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Retail News Asia is committed to providing both local and global retailers with the latest Research throughout the Asian market. This on a daily base.

  • Australian Retail Spending Growth Slows to 4.9 per Cent Ahead of Peak Season

    Australian Retail Spending Growth Slows to 4.9 per Cent Ahead of Peak Season

    Australian retail spending grew 4.9 per cent in the year to September, slowing from 5.6 per cent in August as households cut back under persistent mortgage and living costs.

    Total retail trade reached $39.91 billion over the 12-month period, according to figures released by the Australian Retail Council. The drop in momentum comes just weeks before the critical Black Friday and Christmas trading window, which traditionally delivers the bulk of annual discretionary margins.

    Spending Splits Across Categories

    Pockets of non-discretionary and experiential spending held up while general merchandise stalled. Other retailing, covering pharmacies and cosmetics, climbed 8.1 per cent over the year, while cafes, restaurants, and takeaway food services rose 7.4 per cent.

    Discretionary categories showed sharp deceleration. Department stores and large online retailers recorded turnover growth of just 1.7 per cent, pointing to volume contraction once accounting for higher operating costs. Food retail turnover increased 3.3 per cent, running almost flat against the 3.2 per cent jump in food and non-alcoholic beverage prices measured in the September Consumer Price Index. The figure indicates that grocery growth reflected higher shelf prices rather than larger baskets.

    Margin Squeeze Ahead of Black Friday

    Weakening sentiment is already bleeding into register receipts across major shopping precincts. Consumer confidence fell sharply in September and slid again in October, leaving households with little appetite for full-price holiday shopping.

    The Reserve Bank of Australia compounded the pressure by lifting interest rates and downgrading its broader consumption forecasts. Central bank projections now anticipate consumption growth of 1.4 per cent for the years ending December and June, trimmed from an earlier 1.6 per cent forecast.

    “This weaker outlook, combined with yesterday’s interest rate increase, comes at a particularly difficult time for retailers, with Black Friday sales and the crucial Christmas trading period fast approaching,” said ARC chief economist Glenn Fahey.

    Price Restraint Limits Turnover Value

    Merchants face severe margin pressure as they discount stock to stimulate foot traffic. Clothing and footwear prices rose by just 0.4 per cent over the past year, while household equipment, furnishings, and services increased 0.8 per cent. Both categories trailed headline inflation of 4.3 per cent by a wide margin, demonstrating that stores swallowed cost increases rather than passing them on to shoppers.

    For regional supply chains and Asian consumer goods exporters exposed to the Australian market, these figures point to cautious reordering. Importers and local retail groups are keeping inventories tight to avoid forced clearance events in January.

    Attention now turns to preliminary November promotional volumes, where merchants will test whether heavy discounting can shake loose household savings before Christmas.

  • Asia Pacific Takes 34 per Cent Share as Social Commerce Surges Toward 2.7 Trillion Dollars

    Asia Pacific Takes 34 per Cent Share as Social Commerce Surges Toward 2.7 Trillion Dollars

    Social commerce spending reached 2.11 trillion dollars in 2026, with Asia-Pacific accounting for 34.15 per cent of global turnover as live video selling consolidated its base across China and Southeast Asia.

    Worldwide sales through social networks will reach 2.72 trillion dollars in 2027 and expand at a compound annual rate of 28.45 per cent through 2032 to hit 9.51 trillion dollars, according to industry market projections.

    Smartphones generated 91.82 per cent of all social transactions in 2026. Video commerce proved the single largest sales format, commanding 42.62 per cent of platform revenue. Business-to-consumer storefronts took 54.79 per cent of total turnover, while consumer-to-consumer resale gained ground as the quickest expanding segment with an expected annual expansion rate of 33.1 per cent through 2032.

    Southeast Asia Ties Video Direct to Payment Rails

    In-app checkouts across Southeast Asia depend on integrations with domestic banking systems. TikTok Shop activated direct video shopping across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, relying on settled checkout behavior to lift transaction sizes.

    Malaysia logged 18.4 billion electronic payment transactions in 2025, up 25 per cent year over year across bank cards, e-money, FPX, and DuitNow wallets. TikTok Shop Malaysia reported that live broadcasts and short video feeds each generated roughly one-third of its total gross merchandise volume in 2026. Rather than relying entirely on marathon livestreams, the platform draws steady volume from recorded clips linked directly to product listings.

    Apparel captured 27.2 per cent of overall social transactions in 2026, though beauty and personal care expanded fastest with a projected 32.5 per cent annual growth rate through 2032. For fast-moving consumer goods sold via TikTok Shop Europe, personal care products constituted 41 per cent of value sales in the year ending March 29, 2026.

    China Livestream Operators Tap Direct Retail Stock

    China retained the deepest social commerce footprint, where physical goods purchased online represented 26.1 per cent of all retail sales of consumer goods in 2025. The country recorded 660 million live-commerce users that same year, while transaction values across livestream platforms rose more than 10 per cent.

    Operating live broadcasts in China now functions as an inventory clearing engine tied directly to central retail supply chains. Alibaba Group ran livestream operations across Taobao and Tmall during the 2025 mid-year 6.18 shopping event, while PDD Holdings lifted third-party merchant services revenue by 9.7 per cent in 2025 through group buying on Pinduoduo. Because quarter of consumer retail already moves digitally across Chinese cities, livestream studios rely on direct merchant enterprise resource software rather than third-party affiliate middlemen to fulfill bulk volumes.

    In India, direct sellers moved conversational trade into WhatsApp and mobile messaging applications during fiscal 2025. Flipkart Group set plans in June 2026 to bring creator merchandising across Instagram following an earlier rollout on Facebook, pushing catalogue-linked video across Meta platforms.

    Margin Squeeze Shifts Focus to Fulfillment and Ads

    Customer acquisition costs on mature platforms are putting pressure on merchant margins. Meta reported a 12 per cent year-over-year increase in its global average ad price during the second quarter of 2026, with ad prices in the United States and Canada climbing 20 per cent.

    Rising ad rates penalize sellers whose stores fail to convert first-time viewers into immediate checkouts. Operating costs also diverge sharply at the warehouse door. Merchants utilizing TikTok Shop fulfillment services in Britain face tiered holding expenses based on item volume, storage duration, and weight, transforming inventory dwell time into an immediate cash drag even when affiliate commissions are payable only after a completed purchase.

    For established consumer brands, social media operates as a parallel sales outlet rather than an exclusive home. Hairbrush brand Wet Brush restarted direct online sales in the United States in September 2025 and launched a storefront on TikTok Shop, preserving shelf space in traditional retail chains while funding dedicated social media inventory.

    Privacy Barriers and Platform Scrubbing Tighten Rules

    Regulatory mandates across Asian and Western trade hubs are restricting how platforms process customer purchase trails. Singapore enforces consent baselines under its Personal Data Protection Act, limiting unauthorized merchant data sharing, while the European Union Digital Markets Act limits gatekeepers from combining cross-service customer profiles without explicit consent.

    Operating requirements are hardening in mainland China. The State Administration for Market Regulation and the Cyberspace Administration of China introduced updated livestream-commerce measures on February 1, 2026, requiring platform operators to verify host identities, preserve risk logs, and track all transaction records.

    China closed public consultations on its revised draft E-Commerce Law on August 4, 2026, locking in statutory obligations for marketplace hosts. Retailers across the region now face tighter platform record audits as authorities scrutinize livestream promotions and merchant claims.

  • 85% of Australians Would Switch Retailers if AI Finds a Better Deal this Peak Shopping Season

    85% of Australians Would Switch Retailers if AI Finds a Better Deal this Peak Shopping Season

    Australian retailers could face growing pressure to win over price-conscious shoppers this Black Friday and Christmas shopping period, with 85% of Australians willing to switch retailers if artificial intelligence (AI) found the same product for a better price elsewhere, according to new research commissioned by supply chain and commerce technology leader Manhattan Associates Inc. (NASDAQ: MANH).

    The findings come after Australians spent a record $23.8 billion over the extended Black Friday shopping period last year, according to CommBank iQ, setting the stage for another competitive sales period.

    AI could put retailer loyalty to the test

    The survey of Australian consumers found that 83% expect AI to play a role in their shopping activities over the coming months. Finding the best deals or lowest prices (35%) and comparing products, brands or retailers (36%) were the two leading ways respondents expected to use the technology.

    With AI making it easier for shoppers to compare offers from different retailers, businesses could find themselves competing for customers who might previously have gone straight to their preferred brands or stores. However, while a lower price might attract a shopper’s attention, it won’t necessarily be enough to secure the purchase.

    “AI is giving consumers another way to compare retailers, and that could make it harder for businesses to rely on established customer loyalty. If a shopper can find the same product for less elsewhere, they may be more willing to consider a retailer they haven’t purchased from before,” said Raghav Sibal, Vice President APAC at Manhattan Associates.

    “But price is only one part of the purchasing decision. Retailers also need to make sure the product is available, the delivery options are convenient, and the overall experience gives customers confidence to complete their purchase.”

    A better price doesn’t guarantee a sale

    Despite their willingness to use AI to find better deals, most Australians are not prepared to take its recommendations at face value.

    Nearly eight in ten Australians (78%) said they would check an AI-recommended deal against a retailer’s website or other sources before purchasing. Price accuracy was the biggest concern, with 52% saying they would be most likely to double-check whether the price or discount was correct, followed by product information and reviews (23%) and delivery times or costs (20%).

    Retailer websites and apps also remain important to the purchasing process. While 35% of Australians said they would be comfortable completing a purchase directly through an AI shopping assistant, more than half (53%) would prefer to complete the transaction directly with the retailer.

    Stock availability could influence where shoppers buy

    Beyond price, the research suggests that product availability and fulfilment could play an important role in determining which retailer consumers choose.

    When asked which factor should determine an AI recommendation between retailers offering the same product at the same price, nearby stock availability was the leading response (39%), ahead of free delivery (28%) and faster fulfilment (27%).

    Australians also appear willing to share information to help AI find products they can purchase locally. Three in four respondents (75%) said they would share their location with an AI shopping assistant to find nearby stock.

    “An AI recommendation might bring a customer to a retailer’s website, but the retailer still needs to deliver on what that customer expects. If the price doesn’t match, the product isn’t available or the delivery timeframe isn’t suitable, the customer can easily look elsewhere,” said Sibal.

    “During peak shopping periods, retailers need accurate inventory information across their sales channels and flexible fulfilment options to meet changing customer demand. Getting these fundamentals right will be important to converting AI-driven interest into sales, regardless of where a customer begins their shopping journey.”

    About Manhattan Associates

    Manhattan Associates is a global technology leader, providing supply chain and omnichannel commerce solutions with unmatched AI capabilities. We design, build and offer best-in-class, AI-powered, cloud-based solutions that drive resilience and efficiency for businesses. We enable enterprises to uniquely unify front-end sales with back-end supply chain execution.

    Our commitment to innovation, cloud-native platform and API-first architecture create simpler experiences and faster paths to value for our customers. We empower them to preempt and react to emerging trends and global disruptions with technical expertise and operational confidence, transforming challenges into competitive advantage. For more information, please visit www.manh.com.au

    New Manhattan Associates research reveals how AI could challenge retailer loyalty, with stock availability and fulfilment also influencing where shoppers buy

    Press Contact:

    Paul Manser
    Mulberry Marketing Communications
    Tel: +61 416 740 940
    pmanser@mulberrymc.com

    Daniel Osborne
    Manhattan Associates
    Tel: +61 (02) 9454 5438
    dosborne@manh.com  

  • 50 Korean Firms Turn to Synthetic AI Shoppers to Test Products

    50 Korean Firms Turn to Synthetic AI Shoppers to Test Products

    South Korean retail conglomerates and consumer brands are deploying artificial intelligence-generated synthetic shoppers to test products, adjust shelf pricing and model physical store layouts before committing capital to production runs.

    The shift replaces costly consumer survey panels with large language models trained on purchasing records, customer reviews and social media chatter. Technology vendor Intellicia has completed 120 proof-of-concept projects across 50 consumer companies, reporting a 91.2 percent correlation against a benchmark survey of 500 human shoppers.

    Lotte Builds Virtual Consumer Twins

    Lotte Members started work in July with domestic artificial intelligence specialists Vibe Co. And Zero to One Partners to build what it calls the AI Twin Consumer. The model draws on the transactional histories of 45 million registered members of Lotte’s L.Point loyalty program, combining that spend data with contextual online commentary to examine why consumers buy rather than merely tracking what they buy.

    Instead of relying on broad demographics such as gender or age brackets, the system creates detailed behavioural profiles. Merchandisers can query the virtual consumer directly, testing reactions to new packaging or price points before inventory reaches warehouse shelves.

    From Web Checkout to Store Aisles

    Domestic e-commerce operators Coupang and Naver are applying synthetic buyers to website journeys. Their models simulate browsing sessions to pinpoint where online shoppers encounter friction, hesitate over specifications or abandon digital baskets.

    Convenience store operator BGF Retail is pushing the simulation into the physical realm. The CU chain operator first used synthetic shoppers to vet new product concepts. It is now building virtual store environments to test foot traffic flows, shelf placement and assortment mixes before franchise owners reconfigure their physical floors.

    Food Groups Test Faster Turnarounds

    Packaged food manufacturers face short product life cycles in South Korea, where convenience trends shift across a matter of weeks. CJ Group, Daesang, Maeil Dairies, Pulmuone and Sangmidang Holdings have all run trial programs with Intellicia to evaluate food concepts through synthetic personas.

    For consumer goods operators across Asia, synthetic panels eliminate the weeks needed to recruit human focus groups and process qualitative interviews. The commercial risk shifts from expensive production missteps to data accuracy: if the underlying transaction logs or sentiment data fail to reflect shifts in disposable income, simulated demand will mislead procurement teams.

    BGF Retail’s testing across its store network and Lotte’s deployment of its 45 million-shopper dataset will demonstrate whether virtual panel decisions translate into higher sales per square metre when new SKUs hit convenience store shelves over the coming quarters.

  • Asian E-Commerce Dominates Global Sales as China Hits 13 Trillion Yuan

    Asian E-Commerce Dominates Global Sales as China Hits 13 Trillion Yuan

    China recorded 13.09 trillion yuan in online retail sales of physical goods in 2025, cementing its position as the world’s largest digital market at roughly $1.82 trillion. Physical goods accounted for 26.1 percent of total national consumer retail spending, expanding 5.2 percent year on year.

    Total online transactions across China reached 15.97 trillion yuan when including digital products and consumer services. That scale leaves the world’s next largest digital economy, the United States at $1.23 trillion, well behind in overall volume.

    Asian Markets Pull Away in Scale and Growth

    South Korea generated 272 trillion won, or about $191 billion, across digital checkouts in 2025. Services comprised a heavy portion of that total, with food delivery contributing 15.3 percent and travel and transport booking taking 12.5 percent, leaving physical goods at less than $140 billion.

    Japan generated 15.2 trillion yen, roughly $100 billion, in physical product sales online during 2024. That represented 9.8 percent of all Japanese merchandise sales, up from 9.4 percent a year earlier. Digital services and media expanded total Japanese consumer e-commerce to 26.1 trillion yen.

    India expanded faster than any of the mature East Asian retail hubs. Indian e-retail sales jumped roughly 20 percent to reach between $65 billion and $66 billion in 2025, driven by an online shopping pool that reached up to 300 million people.

    Southeast Asian Platform Volumes Climb 20 Percent

    Southeast Asia reached $191 billion across ten regional markets in 2025, according to e-Conomy SEA data. The six largest economies in the bloc generated $188 billion in gross merchandise value, up 20 percent on the previous year.

    Indonesia led the Association of Southeast Asian Nations with $71 billion in digital platform sales. Thailand posted $33 billion, while Vietnam booked $25 billion in gross merchandise volume. The Philippines and Malaysia followed with $24 billion and $20 billion, respectively.

    Fast logistics formats are accelerating that uptake across developing Asian retail markets. Quick-commerce operators promising deliveries under 30 minutes captured between 16 percent and 17 percent of all e-retail volume across India in 2025. Video-led selling channels similarly represented a quarter of all Southeast Asian digital transactions.

    The Balance Between Phone Checkouts and Store Networks

    Mobile checkouts dominate customer habits throughout the Asia-Pacific territory. South Korean shoppers conducted 211 trillion won of their purchases on mobile phones in 2025, securing a 77.6 percent smartphone share of total online retail spending.

    Japan saw smartphone orders for physical products climb 9.0 percent in 2024, advancing at more than double the pace of overall online merchandise turnover. Globally, mobile devices generate roughly 60 percent of online shopping turnover, creating sharper operational demands on checkout speeds and payment gateways.

    Physical store operators throughout Asia face diverging challenges depending on local channel maturity. In markets such as China and South Korea, where digital penetration sits near saturation, merchant acquisition costs are rising as brands shift budget toward buyer retention and targeted messaging. In India, where online transactions represent only 6 to 6.5 percent of gross retail receipts, traditional distribution networks retain considerable running room.

    Maturing Curves Reshape Capital Allocations

    Western benchmark markets illustrate the saturation ceilings facing Asian retailers. British online sales peaked at 30.7 percent during pandemic disruptions in 2021 before settling between 26.6 percent and 27.5 percent through 2025, suggesting a structural resistance band for pureplay e-commerce penetration.

    Chinese expansion rates reflect a similar cooling trend. Physical goods sales online across China grew 4.3 percent during the first eight months of 2026, moderating after a 5.2 percent rise in 2025. South Korean digital expansion dropped to 4.9 percent in 2025, marking the slowest annual increase recorded since current national accounting began in 2017.

    Regional platform operators now look toward second-tier cities and automated fulfillment to maintain transaction momentum. Projections from Bain and Flipkart place Indian online retail penetration at 10 to 12 percent of gross consumer spending by 2030, targeting a total market size between $170 billion and $180 billion.

  • Australian Halloween Spend to Hit $510 Million as Shopper Numbers Drop

    Australian Halloween Spend to Hit $510 Million as Shopper Numbers Drop

    Australians will spend 510 million Australian dollars on Halloween costumes, decorations and confectionery this year, according to joint research from the Australian Retail Council and Roy Morgan.

    Total spending will edge up 2 per cent from 500 million dollars last year, trailing domestic inflation even as individual celebrants plan to spend more cash per basket.

    Around 4.4 million Australians plan to celebrate Halloween personally or through their children, down by 400,000 from 2025. National participation dropped to 18 per cent compared to 21 per cent twelve months ago. Those who do take part plan to spend an average of 117 dollars each, a 13.6 per cent increase of 14 dollars on last year.

    Higher prices offset shrinking crowds

    The spending expansion reflects elevated retail prices rather than organic volume growth across checkout counters. Household budgets remain squeezed by sustained borrowing costs and elevated utility bills across metropolitan and regional centres. Among respondents planning to celebrate, 62 per cent said they will keep outlays flat, 22 per cent plan to reduce spending, and 16 per cent plan to spend more.

    Participation split across gender lines shows 2.4 million women and 2 million men planning to mark the event, with both groups shrinking by 200,000 participants compared to 2025.

    Fleur Brown, chief industry engagement officer at the Australian Retail Council, pointed to broader household financial strains. “Those taking part plan to spend more on average, but fewer Australians are joining in this year,” Brown said.

    Young adults drive costume spend

    Younger shoppers between 18 and 34 years old represent the largest demographic cohort participating in the event. This group will spend an average of 134 dollars per person, generating approximately 200 million dollars in gross retail sales.

    Older demographics pulled back sharply. Participation among consumers aged 65 and over dropped six percentage points to 15 per cent. Engagement among shoppers aged 35 to 49 remained steady at 20 per cent, anchored by primary school children and family neighbourhood activities.

    State breakdown and category demand

    Geographic breakdowns show distinct divergences in consumer willingness to spend across eastern seaboard states. Victoria leads the country with the highest projected average spend at 136 dollars per person. Queensland follows at 120 dollars, while New South Wales trails at 109 dollars per person. Together, these three states account for 410 million dollars of total seasonal turnover, up 20 million dollars from last year.

    Merchandise demand concentrates heavily in consumable goods and short-use apparel. Providing treats for trick-or-treaters ranks as the top activity, cited by 45 per cent of participants, followed by dressing in costumes at 44 per cent. Door-to-door trick-or-treating accounts for 40 per cent of consumer plans, while 35 per cent plan to buy home decorations.

    Retail margins ahead of peak season

    For supermarket chains, discount department stores and specialty party suppliers, Halloween operates as the primary operational test run before the critical November Black Friday sales and Christmas peak trade. A Saturday timing provides logistics networks and brick-and-mortar stores clear foot-traffic opportunities, but compressed basket counts raise margin risks for retailers carrying excess themed inventory.

    The benchmark data stems from an SMS survey of 5,237 Australians aged 18 and older conducted between September 29 and October 3, 2026, sampling 877 active Halloween consumers. Merchants now look to inventory sell-through rates across October 31 to gauge consumer price tolerance ahead of final pre-Christmas stock orders.

  • Data Breaches Hit 16% of Japanese Companies in Teikoku Survey

    Data Breaches Hit 16% of Japanese Companies in Teikoku Survey

    More than 16 per cent of Japanese companies suffered or suspected data breaches from cyberattacks and staff mistakes, according to research by Teikoku Databank.

    Large enterprises took the heaviest blow, with 30.2 per cent reporting actual or potential incidents compared to 14.3 per cent among smaller businesses.

    Breakdown of Enterprise Exposure

    The survey gathered responses from 1,328 companies across Japan between October 4 and October 14. Human error accounted for a substantial share of exposure, led by misdirected outbound emails and staff answering spoof messages from impostors posing as commercial clients.

    Another 14.8 per cent of respondents stated they did not know whether a breach had taken place at all. That knowledge deficit points to undetected intrusions across corporate networks where monitoring tools remain thin.

    The Supply Chain Vulnerability

    Large corporations in Japan face immediate exposure through their downstream commercial networks. While major operators invest in defensive software, their reliance on smaller suppliers creates entry points that bypass perimeter controls.

    Tier-two and tier-three vendors handle billing details, inventory files, and customer records without equivalent safeguards. When large buyers demand stricter security compliance, smaller contractors often lack the budget to implement required protocols.

    Funding and Personnel Gaps

    Small enterprises struggle to compete for specialized IT workers and allocate capital for cybersecurity overhauls. Upgrading data infrastructure requires dedicated hardware and ongoing monitoring contracts that squeeze thin operating margins.

    Many smaller suppliers report receiving direct mandates from key corporate clients to upgrade defensive protocols. Without financial subsidies or direct technical assistance from those buyers, smaller firms remain unable to fill basic staffing gaps.

    Corporate Defense Pressures

    Japanese commercial groups have tightened vendor audit rules following repeated unauthorized access disclosures across consumer and corporate databases. Regulators have pressed firms to identify third-party vulnerabilities faster.

    Enterprise buyers now weigh whether to subsidize technical support for their vendor rosters or drop non-compliant suppliers before the next reporting cycle begins.

  • Google Chrome Logs 260 Million Hours to Lead Naver in Korea

    Google Chrome Logs 260 Million Hours to Lead Naver in Korea

    Google Chrome logged 260 million hours of mobile usage in South Korea in September, extending its lead over local portal Naver for the fifth consecutive month.

    Chrome held the top spot after outpacing Naver’s 240 million hours during the month, according to mobile app analytics firm Wiseapp Retail.

    Breakdown of Mobile Browser Usage

    Samsung Internet took third place with 130 million hours. Together, the top three applications generated 630 million hours, accounting for about 80 percent of total usage time among the country’s 10 most-used search and browser apps.

    Google’s search app came fourth with 87 million hours, followed by Brave with 38 million hours and Daum with 23 million hours.

    Whale recorded 5.7 million hours, while Nate and Firefox each logged 3.5 million hours. Microsoft Edge rounded out the top 10 with 1.8 million hours.

    Shifting Consumer Gateways

    For brands and digital retailers in South Korea, the continued shift away from Naver’s integrated ecosystem toward Chrome reshapes consumer discovery pathways. Naver built its commercial engine by bundling search results directly with its own shopping comparison engine, smart stores, and payment rails. When shoppers conduct queries directly in a web browser rather than inside Naver’s walled garden, default search engine settings and standard web indexing dilute that proprietary checkout loop.

    Google’s expanding footprint also splits consumer attention between dedicated mobile apps and direct web links. Retailers that previously focused technical resources exclusively on Naver SEO and proprietary storefronts now face higher ad spending requirements to capture high-intent buyers across multiple independent search feeds.

    Consolidation in Korea’s Smartphone Base

    Chrome first overtook Naver in monthly South Korean usage time in May. The transition follows years of Naver holding an undisputed grip over domestic web navigation, supported by localized content directories and dedicated shopping integrations.

    Wiseapp Retail based the September findings on mobile tracking data drawn from a panel representing 51.39 million smartphone users nationwide. That sample pool reflects 36.7 million Android device owners alongside 14.69 million iOS users across South Korea.

    The Next Benchmark for Domestic Portals

    Attention turns to whether Naver can arrest the engagement gap in fourth-quarter figures as domestic e-commerce traffic peaks during seasonal retail sales. With total usage across the top three players holding at 630 million hours, the immediate battle centers on whether Naver’s retail integrations can recover lost ground against Chrome’s default presence across South Korea’s 36.7 million Android handsets.

  • AI Could Offset Asia’s 25% Workforce Loss by 2050, IMF Says

    AI Could Offset Asia’s 25% Workforce Loss by 2050, IMF Says

    Artificial intelligence could help offset Asia’s shrinking workforce as populations age if adoption is scaled evenly across the region, the International Monetary Fund said on Monday.

    IMF Managing Director Kristalina Georgieva said at a book launch during meetings at the Queen Sirikit National Convention Center that AI is projected to lift growth in advanced Asia by 0.5 to 1 percentage point, more than offsetting demographic pressure if productivity is captured.

    The demographic drop in North Asia

    Countries including China, Japan and South Korea could lose nearly 25 percent of their working population between now and 2050, according to findings in the IMF book, though productivity gains from AI could offset that loss.

    IMF Managing Director Kristalina Georgieva presented the findings during the IMF and World Bank annual meetings at the Queen Sirikit National Convention Center. She identified demographics, regional trade integration and artificial intelligence as the three central shifts deciding Asia’s economic trajectory.

    AI is projected to lift up growth in advanced Asia, where the ageing populations are, somewhere between half a percentage and one percentage point… And what is amazing is that if the countries capture productivity and this growth, they will more than offset the demographic pressure

    Divergence between rich and emerging markets

    The gap between mature industrial economies and developing Southeast Asian nations creates an uneven playing field for artificial intelligence rollout. Wealthier hubs possess the computing infrastructure and capital required to automate white-collar tasks and industrial workflows quickly.

    Developing markets face different exposure levels. Krishna Srinivasan, director of the IMF Asia and Pacific department, warned that emerging economies have fewer automated jobs today but also lack the capital to capture software-driven productivity gains without targeted policy support.

    Supply chains and operational exposure

    For consumer goods manufacturers, retailers and logistics operators across Asia, the findings point to immediate operational choices. Supply chain networks that depend on cheap labour in aging hubs must substitute headcount with automated fulfilment, inventory forecasting and automated sorting.

    Retailers in Japan and South Korea already operate with automated store checkouts and robotic warehouse pickers to handle persistent staffing shortages. Expanding those systems into Chinese manufacturing corridors will determine whether factory gate prices stay stable as industrial payrolls shrink.

    Trade barriers and reform timelines

    Technology alone will not solve structural regional slowdowns without cross-border commerce reforms. Lowering non-tariff barriers and deepening trade pacts across Asia would expand regional gross domestic product by approximately 1.8 percent over the long term.

    Srinivasan noted that national workforce training programmes and regulatory reforms can accelerate enterprise adoption of artificial intelligence tools by a decade or more. Asian policymakers now face the task of drafting common digital standards and labour retraining budgets before the projected 2050 workforce contraction reaches its steepest curve.

  • Indonesia Seeks Bigger Role in Asia-Pacific Retail Industry

    Indonesia Seeks Bigger Role in Asia-Pacific Retail Industry

    Indonesia is pushing to expand its footprint and secure a bigger role in the Asia-Pacific retail sector through deeper regional trade ties and cross-border commercial partnerships, ANTARA News reported. The domestic market of over 275 million people remains Southeast Asia’s largest consumer base, giving local operators use as they seek wider influence across regional supply networks.

    Indonesian retailers face direct competition from established operators in Thailand, Malaysia, and Singapore that expanded regional store footprints years ago. Building outward reach requires Indonesian brands to match international standards in supply chain management, inventory systems, and omnichannel fulfillment.

    Cross-border retail expansion across Southeast Asia depends heavily on bilateral trade arrangements and synchronized customs protocols ahead of planned rollouts over the coming fiscal quarters. Indonesian commercial groups want local consumer brands to gain wider shelf space in neighboring shopping centers and digital platforms.

    Regional Trade Integration

    Regional retail groups operate with sophisticated logistics hubs in places like Singapore and Bangkok. Indonesian operators must upgrade warehouse automation and freight links to compete effectively on delivery speed and product freshness.

    Digital Commerce and Store Networks

    Modern trade in Jakarta and secondary Indonesian cities combines physical hypermarkets, convenience store chains, and online commerce. Expanding that model into regional markets requires significant capital commitments from Indonesian conglomerates.

    Foreign retail brands continue to enter Indonesia, attracted by the country’s population of over 275 million people. Local retail groups now aim to reverse that dynamic by exporting homegrown retail concepts, packaged food brands, and lifestyle chains across Southeast Asia.

    Capital Allocation and Expansion Risks

    Entering overseas markets exposes Indonesian retail companies to foreign exchange volatility, varying labor regulations, and shifting local consumer preferences. Capital that goes toward foreign expansion could otherwise fund domestic store rollouts in underserved Indonesian provinces outside Java.

    Landlords and mall developers across Southeast Asia demand proven sales records before offering prime retail space to foreign newcomers. Indonesian brands will need to prove strong unit economics before securing competitive lease terms in prime shopping districts.

    Monitoring the Next Regional Steps

    Indonesian industry associations plan to increase participation in regional retail forums and trade delegations to establish partnerships with overseas distributors. Bilateral retail partnerships and franchise agreements will serve as the primary vehicle for initial store rollouts outside the home market.

    The pace of cross-border expansion depends on regulatory approvals, brand registration timelines, and formal franchise agreements signed over the coming fiscal quarters.

  • Asia to Drive 59% of Global Growth as World Economy Slows to 2.6%

    Asia to Drive 59% of Global Growth as World Economy Slows to 2.6%

    Asia will generate 59 percent of global economic expansion in 2026 as worldwide growth slows to 2.6 percent, down from 2.9 percent last year.

    Higher energy prices linked to conflict in the Middle East continue to drag on performance, the United Nations Conference on Trade and Development said in its latest trade and development report. Total trade in goods and services will rise 4 percent in constant prices, lifted primarily by elevated fuel costs after global merchandise and services turnover reached a record $35 trillion in 2025.

    India and Southeast Asia Lead Regional Output

    India will lead major economies with projected growth of 7.3 percent in 2026. Indonesia follows at 5.2 percent, while China is forecast to expand by 4.5 percent. These three markets form the core of regional momentum as Western demand softens and energy bills rise.

    Regional trade networks have adjusted to sharp declines in direct transpacific shipments. Bilateral trade between China and the United States has dropped by more than 20 percent since 2024. Producers in East Asia have absorbed the shift, increasing cross-border volumes with both mainland China and North American buyers to keep consumer goods moving.

    Export Controls and Supply Chain Friction

    Policy barriers have tightened across strategic manufacturing sectors, altering the economics for component suppliers and consumer device assemblers. Trade officials pointed to rising regulatory hurdles that limit cross-border investment and factory expansion.

    Export controls, investment screening and supply-chain conditions make strategic sectors harder for new entrants to access

    Semiconductors and artificial intelligence hardware represent the largest single driver of merchandise trade across East Asian freight hubs. Yet UNCTAD warned that elevated trade in hardware components does not translate automatically into wider economic gains across emerging markets. Financial stability risks have also widened because equity markets and capital spending remain concentrated in a small group of dominant technology companies.

    Shifting Margins for Brands and Retailers

    For consumer brands and logistics operators across Asia, the data confirms a two-speed operating environment. Strong domestic wage gains and consumer spending in South and Southeast Asia balance out sluggish revenue growth in export-dependent Western markets. Retailers expanding across India and Indonesia benefit from firm local demand, while export manufacturers face higher ocean shipping fuel surcharges.

    Supply chain rerouting adds capital expense for regional distributors. Moving intermediary goods through third-party Asian hubs avoids direct tariffs but increases handling costs, inventory holding requirements, and port turnaround times. Retailers importing finished goods must price in these structural transport costs rather than treating higher shipping bills as temporary spikes.

    Differing Multilateral Forecasts for 2026

    Multilateral institutions hold diverging views on how severe the current deceleration will be. The World Bank lowered its 2026 global growth baseline to 2.5 percent in June, citing Middle East conflict risks, and estimated that an escalating crisis could cut worldwide output growth to 1.3 percent in a worst-case scenario.

    The International Monetary Fund maintains a higher forecast of 3 percent. However, the fund identified trade fragmentation, energy price spikes from the war involving Iran, and potential equity market corrections in the artificial intelligence sector as immediate threats to that baseline.

    Trade ministers and central banks across the region now track fourth-quarter energy import bills and bilateral tariff updates ahead of the next IMF and World Bank global economic outlook revisions scheduled for early 2027.

  • Gen Z Collectors Outspend Older Generations with $347,000 Average Art Outlay

    Gen Z Collectors Outspend Older Generations with $347,000 Average Art Outlay

    Wealthy Gen Z collectors spent an average of $347,000 on fine art in 2025. That outlay topped every older demographic group by more than two to one.

    Spending rose 19 per cent from the previous year. That finding comes from survey data published by Art Basel and UBS, covering 3,100 high-net-worth individuals across 10 major markets.

    Baby Boomers aged 62 to 80 ranked second in spending, followed by Millennials aged 30 to 45. Gen X respondents aged 46 to 61 posted the lowest average outlay at $79,000 per collector. That is less than a quarter of the Gen Z total.

    Family Wealth Powers Million-Dollar Acquisitions

    Inherited capital among younger ultra-wealthy buyers drove the surge, rather than retail enthusiasm. Gen Z buyers made up 9 per cent of the 3,100 collectors polled. Yet they represented nearly half of all buyers who bought artworks priced above $1 million during 2025 and the first half of 2026.

    During the first half of 2026, 13 per cent of Gen Z respondents spent more than $1 million on fine art, against 3 per cent across the wider sample. About 37 per cent of Gen Z respondents reported their wealth came primarily from family sources. Another 40 per cent cited family influence as their entry point into collecting.

    Across the full sample, average fine-art spending rose 13 per cent year on year in 2025 to reach $124,265. Gen Z spending in the first six months of 2026 alone beat their full-year 2025 average.

    Traditional Mediums Retain Buyer Loyalty

    Purchases remain concentrated in classic categories rather than digital assets or non-traditional formats. Painting and sculpture dominate transaction volumes across every surveyed generation.

    “Some aesthetic preferences remain more consistent across generations than is often assumed,” Paul Donovan, chief economist at UBS Global Wealth Management, said in the report.

    Buyer motivations also diverge from institutional tastemakers. Nearly half of all surveyed buyers said an artwork’s rarity and uniqueness carried more weight in purchase decisions than critical acclaim from curators or commercial dealers.

    Digital Discovery and Direct Studio Sourcing

    Younger collectors are altering transactions across primary and secondary channels. Commercial galleries face changing habits as buyers bypass intermediaries to purchase directly from artist studios or independent platforms.

    Artificial intelligence tools are gaining traction in collector research. The proportion of collectors using AI to research potential art purchases rose from 4 per cent in 2024 to 22 per cent in 2026.

    Gallery operators and luxury auction houses must adapt digital-native marketing to clients who favor traditional tastes. Family offices managing intergenerational transfers are directing capital toward blue-chip physical inventory rather than speculative emerging categories.

    Intergenerational Wealth Transfer Shapes Market Baseline

    Survey qualification required respondents to hold at least $1 million in investable liquid assets, excluding primary residences and privately held business equity. This baseline separates the cohort from general retail consumers and highlights the mechanics of wealth preservation.

    Earlier surveys conducted after 2020 pointed to falling transaction counts among older institutional patrons. The latest data shows younger heirs are buying higher-value individual lots, maintaining dollar volume across top-tier international sales.

    Auction houses and private dealing desks now look to late-2026 auction totals to see if direct artist purchases continue to eat into dealer commission revenue.

  • Loyalty Management Spending Hits $17.38 Billion as Platform Costs Surge

    Loyalty Management Spending Hits $17.38 Billion as Platform Costs Surge

    Global spending on retail loyalty management tools reached an estimated 17.38 billion dollars this year, up from 5.5 billion dollars in 2020, even as operational expenses rose by more than 200 percent.

    While frequent shoppers spend 12 to 18 percent more than average store visitors, analysis from Korn Ferry highlights mounting fatigue as retailers face steep technology costs that complicate returns on complex app-based reward systems.

    The Rising Cost of Digital Points

    Running a modern loyalty scheme requires substantial capital. Retailers now buy dedicated software stacks, maintain integration with point-of-sale hardware, and pay ongoing fees for automated communication engines. These platform expenses rose more than 200 percent over the past six years. At the same time, consumers face friction from multi-step point activations, short redemption windows, and restrictive product exclusions that dilute the original incentive.

    Korn Ferry data shows that four out of five elite frequent fliers feel unrecognised by their airline programmes, pointing to similar fatigue across retail store chains. Many shoppers treat points programmes as simple commodities or gamify them to extract discounts on third-party products without building direct brand allegiance.

    Loyalty programs have become a mathematical game to maximize revenue that has little to do with loyalty.

    Shifting Value for Regional Operators

    Retailers across the Asia-Pacific region spent the last five years retiring physical stamp cards in favour of proprietary mobile applications. Department stores, pharmacy chains, and beauty retailers added tier structures, automated notifications, and points multipliers to capture granular transaction data. Yet the operational overhead of servicing those digital platforms now squeezes store margins during a period of cautious consumer discretionary spending.

    The strategic risk rests with mid-tier operators who lack the scale to run custom artificial intelligence programmes but carry enterprise software bills. Luxury retailers outperformed broader retail segments by maintaining high-touch store interactions rather than relying strictly on automated tier discounts. Mass-market merchants that rely purely on discounting points risk training customers to shop only on margin-eroding promotions.

    Automation Replaces Personal Touch

    Before the current wave of app consolidation, merchants relied on simple reward systems with immediate redemption. As software vendors expanded loyalty platform capabilities, programmes grew into distinct profit centres, selling customer data and co-branded financial products. This financialisation created multi-layered rulebooks that alienate core customers while customer service desks shifted to automated chatbots.

    Enterprise software budgets for retail marketing stacks will face their next formal audit cycle in the first quarter of 2027, when operators renegotiate multi-year platform contracts against actual member retention rates.

  • Mars Study Projects AI-Driven Retail to Reach 788 Billion Dollars by 2035

    Mars Study Projects AI-Driven Retail to Reach 788 Billion Dollars by 2035

    Automated AI agents will handle everyday consumer purchases over the next decade. At the same time, global retail will shift toward experiential spaces, according to research from Mars, Kantar and Synthesis.

    Researchers analysed more than 180,000 data signals across four continents. The goal was to evaluate how consumer purchasing habits and retail platforms will operate through 2035.

    The report identifies three primary shifts: algorithmic purchasing automation, granular personal curation, and experiential physical and digital storefronts. Intelligent software assistants will handle recurring household restocking. As a result, physical shops must transform from functional transaction points into entertainment and community destinations.

    Automated repeat purchases and agentic commerce

    Software agents now manage routine consumer replenishment without manual order placement. They process purchase histories, individual preferences and live inventory levels in real time. Artificial intelligence referrals to e-commerce brands jumped 752 per cent year on year during the 2025 holiday shopping season, according to data from BrightEdge. The firm projects that AI-driven commerce transactions will expand to $788 billion globally by 2035.

    This dynamic splits retail into two separate tracks. Basic household necessities and staple groceries move into frictionless background fulfilment. Meanwhile, discretionary shopping becomes an intentional activity centred on product discovery.

    Balancing personal curation with data governance

    Consumer expectations for customised digital interactions continue to climb across retail categories. Research from TransUnion shows that 39 per cent of consumers now expect personalised online shopping experiences.

    Tailored product recommendations require retail platforms to process deeper customer data streams. That requirement raises compliance demands around customer consent, data storage and cross-border consumer protection standards across international operating territories.

    Physical stores pivot to entertainment

    Physical stores and digital platforms are responding to automated replenishment by turning shopping trips into sensory destinations. Experiential brand venues recorded 15.3 per cent year on year growth, according to tracking data from Emarketer.

    Online channels follow a similar path toward active engagement. Emarketer figures show that 22 per cent of United States digital buyers already purchase products directly through livestream broadcasts.

    Snacking brands confront disappearing impulse buys

    Background replenishment threatens traditional impulse-driven consumer packaged goods categories. Packaged food manufacturers built their distribution models around checkout aisles, end-cap displays and point-of-sale visibility in convenience stores and supermarkets. When automated algorithms reorder groceries based on historical basket data, unprompted impulse sales drop sharply.

    Brand owners now need direct interactive touchpoints to introduce new items before algorithms lock shoppers into rigid consumption loops. Regional supermarket operators must redesign floor layouts away from dense shelving and toward dedicated sampling zones and interactive kiosks.

    Retail chains started testing automated inventory reordering and cashierless checkout networks in late 2025. Consumer packaged goods manufacturers now face the 2026 holiday retail cycle as the next test of whether interactive digital activations can defend impulse purchase volumes against automated buying agents.

  • Indonesia Leads Global Surge in Ultra-Wealthy Population Through 2031

    Indonesia Leads Global Surge in Ultra-Wealthy Population Through 2031

    Indonesia will post the fastest growth in ultra-high-net-worth individuals worldwide over the five years to 2031, expanding its wealthiest cohort by 81.7 percent.

    Data from Knight Frank’s The Wealth Report 2026 shows the country’s population of individuals with a net worth exceeding $30 million will jump from 3,833 in 2026 to 6,966 by 2031.

    Southeast Asia claims four of the top ten spots globally for ultra-wealth expansion. Vietnam ranks fourth worldwide with a projected 59 percent increase, lifting its ultra-rich count from 1,233 individuals in 2026. The Philippines takes ninth place with 48.9 percent growth from a base of 1,910 wealthy residents, while Singapore ranks tenth with an expected 46.4 percent gain.

    Shifting Wealth Concentrations Across the Region

    Singapore maintains the largest absolute pool of wealth in Southeast Asia, housing 7,171 ultra-high-net-worth individuals in 2026. Indonesia holds second place, followed by Thailand with 2,853 individuals, the Philippines with 1,910, Malaysia with 1,566, and Vietnam with 1,233.

    Together, the combined ultra-wealthy population across Indonesia, Vietnam, the Philippines, Singapore, and Thailand will climb from more than 14,000 people in 2026 to over 22,000 by 2031. That pace adds an average of more than four individuals to the $30 million wealth bracket every single day.

    Saudi Arabia and Poland rank second and third globally, each registering projected growth of roughly 63 percent. Australia ranks fifth at 58.5 percent, Sweden sixth at 55.3 percent, the United States seventh at 54.1 percent, and Romania eighth at 49.5 percent.

    Commodities and Digital Platforms Drive Jakarta Liquidity

    Indonesia’s domestic market of more than 280 million consumers provides substantial scale for homegrown commercial enterprises. Rapid expansion across commodity extraction, logistics, and digital financial platforms continues to convert private equity and equity holdings into personal liquidity for founding families.

    For luxury retailers, private wealth managers, and premium real estate developers, this structural shift alters where high-ticket capital originates. Luxury operators have traditionally concentrated flagship retail footprint and private client salons in Singapore. As wealth pools deepen in Jakarta, Manila, and Ho Chi Minh City, commercial landlords in those secondary capitals will capture direct allocations of luxury retail square footage rather than relying solely on outbound tourist spending.

    The operational risk sits in domestic wealth preservation and regulatory shifts. High headline percentage growth rates partly reflect lower starting baselines in developing markets, meaning total addressable purchasing power still trails mature western hubs. Capital controls, local currency volatility, and uneven infrastructure also determine how much of that accumulated balance sheet stays within domestic retail and property assets.

    Billionaire Tallies Tell a Divergent Story

    Billionaire creation patterns diverge from broader wealth expansion. Indonesia does not place in the global top ten for forecast billionaire growth over the five-year forecast window.

    The Philippines leads regional billionaire momentum instead, with its billionaire roster projected to grow 63 percent to 26 individuals by 2031, ranking eighth fastest worldwide. Thailand registers a more modest trajectory, with its ultra-rich population expected to grow 26 percent through 2031 to rank 17th globally.

    Tracking these shifts shows how Southeast Asian manufacturing gains, supply chain relocations, and digital commerce adoption have steadily lifted private balance sheets across developing Asian economies over the past decade.

    Luxury brands and commercial property operators will monitor whether Indonesia reaches its interim milestones toward 6,966 ultra-rich residents as new wealth data releases throughout 2027.