Virtual influencers cut costs, boost retail sales in SEA

Social commerce and AI chatbots also enhance online experiences.

Southeast Asian retailers are increasingly using virtual influencers to engage consumers and cut costs.

“Virtual influencers are no longer a novelty—they’re becoming central to how brands connect with customers online,” Quan Yao Peh, research consultant for retail and digital consumer at Euromonitor International, told Retail Asia Summit 2025 in Singapore.

He highlighted Evian’s Thailand campaign, which uses the AI platform AnyLife to create virtual livestreamers that can operate “24-7 in multiple languages.”

“Virtual live streamers are able to fill in the gaps for your human livestreamers in your off-peak hours. A very competitive pricing for you,” Peh added, noting that the campaign “resulted in reduced costs by 90% but at the same time increasing their streaming hours.”

The trend is part of a broader move towards new digital interfaces. Social commerce, live streaming, and AI-powered chatbots are increasingly shaping online retail experiences.

Peh cited Zalora’s AI customer service chatbot, which handles routine queries and has led to “customer satisfaction scores [increasing] by 20% year-on-year” and a net promoter score “greater than 80.”

Beyond digital, experiential retail remains important. “Consumers now have more choices across physical and digital channels,” Peh said. “That means the store needs to move beyond just being a transaction destination.”

Examples include Dior Gold House in Bangkok, which features art, food service, and Thai-inspired interiors, and Indonesia’s largest Minimarket chain, designed like an amusement park with immersive brand zones.

Data and AI also play a key role in modern retail operations. Peh cited FairPrice in Singapore, where AI devices help shoppers navigate stores and offer personalised recommendations.

In Vietnam, Vingroup has used AI to improve targeted promotions and product recommendations, resulting in “user engagement grew by 40%” and higher loyalty program participation.

“Digitalisation, experiences, and data will continue to be key themes that will drive the future of retail in Southeast Asia,” Peh said.