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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.

  • Two enterprise technology predictions for 2017

    Two enterprise technology predictions for 2017

    1. Retailers build competitive advantage through the Internet of Things

    With Hong Kong retailers still struggling in the face of falling tourist numbers, restricted spending from Mainland Chinese shoppers and fierce competition from e-commerce channels, I believe that bricks and mortar operations will focus on building competitive advantage through the Internet of Things (IoT) in 2017.

    Connected devices such as beacons and retail sensors are already helping some shopping mall operators to track footfall and visitor flow in order to determine optimal mall and store layouts, and to maximise rent yields.

    IoT technology also has the potential to enhance customer loyalty.  For customers that have opted in, there’s an opportunity for retailers to send personalised coupons or limited-time deals that bring more value to the traditional, in-store shopping experience.

    As more retailers explore the possibilities of IoT, consumers will no doubt take an interest in what personal data companies are accessing and how they plan to keep it safe. Already, there have been major news stories about security vulnerabilities in IoT devices.  Smart retailers will embed security protocols at the heart of their IoT services and processes to protect the data they harvest.

    As the need for IoT security emerges, businesses may also reconsider other cybersecurity vulnerabilities in terms of operations, finance and more. Many enterprises are not yet prepared for unexpected, malicious attacks, and might consider outsourcing cybersecurity management and adopting trusted cyber insurance solutions to stay one step ahead of the threats.

    2.  Blockchain drives financial service innovation

    In 2017, we can expect blockchain to firmly establish itself as a financial technology worth getting excited about, distinct from the hype – and the hitches – of bitcoin.

    Blockchain is a simple and elegant technology that can track the movement of money, authenticate transactions and validate ownership of financial assets. At its core, blockchain is a distributed database composed of blocks of transactional information, each one containing data about every transaction that came before, to form a chain. Fast and efficient, it’s also secure by design – a hacking event might affect one block, but the chain won’t be broken.

    In the coming year, I expect entrepreneurs – especially in the financial services industry – to look more closely at the type of businesses that can be built on blockchain.

    The Hong Kong Monetary Authority (HKMA) is already leading the way with its FinTech Supervisory Sandbox initiative, announced in September 2016. By promoting an experimental space with less regulation, the HKMA is opening up new possibilities for Hong Kong innovators to spearhead pioneering fintech services. Commercial centres in Asia and worldwide are already positioning themselves to be at the forefront of fintech, making 2017 an important year for Hong Kong to assert its own leadership in this space.

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  • Mobile app usage growth shows signs of slowing

    Mobile app usage growth shows signs of slowing

    The mobile apps industry managed to achieve growth throughout last year, but signs suggest that usage growth is slowing down, according to Yahoo unit Flurry.

    Over the last year, the Flurry footprint grew to track more than 940,000 applications, across 2.1 billion devices, in 3.2 trillion sessions. In this context, app usage is defined as a user opening an app and recording what Flurry calls a “session”, as well as the amount of time spent in the application.

    Compared to the year prior, overall app usage grew by 11% and time-spent in apps grew by 69%. In previous years, all app categories had grown in tandem. However, this year the story is different.

    Mobile apps started eating their own, with session and time-spent growth in some app categories occurring at the expense of others. While Messaging and Social applications drove year-over-year session grow at 44%, the Personalization category gave up a staggering 46% in session usage. This steep decline in usage can be attributed to diminishing value for users of these products.

    In 2016, time spent in Social and Messaging apps grew by a strong 394% over the previous year, proving to be the driver that helped mobile achieve its year-over-year time-spent growth of 69%.

    This is a result of consumers using their social and messaging apps as their voice and video calling utilities, as well as the phenomenon Flurry calls Communitainment. With news and magazines sessions down 5% and Music, Media and Entertainment up only 1%, it’s safe to say that Social has absorbed the media industry.

    Business and Finance (up 43% in time-spent) and Sports (up 25% in time-spent) categories were immune to growth decay because they are intrinsically centered around mobile activities and rely on real time data.

    Gaming, the app category formerly known as “the darling of the mobile industry” saw time-spent decline by 4% year-over-year. Users are increasingly comfortable paying their way through games, with the mobile gaming industry seeing a strong increase in revenues according to Apple’s latest App Store report. Additionally, gaming remains a hit-driven industry.

    This year’s first “hit”, Pokémon Go, faded relatively fast, as consumers lost interest in the game, only returning for marquee holiday events. Another notable hit, Super Mario Run, was released too late in the year to make a difference for the overall engagement numbers.

  • Five E-commerce Business Models Destined to Rule Thailand in 2017

    Five E-commerce Business Models Destined to Rule Thailand in 2017

    2016 predicted Thailand’s e-commerce boom and it has been forecasted that in 2017, internet users in Thailand will make up 50 percent of the population compared to last year’s 43 percent.

    Once plagued by a shaky foundation of uncertain payment settlement systems and a faltering mobile infrastructure, it seems Thailand has overcome that hurdle and in 2016 became Southeast Asia’s fastest growing e-commerce market.

    With a retail market that is expected to reach 3.21 billion by 2020 – according to Euromonitor International, Thailand is without a doubt carving its niche within the world of e-commerce.

    Fueled further by the launch of 4G services, it seems a path has been paved for numerous online retailers to up their game and offer greater formats of product distribution to an internet-savvy pool of consumers.

    Here are five types of e-commerce business models that are currently taking Thailand by storm.

    Meal Delivery Sites

    With the clean eating craze going strong – particularly in cities – healthy food delivery websites are becoming an increasingly popular business model. Offering healthy alternatives that run from organic to vegan to low-calorie and non-processed foods, the success of these websites can be attributed to the fact that they offer to take away the hassle thought to encompass healthy eating, aka grocery shopping etc. By eliminating these factors, the popularity of meal delivery sites can only grow exponentially.

    Online Deal Platforms

    Capitalising on the Thais’ love for a great deals, the humble coupon is back and stronger than ever. With online deal platforms such as Saleduck offering coupons and deals from powerhouse retail websites like Lazada and Expedia, consumers are able to find money-saving deals on everything from electronics to groceries to first-class airline tickets going for up to 80% off. To set themselves apart from competition, deal and couponing platforms often work closely with their partners to release exclusive codes to provide even greater savings to their customer base and the fact that most of these codes can be accessed without a fee is the icing on the cake.

    Social Media Shopping

    In 2016, PWC’s Total Retail survey noted that 51 percent of online shoppers in Thailand shopped directly through social media platforms such as Facebook and LINE citing interactivity as a strong motivator. Whilst price and convenience play a significant role, the driving force behind social media shopping can be linked to the stream of human connectivity that takes its form in reviews, comments and feedback that comes via social media. 53 percent of social media consumers said that customer reviews are what influences their buying decision.

    C2C Mobile Shopping

    Following in the same vein as social media shopping, C2C is also cited as one of the next big things to emerge in Thailand’s e-commerce ecosystem. The person to person interaction is an element that serves as the heartbeat of successful C2C platforms such as Pantipmarket and Tarad.com. Over 50% of online transactions being performed via mobile phone in Thailand, this is expected to further push consumer-to-consumer shopping further into the limelight.

    Digital Content Websites

    From mobile gaming to SVOD, Thailand’s digital revolution has certainly altered the ways in which people consume content. With over 10 different paid platforms for Thais to choose from including iflix and Doonee, Thailand’s affinity for mobile internet use plays a role in how we choose to consume content via digital platforms. In the world of gaming alone, major telecom operators in Thailand have announced strategies in acquiring digital content and games in an effort to meet the rise in demand.

     

  • Online marketing essential for enterprises in digital era

    Online marketing essential for enterprises in digital era

    Despite a large number of Internet users, investment for online advertisement in Việt Nam remains modest, a conference heard on Thursday.

    The Institute for Brand and Competitiveness strategy co-ordinated with the Việt Nam Internet Association and Việt Nam Digital Communication Association to organise a conference on building enterprise branding in the digital era in Hà Nội.

    Over the past decade, the Internet boom has had a significant impact on marketing activities, as well as the building and positioning of brands in the market.

    Internet has also created stronger brand awareness than ever before and increased the number of people who know brands. According to the Institute for Brand and Competitiveness strategy, Việt Nam ranks 16th among the top 20 countries with the highest number of Internet users, with nearly 50 million people, of which, 60 per cent are young.

    The Internet has become a popular source of advertising to users who want to search for product information. Seventy-three per cent of Vietnamese consumers seek out information on the Internet before making purchase decisions.

    Most consumers in Việt Nam choose products and services based on brand identities.

    Therefore, experts advised businesses to make changes to their business operations, adjusting brand identity to avoid falling behind compared to rivals.

    To build brands in the digital era, businesses need to increase interaction in different environments, including the online environment, said Nguyễn Quốc Thịnh, an advisor for the National Trademark Programme.

    “Businesses should not skip electronic branding, a strong interactive environment with low associated costs,” said Thịnh.

    Enterprises need to rethink the way they build their brands, not just their logos or advertising in the media, he said.

    Currently, the application of the Internet in general, and digital technology in particular, to create and develop brands is still limited.

    Data from Cimigo, a market research firm, showed that investment for online advertising in Việt Nam was only US$15 million in the past year.

    Meanwhile, according to statistics from TNS Media Vietnam, the cost of online advertising accounts for less than 5 per cent of the total advertising costs, while 95 per cent of advertising spending is still through television, newspapers, magazines, even though these forms are more expensive.

    Vũ Xuân Trường from the Institute for Brand and Competitiveness strategy said that many businesses were paying attention to profits and business strategy, while their strategies for branding remained “vague”.

    Therefore, businesses need a better strategy in branding in the digital era. In particular, businesses should focus on social networks due to their widespread use.

    Experts said that businesses need to take advantage of opportunities afforded by the Internet to build their brands. Enterprises also need to increase connections with consumers, while ensuring the quality of goods and services.

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  • Time spent on social, messaging apps grew fourfold in 2016

    Time spent on social, messaging apps grew fourfold in 2016

    Yahoo’s Flurry this week released its annual State of Mobile report, which found that social and daily habits apps dominated time spent on mobile apps in 2016.

    Specifically, the study found that the time spent in social and messaging apps grew by four times (394%) over the last year, compared to an average growth of 69% across all tracked segments.

    In its eighth year, the study offers insights on global mobile app usage and trends gleaned from over 2.1 billion smart devices and 3.2 trillion sessions. Phablets continue to dominate with 41% of market share, while small phones now account for just 1% of the market share, said the report.

    “Over the last year, the Flurry footprint grew to track more than 940,000 applications, across 2.1 billion devices, in 3.2 trillion sessions. In this context, we define app usage as a user opening an app and recording what we call a ‘session,’ as well as the amount of time spent in the application.” said Simon Khalaf, a senior VP at Yahoo. “Compared to the year prior, overall app usage grew by 11% and time-spent in apps grew by 69%.

    Khalaf noted that not all app categories grew in tandem in 2016, observing that certain categories of mobile apps have continued growing in terms of session and time-spent at the expense of others.

    For instance, a steep decline in usage is evidenced in the personalization category, which the report attributed to diminishing value for users of these products. Ultimately, the decelerating rate of growth could signal market maturity, saturation or simply the end of the app gold rush.

    “But let us put things in perspective. The gold rush in California ended in 1855. A lot of wealth has been generated since then. We are excited to see what app developers do in the next decade and which industry they chose to disrupt, again,” Khalaf said.

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  • Consumers willing to accept ads on IoT devices

    Consumers willing to accept ads on IoT devices

    The majority of consumers, at least in the US, are fine with the idea of ads on IoT devices, according to an Interactive Advertising Bureau (IAB) study on consumer adoption patterns and trends.

    In the survey of 1,200 US adults, 65% of IoT device owners said that they are willing to see ads on their IoT screens. What’s more, 62% already do, the study added.

    Devices examined in the study included connected cars, internet-enabled home control devices, internet-enabled appliances, smart watches, wearable health trackers, internet-enabled voice command systems, smart TVs, VR headsets and smart glasses.

    Incentives are the prime motivators.

    The report showed that 55% browsed through ads get coupons, while 30% searched for extra features and 22% loved playing exclusive games.

    Affluence and age matter when gauging consumers’ willingness to see ads on their IoT devices.

    According to the report, 69% of those who earn $100,000 or more and 68% of those aged 18-34 years are “more likely to see the value exchange of receiving such ads on their devices.”

    While the above results cater to only US consumers, it does indicate a growing willingness among consumers to view ads if the rewards are clear.

    It also offers valuable clues for CMOs who are looking to cash in the upcoming IoT boom and get into the living spaces of consumers.

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  • Global ad revenue on pace to $590b in 2017

    Global ad revenue on pace to $590b in 2017

    Big brand budgets and quadrennial events such as the Olympics, European Football Championship and US presidential election will drive 2016’s global advertising revenue growth to $532 billion.

    The advertising industry is about to turn the corner thanks to the global economy getting back on track, according to a new report released by IHS Markit.

    Advertising revenue will grow 7.1% in 2016 to $532 billion. Strong growth in global real private consumption also buoyed advertising revenue as brands tried to take advantage of heightened consumer spending. Advertising revenue accounted for 0.69% of global GDP in 2016, up from 0.66% in 2015, the report said.

    Top 10 markets

    The top 10 markets make 75% of the global revenue figure. The top 10 markets still account for the lion’s share of global advertising revenue. However, their collective power has dropped due slowdowns in the Chinese and Brazilian economies, which were the rising stars in the top 10 in 2015.

    The top 10 accounted for 76% of global ad revenue in 2015; it dropped to 75% in 2016.

    Four out of the five fastest growing countries in 2016 were in Africa. Ghana and Kenya have been high on the list of many media companies’ expansion plans, and we are seeing growth above 20%. These markets are still growing from a low base, but the sheer size of their populations means they are becoming interesting targets for big brands.

    TV remains number one, but online will overtake by 2020

    TV was the number one medium globally for advertising revenue, accounting for $192 billion, or 36%, of global revenue. Despite the incredible growth of online giants like Facebook, Google and Snapchat, the TV market continues to benefit from big brand budgets. Quadrennial events such as the Olympics, the European Football Championship and the US elections helped keep TV on top.

    However, revenue from online advertising will overtake TV within the next five years. In some countries such as the UK, online already accounts for almost 50% of total advertising revenue and will only keep getting stronger.

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  • Global device sales set to stay flat until 2018

    Global device sales set to stay flat until 2018

    Worldwide combined shipments of PCs, tablets, ultramobiles and mobile phones are projected to remain flat in 2017 with 2.3 billion units, according to Gartner.

    There were nearly 7 billion phones, tablets and PCs in use in the world by the end of 2016. However, Gartner does not expect any growth in shipments of traditional devices until 2018, when a small increase in ultramobiles and mobile phone shipments is expected.

    “The global devices market is stagnating,” said Ranjit Atwal, research director at Gartner. “Mobile phone shipments are only growing in emerging Asia-Pacific markets, and the PC market is just reaching the bottom of its decline.”

    Atwal said that aside from declining shipment growth for traditional devices, average selling prices are also beginning to stagnate because of market saturation and a slower rate of innovation.

    “Consumers have fewer reasons to upgrade or buy traditional devices,” he said. “They are seeking fresher experiences and applications in emerging categories such as head mounted displays (HMDs), virtual personal assistant (VPA) speakers and wearables.”

    Gartner sees the PC market benefiting from a replacement cycle toward the end of this forecast period, returning to growth in 2018. Increasingly, attractive premium ultramobile prices and functionality will entice buyers as traditional PC sales continue to decline.

    The mobile phone market will also benefit from replacements. There is, however, a difference in replacement activity between mature and emerging markets.

    “People in emerging markets still see smartphones as their main computing device and replace them more regularly than mature markets,” said Atwal.

    Device vendors are increasingly trying to move into faster-growing emerging device categories.

    “This requires a shift from a hardware-focused approach to a richer value-added service approach,” said Atwal.

    “As service-led approaches become even more crucial, hardware providers will have to partner with service providers, as they lack the expertise to deliver the service offerings themselves.”

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  • Why omni-channel payments need to be the new norm in retail

    Why omni-channel payments need to be the new norm in retail

    Electronic payments account for 69%1 of consumer transactions in Singapore – just slightly higher than the global average of 65%. The country’s e-commerce market, valued at US$1.39b in 2015, is predicted to exceed S$7b in 2025 with 60% of consumers saying they bought products online at least once a month2 – some even showing a growing preference to shop online and pick up their purchases in-store.

    Consumer buying habits aren’t rooted solely at retail locations or online. They shift between retail stores at malls, smartphones, laptops, and transient, yet trendy, pop-ups. In other words, consumers are omni-channel shoppers. So why haven’t payment systems followed in the same direction?

    In Singapore, it’s a common sight to see retail counters with multiple terminals serving different modes of payment: one for credit cards, another for debit cards, yet another for contactless payments. On the back-end, business owners spend hours liaising with various vendors, different banks, grappling with multiple platforms and numerous devices.

    Businesses could instead integrate payments across multiple platforms – increasing efficiency and profits by adopting a seamless, omni-channel payments system. In doing so, they would be able to process payments with greater speed and efficiency saving time and resources in their back-offices, leverage integrated data for actionable insights, and offer customers a seamless, integrated experience.

    1. Greater efficiency
    70% of businesses surveyed in a KPMG report agreed that there are simply too many payment methods to deal with. Many retailers have multiple banking contracts and relationships across Singapore to manage, each of which provides part of the company’s in-store payment solution. This represents an enormous investment in managing reports and financial flows.

    By adopting omni-channel payments, businesses will be able to work across a single centralised platform that enables businesses to accept and process payments across multiple markets. In doing so, retailers can drastically simplify these processes, cut down on the human resource and financial investments needed to manage their payment acceptance.

    2. Leverage data for actionable insights
    The use of technology and data allows local retailers to gain business intelligence and insights into areas such as purchasing habits. Integrating payments from the point-of-sale (POS) system with accounting software or customer relationship management (CRM) systems to capture disparate pieces of information enables retailers to better serve their customers. Leveraging insights gleaned from payment information, retailers can decide when and who to offer discounts and deals to drive sales.

    Having access to cross-channel shopper data gives merchants a treasure trove of information that can be analysed for patterns online and offline. They can then mine this information for customer retention and loyalty marketing. Many merchants are already beginning to offer their customers an omni-channel shopping experience and in doing so significantly improve the shopper experience.

    An example: a shopper makes a number of purchases from an e-commerce site. Several months later, she goes shopping whilst on vacation. At the checkout, the terminal recognises the shopper’s card, and the staff member adds a discount and a personal thank you thus delighting the customer with an even more seamless, personalised experience.

    3. Seamless customer experience
    Businesses need to recognise that the customer journey today is fluid, accessible, and continuous. Shoppers can, and want, to purchase whatever they want, without restrictions on time, location, and across social, online, and mobile channels.

    Businesses too need to provide a seamless experience and allow customers to start a purchase in the channel of their choice and complete it in a potentially different channel of their choice.

    Here’s what a customer journey might look like: a shopper goes into a store and wants a shirt in a different colour than what’s currently available in-store. If a store has adopted an omni-channel approach, the shopper can go to the in-store tablet-assisted sales terminal that carries the entire web-based inventory, choose the colour they want, make the payment on the spot, and have it delivered to the address of their choice.

    Omni-channel payments enable retailers to service customers across multiple channels (in-store, online, or mobile); retail sectors, payment types (NETS or debit and credit cards), and payment methods (contactless, chip and PIN, magnetic and online) through mobile point-of-sales devices, payment gateway, or virtual terminal. In doing so, the store has gained a purchase rather than losing an opportunity.

    With discerning consumers becoming increasingly accustomed to omni-channel payment capabilities, it will transform “the next big trend” into “the new norm” for consumers in Singapore.

    1.https://newsroom.mastercard.com/asia-pacific/press-releases/singapore-among-top-markets-in-asiapacific-advancing-towards-a-cashless-society-new-mastercard-report/
    2.https://www.pwc.com/sg/en/publications/assets/total-retail-sea-2016.pdf

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  • Affin Hwang Research retains Neutral on consumer sector

    Affin Hwang Capital Research is retaining its Neutral sector rating on the consumer sector and recommends stocks with solid track records and high yields, with Heineken as its top pick.

    It said on Monday while the Q3, 2016 earnings mainly disappointed,  it believes consumer spending will recover slowly in 2017 as the consumer sentiment index should pick up, backed by positive government initiatives.

    “Sector net profit fell by 26% YoY, with six of nine of our companies below expectations. We changed two ratings this round: we upgraded BAT to Hold on a share-price retraction which brought about more attractive dividend yields; and we downgraded MSM to Sell, as raw sugar prices have risen strongly, hurting margins.

    “We also recently upgraded Hai-O to Hold on better-than-expected growth in its multi-level marketing (MLM) division,” it said.

    Affin Hwang Research pointed out that while the Malaysian Institute for Economic Research (MIER) consumer sentiment remained low at 73.6 in 3Q16 – a slight pickup from an all-time low of 63.8 in 4Q15 since the global financial crisis – it was still below the 100-point threshold.

    According to Nielsen, Malaysian consumers are among the least confident in Asia Pacific. Given potentially higher transport costs and food prices partly due the removal of the cooking oil subsidy, it forecasts a higher full-year inflation rate of 2.7% in 2017 (vs. 2.2% in 2016E).

    Comparatively, MIER’s retail trade index improved to 111.6 in Q316, above the 100-point threshold, which seems to indicate that expected sales and business conditions will strengthen.

    Retail Group Malaysia forecasts 5% on-year growth in 2017 (vs 3% on-year  in 2016E and 1.4% on-year in 2015), expecting a boost on increased tourist arrivals. Budget 2017’s key initiative to increase government aid under the BR1M scheme by as much as 20% with an allocation of RM6.8bil and special assistance of RM500 to all public servants should also help boost consumer spending.

    “Nonetheless, the retail sector remains challenging, with earnings before interest and tax (EBIT) margins and same-store-sales growth in a downturn. The F&B segment will likely be hit by higher raw material prices moving forward.

    “While the tobacco segment lacks positive catalysts, BAT’s share price has come down and now offers dividend yields of 5% or more, on our estimates.

    “We are generally still positive on the brewery sector, which had done well in previous quarters, and we like our two stocks, Heineken and Carlsberg, for their dividend yields.

    “We expect domestic consumer spending to recover slowly in 2017, as consumer sentiment is expected to improve from its low base, supported by stable labor market conditions and a large young population. Maintain Neutral. We advise investors to focus on companies with defensive characteristics and attractive dividend yields,” said Affin Hwang Research.

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  • Multivo – The all-in-one revolution in shelf management to boost your profit

    Multivo – The all-in-one revolution in shelf management to boost your profit

    After 2009 when the financial crisis hit most part of the world, labor productivity has fallen in many countries while minimum wages have increased steadily. As a consequence, many retailers and brands owners are experiencing pressure on already low margins, which put larger focus on improving retail store efficiency. Volumes are relatively flat, though in some studies have indicated that the basket size maintains itself but the number of visit per year decreases. Improving store traffic is high up on most retailer’s agenda.

    The questions now emerge, how to create differentiation between retailers and brands, how to increase the sales, and how to reduce the labor costs?

    This leads the retailers and brands owners need to continuously innovate, not for novelty but to bring about change for the better. With the extensive knowledge of retail environment and customers’ needs and challenges, HL Display Indonesia are now launching a new innovation within shelf management system named Multivo™.

    Multivo™ is the newest shelf management system that makes the daily work of refills, front facing and planogram changes easier and faster than ever. The system is especially suited for health and beauty category but can also be used for multiple products and pack types. The solution allows automatic fronting of more pack types than ever before.

    https://www.youtube.com/watch?v=Nrfb8iFAO8o

    Having a good visibility is proven to drive sales. Reducing time spent of fronting, refill and planogram changes is a key for today’s retailers and brands owners. Multivo™ maintains products faced up and ensures that shelves always look attractive and well-stocked without staff having need to invest too much of their time keeping the shelves in order.

    For further information, HL Display Indonesia is based in Jakarta office can be directly contacted during office hour at +622179186024 / +622179198613 with the attention to Ms. Sharania Pangalila, or e-mail to [email protected] or  [email protected].  Visit the company website at www.hl-display.com/asia.

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  • Mobile fuelling growth in Asia’s startup scene

    Mobile fuelling growth in Asia’s startup scene

    Mobile connectivity is fueling growth in Asia’s startup scene, a survey from Telenor Group shows.

    The survey covered technology buffs to better understand key startup trends for 2017 and the challenges and views of entrepreneurs in Asia.

    The survey was conducted over Facebook and LinkedIn with 215 respondents aged 15 to over 55 years old from Bangladesh, India, Malaysia, Myanmar, Pakistan, Singapore, Thailand and other Asian countries.

    To gauge the interests and personalities of the survey respondents, each person was assigned the type of startup they were most likely to create in 2017, based on pattern of their responses. 38% of respondents were found to be the most likely to create an IoT startup in 2017, significantly outnumbering the number who would establish medtech startups (22%), on-demand startups (14%), enterprise startups (11%) and fintech startups (10%).

    With a potential market of 34 billion devices expected to be connected to the internet by 2020, and nearly US$6 trillion to be spent over the next five years, it appears Asia’s entrepreneurs are well aware of the potential opportunities offered by the Internet of Things.

    In addition to these 2017 startup trend insights, the survey findings also hint at what Asian entrepreneurs think it takes to succeed in the tough startup world. More than a third of respondents (36%) believe that cybersecurity and data privacy is their number one priority, and keeping their customers’ data safe and secure is the biggest challenge facing Asian startups.

    One in 4 also admitted that the lack of business management skills and experience is another major obstacle, and having access to expert guidance would be an important growth factor. Another 16% say they are hampered by public policy frameworks and environments that are not conducive to startups, while 14% say that sustained funding across all stages of startup development would be important. Fewer than 1 in 10 were seen as were concerned with the challenge of expanding into other markets in the region.

  • Live Streaming, Gaming Apps And Chat Bots – Here Are 6 Trends We’re Excited For In 2017!

    Live Streaming, Gaming Apps And Chat Bots – Here Are 6 Trends We’re Excited For In 2017!

    As we enter into the new year, it seems only natural that we share all the Singapore technology trend in 2017 what we’re excited about, and what we foresee happening in the digital space this year.

    Here are our top 6 picks!

    1. The Rise Of Chat Bots

    Chat bots have been made popular especially since June 2016 – when Facebook launched them in Messenger.

    Over the past few months, developers have been experimenting with various chat bot use cases, and according to Facebook, while the early chat bot attempts by developers have been “really bad“, the quality of chat bots have generally improved over time.

    According to David Marcus, Facebook’s vice president of messaging products, the best use cases include driving people toward subscriptions, facilitating small transactions, and customer service.

    This year, we definitely expect companies in Singapore to come out with smart use cases for Chat Bots and integrate them into their product offerings. We also expect a rise of companies offering professional services around Chat Bots.

    2. Mega Apps

    One of the fastest growing regions in the world now is China – and if you have been following its development closely, the dominant platform now is undeniably WeChat.

    WeChat introduced the idea of “apps in apps” or “instant app”, and is literally the “one app to rule them all” in China.

    Its concept is very interesting, because with it, you can perform everything beyond just chatting with your contacts – from product purchases to payment, to joining interest clubs (WeChat has a fitness tracking feature called WeRun), to booking a cab and making restaurant reservations, there’s a high possibility of relying on the app for most everyday processes!

    If you are interested in finding out more, here are 10 WeChat travel industry case studies where companies integrating their business with WeChat’s platform – very fascinating.

    And who knows, we might just see a mega app in Singapore to rule them all this year.

    3. Breakout Gaming Apps

    The third thing we’re excited about this year is in the mobile gaming space.

    We’re expecting at least 2 or 3 mega breakout gaming apps this year. While we have no clue on what would pop up, we expect more gaming developers to take the cue from Pokemon GO’s brilliant use of augmented reality to create a real world interactive gaming experience. Pokemon GO was (still is) a game that transcends age, gender and race, and sets very high standards in the gaming community.

    We have yet to see a huge breakout gaming app from Singapore – and hopefully, 2017 is the year we will see one that will fly our Singapore flag high and proud in the global gaming arena.

    After all, there’s a dedicated area by the government called Pixel Studios dedicated to catalyse the creation of valuable gaming apps in Singapore.

    4. Smart Companies Taking Up Dead Retail Space

    One of the biggest trends is that retail vacancy is at its highest in decades. With recession (Singapore only reported an overall economic growth of 1% in 2016, and projects a growth of 1% this year) looming, as well as competition from e-commerce, it’s no wonder that retailers are unable to make ends meet, and some are even forced to move out from their physical locations.

    Of course, not all is doom and gloom though – we’re expecting resourceful and entrepreneurial individuals to negotiate contracts and/or deals with shopping mall operators which would be flexible and thus beneficial to the former.

    We expect smarter usage of spaces, with digital companies taking up physical locations around in Singapore as an extension of their business.

    Take Naiise for example. Originally a design centric e-commerce company, it has now expanded to 6 physical locations around in Singapore. Or take co-working space operator Spacemob for example, which raised almost S$8 Million in funding last year.

    Both Naiise and Spacemob are examples of smart innovators taking advantage of retail space in Singapore, and bringing the arrangement’s benefits to both space owners and consumers alike.

    5. Live Streaming

    Another space that we (ok, maybe just me) are personally very excited about is the live streaming space.

    At this moment, I think that we are still barely scratching the surface of the possibilities of live streaming. Live streaming is something different from usual platforms, and allows brands and personalities to appear more authentic and spontaneous. It also helps garner immediate interaction with the public – something which brands are all severely lacking nowadays, as they seem to chase quantity over quality.

    Another thing about live streaming is that it is completely powered by millennials, given how they often have FOMO (fear of missing out), and want to always be in-the-know of the latest trends and happenings. Where stock images and highly-edited content flood our social feed, live streamed content also offers experiences that are more ‘honest’.

    Live streaming has already exploded in China, but we have yet to see mainstream adoption in Singapore – but that’s something we’re expecting to change dramatically this year.

    6. Government Becoming Increasingly Digitised

    The last thing that we are excited about this year is that Singapore is becoming increasingly digitised.

    Taking the lead for digitising Singapore is GovTech, which sits under the newly-formed stat board IMDA. As the agency responsible for most of the digital applications used by the different government bodies, they are helping government services to move online and become mobile-friendly, all in the name of convenience for the average Singaporean.

    They also constantly monitor data from these e-Government services and get user feedback so as to keep improving what’s offered.

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  • Retail trends for 2017: AI shopping, mini stores

    Retail trends for 2017: AI shopping, mini stores

    Today’s consumers are increasingly looking for specific and engaging experiences while shopping, according to an analysis from Lotte Department Store’s research team for retail trends. The team proposed a set of guidelines to help retailers prepare next year’s business strategies.

    “For modern customers, shopping is not only about buying products, but a complex experience,” said Na Hyun-jun, head of Lotte Department Store’s retail research team. “The key would be how successfully retailers provide new shopping experiences while catering to the increasingly segmented needs of consumers.”

    The first is the trend for smaller department stores that focus on catering to tastes of specific demographics. Mini department stores are frequent in Japan. Tokyo-based retail giant Isetan Mitsukoshi has more than 120 small and midsized stores nationwide near airports and train stations. Lotte Department Store opened three “el CUBE” stores in a similar concept this year, and their contents slightly differ according to visitors’ demographics.

    Personal curation for shoppers is another target selected by the team. Item choice is becoming more difficult for consumers as new products are constantly released. In the past retailers used personal shopping assistants, but recently shoppers have been using new technology like artificial intelligence and big data. In March, KT released the app Shodoc, which recommends products according to consumer demographics.

    Lotte also pointed out that consumers are more impulsive due to the development of technology related to shopping, like easy payment methods via apps. This has helped consumers purchase items immediately after seeing them online or via smartphones. The human-less supermarket Amazon Go launched this month, marked the start of a trend of moving offline.

    Retailers are providing virtual reality services at brick-and-mortar stores. Virtual reality is a field especially favorable in the fashion industry. In May, eBay and U.S. retail brand Myer launched a VR department store that is accessible by a VR headset and an app. For luxury or high-end brands, however, expanding contact with consumers and providing the chance to experience products will become a core task in establishing brand image. In the past, companies had the image of being too difficult to relate to due to their premium images. This year, high-end car brand Bentley set up a showcase “studio” in a London mall just for brand image rather than sales.

    In terms of product category, retailers are slowly expanding their reach outside industrial goods to products they have not carried in the past. This year, Harrods Department Store in London had a pop-up store to display Emaar Properties’ real estate in Dubai.

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  • Mobile Research Starts The Purchase Cycle; 78% Buy Within The Day

    Mobile Research Starts The Purchase Cycle; 78% Buy Within The Day

    Once a consumer starts researching products on their smartphone, the actual purchase of a product is pretty close behind.

    In the U.S., the final purchase is most likely to occur in a physical store, which is not the case in some other countries.

    While different countries have varying degrees of penetration, the smartphone is considered the most important device for retail research by almost a third (30%) of all retail shoppers, according to a new report.

    The Global Mobile Path to Purchase study was conducted by xAD and Millward Brown and examined shopping behaviors in five countries (U.S., U.K., Germany, China and Japan).

    The importance of the smartphone as a research tool for retail purchase varies by country, with the device taking on more importance than desktops in China. Here’s the breakdown of where mobile is the most important device for shopping:

    • 50% — China
    • 44% — Japan
    • 32% — United Kingdom
    • 31% — United States
    • 29% — Germany

    There are a wide range of items that people are shopping for on phones. Consumers in Japan and China use phones for grocery shopping way ahead of other countries. In China, 88% of consumers use phones for grocery shopping, and 63% of consumers in Japan.

    By contrast, just over half (57%) of U.S. consumers use their phones for grocery shopping, with clothing and apparel talking the top spot. Here’s what consumers in the U.S. use their phones for when shopping:

    • 58% — Clothing and apparel
    • 57% — Grocery
    • 41% — Electronics
    • 39% — Home goods and improvement
    • 37% — Beauty and wellness
    • 31% — Games and entertainment
    • 23% — Sports and leisure

    While more consumers in Japan make purchases on their phones, U.S. shoppers head to the store for that final purchase. For example, 67% of consumers in the U.S. make a trip to the store to complement their mobile research compared to fewer than half (45%) in Japan.

    The real key in all of this is that once consumers start researching on their phones they are in the market to make a purchase relatively soon. Mobile research is the beginning of the intent to purchase cycle.

    Chinese and U.S. consumers are the quickest to convert, while Japanese consumers tend to take a bit more time. When shoppers start their mobile researching, here’s the breakdown of how many make a purchase within the day or sooner:

    • 86% — China
    • 78% — United States
    • 78% — United Kingdom
    • 73% — Germany
    • 49% — Japan

    After they begin their mobile research, more than half (54%) of U.S. consumers end up making the purchase in a physical store. In China and the U.K., more consumers make their final purchase via mobile rather than in person or via desktop.

    This may be a factor in the adoption of mobile payments, at least in stores.

    In the U.S., in-store mobile payments account for only 2% of all retail transactions, according to new research form GfK.  In China, it accounts for 24% of transactions.

    Shoppers in the U.S. may pass on mobile payments and prefer to make most of their purchases in a physical store, but that does not leave mobile out of the process.

    Smartphones are used all the way to the final purchase, for comparing products and checking prices of competitors. The consumer may end up buying at the store, but they likely used their smartphone to determine the product, the store and the timing of the buy.

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