention toward “hype”, which greatly increases s-commerce-related activity since many consumers are compelled to purchase products to actively participate in trends.”
Tim Hill, Key Account Director, GlobalData Singapore, adds: “Younger consumers are also more likely to try new food and drink flavors based on the social media that they follow. It is therefore essential for brands to consider how digital features can be incorporated into not simply the purchase but also the discovery and consumption stages of the consumer journey.”
Reddy continues: “TikTok has drastically shortened trend cycles, resulting in a constant urge for some to self-brand in line with the latest trends, while social media influencers have a similar effect. Social media shops and e-commerce retailers provide a seamless method of locating, comparing, and purchasing products that are tailored to individual interests, thus driving digitalization. As many as 40% of Asians stated they regularly buy from TikTok shop, ranging from once a week and a few times a week to a few times a month*.
“This consumer inclination is resulting in real-world benefits for consumer brands leveraging digital marketing campaigns targeted at tech-savvy shoppers. For instance, Unilever claims to have capitalized on the popularity of TikTok to drive sales across Asia and other regions, while Indonesia’s Kelaya, a haircare brand, partnered with TikTok to enhance its brand recognition and visibility by leveraging the vast user base of the social media app.”
Hill concludes: “Consumers greatly value smartphone app connectivity and social media recommendations in purchasing decisions, and social media stores and immersive metaverse shopping experiences are providing the very shopping tools that excite consumers, thus driving sales.”
