Euromonitor International’s Quan Yao Peh discusses retail digitalisation and consumer trends in Asia-Pacific

He explored how digitalisation, evolving consumer expectations, and economic uncertainties are transforming retail in the APAC region.

As retailers continue to innovate through e-commerce and AI, Quan Yao Peh, Research Consultant (Retail and Digital Consumer) at Euromonitor International, highlighted the key forces shaping retail in Asia-Pacific. He emphasised the significant role played by retail digitalisation, leading to improved operational efficiency, new customer experiences, and sustained growth within the industry.

“Retail digitalisation is changing how businesses reach, resonate, and engage with consumers in Asia Pacific,” said Quan Yao.

Businesses across the region are leveraging retail e-commerce and digital platforms such as online marketplaces, direct-to-consumer (DTC) channels, and mobile applications to expand their reach beyond physical stores. Technologies like augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), including generative AI (Gen AI), are facilitating product discovery, enabling customers to make more confident purchase decisions. Additionally, live streaming and social commerce have emerged as critical channels, allowing retailers and brands to connect directly with consumers, as well as foster engagement and loyalty.

Despite the opportunities digitalisation presents, retailers face significant challenges, particularly in light of economic uncertainty and cost-of-living pressures. Quan Yao explains that consumers are increasingly cost-conscious, focussing on value-driven consumption.

To remain competitive, “retailers need to focus on understanding their value propositions to target consumers in line with their operating strategies,” he added.

Euromonitor's strategy briefings, "Shoppers Are Redefining Value in Retail Amid a New Economic Reality" and "Beyond Price: What Value Means to Consumers in Asia Pacific" provide insights into how brands can sharpen their value proposition to consumers in the current climate successfully.

Key trends shaping APAC

Quan Yao highlighted three major trends that are shaping retail growth in Asia-Pacific: technology-enabled shopping, value-based retail, and experiential retail. Technology-enabled shopping includes e-commerce marketplaces, livestreaming, social commerce, and digital tools that are transforming how retailers interact with consumers, driving engagement and purchase conversion. Value-based retail is evident in the rapid rise of discount-orientated retail formats, such as warehouse clubs, variety stores, and discount e-commerce, which are resonating with consumers amidst economic uncertainties. Experiential retail is also gaining momentum as stores are evolving beyond mere transaction points to become immersive experiences that foster customer engagement and brand loyalty.

“Whilst Asia Pacific’s retail trends share broad similarities with the world, it is amongst the most digitalised retail landscapes globally,” Quan Yao noted. The region frequently serves as a testbed for innovations, such as live streaming, social commerce, and AI trends.

He also highlighted that Asia-Pacific is a diverse landscape with varying cultures, economic development, and digitalisation levels, making it essential for retailers to tailor their strategies to meet different consumer preferences.

Sustainability remains an important consideration in shaping long-term retail growth in Asia-Pacific. Quan Yao advised retailers to integrate sustainability into their business strategies, stating, “Companies should consider their business priorities and how sustainability elements can be integrated across their broader retail strategy and operations, in line with good corporate citizenship.”

Looking ahead, Quan Yao explained that economic concerns will continue to shape consumer behaviour in Asia-Pacific in the near term. However, he expects factors such as economic growth, retail modernisation, and demographic shifts to drive sustained retail growth in the medium to long term. New business models and emerging retail channels will redefine industry norms, pushing retailers to continuously adapt.

Euromonitor’s Retail Reinvention Framework offers valuable insights into the evolving retail landscape, helping businesses conceptualise and quantify the biggest tensions shaping retail. “This framework can help you predict and prepare for the future of retail wherever you operate.”

As a judge at the Retail Asia Awards 2025, Quan Yao will focus on several key criteria when evaluating nominees. He will assess the implementation of cutting-edge digital technologies and their impact on driving sales and customer engagement. He will also consider the effectiveness of experiential retail concepts and the quantification of their business impact and objectives. Lastly, he will examine how retailers meet consumer expectations in terms of pricing, quality, shopping experience, and alignment with consumers’ personal values.