Retail Asia (July 2024)

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Retail Asia is the industry magazine serving Asia’s dynamic retail landscape. Each issue carries a balanced mix of articles that appeal to the C-level executives of large retail companies in Asia. Now a part of the award-winning Charlton Media Group, the brand attracts a combined print and online audience of more than 199,000.

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**If you’re reading the small print you, may be missing the big picture caveat emptor

FROM THE EDITOR

Revenge tourism's resurgence impacts online and in-store retail dynamics, notably for platforms relying on local consumer engagement. ZALORA, under CEO Gunjan Soni's leadership, capitalises on this trend by tapping into the purchasing power of revenge tourists, a strategy detailed on page 14. This approach not only addresses the challenges posed by shifting consumer preferences but also opens up new avenues for retail innovation.

Our focus extends to the digital domain, where the engagement metrics of shopping apps offer crucial insights (page 7), alongside a forward-looking analysis of nine trends poised to reshape e-commerce in 2024 (page 6). Additionally, the strategic importance of efficient returns management is underscored, revealing its potential to enhance customer satisfaction and streamline operations (page 26).

The narrative shifts to the physical retail sphere, where minimarts are outpacing large-format stores by prioritising customer density, a trend gaining momentum across Southeast Asia (page 16). Conversations with industry stalwarts, including Family Mart Indonesia's CEO Wirry Tjandra and AEON Mall Indonesia's President Director Takashi Okada, explain the adapting to consumer preferences through service innovation and concept mall designs (pages 18 and 22, respectively).

Highlighting industry excellence, the FMCG Asia Awards 2023 recognize companies that have skillfully navigated the transition towards experiential shopping and adapted to changing consumer behaviors, with a comprehensive list of awardees presented on pages 30 to 33.

Tim Charlton

Retail Asia is a proud media partner and host of the following events and expos:

News from retailasia.com

Daily news from Asia

E-COMMERCE

traders

Offline traders in Indonesia see significant decreases in revenue due to inability to compete with imported goods sold at extremely low prices on social media platforms. In response, the government has enacted a ban on goods transactions via these platforms to shield and support the nation’s MSMEs.

E-COMMERCE MARKET

Online marketplaces are the standouts on Euromonitor’s Top 10 Fastest Growing Retailers ranking. The staying power of e-commerce growth in the Asia Pacific region is attributed to habitual consumer behaviours, according to Quan Yao Peh, a senior analyst at Euromonitor.

Why now is the time for luxury brands to break into SEA and India

International luxury beauty brands should urgently extend their focus beyond established markets to include Southeast Asia and India. Delaying this expansion could mean missing the critical window before these markets hit an inflection point where local brands could capture a larger market share.

CONSUMER BEHAVIOUR STORES MARKET

Indian consumers are now placing a high priority on brands that they consider ethical and sustainable. As such, they prefer to purchase more from local brands than imported ones as they are deemed to be more aligned with their expectations, says Saptarshi Banerjee, senior analyst at Mintel.

Four shifts transforming Southeast Asia’s retail landscape

The fast-rising presence of smallformat stores in Southeast Asia’s retail scene is a trend to watch. For instance, the local convenience store chain 99 Speedmart in Malaysia took 10 years to open its 1,000th store in 2017, but then doubled this number in just four years, reaching its 2,000th outlet in 2021.

Philippines yet to feel the impact of lower capitalisation

Nearly two years since the Philippine government enacted the law to lower the minimum investment for foreign retailers to enter the local market, the domestic retail sector has experienced minimal transformation, according to Paul Santos, chairman of the Philippine Retailers Association.

Indonesia restricts social commerce for local

Consumer habits drive continuous e-commerce growth in APAC

Localism rises among Indian customers

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

As grey and unauthorised sellers continue to infiltrate Facebook marketplaces, Lazada, Shopee, and similar platforms, experts anticipate that safeguarding brand equity and digital assets will become a top concern for brands. This trend is amongst the nine key developments poised to define Southeast Asia's e-commerce landscape in 2024.

Here are the trends in detail:

Trend 1 Harnessing social commerce and social media platforms

Social commerce and platforms such as TikTok are key for engaging customers, promoting sales, and building brand loyalty. Thus, retailers must integrate social commerce into their operations to monitor social channels and touchpoints effectively.

Trend 2 Leveraging AI-driven insights for personalisation and customer experience

Anchanto said that personalised product recommendations, targeted marketing campaigns and enhanced customer experience are vital areas for development. To offer personalised shopping experiences, retailers should also focus on data analytics and AI-driven insights.

Trend 3 Increased marketing spending on marketplaces

Retailers are expected to boost their marketing spending on marketplaces such as Tokopedia, Shopee or Lazada in a bid to drive more sales. Brands are compelled to be in

the know of search trends, keyword searches, and category performances as thousands of businesses are launching online. By doing so, they can maintain their foothold amidst the competition and “navigate the price wars.”

Trend 4 Investing in brand protection from unauthorised sellers

With the rise of grey and unauthorised sellers, brands are expected to be more protective of their digital assets. Their priorities will revolve around protecting brand equity and digital assets and having low tolerance “ineffective” counterfeit listings of third-party and grey sellers. AI-driven insights will also be crucial in detecting price violations and tracking thirdparty sales performance, amongst others.

“It will become crucial for them to monitor third-party online activities and identify unauthorized sellers to optimize distribution strategies,” Anchanto said.

Trend 5 Enabling flexible shopping, pickup, and delivery options

Retailers should provide flexible delivery options, including time slots, alternative pickup locations like lockers or local stores, on-demand services, subscription models, and curbside pickup, to enhance customer control over parcel receipt, Anchanto says, highlighting flexibility as a key aspect of customer experience.

“There will be a rise in these adaptable and personalized shopping and delivery choices that cater to the dynamic lifestyles and preferences of consumers, enhancing convenience, and reshaping the e-commerce landscape by prioritizing flexibility as a cornerstone of the customer experience in 2024,” it said.

Trend 6 Having proactive and automated customer communication

To address consumers’ demand for precise location and status of their parcels regularly, businesses need to provide consumers with real-time tracking information. Taking this proactive approach will boost customer service standards and result in greater customer experience.

Aside from this, real-time tracking will reduce support tickets and streamline their fulfillment processes.

Trend 7 Stricter monitoring of supply chain and warehousing

Retailers will be closely monitoring their teaching system to identify delivery incidents such as theft, customs hold, damaged or lost parcels so they could be aware of potential delays caused by the carriers. This will result in a more optimised logistics and proactive addressing of supply chain issues.

Aside from this, the rise in order volumes provides them with data to understand the supply chain and delivery journey.

Trend 8 Third-party logistics provider prioritising customer experience

With the increasing competition in the logistics space, third-party logistics providers will turn their focus on automated customer onboarding and creating deeper relationships with them. To do this, they will provide them with improved transparency, and enable customers to manage their services.

“Reliance on technology would be the norm, with many businesses looking to adopt white-labelled interfaces to manage logistics, fulfillment, warehousing, order orchestration and customer operations,” Achinto said.

Trend 9 Using omnichannels as a flexibility measure

Brands are expected to double their efforts in the omnichannel space by acquiring tools that will enable seamless product listings, use quality digital assets to retain customers, and prioritise online-to-offline offerings, ensuring that they provide a consistent shopping experience in all touchpoints “in an

Reliance on technology would be the norm, with many businesses looking to adopt white-labelled interfaces to manage logistics, fulfillment, and warehousing

Knowing how to effectively use search trends, keyword searches, and category performances can boost visibility in shopping apps

E-COMMERCE

WHAT ARE THE TOP SHOPPING APPS IN ASIA?

INDONESIA

How many hours does Japan spend on shopping apps?

Japanese consumers spent over 100 million hours in shopping applications using their mobile phones in August 2023, increasing from the around 80 million hours consumed in February 2020, according to a report by data.ai.

This is in line with the mobile shopping boom observed by data.ai, with consumers projected to have spent more than 50 billion hours in shopping apps on Android phones alone, with usage surging by 42% from 2020.

Top apps used

In Japan, retail stores were the most downloaded shopping apps in the first half of 2023 at nearly 50 million, followed by e-commerce apps at over 30 million, and supermarket and convenience store apps at around 20 million, based on downloads via iOS and Google Play. Shopping apps in pharmacy and drugstores, resell, and coupons and rewards were downloaded less than 10 million times during the same period.

Meanwhile, the top shopping apps by breakout time spent growth in the first half of 2023 compared to year-on-year was Hops, followed by SHEIN, d POINT, Amazon, and my Ponta.

Other apps that made it to the top 10 were iAEON, AliExpress, CODE, SevenEleven App, and PayPay Flea Market.

Globally, data.ai found that SHEIN is the top shopping app, followed by AliExpress, Temu, Wildberries, Flipkart, Myntra, AliExpress Russia, Shopsy, Vinted, and AJIO Shopping App.

Common app features amongst top apps include 3rd payment, curated shopping content, and daily deals.

In the Retailer’s Guide report, data. ai said retailers should leverage data on customer use as they are “the key to making your business shine.”

“They help you make shopping personal, turn lookers into buyers, drive loyalty, and optimise cart and checkout conversions,” the data.ai report read.

Time spent (hours) in shopping apps used in Android phones

Source: data.ai

THAILAND

SOUTH KOREA

INDIA

INDONESIANS PIVOT TOWARDS HALAL COSMETICS

Indonesia has propelled the popularity of halal cosmetics, with notable companies targeting both Muslim and non-Muslim customers and becoming a major market in the health and beauty sector, consumer analysts at GlobalData said.

According to GlobalData's report, Indonesian companies that feature halal cosmetics will gain a compound annual growth rate (CAGR) of 3% to 4% over APAC from 2022 to 2027.

Mani Bhushan Shukla, Consumer Analyst at GlobalData said that this prompted companies to make significant investments towards halal beauty products.

"Unilever invested $6m in Esqa, an Indonesian beauty brand.

Indonesia’s Rose All Day Cosmetics (RADC), amongst other Halalcertified cosmetics companies, achieved a substantial fourfold rise in their annual revenue during 2022, indicating the surge in the demand for halal cosmetics in the country," Shukla explained in the report.

Good value for money

In addition, 44% of Indonesians trust products with “good value for money” on beauty and grooming products. That trust is usually prompted by their popularity in online channels or social media like Facebook, YouTube, Instagram, Line, KakaoStory, TikTok, and WeChat.

“By emphasising product quality and ingredient safety, halal cosmetic makers can gain mass retail acceptance. Millennials and Gen Z cohorts, who pay close attention to the ingredients in beauty products, are likely to be enticed by such offerings,” Tim Hill, Key Account Director of Southeast Asia at GlobalData, said.

Why sake appeals to health-conscious India

Sake is gaining popularity in India, particularly among the young urban crowd, thanks to its perceived dietary benefits and compatibility with local cuisine. This trend is supported by eased import processes and Japan's push to find new markets, driven by demographic shifts in its home market.

According to a report by GlobalData, imports of the Japanese alcoholic staple to the Indian market have received a boost after the Food Safety and Standards Authority of India (FSSAI) streamlined import procedures for the beverage in 2022.

That propels the beverage to be more available in major urban centres of the country, such as Bengaluru, Chennai, Delhi, and Mumbai.

Newer demographic

A major factor for the spike of sake imports is the demand from young, urban consumers who are most willing to try new alcoholic beverages. The lighter taste also makes it an appealing option for women.

The luxury of such alcoholic items – both foreign and local – also shows young consumers willing to spend a premium on alcoholic beverages,

with 20% of those in the 25–34 age group willing to do so.

“In addition, young, urban consumers’ pent-up desire to try out novel drinking experiences after being locked up in their homes for a long period amid the COVID-19 pandemic encouraged them to experiment with various alcoholic beverage choices,” Ravitheja Neralla, a consumer analyst at GlobalData, said.

Health benefits

The rice-based brew delicately complements several Indian dishes, which are mostly heavy and rice-based. Many local restaurants in the past year have recently included sake in their menus, ideally paired with culinary favourites like fish tikka, salmon, and chicken malai tikka.

“Japanese cuisine is similar to Indian cuisine in terms of its dependence on rice. Sake’s rice-based formulation and ability to complement the Indian cuisine is a key factor behind its growing prominence in India,” Francis Gabriel Godad, Business Development Manager at GlobalData India, said.

Its light taste and touted benefits of rich amino acids and antioxidants also hold appeal for the large vegetarian demographic. The growing health awareness among Indians, especially after the pandemic, has contributed to the demand, with 42% of respondents becoming concerned with their physical fitness and health.

Accelerating imports

With sake becoming incorporated into local tastes, the Japanese tax authority has negotiated a simplification of the import procedure with the Food Safety and Standards Authority of India (FSSAI), the Japanese embassy in India and the Japan Sake and Shochu Makers Association in 2022.

However, Japan’s strong push for sake in India also comes as a response to a tougher Japanese market. With dwindling birth rates and an aging society, Japan shifts to different markets to grow their food and beverage businesses.

“Sake owes its demand in India largely to its major urban centers. In the future, India’s positive economic outlook and softening inflationary pressure will add impetus to spending on niche alcoholic beverages in the country,” Godad said.

Sake sees an increased uptake in urban centers like Bengaluru, Chennai, Delhi, and Mumbai

Sake’s rice-based formulation and ability to complement the Indian cuisine is a key factor behind its growing prominence

Ravitheja Neralla

Francis Gabriel Godad

FOOD & BEVERAGE STORES

RETAIL WATCH: GRANDLUCKY SUPERSTORE

GrandLucky Superstore leverages customer insights to curate its products

The superstore now operates in seven locations across Indonesia.

Indonesians living in the city no longer need to journey to Semarang for their favourite lumpia or to Padang for renowned local chips. A visit to GrandLucky Superstore, with its four convenient locations in Jakarta and three others nationwide, suffices. Felicity Luck, the director of GrandLucky Holding Group, takes special care to consult with locals about their favourite delicacies before these product selections hit the shelves.

“We aim to provide a one-stop shopping experience so that customers can fulfill their daily needs, from groceries to snacks and even cleaning supplies, all available in one location,” she shared in an exclusive interview with Retail Asia

Product curation

The uniqueness of GrandLucky Superstore lies in its diverse product curation. This supermarket targets the premium market segment by providing premium imported and local goods that are rarely found in other grocery stores.

“An example we’ve recently implemented is offering various types of cooking soy sauce. In Indonesia, the common ones are sweet and salty soy sauce. But there are various types of soy sauce from each brand that have

their own characteristics — some suitable for eating with siomai, some for satay, meatballs, and so on; and that’s what we’re trying to bring to the store to offer a variety of choices to consumers,” Felicity explained.

Apart from soy sauce, GrandLucky also offers a wide range of teas that have their own bear the uniqueness of the region where it originated. The same goes for coffee, which is available in blends of various types of beans from robusta to arabica.

Diverse cuisine

The supermarket also presents typical food street souvenirs from several regions, such as lumpia from Semarang City and chips from Padang. Felicity even went great lengths to ask native residents of Padang to find out which chips were delicious before introducing the products to the shelves.

“Our goal is not only to facilitate consumers in shopping but also to support SMEs to introduce their brands not only to the local market but also to foreign guests visiting,” she shared with Retail Asia

Grab-and-go foods and readyto-eat options are another feature that eases consumers’ experience at GrandLucky outlets. A variety of cuisines are available at the superstore,

We apply this approach to ensure that we don’t overlook direct advice from our endcustomers, which is highly valuable

ranging from Western cuisine from France and America to Asian cuisine from India and South Korea.

The role of customer insight

In carrying select products, the superstore takes guidance from a specialised team that curates product shelves and ensures their quality. As for pricing, Felicity said the superstore strives to set all prices competitively, keeping it affordable yet in line with the product’s quality.

Another strategy is to get insights from consumers through surveys and focus group discussions with the Erajaya Food & Nourishment team to map out consumer desires and new habits.

“It’s not uncommon,” Felicity said about obtaining feedback directly from customers through conversations with store managers on-site. “Our team likes to pinpoint customers who frequently shop with us,” she explained.

What usually happens is that these shoppers are approached by an on-site manager to inquire about their shopping experiences and what they like and need. “We apply this approach to ensure that we don’t overlook direct advice from our endcustomers, which is highly valuable,” she shared with Retail Asia.

INDONESIA

Retailers focus on 'emotional loyalty' in customer retention battle

One in two consumers buy only from brands they trust so keeping that relationship exciting pays off.

In long-running loyalty programs such as Cathay Pacific’s AsiaMiles or DFI Retail’s YUU Rewards, customers are often rewarded for their “transactional loyalty” as they make purchases. But these days in Hong Kong, where almost half of consumers want to actively engage with brands, experts suggest that companies also prioritise building of “emotional loyalty.”

“Hong Kong consumers are looking to build more authentic, one-to-one connection with brands, as there is an increased tendency for Hong Kong consumers to select unique, curated and personalised experiences,” Prudence Lai, senior analyst for travel and loyalty at Euromonitor International, told Retail Asia.

Citing Euromonitor’s “Voice of Consumers: Loyalty” survey, Lai observed the consumers participate in loyalty programmes of a brand that “offers or gifts just for being a customer,” “helps solve a problem,” and “says ‘thank you’ for being a customer.”

“This shows that customers with strong interest in engaging with brands through joining loyalty programmes are searching for more personalised and emotional connections,” the analyst explained.

HSBC’s “Travel Guru” membership programme demonstrates effective loyalty building in businesses, and was launched “to stay relevant to their target consumer groups after observing the strong sentiment for outbound travel,” she said.

“Through staying up-to-date in terms of the needs and wants of target segments and innovating loyalty programme offerings around it, it helps in building emotional loyalty towards the business,” she added.

One of the programme’s features is the personalised alerts for members, informing them of the latest travel offers.

Customised for customers

Customer personalisation, according to Kai Tang, head of Adyen Hong Kong, is fundamental to developing an effective loyalty programme.

Citing Adyen’s Hong Kong Retail Report, Tang said 70% of Hong Kong consumers would like to see more personalised discounting at retailers they regularly visit to shop.

Retailers, however, fail to create tailored discounts and seamless, personalised cross-channel experiences due to a “disconnect” between online and in-store transaction data, with only 23% being able to do so.

A way to connect data from online and in-store transactions is through “unified commerce,” said Tang.

“Unified commerce” ensures that “data from all sales channels can be consolidated and accessed with a single view.”

“By doing so, retailers can gain insights of customers’ purchasing patterns and shopping behaviours across channels, helping them boost interactions with customers and personalise services, eventually promoting loyalty,” Tang said.

Payment data is also considered crucial and useful for brands in planning tailored membership or rewards benefits.

“This is what we term as ‘payment-linked loyalty,’ where businesses can use customer recognition to make their existing loyalty programme more frictionless for their customers by removing the need for a traditional loyalty card or app,” Tang told Retail Asia magazine.

“A customer’s payment method can effectively become his/ her loyalty card, which can automatically trigger discounts, tailored recommendations, and other rewards,” Tang added.

Gamification

Another way for brands to actively engage with their customers is through “gamifying” their loyalty programmes.

“Gamifying interaction between customers and brands increases the number of touchpoints and creates habits to engage with brands with higher frequency, and in the end groom customer retention,” said Lai.

Amongst the brands that have adopted gamification include F&B chain Maxim and Sephora.

Maxim’s omnichannel Eatie app has mini in-app games where customers need to complete challenges for rewards. With an omnichannel approach, the restaurant is able to redirect its online traffic to offline outlets.

Sephora, on the other hand, has a feature called “Beauty Insider Challenges” where loyalty programme members can do tasks to earn more reward points. Some involve purchases of selected participating items, whilst others do not.

There is an increased tendency for Hong Kong consumers to select unique, curated and personalised experiences

“Other than building an individual app to gamify experience, embedding gamification in loyalty programmes can build reason and excitement amongst customers to engage and groom retention,” Lai said.

Given that one in two Hong Kong consumers only purchase from brands that they trust, Lai said it is important for brands to increase the frequency and duration of engagement with their target customers.

Unified commerce consolidates data from all sales channels into one view (Photo from Pexels)

Prudence Lai

Kai Tang

HONG KONG | by Noreen Jazul

ZALORA eyes opportunity in revenge tourists’ purchasing power

The e-commerce platform added more travel-related items catering to the rise in travel searches from customers.

Revenge tourism can spell negative outcomes for online commerce platforms, like ZALORA, which relies on native population customers rather than tourists who tend to buy in-store in their new destination. However, with the increase in travel-related searches, ZALORA found that tourist demand for travel preparation increased with luggage and winterwear.

With this, over the last few months, ZALORA added more travel-related products to meet their customers’ increasing demand. These include travel bags, hard case luggage, and passport holders, from popular brands such as Bellroy, Jansport, Tumi, CROSSING, Thule, and THE 815 CO.

“People getting ready for travel is the opportunity for us in e-commerce. That’s why we also created curations… to support the travel economy that’s happening around us,” ZALORA CEO Gunjan Soni told Retail Asia

The search for travel-related items such as sunscreen and swimwear grew year-on-year by 31 times and up to 19 times from 2020 to 2021 alone, data from ZALORA said.

From 2022 to 2023, revenge travel seems to be going strong, with travel-related searches on luggage, winter coats, and gloves continuing to increase by around 18% year-to-date.

A study from KPMG showed that retailers can tap Gen Zs who are adapting to consumer trends such as revenge spending and traveling. There are about 600 million Gen Zs who find appeal in retailer offerings.

Singaporeans embracing subscription

ZALORA evolved from the online shopping strategy of solely offering discounts and good deals to creating ZALORA VIP, a one-year subscription service that offers exclusive rewards for consumers who have availed of the membership.

Soni said Singaporeans want convenience aside from good deals, which is why their subscription service offers next-day and unlimited free shipping with no minimum spending.

According to its website, Singaporeans can avail themselves of ZALORA VIP at S$17.90 yearly or S$1.49 per month. Subscribed shoppers can also get a full rebate, discount vouchers, and other exclusive rewards.

The subscription service generated 20% of the net merchandise value (NMV) from subscribers of Zalora VIP.

Sustainability curation

Aside from revenge travel, Soni said they created an Earth Edit, a sustainable filter in ZALORA products, which caters to eco-conscious consumers, such as Generation Z.

“The fashion industry traditionally is not proud of this, but we are one of the high consumers of carbon credits,” Soni said.

“Therefore, I’m seeing this trend as a positive, and we are seeing some of our early efforts, finally starting to see consumer traction,” she told Retail Asia

Earth Edit provides information on the carbon footprint: if it is made with fair production, if the product is pre-loved, and if it is animal- and environment-friendly.

Overall, this sustainability curation helped ZALORA

record sales of products made from sustainable materials or via eco-production to 14% of NMV.

What’s more, 21% of ZALORA’s brand products were made from environmentally lower-impact materials, up 9% in 2022. Over 1.2 million parcels were delivered through channels that have low carbon emissions.

“Clearly, Singapore is leading that adoption, so I’m very happy to see that, that both Singapore and also Hong Kong, see good traction on it,” said Soni.

Transforming e-commerce search

That’s why we also created curations: to support the travel economy that’s happening around us

As early adopters of new technology, ZALORA boasts of using an umbrella system, Titan, which allows the e-commerce platform to collaborate with external generative artificial intelligence (AI) tools, which creates a unique experience for customers.

Specifically, Soni pointed out that while finding a good shopping assistant may be difficult, she believed that AI can help reshape consumer search patterns.

She said a few puzzles solved for instance are: “What were the past purchases that are working and how can I guide my consumer to make better recommendations?”

Gunjan Soni, ZALORA CEO

SINGAPORE | by Consuelo Marquez

SCAN FOR FULL STORY

Rise of minimarts compels large-format stores to rethink growth strategy

Their focus should shift towards customer density instead of store scale.

Supermarkets and hypermarkets remain the leading forces in the grocery sector, but the emergence of small-format stores, including minimarkets, is challenging the industry. This shift is prompting big grocery brands to rethink their growth strategies and focus on customer density.

Small-format stores, or stores that occupy less than 500 square metres, are winning in Southeast Asia as they capture the $40b market. This is due to their convenient locations that are easily accessible, especially for markets such as Indonesia and Malaysia where distances are large and traffic is heavy.

“Wet market offering in many of these countries is still pretty strong. As a result of that, a lot of the purchases people make in grocery are driven by top-ups or sort of small purchases,” Jason Moy, managing director & partner, Singapore, Boston Consulting

Group (BCG) said at the Retail Asia Summit held in Singapore.

“Therefore, again, convenience and small format is a much more viable alternative,” he said, adding that these markets offer competitive prices.

Small-format players are growing at a fast pace. Julian Cua, partner at Boston Consulting Group, cited Malaysia’s 99 Speedmart as an example, which took around 10 years to open its 1,000th store in 2017.

However, it only took 99 Speedmart four years to achieve the same milestone and open its 2,000th outlet in 2021, or the equivalent of launching five stores weekly.

Cua said that 99 Speedmart is adopting a small-store format or operating stores in a 200 square-metre space with 3,000 stock-keeping units, with a low-price strategy.

“What that means is that they generally have a lower gross margin,

but they make it back with lower Selling, General, and Administrative Expenses as well,” Cua said at the Retail Asia Forum held in Manila. “They are giving a near and cheap positioning to the market.”

“It's changing the way the people are moving. The way you've been defining catchment areas before is going to change because the minimarts are going to make those catchment areas smaller, and attract people in that vicinity for most of their shopping missions,” he said on the sidelines of the event.

Rethinking business

Whilst the rise of small-format stores is not an existential threat that will cause supermarkets to disappear, Cua said that businesses should rethink their format as people are already substituting minimarkets in their shopping.

In the Philippines, 15% of Filipino consumers exclusively buy groceries in nearby minimarts.

“That means that there is some cannibalization happening versus their shopper mission obligations that they usually go to supermarkets on,” he observed.

Gone are the days of employing store-scale and transaction-driven strategies for big players or thinking that opening more stores would enable lowering the prices and becoming competitive as small formats have addressed that space in the sector, Moy said.

Big players should instead focus on consumer density and focus on identifying new customer occasions, Moy said. They should also utilise their network of partnerships, and as such, lower costs through scale within a catchment area.

“Ultimately, the key behind all of this data density or the ability to capture more and more information about your consumers. Not just when they come through your stores, but when they come to your partners or

99 Speedmart only took 4 years to double its branches and open its 2000th store (Photo from 99 Speedmart)

SOUTHEAST ASIA | by Vann Villegas

Julian Cua

Jason Moy

other retailers so that you too can have that information,” Moy said.

Modern grocers, such as supermarkets and hypermarkets, may also partner with traditional stores to address their need for proximity as their market is now largely saturated, with not many locations remaining profitable at attracting customer traffic. In return, they could support traditional stores by modernising and digitalising some of their operations, according to a McKinsey report.

Market share

In Indonesia, the share of smallformat stores in modern trade grocery retail rose by 73% in 2022 to reach $16.6, up from the 47% share in 2013, with Indomaret and Alfamart amongst the leading small-format retailers, according to a consumer report by Euromonitor International and BCG Analysis, cited by Moy.

The sector also dominates retail in Thailand. Led by 7-Eleven, Lotus's, and CJ Express, its market share increased to 58% to reach $14.8b in 2022 from 47% in 2013.

Malaysia’s small-format stores led by 99 Speedmart accounted for 46% of the modern trade at $3.1b in 2022, from only 20% in 2013. In Vietnam, the sector’s share rose to 24% at $1.6b, from only 2% in 2013.

In the Philippines, the share of small format stores is still low at 9% reaching $1.5b in 2022 from 5%

in 2013, with Dali and Savemore amongst the leading brands, Moy noted in the interview.

Key growth driver

The growth of small-format stores is driven by the rise of newer players in the retail sector, Cua said.

When local players start taking notice, they recalibrate their value proposition and improve their convenience store offerings or launch their small format offerings.

Traditional stores are also remaining relevant in the market as they adopt digitalisation to become more cost-efficient and effective in delivering their service.

Cua said that in the Philippines, small-format stores such as Alfamart and Dali “are disrupting the space,” whilst the large-format stores are improving their product lines and offerings in the market.

Sari-sari stores or neighbourhood businesses are becoming more digitised by using Facebook Messenger, amongst other platforms.

“We're going to see a shift where Filipinos will continue to be demanding about how they want to receive their goods. They will continue to want the items to be close to where they live,” Cua said.

“If they find that it's good enough, they'll start replacing a lot of these shopping missions that they have right now and try to stay closer to within their neighbourhood,” he added.

RETAIL INSIGHT: MINIMARTS

Alfamart’s rapid expansion never overtakes quality service

Alfamart’s minimarket expansion in Indonesia is no small task, especially if you take into account how its 16,500 outlets at the beginning of 2022 grew to 19,087 by the end of December, 2023.

Now, the minimarket operator is venturing into spaces abroad. For the Philippines, the presence of Alfamart has, since 2014, grown to 1,680 outlets.

“Alfamart currently prioritises opening outlets outside Java, in remote areas or other minimally accessible areas that require retail network services. We aim to serve more communities, especially those outside major cities,” Rani Wijaya, corporate communications general manager of Alfamart, told Retail Asia

Established in 1999, Alfamart proudly marks its 25th anniversary this year as one of the top choices for shopping within both urban and rural communities largely because of the quality of its service it provides.

“This is directly proportional to our expansion,” said Rani. “We focus on the quality of service at our outlets.” As its expansion goes hand-in-hand with improving service quality, she said Alfamart strives to be selective in opening new outlets.

Three ways to attract shoppers

Meanwhile, in attracting shoppers, Alfamart implements several strategies. Firstly, the minimarket continues to develop and refine their omni-channel shopping service known as Alfagift. Alfagift is Alfamart's omni channel platform that not only serves as a transactional platform but also utilizes big data analytics to offer a more personalized approach to each shopper. This is achieved by integrating digital and CRM capabilities within Alfagift.

Secondly, Alfamart actively employs big data analysis. "This enables us to offer more personalized deals and promotional programs tailored to individual consumers to refer to their shopping habits and preferences. Consequently, these programs prove much more effective compared to offering sporadic deals to all consumer types," Rani told Retail Asia.

The third strategy is to introduce a variety of periodic flagship programs to attract more Alfamart customers, such as the weekend program (JSM) and Gajian Untung.

7-Eleven dominates the retail trade in Thailand

Alfamart opens new stores in minimally accessible areas

INDONESIA | by Aulia Pandamsari

F&B success seen in Family Mart Indonesia stores

Fast food and drinks rival grocery sales, averaging 50% of transactions in each store.

People used to travel to big shopping centres with long shopping lists. But today, consumers prefer a simpler approach, buying only what they need at the moment.

This shift in consumer behaviour drives the mini market sector and Family Mart Indonesia keeps their customers engaged by boosting its ready-to-eat food and drinks. “We want to highlight our food, so that when consumers first enter the shop they will see the food menu at the checkout, then the food and grocery area,” Family Mart Indonesia CEO Wirry Tjandra shared in an exclusive interview with Retail Asia.

Taking a step back from the conventional convenience store concept, Tjandra said Family Mart is more focused on making F&B their core service in every store. So far, the strategy is paying off with fast food and drinks transactions reaching 50% of store transactions on average.

Highlighting in-store F&B

Family Mart offers an extensive selection of food items, just like at fast-food restaurants. Their menu boasts a wide array of options, ranging from fried and baked goods to delectable soups. You’ll also find an enticing assortment of pastries, cakes, salads, and puddings to satisfy your cravings.

To accompany these delectable treats, an assortment of beverages crafted in-house, including coffee, chocolate, milk, and tea, are available under the exclusive FamiCafe label.

“We produce our own food, starting from the chicken we fry ourselves, the pastry we bake ourselves, as well as the drinks we mix ourselves,” Tjandra said, adding that Family Mart is the first convenience store in Indonesia to have a halal certificate. “This applies to all of our food menus,” he said.

In terms of menu, the food offerings were created to meet Indonesian people’s tastes and categorised menus to morning, afternoon and evening eating habits. “So that’s why consumers can come more than once in one day… for breakfast and lunch or for lunch and dinner,” Tjandra said.

“In fact, new menu innovations are increasingly being carried out considering that our consumers are consumers who can come up to five times in one week,” he added, noting that another menu change will be launched soon.

Servicing the office segment

The office market segment has been Family Mart’s first target, because it is a productive group of consumers whose demands for the day must be readily served. That is why Family Mart has long made its presence in office buildings.

“Almost 90% of office buildings in Jakarta have Family Marts,” said Tjandra about the target demographic. “So at least when we first arrived, we already had a captive market, namely the people who work in the building.”

In the end, when the office segment of people became very familiar with Family Mart, they began to appear on the streets.

If you have to experience a long queue [in convenience stores], it means it’s no longer convenient

With its affordable food and drink offerings, Family Mart will suit any market segment, said Tjandra. “According to the name ‘Family,’ we basically embrace all segments as one family,” he shared with Retail Asia magazine.

Minimise queues

Due to its strong presence in the office sector, Family Mart places a significant emphasis on providing swift service. This is made feasible by Fami Apps, which serves as an integral component of the omni-channel Family Mart experience.

“With this application, they don’t need to queue, just order via smartphone, pay, then the goods or food can be delivered or picked up themselves,” explained Tjandra.

Apart from that, they also have an in-store ordering kiosk machines that consumers can use to order independently while making payment. Store employees will receive orders through the system and immediately prepare the items to be purchased, saving consumers from queues.

The cash register can also process point of sale machine payments. They also accept various payment platforms, from debit, QRIS, credit cards, or cash to accommodate the payment habits of each consumer.

Tjandra said innovation was the key to cutting the long transaction time. One example is the use of handheld portable cash registers that can easily open a new line in case the cashier queue is too long. “This is also the main point of convenience stores. If you have to experience a long queue, it means it’s no longer convenient,” he said.

The CEO of Family Mart Indonesia said that by the end of the year, they will have a total of 300 shops in two big cities in Indonesia, namely Jakarta and Surabaya; and next year, they are targeting to have 400 shops all over the country.

Wirry Tjandra, Family Mart Indonesia CEO

SCAN FOR FULL STORY

INDONESIA | by Ibnu Prabowo

73 Ready stores around the Kingdom

Immersive Shopping environment

Customer-Centric

In product offerings and services

Better Than Ever

Aligned with Saudi's Vision 2030, Panda is dedicated to elevating the quality of life of the community by enhancing customer experiences through its innovative Customer Experience Revival (CXR) Program. This initiative showcases Panda's unwavering commitment to sustainability and forward-thinking, with the goal of becoming the leading retailer that consistently enhances the lives of its community. www.panda.com.sa

The CXR program strives to enhance all aspects of the shopping journey, including store experiences, an expanded product range, and new digital solutions like the user-friendly Panda app and click-and-collect service. Our focus on competitive pricing, top-tier services, and enticing offers solidifies our position as a leading force in the retail landscape.

ACE Hardware Philippines thrives on 'Helpful' brand clarity

CEO Bernard Ong spoke about how vital a branding position is in staying relevant in the market.

One factor that allowed ACE Hardware Philippines to distinguish itself in the competitive market is its unwavering commitment to fulfilling its brand promise of being "Helpful" across all its channels and services.

In a Fireside Chat with Retail Asia Editor-in-Chief Tim Charlton, ACE Hardware Philippines President Bernard Ong said retailers do not only need to adapt to technology to stay relevant but also be "crystal clear" about their company's positioning. ACE Philippines ensures that all their staff undergo online training to deliver “ACE Helpful”. Then they track, coach and reward Helpful performance.

"The ACE brand is about being Helpful. As the world has evolved, we want to make sure that we stay Helpful - whether you are buying from us on the phone, online, or in-store," Ong shared at the Retail Asia Forum in Manila.

"In the end, it is not enough to have a brand promise, which is what branding is all about. But the whole company has to be able to deliver that promise. You must ensure your brand identity is the same whether in the physical store or the digital. You must also ensure that anything you promise digitally is delivered physically, whether it is products, delivery, or after-sales services." he added. Ong also shared more on the importance of differentiation for retailers to stay competitive:

Why is branding so important in the digital age?

There is so much more competition. With all the clutter and choices in the marketplace, you need to stand out in order to win. Distinctive branding is a way to capture the advantages your competitors might not have.

First, it allows you to drive repeat traffic. It reduces your marketing costs when loyal customers keep returning to your stores. Secondly, it opens new business opportunities. You can move into other spaces when you have a strong brand. You could be invited into partnerships. Lastly, which I think is the most important advantage, the scarce resource in retailing is talent. Strong, differentiated brands allow you to hire and retain the best people in your organisation.

How can you breathe life into a brand? What specific roles do different functions within a retail organization?

Great differentiated brands fully align with the entire company to deliver on their promises.

Branding is a company-wide effort. Marketing articulates and communicates the brand. The rest of the company has to deliver. In the case of retailers, the merchants have to find the products that deliver on the branding. Demand and Supply planning has to order the right products in the right quantities to be delivered to the right stores at the right time. HR has to hire the right people who can embody your brand.

You were telling me how important it is to be Helpful, and that's one of the key brand propositions. To do that, can you tell us what training you do for everybody in the store to be your vision of helpful?

We have online training courses. We have Helpful 101,

which is required for everyone; Helpful 102, which is more advanced; Helpful 201, which is for supervisors to coach their staff on how to be helpful the ACE way; and Helpful 202, which is the more advanced coaching.

Testing is built into these online courses. Stores have a 100% target for training completion. We test through customer surveys if the stores deliver what was taught. If the store meets standards, it is then Helpful-certified.

Beyond training, we try to build a culture where Helpful is a way of life – with customers, with colleagues and with communities of customers we serve.

How do you differentiate while staying true to your brand identity and core values?

Your brand should be about a purpose that is higher than profits.

Brand vision should go beyond profits. Numerical targets don’t inspire passion from staff or engagement from customers. Your brand should be about a purpose that is higher than profits. That is the way to make the brand endure, so you do not have to keep evolving the brand's identity and values as the world changes.

In the case of ACE, we “exist to help others”. That is our DNA. It is so simple yet highly differentiated.

President Bernard Ong shares with EIC Tim Charlton the value of customer intimacy in ACE Philippines

PHILIPPINES

SCAN FOR FULL STORY

CEO INTERVIEW

AEON Mall Indonesia emphasises community integration in expansion strategy

The fifth AEON mall opening in Deltamas City in March 2024 will be the largest in Southeast Asia.

INDONESIA | by Aulia Pandamsari

In an effort to be close to their target market — upper middle-class families, PT AEON Mall Indonesia continues its expansion to select potential locations, all situated in suburban areas, rather than in city centres. The move positions AEON Mall as an integral part of the economic structure of its tucked-away environment.

Since kicking off its operations in 2015, AEON Mall Indonesia now operates four malls in suburban areas of Greater Jakarta or Jabodetabek: AEON Mall BSD in Tangerang, AEON Mall Jakarta Garden City in East Jakarta, AEON Mall Sentul in Bogor, and AEON Mall Tanjung Barat in South Jakarta.

The last one was opened in the midst of the pandemic in 2021, and now AEON Mall has started the process for ts fifth mall, scheduled to open in March this year — the AEON Mall Deltamas in Cikarang.

“Although each AEON mall has a unique identity, we share a common identity of ‘creating the future of life together with the local community,’” AEON Mall Indonesia President Director Takashi Okada told Retail Asia.

“In Indonesia, our goal is to realise global concepts, and to do so, we continue to provide new value to the community and locals, ensuring that each of our malls becomes an essential part for visitors. We believe that the sustainable development we undertake will lead to the growth of the surrounding area,” said the top boss of the Japanese-operated mall.

Family destination

For a family-friendly setup that caters to its target demographic, the retail giant prioritises customer comfort and safety with a simple mall layout design that well incorporates ample parking space and spacious toilets complete with powder rooms and facilities for disabled individuals.

In each of its malls, AEON Mall also meticulously curates a selection of retail outlets, restaurants, and entertainment every three to five years, aiming to make their malls the best destination for visitors.

This principle is exemplified by features that can entertain children as well as their parents. In this regard, AEON Mall consistently organizes events during major seasons such as Ramadan, Chinese New Year, Christmas and school holidays. One of the events held by the mall is a badminton competition for children during the school holidays.

AEON Mall Jakarta Garden City, on the other hand, features a Ferris wheel and an ice skating rink. For the AEON Mall Tanjung Barat, a spectrum of choices for retail, entertainment and restaurants appeals to families, students, and young executives in the area.

In addition, Okada revealed that one of AEON’s strengths is the presence of a Sushi and Delicatessen section at the supermarket. It can be said that AEON malls pioneered this provision of fresh and affordable sushi.

“We are a mall with Japanese roots, celebrating our 9th

AEON malls will provide a shopping environment that prioritises the comfort and safety of our visitors

year since we opened our first store in Indonesia, namely AEON Mall BSD. AEON Group has a department store operated specifically by one of the companies in our group as a tenant,” Okada affirms about the company.

“Although we faced challenges in sourcing merchandise when we first opened, we have now successfully created a special presence in the Sushi and Delicatessen section of the supermarket, which has become one of the strengths of our mall,” he shared with Retail Asia.

Future plans

AEON Mall Indonesia has recorded an average monthly traffic of more than 1 million visitors for AEON BSD, more than 800,000 for AEON Jakarta Garden City and AEON Sentul City, and more than 500,000 for AEON Tanjung Barat. The total number of tenants is approximately 977 across the four malls.

With the anticipated opening of its fifth mall, the AEON Mall Deltamas in Cikarang this year, the retail giant will be strategically located in a new modern integrated township. Covering an area of 200,000 square meters, it will be the largest AEON mall in Southeast Asia.

Speaking of design, the new mall embraces the concept of “Nature, Entertainment, Future, and Japanese Ambience.” Okada explained that this three-story mall will accommodate 350 local and international tenants, with a vast parking area for 3,500 cars and 4,000 motorcycles.

“We believe that AEON malls, including AEON Mall Deltamas, will set new standards in the retail sector and provide a shopping environment that prioritises the comfort and safety of our visitors,” he said.

Takashi Okada, President Director of AEON Mall Indonesia

H&M South Asia weaves sustainability and affordability into the fashion scene

The facade of its newest flagship store in Singapore is made of a sustainable material called i-Mesh.

As a leader in the fast fashion industry, H&M has turned their focus on optimising its channels — both physical stores and online — to offer customers a seamless experience. But this is only one of its priorities as H&M South Asia is also bringing its attention to ensuring sustainability is integrated into their operations.

“Sustainability has always been at the core of our company. For us, it is not just about democratising fashion. But it is about democratising affordable and sustainable fashion. It is integrated into our business idea,” Oldouz Mirzaie, H&M South Asia managing director told Retail Asia

What emerging trends in the apparel industry have you observed in the region?

Sustainability plays a really big role amidst these developments. We see a lot of emerging trends where the customer is paying more attention to how clothing is sourced.

For us, it is very important to make an ethical and sustainable choice for our customers. We have very clear goals at the H&M Group, where we want to halve our greenhouse gas emissions by 2030 and achieve net zero by 2040. That trickles down into everything that we also do in the Asia region and a lot of sustainability initiatives that we have, for example, also integrated into our newest flagship store on Orchard Road in Singapore.

How was your leadership navigated to adapt to the trends and transform your operations?

First of all, it is about listening to the customers in this dynamic region. A big part of this has been to integrate our physical and digital shopping channels. For us, it is about modernising and digitalising our physical portfolio. A great example is our revamp of our Singapore flagship store, where the customer can be welcomed to a brandnew facade made of a sustainable material called i-Mesh, which is the first of its kind in South Asia.

One of the things that we have also done is to improve our customer promise. For example, we opened up an online warehouse in Malaysia earlier this spring so that we can deliver to our customers a lot faster in a much more sustainable way. Overall, sustainability has been a big part of our leadership - we are really integrating it into our entire value chain, and we are moving towards our 2030 and 2040 goals. Everything starts with our offerings, and today we’re very proud to say that 84% of our materials come from more sustainable sources.

What were the significant milestones H&M South Asia has achieved under your leadership?

I took this current role during the pandemic. We all know it has been challenging times at large. But of course, taking over a new region and getting to know new cultures, new consumer behaviours, and such rapidly changing behaviours was, personally, a challenge. But at the same time, I think that challenge also presented an opportunity.

A physical store is about really building an emotional bond and offering the customer an immersive experience

While we are keeping up with changing consumer behaviours to understand what the customer expects of us, we were already investing in our physical store portfolio and we knew that we needed to digitalise a lot more. This is another big step for us in the last couple of years.

We have also opened up some partnerships with marketplaces, such as ZALORA in the region, optimised our online site and opened the Malaysian online warehouse. H&M South Asia has launched a membership programme across Singapore, Malaysia, Vietnam and India, and we also launched hm.com in Vietnam this year.

Our business ethic is all about allowing our customers to shop on their own terms. We optimise our various channels, invest in our store portfolio, and upgrade stores, making them places where customers want to spend time with us and where they gain a lot more inspiring experiences, with sustainability being a big. A physical store is about really building an emotional bond and offering the customer an immersive experience.

Moving forward, what are your priorities in driving the growth for H&M South Asia?

H&M’s business idea is founded on offering fashion and quality at the best price in a sustainable way. For us, it’s about delivering our customers the sweet spot of that. That means continuing to work on fashion, which is our customer offer, and improving it by injecting local relevance.

Oldouz Mirzaie, H&M South Asia managing director

SOUTHEAST ASIA AND INDIA | by Vann Villegas

ANALYSIS: RETURNS

Retailers urged to view returns management as loyalty drivers

15% of customers abort a transaction if the return policy is subpar.

Returns management is now emerging from the shadows to claim its rightful place as a core element of any retailer’s customer strategy, as trends show that it is one of the most effective means of retaining customer loyalty and satisfaction.

However, some retailers still choose to shelve this concern, resulting in a disorganised or dysfunctional system.

“The industry needs to shift its mindset from viewing the return experience as a revenue drain to seeing it instead as a loyalty driver,” Michelle Evans, global lead for Retail and Digital Consumer at Euromonitor International, shared in an interview with Retail Asia

How to handle returns

Returns can be prompted by a variety of reasons but one thing’s for sure: a returned item came from an unhappy customer. To counter this, retailers must deploy strategies that would work best for their brand.

For example, Evans said that for some brands, offering their customers generous compensation has proven to be an effective approach.

“Innovative retailers can create returns policies that offer more

Third-party services

In mitigating the overwhelming stress brought about by returns, Buzek also suggested “leveraging a trusted thirdparty service that can help design and execute the reverse logistics process.”

To achieve a successful returns management system, retailers should be able to balance the benefits to themselves and the customer.

"Some retailers have [also] shortened the return window to discourage return fraud, and incentivise customers to opt for an exchange or store credit,” Evans said.

“By offering seamless, free-ofcharge returns and prioritising swift refund processing, e-commerce companies can enhance customer loyalty and differentiate themselves in a competitive market,” she added.

Optimizing omnichannel solutions

To cater to the ever-evolving digital sphere, Buzek highlighted the importance of data and analytics to determine the optimal price, channel, and timing for reselling or liquidating the returned items.

generous terms on higher margin goods.” she explained.

“Another option is to offer a more favourable returns policy as part of a loyalty membership programme to reward those who regularly shop with the brand,” she added.

Greg Buzek, president and lead analyst of global market research and analyst firm IHL Group, suggested that encouraging customers to return items in-store is also a good strategy as customers may be prompted to buy additional items.

Euromonitor’s Voice of the Consumer: Digital Survey showed that 43% of digital consumers point to mail as the preferred channel for online purchase returns, with preferences varying by generation. For example, Baby Boomers prefer to return by mail, whilst Gen Zs prefer to return items in-store.

“Though on the decline, half of digital consumers desire free returns, citing it as the most preferred delivery feature only after free delivery (63%). 15% say they will abort a transaction if the return policy is subpar. In addition, consumers value prompt refunds,” Evans told Retail Asia

Buzek affirmed that the use of AI-powered features such as “true-fit sizing technology, virtual try-ons, and chatbots can help customers make better purchasing decisions and reduce returns.”

In Asia, Thailand-based fashion brand POMELO embraces technology in developing a seamless supply chain management system through its Tap.Try.Buy feature.

“In POMELO we have an omnichannel approach that we call Tap. Try.Buy. We allow customers to select online in their application item that they want to try on, select the store that they would like to try and get it delivered to the store [which] the customer can try within 24 hours,” explained Lai Tze Siung, chief logistics officer at POMELO Fashion.

With the Tap.Try.Buy feature, customers can try on their desired item at their preferred stores where they can either choose to buy it or leave it at that store. This enables POMELO to complete a whole purchasing cycle within 24 hours.

“So this is another example of how it creates inventory to be optimised. Less loss of sales opportunity, because there’s no return in the cycle,” Lai said.

Returning items in-store may prompt customers to buy more

APAC | by Diana Dominguez

Michelle Evans

Greg Buzek

Lai Tze Siung

Daigou restrictions and overseas shopping temper China's luxury boom

The luxury market has seen a 12% year-on-year increase in 2023.

The daigou sector, once a loosely organised network of personal shoppers who bridged the gap between overseas luxury markets and mainland Chinese consumers, is shifting towards a more professional, platform-based approach. Experts believe that these restrictions are tempering the growth of China’s luxury market, according to a report by Bain & Company.

The sector, which saw a 12% year-on-year increase in 2023, is expected to experience more moderate growth in 2024. Despite China's strong long-term outlook for luxury consumption, these factors cause short-term uncertainties to linger, said Bruno Lannes and Weiwei Xing, partners with Bain & Co’s Consumer Products and Retail Practices and authors of the report.

“The solid double-digit rebound is commendable, but China’s luxury market has not fully recovered to its 2021 levels. As the market transitions to a post-COVID growth phase, uncertainties remain regarding the speed at which

consumer confidence will resume and how overseas luxury shopping will evolve,” said Lannes and Xing.

Daigou: constraints and future

The South Korean duty-free market has been a significant source for the daigou, a network of personal shopper agencies who source and resell their clients’ requests and other highly coveted luxury items at a steep discount.

“Daigou operators have become more professional by accessing overseas goods from wholesalers at lower prices. They have also embraced a more platformized approach, providing consumers with an aggregated and authenticated platform for shopping,” Lannes and Xing said.

Aiming to restore profitability to duty-free shops and address complaints from luxury brand owners, new regulations from the Korean government in February restricted duty-free retailers’ commission fees to travel agencies linked to daigou.

To work around these changes, other daigou models have emerged, moving away from its previous moneymaking beauty products and focusing on fashion and leather goods.

“For brands that have no or tightly controlled wholesale channels, fashion and leather goods sales on these platforms can account for 10–20% of their official sales in mainland China. However, for brands with a large and somewhat uncontrolled wholesale channel, the platform sales can represent 60–70% or even more of their total mainland China sales,” Lannes and Xing observed, citing data from retail channel Re-Hub where many daigou traders post their wares.

Overseas shopping

With borders closed during the pandemic, the luxury market sustained over 90% in domestic shopping activities. When Chinese overseas tourism resumed (but have to attain a pre-Covid level recovery), domestic luxury spending was projected to decrease by 70% in 2023.

However, luxury spending in Europe and Asia among Chinese tourists recovered significantly, achieving around 40% and 65% of their 2019 spending levels, respectively. This aligns with the resumption of mainland overseas tourism traffic, with about 30% in Europe and 30-50% in Asia.

Listed prices for the same items are cheaper in Europe than in mainland China, making luxury shopping abroad more attractive. Shoes can be marked 20-30% higher, whilst an entry luxury bag can cost up to 30-40% more. These price gaps have remain unchanged since 2022.

But with increased traveling and lodging costs eating up any savings from the actual shopping, middleand high-income consumers opt to jet to nearby Asian tourist destinations that offer better travel options and exchange rate advantages. Hong Kong and Japan are poised to be top choices for 2024.

Bruno Lannes

Weiwei Xing

FMCG Asia Awards 2023 hails outstanding companies and initiatives

In recent times, the fast-moving consumer goods (FMCG) industry has undergone notable shifts, shaped by various factors. One key aspect is the evolving consumer landscape, marked by changing purchasing behaviours and preferences. There is a discernible move towards experiential shopping, where consumers seek not only products but also immersive and personalised experiences.

Technological advancements, particularly data analytics and artificial intelligence, are also influencing how FMCG companies understand and engage with their customer base. This has led to a more targeted approach to product development and marketing strategies. Additionally, the global marketplace has become increasingly interconnected, with cross-border trade and international collaborations impacting the industry's dynamics.

RetailAsia congratulates the following winners:

Bangladesh Milk Producers' Co-operative Union Ltd.

Consumer Good of the Year (Dairy) - Bangladesh

Bayer Vietnam

Digital Marketing Strategy of the Year - Vietnam

Product Launch of the Year - Vietnam

Brown-Forman

Product Launch of the Year - South Korea

Product Launch of the Year - Singapore

Budweiser Brewing Company APAC Limited

Campaign of the Year - China

Digitalization Initiative of the Year - China

Century Pacific Food Inc.

Product Launch of the Year - Philippines

Coca-Cola Beverages Philippines Inc.

ESG Initiative of the Year - Philippines

Coca-Cola China Limited

Eco-friendly Initiative of the Year - Hong Kong

Colgate Palmolive Hong Kong

Product Launch of the Year - Hong Kong

Colgate-Palmolive Asia Pacific Limited (Singapore Branch)

Customer Experience Initiative of the Year - Singapore

Dabur India Ltd.

Campaign of the Year - India

Dabur International

Campaign of the Year - Saudi Arabia

Campaign of the Year - United Arab Emirates

Danone Indonesia

Campaign of the Year - Indonesia

Diageo China

Digital Marketing Strategy of the Year - China

Diageo Taiwan

Product Launch of the Year - Taiwan

Product Packaging of the Year - Taiwan

In honour of companies that were able to adapt and thrive amidst these shifts, the FMCG Asia Awards 2023 was held on 23 November at the Sands Expo and Convention Centre at Marina Bay Sands. Organised by Retail Asia, the highly coveted awards programme recognises the pioneers in the industry and celebrates excellence in introducing exceptional products or executing remarkable projects.

This year’s entries for the event were judged by an esteemed panel of experts, including Neil Sutton, PwC Head of Corporate Finance - Asia Pacific; Anson Bailey, KPMG Head of Consumer & Retail, ASPAC; Olivier Gergele, EY Asia-Pacific EY-Parthenon Consumer Leader, and; David Eu, RSM Partner & Deputy Industry Lead - F&B, Retail and Consumer Products Practice.

Congratulations to all the winners!

Ferrero Asia Limited

Campaign of the Year - Hong Kong

FrieslandCampina (Thailand) PCL.

Consumer Good of the Year (UHT Milk) - Thailand

Herbalife Indonesia

Digital Marketing Strategy of the Year - Indonesia

Huber's Pte Ltd

Excellence Award - Singapore

La Vie (Nestlé Vietnam)

Customer Experience Initiative of the Year - Vietnam

Lion Brewery Ceylon PLC

Product Packaging of the Year - Sri Lanka

Mars Petcare (Thailand) Co., Ltd.

Eco-friendly Initiative of the Year - Thailand

National Dairy LLC

Home Brand of the Year - United Arab Emirates

NTUC Fairprice Co-operative Limited

Home Brand of the Year - Singapore

Consumer Good of the Year (Ice Cream) - Singapore

PERNOD RICARD CAMBODGE CO.,LTD.

ESG Initiative of the Year - Cambodia

Personal Collection Direct Selling Inc.

Eco-friendly Initiative of the Year - Philippines

PharmaCare Laboratories Pty Ltd

Home Brand of the Year - Australia

PT Kino Indonesia Tbk

Consumer Good of the Year (Hair Care) - Indonesia

Starbucks Coffee Singapore Pte Ltd

Digitalization Initiative of the Year - Singapore

ESG Initiative of the Year - Singapore

SUNTORY TAIWAN LIMITED

Campaign of the Year - Taiwan

Tipco F&B

Customer Experience Initiative of the Year - Thailand

Tyson Foods Malaysia Campaign of the Year - Malaysia Home Brand of the Year - Malaysia

Tyson International APAC Ltd Campaign of the Year - Thailand

Unilever International Supply Chain Initiative of the Year - Singapore

Vinda Malaysia Sdn. Bhd. Customer Experience Initiative of the Year - Malaysia

Vitasoy International Holdings Limited Consumer Good of the Year (Tea) - Hong Kong

Yeo Hiap Seng Pte Ltd Campaign of the Year - Singapore

Bayer Vietnam

Brown-Forman

Budweiser Brewing Company APAC Limited

Century Pacific Food Inc.

Coca-Cola Beverages Philippines Inc.

Colgate Palmolive Hong Kong

Colgate-Palmolive

Dabur India Ltd.

EVENT: FMCG ASIA AWARDS

Danone Indonesia

Diageo

Ferrero Asia Limited

Huber's Pte Ltd

FrieslandCampina (Thailand) PCL.

Mars Petcare (Thailand) Co., Ltd.

Lion Brewery Ceylon PLC

NTUC Fairprice Co-operative Limited

Tipco F&B

Starbucks Coffee Singapore Pte Ltd

Tyson International APAC Ltd

Yeo Hiap Seng Pte Ltd

Vinda Malaysia Sdn. Bhd.

Unilever International

Tyson Foods Malaysia

DIGITALIZATION INITIATIVE OF THE YEAR -

Pushing the boundaries of sustainable retail through greener coffeehouses

Global coffeehouse brand Starbucks has enabled more resource-positive operations through environmentally-conscious business decisions.

Amidst growing environmental concerns and their implications amongst consumers, many industries have turned to the philosophy of sustainability in ensuring that they operate a more innovative and ethical business. This goes for the fast-moving consumer goods (FMCG) industry as well, which has been one of the biggest drivers of every market.

Household brand Starbucks in Singapore is committed to minimising its environmental impact and is dedicated to creating environmentally friendly stores, also known as Greener Stores. The Greener Stores are governed by the Starbucks Greener Stores Framework, which is developed in collaboration with the World Wildlife Fund and SCS Global Services, a third-party verification organisation that also oversees Starbucks Coffee and Farmer Equity (C.A.F.E.) practices.

Setting Eco-Retail Benchmarks

As part of this move, the coffeehouse company has leveraged its Greener Stores Framework to set new standards for environmentally responsible retail, addressing carbon emissions, water usage, and landfill waste. According to Starbucks, the focus on Greener Stores aligns with their overall sustainability goals, including the aspiration to become more resource-positive.

Starbucks materialises this framework through energy-efficient technologies and responsible materials. This includes using 100% LED lighting, an air-conditioning timer,

and green refrigeration and freezers, as well as sourcing and utilising materials and products such as recycled wood, low VOC green-labelled paint, and mercury-free lighting.

“This commitment is reflective of our broader sustainability vision and supports the Singapore Green Plan 2023 to build a more sustainable future for our communities,” the company said.

Expanding Eco-Friendly Footprint

Moving forward, the company plans to integrate Greener Stores into its broader sustainability strategy by focusing on several key aspects: longterm eco-conscious operations, community engagement, and strategic site criteria.

Starbucks aims to design Greener Stores that put energy and water efficiency in mind, encourage customers to participate in sustainable practices such as using for-here serve ware when dining in-store or bringing

their own tumblers and bags, and choose locations that support sustainable design and operations, such as those easily accessible by public transport and with bicycle parking.

Its first Greener Store in Singapore is strategically located at Jurong Lake Gardens, a showcase for sustainable design and operations set amidst lush greenery, restored wetlands, and habitats for biodiversity. Other stores include the Starbucks Bird Paradise store and the Starbucks Woodleigh Mall store.

Sustainability Wins and Plans

Starbucks continues to be dedicated to building a more sustainable future, and plans are underway to convert existing stores to Greener Stores and open more Greener Stores this year.

The success of the framework has earned Starbucks Singapore the win in the prestigious FMCG Asia Awards 2023, which recognises outstanding products and services within the industry. According to them, this recognition is a validation of their efforts to create a positive environmental impact within the community.

“This reinforces our commitment to sustainability and inspires us to continue pushing boundaries, setting new standards, and contributing to a brighter, more sustainable future as we expand and build more Greener Stores in Singapore,” the company said.

This commitment is reflective of our broader sustainability vision and supports the Singapore Green Plan 2023 to build a more sustainable future for our communities

Starbucks Bird Paradise

Starbucks Jurong Lake Gardens

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Coca-Cola brings sustainable practices to Filipino traditions

Coca-Cola, already a mainstay in Philippine celebrations, is leveraging its extensive network to boost the culture of recycling within the nation’s festivals and observances.

Coca-Cola Beverages Philippines, Inc. (CCBPI)—the local bottling arm of the global beverage brand—continues to integrate sustainability into its goal of providing refreshments to Filipinos. The company builds on its goal to make recycling infrastructure more accessible to communities by activating its flagship Tapon to Ipon: Basta Klaro, Panalo! (“Discard to Earn: If It's Clear, It's a Win”) programme during large-scale fiesta observances.

Tapon to Ipon, a nationwide initiative, collects clear beverage plastic bottles made from polyethylene terephthalate (PET) for recycling, regardless of their brand.

The programme stresses the inherent recyclability of clear PET packaging, and CCBPI is helping shift mindsets: Instead of throwing away recyclable material (tapon), the programme is providing incentives (ipon) as well as ease-of-access through permanent neighbourhood drop-off points and pop-up booths during key events where the campaign can reach more people.

The vital role of local communities Community participation is crucial to the success of the programme, as traditional trade outlets like micro-entrepreneurs, wholesalers, and distributors become collection hubs where community members can deposit their used plastic bottles for incentives.

The PET bottles are then processed at PETValue Philippines, a joint project

between CCBPI and global sustainable chemicals company Indorama Ventures, to be given new life and sustain a circular economy through the first bottle-to-bottle recycling facility in the country.

Since its launch in 2021, the Tapon to Ipon programme has translated Coca-Cola’s global commitment to a World Without Waste into the local market. CCBPI has made sure that its local initiatives are relevant to the Philippines and Filipino communities, to better ensure positive change through its operations and community engagements. One of its approaches is the activation of Tapon to Ipon collection booths during fiestas, where CCBPI can leverage its extensive network to boost a culture of recycling through heightened awareness, visibility, and increased accessibility.

Fiestas are a deeply entrenched tradition in the Philippines, and it is fitting that Coca-Cola has found a home in these joyous observances. Though each fiesta is a manifestation of a community’s deep history and values, Philippine fiestas as a whole reflect the great significance Filipinos place in strengthening ties with their neighbours and in coming together with loved ones. These values, too, are mirrored by Coca-Cola and its goal to spread happiness and refreshment.

Revitalising traditions with Tapon to Ipon

Across its 112-year journey in the Philippines, Coca-Cola’s portfolio of products has become

a staple in fiestas, marked as they are by celebration, thanksgiving, collective cheer, and community-building. In 2023, CCBPI helped kick off the fiesta circuit—the year-long series of festivals observed and held all over the country—by activating collection hubs at the Sinulog Festival in Cebu and the Dinagyang Festival in Iloilo.

Tapon to Ipon was integrated with CCBPI’s sales activities. As the bottler offered its beverages to festival-goers, locals, and visitors, it streamlined the process for these consumers to return their used plastic packaging for recycling. For added incentives, participants received Coca-Cola products for every ten PET bottles they deposited.

CCBPI seeks to continue traditions and community engagements like these for years to come and further expand the reach of its collection programme.

Because every fiesta is a time for celebration, thanksgiving, and the spreading of cheer, Coca-Cola will continue to be present for its Filipino consumers during their communities’ key moments. Whilst Coca-Cola Beverages Philippines, Inc. leads the industry in providing refreshments to the market, it also stays true to its pledge for a brighter, better shared future through its campaign for sustainability.

The Tapon to Ipon programme has translated Coca-Cola’s global commitment to a World Without Waste into the local market

Festival-goers and community members participated in the Tapon to Ipon pop-up booth by dropping off clear PET plastic bottles of any brand in exchange for Coca-Cola products, helping raise awareness of the value of used clear PET plastic bottles and recycling.

Tapon to Ipon activates alongside CCBPI’s sales activities during local fiestas to build a culture of recycling through heightened awareness, visibility, and increased accessibility.

Huber's Pte Ltd receives the Excellence AwardSingapore at FMCG Asia Awards 2023

From meticulously crafted meats to sustainable practices and a revamped shopping experience, Huber's redefines excellence in culinary offerings.

Singapore's premier fine meats and gourmet products provider, Huber's Pte Ltd, has proudly received the prestigious Excellence Award - Singapore at the FMCG Asia Awards 2023. This esteemed recognition highlights Huber's commitment to delivering unparalleled quality and innovation in the fast-moving consumer goods (FMCG) sector.

A pioneer in the local gourmet industry, Huber’s Butchery is a cherished family enterprise founded by brothers Ryan and Andre Huber and has been highly regarded and loved for its top-notch, wholesome meats by both industry chefs and retail customers for over a decade.

Elevating the shopping experience: Commitment to quality

Standing tall at Dempsey Hill’s entrance is a heritage building that houses Huber’s Butchery's diverse selection of meats, sausages, and cold cuts. Ninety percent of the meat products are free from growth hormones and antibiotics, whilst the sausages are free from added MSG and fillers. Their commitment extends to crafting sauces, terrines, marinated meats, raw sausages on-site, and customised dry-aged meats, ensuring uncompromising quality.

Huber’s also has a collection of 500 types of wine, beer, and spirits, boasting the widest selection of cheeses, coupled with the import of fresh produce and groceries from Australia, France, and artisanal producers. Renowned for their personalised service,

their butchers expertly cut meats on the spot, and providing tailored cooking advice.

For an elevated store ambience, they added meat counters with a sophisticated color palette featuring grey tones, metal, and wood elements, creating a modern farmhouse look and setting a stylish tone for the shopping experience. The comprehensive renovation includes a revamped bistro and toilets, ensuring a contemporary, inviting, and upscale atmosphere.

Additionally, they enhanced the customer experience. They built a spacious playground with new play structures, offering a delightful space for kids whilst their parents relax. Moreover, they thoughtfully designed a garden with a waterfall to provide a serene setting for families to unwind.

This recent refresh aligns with the Environmental, Social, and Governance (ESG) initiative. Notable features include installing two electric vehicle charging lots, solar panels, a recycling station, and a food digesting machine converting food waste into compost for on-site gardens.

Pioneering sustainable practices and culinary excellence

Huber’s also contributes to the locally sourced culinary experience by growing herbs and spices. Additionally, 24/7 refrigerated self-collection lockers cater to customer convenience, featuring chilled and frozen options based on product types. The commitment to sustainability is further emphasised by pursuing the Green Mark certification for the building upon completion of the ongoing renovation later this year.

To further push and kick-start sustainability on a global scale, Huber’s

is proud to become the first butchery in the world to sell and serve cultivated meat. With the introduction of the latest version of GOOD Meat’s cultivated chicken, the family-owned and operated business is thrilled to add a new, locally produced offering to its display case and bistro menu. It serves as an alternative meat option that may have a lower environmental footprint and ethical treatment of animals compared to traditional meat production methods.

“When we founded our butcher shop, we made it our mission to provide top quality and exceptional tasting meat products with the highest food safety standards at an affordable price. Partnering with GOOD Meat is in keeping with that vision and the realities of our ever-changing food system,” said Huber’s Butchery Managing Director Ryan Huber.

“Cultivated meat could be one of the solutions to over-farming due to increased population size and density and an increase in animal protein consumption in many parts of the world,” added Executive Director Andre Huber.

In reaching out and garnering support from the local community, Huber’s is honoured to represent Singapore as part of a curated collection of local brands that proudly carry the exclusive “Made With Passion” brand mark on our products.

“Made With Passion” is a national joint initiative by the Singapore Government to promote local brands and in recognition of the hard work and passion that go into building the brand name. This initiative serves to celebrate as well as motivate local brands to follow, grow, and live their passions.

Huber's Butchery has earned the Excellence Award - Singapore by making groundbreaking strides in the culinary world. Their actions, achievements, and widespread recognition showcase their genuine commitment to excellence, making them deserving of this prestigious award.

We made it our mission to provide top quality and exceptional tasting meat products with the highest food safety standards at an affordable price

Founders of Huber's Butchery, Ryan Huber (Managing Director) and Andre Huber (Executive Director)

ANINDHITHA MANIATH

Why athleisure's pulse is racing in Southeast Asia

ANINDHITHA MANIATH Research Analyst Euromonitor International

Share of consumers' willingness to pay more for apparel and personal accessories in 2023

Consumers have now swapped their skinny jeans and trouser suits with comfy leggings and joggers, a change that has persisted since the disruptions caused by COVID-19. since. Athleisure has taken the world by storm, and consumers in Southeast Asia love it.

Combining functionality with comfort has become a priority Combining functionality with comfort has been a priority for consumers lately, boosting demand for athleisure or sports-inspired sportswear. Examples of items that have become wardrobe staples of Southeast Asian consumers since the pandemic include leggings, tracksuit bottoms, trainers, sports bras and hoodies.

Although the fashion industry struggled after the COVID-19 outbreak, athleisure and activewear brands emerged as winners. Consumers turned to these comfortable and functional pieces of clothing during lockdowns, and it is safe to say that the athleisure trend is definitely here to stay.

Sports-inspired sportswear is not only forecast to account for 57.9% of the region’s total sportswear market size, but it is also expected to remain very dynamic and see a 9.5% retail value CAGR over the forecast period (2023-2027).

Impact of health and wellness on wardrobe choices

First and foremost, the ever-growing athleisure trend in the region stems from consumers’ increased focus on their health – both mental and physical – and the general wellness trend that’s been around since the pandemic. The pandemic led to many of us rethinking our choices and putting in effort to lead healthier lives. Many consumers took to exercising more often, eating more nutritious food and making various other routine changes to help boost health and wellness. This, in turn, is great for the athleisure market, as it drives demand for comfortable and functional clothing that is suitable for both exercise and leisure. Additionally, as people’s desire to lead a healthy lifestyle is not expected to diminish anytime soon, the athleisure market can continue to reap the benefits of this in the foreseeable future as well.

Hybrid working policies drive the casualisation of dress codes

Hybrid working policies and the greater acceptance of remote working are further fuelling the casualisation of dress codes and widely contribute to the popularity of athleisure.

With more and more people continuing to work from home or in less formal environments in the future, there is less of a need for traditional business attire and formal clothing. This allows consumers to dress in more comfortable and versatile styles, fits, and fabrics that can be worn on and off the job.

Southeast Asia offers plenty of opportunities for versatile fashion items

Evolving lifestyles since the pandemic have put comfort at the top of the list of consumers’ priorities in Southeast Asia and, according to Euromonitor International’s Voice of the Consumer: Lifestyles Survey, 40.3% of online consumers in the region are willing to pay more for comfortable clothing in 2023. This prioritisation of comfort is seen amongst both males and females as the survey reveals that, out of all respondents willing to pay more for comfort, 48.6% are male and 51.4% are female. As more and more consumers prioritise clothing that allows them to move freely and feel their best self, brands in the athleisure space will continue to flourish as their garments are designed with comfort as a priority. In that context, fashion brands in Asia, whether fast fashion or luxury, will continue to bank on athleisure. For example, the world’s largest sportswear player, Nike, has been growing its ecosystem to reach out to consumers in Southeast Asia since 2021, rolling out the Nike app, Nike.com, and SNKRS Web, opening more official Nike stores and expanding its presence on key digital partners, such as Lazada.

The region has also seen the emergence of many local brands, like Cheak (previously known as Butter) from Singapore, AUM Apparel from Indonesia and TA Active from Thailand, that cater to the increase in demand for such clothing items.

MASCARAQUE, HU, AND ZHOU

Women's health in APAC: Achieving optimal wellness through nutrition

Various factors including culture, environment and attitudes towards lifestyles, concerns about ageing and long-term health, as well as habits in parenthood, have contributed to this growing focus on health. This has given rise to trends in personalised care and self-care, offering businesses significant opportunities. Additionally, the breaking of traditionally taboo topics such as menstrual care and menopausal health has helped boost consumer demand.

While supplements have traditionally addressed women's health due to their targeted and concentrated nature, there is also a rising recognition in the potential of functional foods. This offers an opportunity to incorporate beneficial ingredients into everyday diets to complement a holistic approach to supporting women's health.

Asia-Pacific

region

is at the forefront on top of traditional supplements

The Asia-Pacific region is leading the way in recognising the importance of nutrition in functional foods, in addition to traditional supplements. Furthermore, it is at the forefront of developing functional foods tailored specifically for women.

For example, Chinese dairy giant Yili offers powdered milk tailored to adult women. These include a range with high iron and calcium, low-fat milk and fortified with probiotics, and another range, featuring red ginseng extract, emphasising beauty and energy benefits.

According to Euromonitor’s Voice of the Consumer: Health and Nutrition Survey, 37% of Chinese female consumers choose natural or traditional remedies for women’s health issues, and 29% of Indian females seek alternative medicines. While in Europe, response rates stand at 27% and 12% for these respective options.

With this in mind, there is potential to incorporate botanicals and traditional herbs, widely acknowledged in traditional Chinese medicine or Ayurveda, catering for markets such as China and India.

Nutritional implications for women's health across the life stages

Nutrition plays a crucial role in promoting wellbeing for women by addressing needs across different life stages with specific nutrients and botanicals, which can offer support in both preventive and treatment contexts.

Euromonitor’s Voice of the Consumer: Health and Nutrition Survey found that women overall prioritise clean labels and avoid sugar. The study also found that women show very similar preferences across age groups apart from the over-60 crowd, exhibiting distinct preferences in their nutrition and seeking to enrich their diet with additional supplements as a priority.

Notably, for women aged between 45-59, a demographic relevant to menopausal care, there is heightened interest in seeking out specific ingredients and nutrition labels. Within this age group, there is also a

MARIA MASCARAQUE

Head of Food and Nutrition, Euromonitor International

YANG HU

Insight Manager, Health and Beauty, Asia, Euromonitor

KEMO ZHOU

Consultant, Health and Beauty, Euromonitor International

higher preference to address health concerns with natural treatments, including supplements and traditional solutions.

This is in contrast with the waning interest in prescription medicine within this group since 2020, indicating the potential for functional nutrition. For instance, soy-based foods and phytoestrogenic botanicals such as black cohosh and red clover can help alleviate menopausal symptoms.

Other common nutrients and botanicals targeting women’s life stages include Siberian ginseng and ginger to support hormonal balance for menstrual care, and diets with folic acid, calcium, and omega-3s during pregnancy and postnatal care. Hormonal changes during pregnancy and menopause affect weight, which is an area of focus, while digestive health and metabolic syndrome are influenced by hormonal fluctuations and can benefit from prebiotics and probiotics.

Additionally, women are also more predisposed to conditions such as cardiovascular diseases, joint pain and cognitive issues later in life. A balanced diet with whole grains, lean proteins, and essential nutrients can help to manage them. Stress and anxiety, more prevalent in women due to hormonal factors, can find help in antioxidants and omega-3s.

Focus shift in manufacturing and communication

Growth in women’s health dietary supplements in the Asia Pacific region is experiencing a rapid acceleration, with a significant increase of 10% in 2023. Millennials and Gen Z women exhibit a higher level of concern for women’s health compared to other generations. They are more open to understanding and proactively managing their bodies to address women’s health issues.

When it comes to younger women in the region, health and wellness concerns among this group stem from prolonged sedentary lifestyles. Their primary focus lies in managing vaginitis, irregular periods and urinary health issues caused by imbalanced lifestyles and other internal stressors.

This shift has led manufacturers of women’s health supplements to broaden their focus in addition to targeting menopausal women, to also encompassing a younger demographic. Areas such as vaginal microbiome balance, migraines and menstrual cycle care are now integral aspects of this evolving landscape.

Overall, there are opportunities to adopt a holistic approach in targeting women of, and beyond reproductive age, by addressing specific nutritional needs related to bone health, digestion, hormonal fluctuations, skin and hair health and weight management, all of which are common and often interconnected concerns. Importantly, the crucial goal for businesses is to ensure transparency in communicating benefits that resonate with these consumer groups, rather than overly labelling towards a woman’s specific life stage.