Nine trends to reshape Southeast Asia's e-commerce in 2024

Social media and AI-driven features will continue their trajectory in 2024.

In 2023, retail has adapted to new developments to employ automated inventory management, accurate pricing optimisation, and personalised customer experiences.

According to the software company Anchanto, some 2023 trends such as AI and personalisation will continue next year.

Here are the trends for next year:

The first trend is social commerce and social media platforms like TikTok have been helpful to engage with customers, promote sales, and cultivate brand loyalty. Thus, retailers need to adapt to increasing social commerce channels and harness their capabilities.

The next trend is AI-driven personalisation and customer experience which means accessibility in AI tools has reached its peak in 2023. That advancement extends to widening customer preferences, formulated through data analytics and AI-driven insights. Additionally, automation allows quicker customer service.

The third trend is an increase in marketing spending on marketplaces. To name a few successes, Tokopedia, Shopee and Lazada are largely attributed to grand-scale marketing campaigns and sales events. With competition growing stronger, brands will need to utilise their data-driven sources.

The fourth trend is brand protection from unauthorised sellers. However, the rise of numerous e-commerce channels also means the rise of grey marketplaces and unauthorised sellers. Both major brands and small-scale businesses will need tight protection from counterfeit accounts.

Following this is flexible shopping and delivery options. With e-commerce as a mainstay in retail, brick-and-mortar stores and businesses had to adjust to offering delivery options and partnering with delivery services to reach their consumer base at pace.

Then, the next trend is proactive and automated customer communication. This applies readily to customers needing to track their delivery updates. With e-commerce channels prioritising personalised experiences, they also offer real-time delivery trackers, message channels, updated notifications, and support tickets.

The next is the supervision of the supply chain. The prominence of e-commerce also comes with the rise of the warehousing industry and the supply chain. If the sector needs to be at pace, the same goes for the performance of deliveries.

The eighth trend is the Reach from third-party logistics providers. Competition within third-party logistics providers (3PLs) will see a continued trajectory. Thus, many companies will invest in their customer engagement and highlight their transparency, adopting white-labelled interfaces.

Lastly, the ninth trend is omnichannel as a flexibility measure. The retail market has been broader than ever before. With the number of online channels growing, brands will need to focus on seamless product listings and seamless online-to-offline channels.

Southeast Asia retail in 2023 has been defined by the prominence of TikTok as a prominent shopping platform and the utilisation of AI-driven analytics, a report finds.