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Category: Research

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.

  • Brands Step up Fandom Marketing as Gaming and BookTok Spur Billions in Retail Sales

    Brands Step up Fandom Marketing as Gaming and BookTok Spur Billions in Retail Sales

    Non-endemic consumer brands now account for 60 per cent of esports partnerships worldwide as corporate marketers redirect budgets toward gaming and social media subcultures across Asia and the West. Research conducted by Amazon Ads and Twitch Ads across 12 countries, including Japan and South Korea, found that 70 per cent of fans view these communities as part of daily life.

    The shift comes as consumer spending linked to online interest groups expands beyond traditional merchandise. In the gaming sector, a 2025 global study of more than 24,000 active players across 21 markets, including China, India, Japan and South Korea, established that the average player is 41 years old. The demographic splits evenly at 51 per cent male and 48 per cent female, dismantling long-held media assumptions about youth-only audiences.

    Brands outside the technology sector are buying into this scale. McDonald’s integrated Pokemon Trading Card Game products into Happy Meals, Lacoste launched a physical and digital line with Minecraft, and Elf Cosmetics constructed an interactive world inside Roblox. McKinsey research confirms that non-gaming companies now drive six in ten competitive gaming sponsorships.

    Publishing and Travel Ride Social Momentum

    A parallel surge is lifting physical book sales and related hospitality services. Analysis from NielsenIQ BookData and Media Control recorded more than 50 million book purchases across European retail markets in 2025 linked to TikTok’s #BookTok community, generating 800 million euros in revenue. In the United States, research group Circana tracked a 20 per cent annual rise in BookTok-driven book sales during 2024 to approximately 60 million units.

    The literary trend has bled directly into tourism and apparel. Travel platform Skyscanner reported that global hotel bookings using its library filter rose 70 per cent year-on-year in 2026. In late 2025, American leathergoods label Coach partnered with Reese Witherspoon’s Sunnie Reads club to operate reading pop-ups and sell book charms co-developed with Penguin Random House.

    Authenticity Determines Campaign Returns

    For retailers across the Asia-Pacific region, commercial tie-ins to niche communities offer far higher conversion rates than general broadcast advertising. While mainstream digital ad placements suffer from rising ad-fatigue, Amazon’s data shows 61 per cent of dedicated fans actively welcome brand-sponsored content. Another 64 per cent rely on digital platforms to source and purchase interest-specific products.

    Execution remains delicate. The Amazon study revealed that 54 per cent of respondents immediately detect insincere corporate messaging within their spaces. Marketers now track whether beauty and apparel brands can scale influencer partnerships among Asian creators before community engagement metrics normalize across major video platforms later this year.

  • Australian Retailers Face Margin Squeeze as 59% of Shoppers Shun Full Price

    Australian Retailers Face Margin Squeeze as 59% of Shoppers Shun Full Price

    Australian retailers must overhaul operational discipline as 59 per cent of shoppers now refuse to pay full price, according to Grant Thornton Australia’s 2026 Retail Dealtracker analysis.

    Data from Australia Post’s FY26 fourth-quarter e-commerce update shows 46 per cent of consumers will switch stores for a discount, while 32 per cent report increased price sensitivity.

    The advisory firm identified five interconnected capabilities required to protect margins: customer proposition, earnings quality, operating model, technology, and organizational capability. Mounting pressure on household budgets means customer retention, repeat visits, full-price sales ratios, and customer lifetime value now carry far more commercial weight than raw top-line revenue growth.

    Protecting Margins Beyond Top-Line Sales

    Converting sales into profit requires tighter control over inventory, customer acquisition costs, returns, and shrinkage. Tam Goldin, financial advisory partner at Grant Thornton Australia, noted that many merchants need to strengthen fundamental disciplines, including clearer pricing and operating models that scale without adding unnecessary overhead.

    Shrinkage remains a critical operational drain for large physical store networks, while changing wage settings require closer management of store labor deployment. Retailers must track where value is lost across working capital rather than relying solely on headline profit and loss statements.

    Restructuring Operations and Supply Chains

    Scaling businesses frequently outgrow founder-led workflows, creating operational bottlenecks across supply chains and merchandising. Kirsten Ridgway, management consulting partner and head of retail at Grant Thornton Australia, pointed out that the largest opportunities emerge when companies simplify decision-making and align capital spending with actual customer demand.

    Supply chain models require flexible sourcing and inventory visibility to handle fluctuating lead times and freight expenses. Technology investments must resolve specific operational problems, starting with foundational systems such as point-of-sale platforms, integrated inventory tracking, and clean customer data before deploying artificial intelligence for demand forecasting and pricing.

    Across Asia-Pacific markets, rising labor costs and deal-seeking consumer behavior have forced merchants to pivot away from rapid floor-space expansion toward customer lifetime value and strict loss prevention. Retailers now face the next reporting cycle with shrinkage rates, full-price sales percentages, and inventory turns serving as the decisive operational numbers to track.

  • Human Trust Remains Key Driver for Southeast Asia E-Commerce Amid Rising AI Adoption

    Human Trust Remains Key Driver for Southeast Asia E-Commerce Amid Rising AI Adoption

    Human trust continues to be a primary factor in consumer purchasing decisions across Southeast Asia, even as generative artificial intelligence (AI) tools gain traction in product discovery. A new report by impact.com, Cube, and Dentsu reveals that while AI is emerging as a significant channel, established human connections still hold sway over shoppers in the region’s burgeoning e-commerce market.

    The “E-commerce Influencer and Affiliate Marketing in Southeast Asia 2026” study indicates that recommendations from family and friends are the most influential factor, scoring 2.42 out of four. This outranks online reviews (2.36) and even creators (1.98). However, the report also highlighted the direct impact of creators, with two-thirds (67%) of consumers making a purchase specifically due to a creator’s recommendation. This trend underscores the enduring power of trusted individuals in guiding consumer choices.

    AI’s Growing Role in Discovery and Research

    Generative AI tools such as ChatGPT, Gemini, and Claude are increasingly being used by Southeast Asian consumers for shopping, particularly in product discovery and research. Approximately 24% of consumers in the region currently use these AI tools for initial product discovery, a figure that rises to 28% during the product research phase. Vietnam leads the adoption curve for AI in product discovery at 34%, followed by Indonesia at 31%, while Singapore recorded the lowest usage at 14%.

    Despite AI’s ascent, influencers retain their importance as a research channel, cited by 51% of consumers. YouTube garners the highest engagement for influencer content at 23%, with TikTok at 17% and Facebook at 15%. The report suggests that AI complements the existing commerce ecosystem, rather than replacing it. Consumers frequently navigate between AI assistants, marketplaces, creators, publishers, retail media, and brand-owned channels throughout their purchasing journey. RetailNews Asia has observed similar patterns in other markets, where technology enhances rather than entirely supplants traditional trusted channels, prompting brands to integrate diverse strategies.

    E-Commerce Growth and Influencer Impact

    Southeast Asia’s e-commerce sector is experiencing robust growth, with sales forecast to increase by nearly 15% year-on-year to $219 billion in 2026. This trajectory is expected to almost double to approximately $410 billion by 2031. Indonesia and Thailand collectively dominate the regional market, accounting for 58% of all e-commerce sales, with marketplaces holding an average 72% share. Influencer and affiliate marketing combined are linked to an estimated 32% of the region’s e-commerce sales, translating to about $70 billion in 2026.

    The study, which surveyed 2,400 consumers, also details conversion methods. For purchases made via influencer or creator channels, in-video product tags were the most common conversion route at 56%. This was followed by links in descriptions or comments (43%) and stories (41%). Consumer engagement with various purchasing incentives varies by market. Singapore shows high adoption of cashback and deal sites at 69%, contrasting with Vietnam (28%) and Indonesia (25%) where usage is considerably lower.

  • Filipinos Tighten Belts as Financial Pressures Mount, Study Finds

    Filipinos Tighten Belts as Financial Pressures Mount, Study Finds

    Filipino households are exercising greater caution in their spending habits, as global and political instability intensifies pressure on family finances. This trend is leading consumers to prioritize cheaper products and purchase smaller quantities, according to the Shopperscope 2026 study by Worldpanel by Numerator.

    The study indicates that Filipinos anticipate a decline in their financial and socioeconomic conditions over the next year. This marks a reversal from 2025, when there were indications of improvement. Many households are now concerned about simply covering daily expenses.

    Shifting Consumer Sentiment And Spending

    Laurice Obana, Worldpanel’s shopper insights director, noted that Filipinos are reverting to a state of financial constraint after a brief period of improvement. This pressure is widely felt across various financial segments: those who are comfortable may see their buffers shrink, managing households could face shortfalls, and struggling families may fall deeper into debt. This increased caution is already evident in consumer spending, with the local fast-moving consumer goods sector showing no growth from March to May compared to the previous year.

    To manage their budgets, consumers are actively looking for promotions and discounts, opting for more economical items, and reducing the size of their purchases. Shopping behaviors are also adapting across different retail channels. Discounters are seeing increased sales of frozen meats and non-sweet snacks, while online platforms are key for baby diaper purchases. Convenience stores, however, experienced double-digit growth in sales of snacks, ice cream, and bread.

    Retailers Must Adapt To New Demands

    For retailers, mere proximity is no longer sufficient to retain customers. Shoppers are now carefully evaluating a store’s product range and the value it offers. This shift necessitates a deeper understanding of how and why Filipino consumers make their purchasing decisions for essential goods.

    Retailers across Southeast Asia frequently encounter similar shifts in consumer sentiment during periods of economic uncertainty. Tracking these changes in purchasing priorities and channel preferences is vital for brands and operators in markets like the Philippines, Vietnam, and Indonesia, which often show parallel trends in consumer resilience and adaptability. Understanding these local nuances allows for more targeted strategies and product offerings.

  • Thai Shoppers Cut Spending as Retail Confidence Declines

    Thai Shoppers Cut Spending as Retail Confidence Declines

    Retail confidence in Thailand saw a notable decline in July, with the nationwide Retail Sentiment Index (RSI) falling 4.9 points to 46.6. This dip was primarily attributed to a sharp reduction in the amount shoppers spent per visit, a trend indicating weakening household purchasing power across the country.

    While consumers maintained their shopping frequency, visits edged down by only 0.4 points, the spending-per-bill component experienced a significant 8.1-point drop, moving from 55.1 in June to 47.0 in July. This divergence suggests that while people continue to visit stores, their spending habits have become more constrained. Confidence in month-on-month same-store sales growth also decreased by 6.4 points to 46.2. All three key metrics now sit below the 50-point threshold, which typically separates expansion from contraction in sentiment.

    Household Spending Under Pressure

    The reduction in basket sizes reflects a broader trend of households limiting purchases to essential goods and cutting back on less necessary items. Consumers are increasingly opting for cheaper brands or private-label products, avoiding discretionary and lifestyle purchases. This behavior points to financial strain rather than a simple shift in preferred shopping channels. Despite government stimulus programs, such as the Thais Help Thais Plus 60/40 scheme, the underlying weakness in household income has not been fully offset. The majority of subsidised spending in July was directed towards fast-moving consumer goods, food, and beverages, leaving little personal spending power for other retail categories.

    Heavy rainfall and localized flooding in July further dampened retail activity by reducing visitor numbers at larger shopping centres. Elevated household debt and high living costs continue to restrain spending on non-essential items like fashion, electrical appliances, and home décor. These categories are crucial profit drivers for department stores, where sales remain subdued. While some recovery has been noted in department stores and lifestyle retailers, their confidence indices are still below 50, with improvements largely concentrated in Bangkok and its surrounding provinces.

    Regional Performance Varies

    Retail formats such as hypermarkets, supermarkets, and convenience stores received some benefit from the government’s stimulus program. However, even these segments experienced lower sales in provincial areas due to reduced customer spending per visit. Construction materials, home improvement, and maintenance retailers saw their confidence recover to 45-48 points after a significant dip earlier in the year, though this sector remains volatile due to its reliance on government budget disbursements and a slow property market.

    Tourism provided a limited boost to confidence in certain regions. Foreign visitors supported the southern Gulf coast and eastern provinces, while domestic travel during holiday periods aided the North and Central regions. Despite these localized improvements, retail confidence remained below the 50-point benchmark across all regions. The Northeast, in particular, faced additional pressure with a fourth consecutive month of declining tourist numbers. RetailNews Asia has observed similar pressures on discretionary spending in other Southeast Asian markets this year, as consumers grapple with inflation and economic uncertainty. The outlook for Thailand’s overall RSI remains cautious, with forecasts for the third quarter of 2026 placing it between 47 and 50, indicating continued hesitancy among retail operators.

  • China’s Smaller Cities Drive Premium Retail Demand Amid Overall Weakness

    China’s Smaller Cities Drive Premium Retail Demand Amid Overall Weakness

    China’s smaller cities are becoming unexpected hotbeds for premium retail, showing stronger consumer enthusiasm compared to the broader national trend of weak demand. Lower living costs, reduced debt burdens, and capital brought back by returning migrant workers are collectively boosting household purchasing power in these areas.

    A notable example is Jingshan, a city in Hubei province with fewer than 600,000 residents. Zhang Liang, a former truck driver, invested 600,000 yuan (approximately US$88,969) in May to establish a reseller shop for Sam’s Club products. He sources items from authorized Sam’s Club stores to cater to local demand for well-known brands and higher-quality goods. Several Sam’s Club resellers already operate in the industrial county, indicating a growing market.

    County-Level Spending Surpasses Major Cities

    This trend is not isolated to Jingshan. Per capita consumer spending among urban residents in five Zhejiang province counties, including Leqing, Yuhuan, Yiwu, Wenling, and Haiyan, exceeded that of Beijing and Shanghai in 2025. Data showed Beijing’s per capita spending at 50,667 yuan last year, while Shanghai’s stood at 54,765 yuan. This indicates a significant shift in economic dynamics and consumer behavior.

    Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank studying regional economic development, noted that smaller Chinese cities increasingly possess the financial capacity and desire to match first-tier cities in their demand for premium products and services.

    Underlying Economic Factors

    The growing financial strength in these smaller urban centers is attributed to several factors. Lower living expenses and reduced financial burdens allow residents more disposable income. Also, capital accumulated by migrant workers returning from larger cities is being reinvested and spent locally, further stimulating the regional economies. This shift highlights a rebalancing of consumer power across China’s diverse urban landscape, creating new avenues for retail expansion and brand engagement beyond traditional metropolitan hubs.

  • Retailers Strive for AI Traffic Boosts without Sacrificing Customer Data Security

    Retailers Strive for AI Traffic Boosts without Sacrificing Customer Data Security

    As customers are increasingly leveraging ChatGPT and Google’s Gemini for product recommendations, retailers are looking to capitalize on the opportunity by making their products appear prominently in chatbot search results. However, they are wary of relinquishing customer data, which forms the basis of online sales and customer loyalty.

    Leading retailers like Walmart, Ulta Beauty, and Wayfair are revamping their websites in response to the upsurge in online traffic from AI platforms. They aim to ensure their products rank high in chatbot searches, but want transactions to continue happening on their platforms. This allows them to gather crucial data on browsing behavior, basket sizes, and previous purchases, which is instrumental in future sales and maintaining customer loyalty.

    The Rising Influence of AI in Retail

    AI agents, including Anthropic’s Claude and Gemini, are leading customers to retail websites, with a projection of up to $8 billion in spending this year. According to Adobe Analytics, 41% of US consumers utilized generative AI for online shopping in June, with AI-referred visitors generating 41% higher revenue per visit than those arriving via traditional means.

    Unlike search engines, which rank pages based on keywords and links, chatbots answer detailed queries. This is prompting retailers to reevaluate their online product descriptions and how customers discover their brands. As Josh Friedman, Ulta Beauty’s head of digital and e-commerce, puts it, “Whether it’s Google search, affiliate marketing, or Facebook, there’s always a price to pay for engaging customers on other people’s platforms. This is no different.”

    Ulta Beauty has noticed a significant surge in conversion and customer intent from shoppers discovering its products through Gemini and ChatGPT. Collaborating with Google, the company is integrating shopping carts and its Ulta Beauty Rewards loyalty program into AI-powered shopping within Gemini. However, Friedman maintains that the retailer would rather have customers conclude transactions on Ulta’s website.

    Retailers’ Advantage

    Retail executives claim an advantage over general-purpose AI tools due to their in-depth knowledge of customer preferences. For instance, when a customer completes a purchase on a brand’s site, the retailer continues to maintain a direct relationship with that customer, according to Vince Koh, global head of digital commerce at Amazon Web Services.

    The Knot, a wedding-planning platform, is adopting a similar approach. They are optimizing their website to pop up in ChatGPT results, but encourage customers to book wedding venues and invitations directly via their website.

    Despite ChatGPT and Gemini becoming critical marketing tools, customers seem more at ease completing purchases on retailers’ own websites. For instance, OpenAI shut down Instant Checkout, a tool that allowed purchases through ChatGPT, and is now focusing on product discovery. Etsy has also observed users finding products through ChatGPT and returning to Etsy’s website to complete the transactions.

    Questions & Answers

    Why are retailers eager to rank highly in chatbot searches?
    To capitalize on the increasing online traffic from AI platforms and to enhance customer engagement and sales.

    How is AI influencing customer shopping behavior
    AI agents like Anthropic’s Claude and Gemini are directing users to retail sites, with AI-referred visitors generating significantly higher revenue per visit.

    Why do retailers prefer customers to complete transactions on their own platforms?
    This allows them to gather crucial data on customer behavior, which is instrumental in driving future sales and maintaining customer loyalty.

  • Boosting Retail Margins: Uniting Fragmented Product Data through AI

    Boosting Retail Margins: Uniting Fragmented Product Data through AI

    While customers continue to make purchases across various channels, several retail businesses struggle with outdated and disconnected systems. These systems were designed during a simpler time and are now proving to be inadequate in handling the dynamic market trends.

    As products’ lifecycles become shorter and sales channels multiply, businesses that fail to connect product data to their decision-making processes are at a disadvantage. Disconnected systems can result in losses even before a customer reaches the checkout counter. However, retailers that integrate these systems can improve their speed, profit margins, and customer experience.

    The Challenge of Retail Market

    The shift from physical purchases to online buying or social media shopping has made the retail market more challenging. This trend has highlighted the fragmented product management within many organizations. Different departments often manage design and development, merchandise planning, pricing, and product information. This lack of integration introduces delays, inconsistencies, and missed opportunities which become more costly as businesses expand across various channels and markets.

    To cope with this, some businesses are focusing on brand management and outsourcing manufacturing, while others own product design and pass production to manufacturing partners. Regardless of the strategy, Artificial Intelligence (AI) provides an opportunity to connect teams across different geographies and stages of the product lifecycle.

    However, retailers are faced with more than the challenge of selling through various channels. They also have to navigate an increasing number of online shopping events and promotions where demand can change rapidly, and inventory decisions carry greater financial implications.

    Balancing product assortment with inventory levels is a constant struggle. Having too much stock results in markdowns, while offering too little causes customers to shop elsewhere. Thus, the ability to react quickly to market demands has become a crucial factor in the retail industry.

    The Role of AI and Data in Retail

    AI and data play a crucial role in making informed decisions. Without reliable and accessible product data, the impact on businesses can be immediate and severe. Customers now expect accurate information, competitive pricing, and immediate availability, regardless of where they choose to shop.

    AI can support better commercial decision-making, but only if organizations first establish a trusted data foundation. Beyond its use in language translation and communications, AI has a far greater potential in product management. It can enable retailers to better understand customer demand and reduce the time between product concept and market launch.

    Speed to market is often a key focus, but it’s equally important to identify where profitability is being lost throughout the product lifecycle. Retailers often overlook customer feedback within their own businesses. The information needed to make better decisions is already there; it’s just a matter of utilizing it.

    Retailers can identify changing customer preferences earlier by using AI to analyze their daily or weekly data, improving product selection while reducing excess inventory and missed sales opportunities.

    Questions & Answers

    How can retailers benefit from integrating their disconnected systems?
    By integrating their systems, retailers can improve their speed, profit margins, and overall customer experience.

    What role does AI play in the retail industry?
    AI can support better commercial decision-making by helping retailers understand customer demand, reduce time between product concept and market launch, and analyze existing data to identify changing customer trends.

    How can retailers utilize their existing data more effectively?
    Retailers generate vast amounts of customer, sales, and product data every day. By using AI, they can analyze this data to forecast future trends and make more informed decisions.

  • Inventory Accuracy and the Cost of Getting It Wrong

    Inventory Accuracy and the Cost of Getting It Wrong

    In Southeast Asia, retail has become faster, more mobile and more fragmented than ever before. Consumers move between marketplaces, brand sites, social platforms and physical stores with ease. They expect products to be available where and when they choose to buy, even as retailers contend with increasingly complex supply chains, shifting trade conditions and unexpected disruptions.

    For retailers, this means there is less room for error than ever before. Across the region, one of the most common causes of friction in retail experiences is uncertainty around product availability. That could be products that show as in stock but aren’t, orders that go through and then fall over, or delivery dates that change once the purchase is complete. These issues may sit behind the scenes, but customers read them as a measure of trust.

    Inventory accuracy has quietly become a trust issue

    Many retailers still operate with inventory systems that were not designed for today’s level of complexity. Stock is spread across distribution centres, stores, third-party logistics providers and, increasingly, cross-border locations. Sales are driven by flash promotions, livestream events and marketplace campaigns that can create sudden demand spikes.

    When inventory data is delayed, siloed or manually reconciled, retailers are forced to make assumptions. Availability becomes an estimate rather than a fact. Without a single source of truth across the network, systems operate on outdated or incomplete information, and the gap between what is believed to be available and what physically exists grows quickly. Customers feel the impact almost immediately.

    In Southeast Asia, this challenge is amplified by scale and diversity. Retailers may be operating across multiple countries, currencies and fulfilment models at once. A single product might be available in one market but not another, or in a store but not a warehouse. Without a unified view of inventory, decisions are made in isolation, increasing the risk of errors. Over time, this erodes confidence in the retailer.

    Consumers notice when orders are cancelled after purchase. They remember when delivery dates change unexpectedly. These experiences shape where and how they choose to shop. Trust, once lost, is difficult to regain.

    The power of accurate inventory visibility

    Accurate inventory visibility changes this dynamic, but only when it is supported by systems designed to operate at retail scale. That means visibility that spans stores, distribution centres, third-party partners and cross-border locations, and updates in real time as conditions change.

    When retailers have real-time visibility across their inventory network, they can make better promises and keep them. Orders are accepted based on what is genuinely available. Fulfilment decisions reflect actual capacity across locations. Delivery commitments are set according to what can be executed, not what is hoped for.

    This becomes increasingly important as retailers expand fulfilment options. Services such as ship-from-store, click and collect and same-day delivery rely on inventory accuracy at a granular level. A single discrepancy can disrupt an entire order flow, affecting staff, customers and margins.

    Inventory accuracy also plays a direct role in managing cost. Poor visibility leads to over-stocking in some locations and shortages in others. It increases reliance on manual intervention, split shipments and expedited transport. Each workaround adds cost and complexity.

    By contrast, retailers with accurate, unified inventory data can position stock more effectively, reduce unnecessary movement and make better use of existing assets. As margins tighten, this discipline becomes increasingly important.

    From visibility to confidence

    Inventory accuracy is not a technology problem to be solved, but an operating discipline that must be supported by systems reflecting real conditions across the retail network. In Southeast Asia’s retail environment, where demand can shift quickly and conditions vary by market, this discipline becomes a competitive advantage.

    As retail continues to evolve across the region, the retailers that stand out will not be those with the most channels or the widest reach, but those that are dependable. Those that show customers what is available, deliver what they promise and avoid unnecessary friction.

    Inventory accuracy may not be visible to shoppers, but its impact is felt in every interaction. In a region built on speed and choice, trust is increasingly defined by how accurately retailers understand their inventory and how confidently they act on it.

    Written by Raghav Sibal, Vice President APAC, Manhattan Associates

    For more information please visit: https://www.manh.com/en-sg

  • Kevin Murphy Grows Marketplace Revenue 141% with Pattern 

    Kevin Murphy Grows Marketplace Revenue 141% with Pattern 

    Premium haircare brand strengthens marketplace control while maintaining salon channel growth

    Premium haircare brand Kevin Murphy has grown its Amazon Australia revenue by 141% with ecommerce accelerator Pattern, transforming the marketplace from a grey market challenge into one of the brand’s fastest growing retail channels.

    Distributed in Australia by Ozdare, Kevin Murphy partnered with Pattern to manage its presence on Amazon Australia amid growing consumer demand and unauthorised reseller activity.

    “Given the growing influence of marketplaces in Australia, it was important for Kevin Murphy to establish a stronger presence where consumers are increasingly searching for and purchasing products,” explained George Leighton, Head of Retail (Consumer) for Ozdare/Kevin Murphy. “At the same time, maintaining the balance between our professional salon channel and consumer retail presence remained a key priority throughout the process.”

    Launched in November 2025 ahead of the peak Black Friday Cyber Monday (BFCM) shopping period, Kevin Murphy entered Amazon Australia with no official marketplace presence despite significant existing consumer demand on the platform. Within just four months of launch, the brand increased units sold by 115% quarter-on-quarter while simultaneously increasing average order value by 8.4%, demonstrating strong consumer demand for premium haircare products on Amazon Australia.

    Pattern’s ANZ Managing Director, Merline McGregor said the results reflected a broader shift occurring across the Australian retail landscape as premium brands increasingly embrace marketplaces as strategic growth channels rather than viewing them as discount environments.

    “Many premium beauty and haircare brands have historically approached Amazon cautiously because of concerns around pricing control, unauthorised sellers and protecting brand equity,” McGregor said. “What Kevin Murphy has demonstrated is that with the right retail media, marketplace and brand protection strategy, Amazon can become a highly effective growth channel that complements existing retail and salon partnerships rather than competing against them.”

    Kevin Murphy’s growth trajectory is significant given the brand launched during the peak BFCM promotional period yet continued accelerating well beyond the initial sales surge. Strong March performance against a BFCM-boosted comparison period highlighted that the brand’s Amazon Australia strategy was driving sustained long-term growth rather than short-term discount-driven spikes.

    Working with Pattern has helped Kevin Murphy regain greater control over its marketplace presence and pricing environment. Since launch, Buy Box ownership increased from 65% to 91% while multiple unauthorised sellers were successfully removed from the platform, helping to protect brand integrity.

    As part of the ongoing partnership, Pattern developed and manages Kevin Murphy’s Amazon Australia storefront, optimising all product listings and implementing a full-funnel advertising strategy spanning branded search, generic category discovery and competitor targeting. By the end of the first quarter, approximately 80% of ad-driven sales were coming from first-time Kevin Murphy customers on Amazon Australia, highlighting the platform’s ability to drive new customer acquisition.

    “The reality is consumers are already searching for premium brands like Kevin Murphy on marketplaces, regardless of whether those brands officially sell there or not. What Kevin Murphy has demonstrated is that when brands take ownership of that customer experience with the right marketplace, retail media and brand protection strategy, Amazon can become a powerful channel for both growth and new customer acquisition,” concluded McGregor.

    About Pattern Inc

    Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilising more than 77 trillion data points, sophisticated machine learning and AI models, Pattern optimises and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfilment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth across 60+ global marketplaces—including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre.  For more information, visit https://au.pattern.com/

     

     

  • Amazon, Temu and Shein to Dominate Australia’s Marketplace Sector at the Expense of Local Competition

    Amazon, Temu and Shein to Dominate Australia’s Marketplace Sector at the Expense of Local Competition

    Australia’s marketplace sector is being redefined as global ecommerce giants use their international scale and advanced infrastructure to grow their share of consumer spending at the expense of local marketplaces, according to new research from Pattern.

    The ‘2026 Marketplace Consumer Report’ highlights a sector that looks markedly different to just a few years ago. With fewer local Australian marketplaces following the closures of Catch and MyDeal, and pressure on Kogan to maintain its competitiveness as consumers increase their spend with global platforms, data suggests a long-term shift in how marketplace competition will play out in Australia.

    Amazon now reaches 60% of Australian shoppers, growing its customer base by 3.45% year on year. Temu continues to expand rapidly with A$2.6 billion in sales last financial year and 47% of Australians purchasing from the platform, while Shein has lifted its reach to 30%, recording the fastest growth (15%) among major marketplaces. Australia’s last remaining dedicated local marketplace, Kogan, however, is losing ground. Just 15% of consumers now shop on the platform, reflecting a 6% year-on-year decline.

    “The pressure on Australian born and bred marketplaces from global giants like Amazon and Temu is no longer theoretical. What we’re seeing is a sector shaped by international scale, logistics sophistication and global ecosystems. This isn’t a temporary cycle, it’s a structural shift and could signal the end of the local Australian marketplace era as we once knew it,” said Merline McGregor, Managing Director for Pattern Australia.

    Amazon Leads as eBay loses ground

    Amazon continues to lead the Australian marketplace sector with 8.8 million active shoppers and 66% of consumers planning to shop on the platform. eBay, however, is sliding in the opposite direction, declining 7% to 51% of shoppers planning to use the platform in 2026.

    The research shows Amazon purchase decisions are broadening and no longer price-led, with price as a motivator falling by 42%. Shoppers now point to speed (35%), Prime benefits (31%) and overall preference for Amazon (28%) as key reasons for purchasing on the platform. The growing role of product reviews, now cited by 24% of shoppers, highlights Amazon’s advantage in trust and community validation, an edge eBay has struggled to match.

    “Amazon has moved beyond competing purely on cost. While price still matters, its advantage today is also about removing friction at every stage of the shopping journey. Faster delivery, trusted reviews and habitual usage are what has made it the dominant marketplace in Australia and what keeps customers coming back,” said McGregor.

    Temu and Shein rebuild trust and expand beyond price

    Shopper perceptions of product quality and trust have improved sharply for Temu and Shein, marking a significant shift in how these platforms are viewed in Australia. Over the past year, Temu recorded a 50% increase in product quality and trust perception, while Shein saw a 36% increase.

    Historically criticised for inconsistent quality, in 2025 Temu was trusted by just 12% of shoppers and Shein, 11%. However, sustained investment in supplier standards, range expansion beyond fast fashion and brand partnerships with established global brands is beginning to change sentiment.

    “Temu and Shein have worked hard to shed their reputations as low-cost disruptors and are now emerging as serious players in the marketplace landscape,” said McGregor. “Temu now serves 4.7 million Australians, with its customer base growing at 24% annually. With trust levels rising, these platforms are no longer competing on price alone, firmly positioning them for sustained, long-term relevance in the Australian market.”

    Product discovery fragments across platforms

    Product discovery behaviour is fragmenting rapidly. While Google has regained ground, with 54% of shoppers beginning their product searches on the platform since the rollout of AI-generated answers that ease discovery, social media is disrupting search.

    Social media is now one of the fastest-growing starting points for product research, with 67% more consumers beginning their search on social platforms compared to 2025. Today 78% of Australians are active on social media and with near-universal mobile use, discovery is increasingly shaped by feeds, creators and short-form video.

    “Social platforms are collapsing the long bridge between inspiration and transaction,” said McGregor. “With the imminent launch of TikTok Shop in Australia, this shift will accelerate. Brands that invest in creator-led content and seamless in-platform shopping will be best positioned as social becomes a central pillar of modern product discovery.”

    Convenience and delivery speed emerge as key differentiators

    With 93% of Australians purchasing from marketplaces in the past 12 months, convenience has become a defining factor in how consumers choose where to shop. One in three Australians now cite ease of use and delivery speed as the primary reason they turn to marketplaces. Amazon exemplifies this shift, with 36% of shoppers naming convenience as the main driver of their purchasing behaviour.

    “Delivery performance has become a core brand asset for marketplaces today. Many Australians are choosing to order products through a marketplace, even if the same product is more expensive than elsewhere, simply because it could be delivered faster,” said McGregor.

    What products will consumers buy from which marketplace in 2026

    Pattern’s research reveals clear category distinctions across marketplaces, with each platform establishing dominance in specific shopping categories:

    • Amazon leads in Books & eBooks (30%), Electronics & Computer (25%), and Clothing, Shoes & Accessories (22%).
    • eBay shows strength in Clothing, Shoes & Accessories (17%), Automotive Parts (15%), and Electronics & Computer (14%).
    • Temu captures consumer interest in Clothing, Shoes & Accessories (22%), with notable investment in Home & Kitchen Products (13%).
    • Shein’s primary appeal lies with Clothing, Shoes & Accessories (21%), but is beginning to spark interest beyond this in Home & Kitchen (7%) and Toys, Kids & Baby Products (7%).
    • Kogan holds some ground in Electronics & Computer (8%), Home & Kitchen Products (7%), and DIY/Home Improvement (5%).

    “While the future of local marketplaces is uncertain, the opportunity for brands has never been greater. With 93% of Australians shopping on marketplaces, these platforms are where purchase decisions happen. Brands that understand category dynamics, build tailored strategies for each marketplace, and work with ecommerce specialists like Pattern will be positioned to capture a share in this consolidated but growing market,” concluded McGregor.

    For more information and to download the full report please click here: ‘2026 Marketplace Consumer Report’

    About Pattern Inc

    Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilising more than 46 trillion data points, sophisticated machine learning and AI models, Pattern optimizes and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfillment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth across 60+ global marketplaces—including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre.  For more information, visit https://au.pattern.com/

    Media Contact

    Paul Manser

    Mulberry Marketing Communications

    pmanser@mulberrymc.com

  • SOTI Research Reveals the Need for Retail Tech to Deliver a More Immersive Experience

    SOTI Research Reveals the Need for Retail Tech to Deliver a More Immersive Experience

    SOTI, a proven innovator and industry leader for simplifying business mobility solutions, launched its latest annual global research, “Retail Tech Assessment: Opportunities for Enhanced Consumer Experiences,” which revealed Australian consumers are increasingly making shopping decisions based on security, trust and the quality of their digital experience. The findings reveal that while retailers are investing in technology, many still fall short of delivering truly personalised and immersive interactions.

    Retailers Need to Enhance Consumer Engagement with Technology

    The report found that there is progress to be made in enhancing consumer shopping experiences with the technology currently available. Consumers use retail apps for convenience, with 55% using them for exclusive offers, savings and points, and 53% enjoying benefits such as faster checkout. However, engagement is not growing at the pace retailers would expect, and further incentives may be needed to encourage deeper use of digital touchpoints. Additionally, greater emphasis could be placed on augmented reality (AR) and visualisation to create more immersive experiences.

    “Most of the technology does exist, but it is not being leveraged properly. Consumers want experiences that feel more relevant and forward-thinking than what they are receiving today,” said Michael Dyson, VP of Sales APAC at SOTI. “Engagement and loyalty can deepen as this technology becomes more central to the retail experience. Secure and connected devices and apps are the starting point for building brand trust.”

    Consumers Are More Cost-Conscious Than Ever Amid Economic Uncertainty

    Rising economic pressures are forcing Australian consumers to prioritise value, convenience and local purchasing, as 33% are now checking product origin or choosing to buy domestically made products. Furthermore, 86% are taking cost-cutting measures to adapt to changing economic conditions and 63% say economic factors have influenced their ability to purchase their usual items in the past 12 months.

    “Consumers now know exactly when and where to find the best value, and they’re using digital tools at every step of the buying journey,” added Dyson. “Retailers are working hard to meet expectations for smooth, connected experiences, yet issues with real-time tracking and fulfilment highlight that some foundational supply chain processes still need strengthening.”

    Security and Privacy Are Growing Concerns

    While 55% of consumers want to see more technology-enhanced shopping, research found that security and trust are critical. In fact, 87% of consumers are concerned about data privacy or security issues when shopping online or in-store, and 69% think twice before shopping with a retailer that has suffered a cyberattack. Much of this sentiment stems from the fact that 42% of consumers have been victims of retail-related fraud.

    “Finding the right balance between smarter, tech-enabled shopping and protecting consumer privacy has become critical,” Dyson said. “Shoppers are open to personalisation, provided they trust how their data is managed. Maintaining that trust requires transparency and robust security, especially at a time when major brands are facing increasing cyber threats.”

    SOTI’s latest report, “Retail Tech Assessment: Opportunities for Enhanced Consumer Experiences,” can be downloaded here.

    Report Methodology

    SOTI’s research expanded its scope to cover 13,000 consumers, uncovering key insights into the evolving retail landscape across 11 countries, including Italy and Spain for the first time. The sample split is as follows: U.S. (2,000), Canada (1,000), Mexico (1,000), UK (2,000), Germany (1,000), France (1,000), Sweden (1,000), the Netherlands (1,000), Italy (1,000), Spain (1,000) and Australia (1,000).

    About SOTI

    SOTI is a proven innovator and industry leader for simplifying business mobility solutions by making them smarter, faster and more reliable. With SOTI’s innovative portfolio of solutions, organisations can trust SOTI to elevate and streamline their mobile operations, maximise their ROI and reduce device downtime. Globally, with over 17,000 customers, SOTI has proven itself to be the go-to mobile platform provider to manage, secure and support business-critical devices. With SOTI’s world-class support, enterprises can take mobility to endless possibilities. For more information, visit soti.net.

  • Revolutionizing Retail: How Innovative Design Transforms The Shopping Experience

    Revolutionizing Retail: How Innovative Design Transforms The Shopping Experience

    In the realm of physical retail, innovative and creative designs have a significant influence on the shopping experience. Among the noteworthy brick-and-mortar stores promoting such inventive designs are Farm Rio, Manière de Voir, Crocs, Huckberry, H&M, Todd Synder, and Tm:rw.

    Farm Rio: An Intimate Shopping Experience

    Brazilian brand Farm Rio opened its third and smallest New York City store in August, at 1055 Madison Avenue on the Upper East Side. The store greets customers with a stunning mosaic installation, designed in collaboration with Bisazza, an Italian luxury mosaic maker. The mosaic, composed of 1.9 million hand-placed glass tiles, took over 460 hours to install. This store’s design elements include earthy-green carpets and plush gray seating, creating an intimate and luxurious shopping experience. The brand’s international portfolio includes over 140 locations, including stores in Los Angeles, Paris, and Rio de Janeiro, the brand’s hometown.

    Manière de Voir: A Story of Persistence and Vision

    Manière de Voir, a Manchester-born brand, has opened its first US flagship at 521 Broadway in New York City. The brand’s founder and CEO, Reece Wabara, described the store as a “story of persistence, grit and bold vision.” The spacious store, located just steps away from major retail stores like Nike, Uniqlo, and Sephora, offers customers a chic layout in calming tones and an apparel line that blends a London-inspired streetwear aesthetic with a minimalist Parisian approach.

    Crocs: A New Era of Personalization

    In August, Crocs launched a new store concept called Icon at 543 Broadway in New York’s trendy Soho neighborhood. The 4000 sqft store offers an immersive shopping experience and the brand’s largest personalisation venture yet, drawing customers towards a range of shoes and accessories that blend style and functionality. Customers can customize their purchases with Crocs’ signature Jibbitz charms, including exclusive New York City ones.

    Huckberry: A Blend of Style and Adventure

    Huckberry, a prominent destination for men’s style and adventure, has opened its first permanent store in Georgetown, Washington, DC. The space, part gear shop, part art gallery, was designed with warm materials and clean lines, reflecting the brand’s reputation for men’s lifestyle content. Customers can find a variety of brands ranging from Flint and Tinder to emerging brands from Tokyo, Paris, and New York City.

    H&M: Elevated Shopping Experience

    H&M has inaugurated a new flagship store at The Original Farmers Market in Los Angeles. The store, spanning about 15,000 sqft across two floors, features a gallery-like feel with white, curved walls, wooden fitting rooms, and translucent displays. It operates on RFID-enabled systems, ensuring precise stock accuracy and enabling quick item location within the store. The new LA store serves as a model for upcoming stores in São Paulo, Las Vegas, and Toronto.

    Todd Synder: Refined Elegance

    In August, American menswear designer Todd Snyder opened his first Ohio store, drawing inspiration from refined elements of English sartorial style and the raw aesthetic of industrial design. The store features a comprehensive tailoring shop with a range of Italian suits and sport coats, Italian-made shoes and sandals, and an array of best-in-class brands from around the world.

    Tm:rw: The Future of In-Store Shopping

    Tm:rw, a three-story flagship, opened its doors in July in the heart of Times Square, displaying the world’s largest 3D retail hologram and offering an AI-powered digital avatar and immersive window displays. This new model of experiential retail is designed to let people engage with products in unexpected ways. It features rotating concept areas that span gaming, health and wellness, food, beauty, entertainment, and sports.

    Questions & Answers

    What is unique about the design of Farm Rio’s Madison Avenue store in New York City?
    The store features a beautiful mosaic installation made from 1.9 million hand-placed glass tiles. This nature-inspired mosaic is complemented by green, moss-like carpets and plush, gray seating that resembles smooth stones.

    Can customers personalize their purchases at the Crocs Icon store?
    Yes, customers can personalize their purchases with Crocs’ signature Jibbitz charms, including ones exclusive to New York City, at two customization counters in the store.

    What does the Tm:rw store in Times Square offer?
    The Tm:rw store offers a new model of experiential retail, featuring the world’s largest 3D retail hologram, an AI-powered digital avatar, and immersive window displays. It has rotating concept areas across gaming, health and wellness, food, beauty, entertainment, and sports.

  • Indonesia’s Retail Sector Thrives Amidst Global Economic Challenges: E-commerce In The Spotlight

    Indonesia’s Retail Sector Thrives Amidst Global Economic Challenges: E-commerce In The Spotlight

    The latest figures reveal a dynamic shift in the Asian retail landscape as Indonesia’s retail sales continue their upward trajectory, fueled primarily by a surge in consumers embracing e-commerce. According to the most recent report from the Indonesian Retailers Association (APRINDO), retail sales climbed by 5.7% year-on-year in August, reflecting a rebound from a dip recorded earlier in the year. This resurgence is particularly notable given the effects of global economic pressures, which had left many retailers tentative about their recovery prospects.

    A Turnaround in Retail Sales

    The robust performance in August marks a high point in a year that many had written off as uncertain. APRINDO’s report indicates that both offline and online retail environments contributed to this growth, with e-commerce continuing to gain ground as consumers relish the convenience and variety it offers. Amidst this changing landscape, traditional brick-and-mortar stores are also adapting, integrating technology to enhance customer experience while still engaging in creative marketing strategies to capture foot traffic.

    E-Commerce Takes Center Stage

    As more Indonesian shoppers turn to their screens for purchases, the e-commerce segment has skyrocketed, with an almost unprecedented growth rate reported. Marketing teams across various sectors are scrambling to keep up with changing consumer preferences, often resulting in promotions that are as surprising as they are lucrative. Who knew that a flash sale for customized rubber boots could reignite interest in rainy season gear?

    The Changing Face of Consumer Behavior

    Consumer behavior is evolving; millennials and Gen Z are increasingly driving the market. They prioritize convenience and sustainability, prompting retailers to rethink their strategies to stay relevant. This demographic shift calls for a keen understanding of how to engage a younger audience that values not just the product, but the story behind it.

    Challenges Ahead

    While the news is largely optimistic, challenges loom on the horizon. Supply chain disruptions and inflation remain current concerns, potentially making it tricky for retailers to maintain this positive momentum. Companies are advised to remain nimble, as economic forecasts indicate that maintaining growth will necessitate flexibility and innovation amidst ongoing uncertainties.

    In a landscape where every sales event feels like a competition for the consumer’s attention, retailers must ensure that their strategies blend affordability with experiences that resonate deeply with their desired audience. As we look ahead, it’s clear that adaptability is key to navigating this ever-evolving retail terrain.

    Questions & Answers

    What has driven the increase in Indonesian retail sales?
    A combination of factors, particularly the growing popularity of e-commerce, has fueled the increase in Indonesian retail sales, with significant contributions from both online and offline channels.

    How are retailers adapting to younger consumers?
    Retailers are adjusting their strategies to cater to millennials and Gen Z, focusing on convenience, sustainability, and compelling narratives behind their products to engage these younger shoppers.

    What challenges could impact future retail growth in Indonesia?
    Supply chain disruptions and inflation are significant challenges that could affect future growth, necessitating adaptability and innovation among retailers to sustain momentum in an uncertain economy.

  • Asia’s Retail Revolution: The Rise Of E-commerce And The Reinvention Of Brick-and-mortar Stores

    Asia’s Retail Revolution: The Rise Of E-commerce And The Reinvention Of Brick-and-mortar Stores

    With the rapid evolution of retail landscapes in Asia, understanding current trends is more critical than ever for industry players. The momentum generated by shifting shopping behaviors continues to challenge traditional models, sparking innovation across sectors from e-commerce to brick-and-mortar.

    The Surge of E-Commerce and Its Impact on Retail

    As consumers increasingly gravitate toward online shopping, e-commerce has burgeoned into a dominant force in the Asian retail market. In 2022 alone, e-commerce sales in Asia surged to around 1.04 trillion USD, capturing nearly half of the global e-commerce market share. This boom not only reflects a shift in consumer preference but also highlights the pressing need for retailers to adapt swiftly to this digital-first environment. Retailers are investing heavily in user-friendly apps, streamlined logistics, and personalized shopping experiences to captivate the evolving demographic of online shoppers.

    Brick-and-Mortar Retail: Reimagining the In-Store Experience

    Yet, the physical store isn’t surrendering its relevance just yet. In fact, many retailers are creatively transforming brick-and-mortar locations into immersive experiences that go beyond mere shopping. Think of stores as destinations where consumers can engage with products firsthand, attend specialized events, or even participate in exclusive workshops. This experiential approach brings a vibrant twist to conventional retail, ensuring that customers aren’t just passive buyers, but active participants in their shopping journey. Ultimately, the goal is to create an environment where purchasing becomes a delightful experience rather than a mundane task.

    Asia’s Unique Consumer Behavior: The Playful Twist

    What sets Asia apart in the retail scene? An intriguing blend of cultural diversity, rapidly changing technology, and age demographics. Millennials and Gen Z, who comprise a substantial portion of consumers, favor brands that resonate with their values, placing an emphasis on sustainability and social responsibility. Ironically, this demographic enjoys frequenting stores—not just for shopping but as social hotspots where they can unwind or snap that perfect Instagram shot. Who would have thought that retail therapy could also be about capturing social media fame?

    Future Trends and Challenges Ahead

    As we look to the future, the retail industry must navigate complex challenges, including supply chain disruptions and evolving consumer expectations. Retailers in Asia are employing omnichannel approaches, allowing for seamless transactions across platforms, while also leveraging data analytics to comprehend consumer behavior better. The key to thriving in this competitive sphere lies in the ability to embrace change and innovate continuously.

    In a rapidly evolving retail landscape, one thing remains clear: while the tools and platforms may change, the heart of retail will always be about connecting with customers in meaningful ways.

    Questions & Answers

    How is e-commerce shaping the retail market in Asia?
    E-commerce has become a juggernaut in Asia, accounting for around 1.04 trillion USD in sales in 2022 and significantly reshaping how consumers shop, pushing retailers toward more digital-first strategies.

    What innovative strategies are brick-and-mortar stores employing?
    Retailers are transforming physical stores into immersive experiences, offering exclusive events and interactive workshops that make shopping a more memorable journey beyond mere transactions.

    What consumer trends are influencing retail strategies in Asia?
    The Asian consumer landscape is shaped by Millennials and Gen Z, who prioritize brands that align with their values of sustainability and social responsibility, and seek engaging social experiences in retail spaces.