Organisation:
Euromonitor
Resource Link:
Published in 2022, Link
My Key Takeaways
Who are some of European companies’ potential customers and channel partners in Asia’s retail scene?
This resource helps you determine your top partner targets in Asia’s retail sector as well as keep abreast of retail trends and innovation case studies in the region.
Here’s some takeaways of business target lists, retail trends and case studies in Asia, from Euromonitor International’s report:
Partner & Channel Target list in Asia’s retail sector
Retail sales in Asia grew 12% in 2021, exceeding pre-covid levels and contributing 37% to global sales.
➡️ Pg 7 – Top 100 companies in Asia’s retail sector
➡️ Pg 21 – Top 25 retail companies in Southeast Asia (SEA)
Familiar retail players for Europeans like Amazon (ranked 6th), Auchan (#23), Carrefour (#45) are doing reasonably well but there are other important Asian partners like Seven & I, FamilyMart, Rakuten, Watson, Salim Group and NTUC Fairprice to consider.
Localise to Win in SEA eCommerce (Pg 19)
SEA’s e-commerce sales grew 30% in 2021, with an expected CAGR of ~19% from 2021 to 2026 to reach US$166B.
Tokopedia – As Indonesian consumers tend to shop on payday, the company’s “Waktu Indonesia Belanja” (Indonesian Shopping Time) initiative offers special promotions each month from the 25th through to the last day
Shopee – its customised feature “Salam” improves the ease of shopping for halal products and Muslim fashion. Its “Raya Bersama Shopee campaign” in Malaysia offered competitively priced necessities like dates, rice & cooking oil during the holy month.
Increasing Impulse Buys
Only 38% of APAC consumers buy in store for immediate consumption. Less than a third enjoy browsing in stores.
Many convenient stores in China have self-check out machines accepting digital payments like QR codes and even facial recognition!
7 Eleven Tokyo stores’ holographic self-check out machines project a virtual display mimicking a traditional touchscreen without a need to physically press buttons. Sensors detect motion and register customer selections for a contactless experience (Pg 11).
Creative Partnerships for Health & Beauty
The only non-grocery channel exhibiting positive store-based sales growth in 2020, this growth continued in 2021 (5% CAGR through 2026).
AS Watsons partnered with Amazon Singapore & Grab to bring its health & beauty products to more than 6 Asian markets. The retailer also collaborated with P&G to create the Japanese skin care brand Aio!
How are physical stores overcoming headwinds?
The pandemic led to in-store sales across Asia declining more than 14% in 2020 before rebounding 23% in 2021 to generate more than US$280B.
Departmental store Beijing Wangfujing recreated part of Beijing’s old city on one of its underground floors, blending modern retail and classic #store design to increase physical footfall.
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Food for thought from Alibaba on staying competitive:
“The d2c model has to become a business philosophy.”
“Sustainable and green consumption is an integral part of a company’s overall operations…. It is not a binary choice of impact versus profits.”
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About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting corporate and startup ecosystems in Europe to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Feel free to connect with me if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
