Social commerce, sustainability, reliability shape Asian e-comm: DHL

DHL eCommerce has revealed social commerce, sustainability and reliability of delivery services as key trends shaping the Asia Pacific e-commerce landscape and purchasing behavior of the region’s consumers, according to its global DHL eCommerce 2024 Online Shopper Trends Report.

These insights, derived from the first two chapters, “E-commerce Trends” and “Online Purchasing Behavior”, show that Asia Pacific online shoppers are leading the way in social media shopping – a phenomenon also observed in other regions. Sustainability and the environmental impact of their online purchases are at the same time a concern for these buyers, and is a crucial factor when making purchase decisions. With consumers in Asia Pacific spending substantial amounts of time on online shopping, their expectations of delivery providers are high.

The survey, of which respondents come from key markets including Australia, China, India, Malaysia, and Thailand, aims to empower e-commerce businesses targeting the fast-growing Asia-Pacific market by providing them with a comprehensive understanding of the region's unique consumer preferences and behaviors.

“Online shopping behaviors are changing rapidly, driven by the rise of social commerce, conscious consumerism, and increased consumer spending. These present both opportunities and challenges for e-commerce businesses looking to penetrate and thrive in a dynamic Asia-Pacific market,” said Pablo Ciano, Chief Executive Officer at DHL eCommerce. “With the region’s e-commerce market expected to reach over $3 trillion by 2028, businesses must tailor their strategies to target and engage online buyers, who have a plethora of shopping platform alternatives. This also means voluntarily offering information on carbon emissions and providing reliable delivery options to differentiate from competitors.”

Social commerce is heralding a new era of shopping as social media platforms have blurred the lines between content consumption and purchasing, allowing users to move from the discovery phase to the purchase phase without leaving the app. This is particularly appealing to younger, tech-savvy consumers who value convenience and immediate gratification. More than 90% of survey respondents have purchased on social media platforms. In China, platforms like Douyin, WeChat, and Kuaishou dominate the local e-commerce space. TikTok leads the way in Thailand, with 7 out of 10 shoppers using the platform for purchases. Instagram and Facebook are the go-to platforms for online shopping and transactions in India.

Social media platforms are no longer used just for inspiration but are increasingly used for actual purchases. Businesses can leverage these platforms where consumer engagement is highest and focus on refining their social media presence and sales strategy.

Sustainability has become a significant consideration for online shoppers across the Asia-Pacific region, with more than half of the respondents viewing sustainability as a key factor in their purchasing decisions. Specifically, 83% of Indian shoppers, 77% of Thai shoppers, 67% of Malaysian shoppers, 59% of Chinese shoppers and 57% of Australian shoppers find sustainability an important topic. Moreover, there is a demand for transparency regarding the environmental impact of online deliveries, with 73% of Indian shoppers and 60% of Chinese, Malaysian and Thai respondents expressing a desire to see information about CO2 emissions associated with their orders.

As the effects of climate change become more apparent, consumers are demanding more from the brands they support, pushing for more sustainable practices and greater transparency about the environmental impact of their purchases. Providing clear information about carbon emissions and offering lower carbon delivery options are not just nice-to-haves, but essential components for a business to win the trust of today’s consumers.

Consumers in the Asia-Pacific region are spending more online than ever before. In China, 88% of shoppers spend over CNY100 per month on online purchases, while in India, 54% of shoppers spend more than INR2500 monthly. More than 50% of Australian shoppers spend more than AUD100 in a month. The survey also says that shoppers are making frequent purchases online; one in two buys at least once a week. These spending habits underline the region’s robust e-commerce growth, led by the convenience, variety, and competitive pricing that online shopping offers.

As a result, online buyers seek efficient and reliable delivery services. In countries like India and Thailand, at least 75% of shoppers emphasize the importance of knowing the delivery provider before making a purchase. The role that reliable logistics partners play in consumer decision-making has never been more crucial to maintaining customer satisfaction and loyalty.

“Asia Pacific consumers will only continue to transact more online. With virtual reality, artificial intelligence and metaverse anticipated to redefine customer engagement and online shopping, companies must be quick to adapt to consumer expectations, by reducing the business’s environmental impact and picking a trusted delivery partner. Only then can companies expand their customer base and foster customer loyalty,” said Pablo Ciano, Chief Executive Officer at DHL eCommerce.