E-commerce drives fastest growing retailers in Asia Pacific

Digitalization and focus on experiential retail are among the main factors.

Technology has become critical in retail growth as consumers gear towards unique online shopping experiences, a factor that the top 10 fastest growing retailers in Pacific Asia put into consideration in getting the badge.

According to Quan Yao Peh, Senior Analyst at Euromonitor International, the pandemic has accelerated retail digitalization in Asia Pacific, making the use of technology a “critical” factor in consumers’ digital retail experience.

“In terms of the different retail channels, we see that e-commerce has largely continued its strong growth in the region, and this is driven by the digitalization of merchants, as well as the habit persistence of consumers to continue shopping online posts endemic across the various markets,” he said.

Peh noted that the majority of companies have operated e-commerce marketplaces to reap maximum benefits from the pandemic boost.

“We see that experiential retail is taking center stage in stores, retailers are highlighting their stores as being more than just a place to transact, but also somewhere where, where consumers can have fun and enjoy unique and memorable shopping experiences,” he added.

In the list of the fastest growing retailers released by Euromonitor, countries and regions such as China, Indonesia, Southeast Asia and India maintained their presence in markets with a large domestic consumer base, which created a consistent level of demand for their products.

“In terms of the predominantly store-based retailers in the list, we can attribute their strong performance to being a retail category that have really benefited from the resumption of pre pandemic lifestyles as well as their strong efforts in outlet expansions,” Peah explained.

He added that Euromonitor is seeing the shift of consumer preferences towards brands that provide unique experiences supported by technology, which is also accessible across both physical and digital platforms.

Peh advised the retailers to maintain customer loyalty by building a strong brand identity as consumer expectations have also increased in terms of product range and logistics.

“So it's equally important that they cultivate a very strong brand identity and that they are able to offer a great consumer shopping experience across the entire shopping journey,” he said.