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Tag: Research

  • SEA e-commerce market to grow at 23 per cent

    SEA e-commerce market to grow at 23 per cent

    Southeast Asia’s online retail market is expected to reach US$53 billion in the next five years, according to a recent analysis by Forrester Consulting. The report anticipated a compound annual growth rate (CAGR) for the industry of 23 per cent over the period, given the momentum of smartphone penetration and fast-growing economies in the region. Currently the area’s largest online retail market is Indonesia – which took 41 per cent of Southeast Asian online sales last year – followed by the Philippines with its strong base of social media users.

    The report identified fashion as the main driver of growth in Southeast Asia’s online retail market, while consumer electronics retains the greatest market share at 24.2 per cent. Fashion and cosmetics brands launched online are likely to be a more regular marketplace feature in the near future.

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  • China will flood US with its product

    China will flood US with its product

    Turnover in the Chinese retail industry will eclipse that of the US later this year, according to analyses. “Nothing is going to stop them,” said one commentator as new data emerged showing a fast-narrowing gap between the two markets. The fact China would overtake the US was never in doubt – China’s population of 1.4 billion is vastly more than the US population of 325 million.

    According to data from eMarketer, total Chinese retail sales will grow 7.5 per cent this year to reach US$5.636 trillion. But growth in the US is likely to be significantly slower at just 3.3 per cent, reaching $5.529 trillion.

    Not even the slowdown in China’s economic growth is likely to affect the figures – a rebound may even hasten the milestone.

    GlobalData Retail MD Neil Saunders says a big factor in the speed of China’s retail growth is the way the industry has evolved. In the US, retailers were established well before the advent of the internet meaning adapting to the new online environment has meant managing their brick-and-mortar stores while pursuing growth online.

    But in the US, the market began to mature in an online world, and online spending there will account for more than 30 per cent of total retail sales this year. In the US, online is predicted to account for less than 11 per cent.

    “The US retail environment grew up in a very different era,” says Saunders. “It grew up before the internet. There is a historical difference and an evolutionary difference, which has created this very different backdrop to retail.”

    The rapid rise of the Chinese retail industry has been fuelled by rising incomes across the country, the urbanisation of the population and a burgeoning middle class.

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  • How to deal with centennials

    How to deal with centennials

    All eyes are on Southeast Asia as the world’s next consumer powerhouse, with its young population and increasing purchasing power. Almost 280 million centennials – those born since 1995, also known as Generation Z, currently call this region home. While the size of this new generation alone makes them attractive prospects for retailers, their distinct behaviours set them apart as the ones to watch to crack Asia’s hyper-competitive retail landscape during the next few decades.

    Born into the digital age and mobile natives, centennials will soon be one of the world’s most demanding consumer groups with high standards and expectations of the online-shopping experience.

    Here’s what we know about the centennials….

    Webrooming vs showrooming

    Almost all centennials in Southeast Asia use the internet as part of their buying journeys, but their route is much more converged than other generations. Latest research commissioned by Dentsu Aegis Network, Here Comes the Centennial reveals that centennials like to use both online and offline channels – 97 per cent browse for products online before purchasing online (‘webrooming’) and 90 per cent look for products in store before buying online (‘showrooming’). Detailed research is a key part of their buying decisions – whether online or offline – to ensure they get the best price, as well as the best quality by going into stores to experience the product. Some 70 per cent browse online to find the best price, while 67 per cent use the internet for checking out product details and specifications and 65 per cent are checking out reviews.

    Smartphones have also created an environment where centennials can browse products wherever they are, whatever they are doing – multi-tasking to the extreme. For example, 52 per cent look at products online while eating, watching TV or hanging out with friends or family, while 38 per cent do so while commuting, and 34 per cent browse products while at school or college.

    Centennials use social-media platforms differently to previous generations, as an important and intimate touchpoint in their purchase and decision-making journey.  Social media applications (47 per cent) such as Facebook and Instagram are the second most popular place for them to shop in, while 49 per cent turn to such platforms for research on their future purchases, rather than asking friends (45 per cent) or family (27 per cent). Even a good reputation with friends and family does not feature highly as a motivator to purchase – just 15 per cent choose this as an option.

    Digital natives

    As digital natives, centennials expect technology to be an integral part of the experience, and are highly optimistic about the use of technology.

    Eighty-two per cent of centennials are excited about futuristic shopping technology such as virtual reality. They demand fast-and-easy experiences that allow them to research and buy products with minimal frustration.

    To this audience, commerce has moved beyond “buying something on a website” to a series of interactions, from enticing them to view a product to providing a personalised purchase experience, to where and when the product should be delivered. In this context, online retailers need to focus on understanding the centennial customer journey, specific to the category being sold. This can be done by incorporating relevant technologies which seamlessly enhance engagement along the path to purchase. For example, the research showed that “Good customer service/reliability” ranks third among qualities of an online store with this audience, with delivering a superior and excellent customer service option using chatbots rather than call centres a more significant differentiator than low prices and free/fast delivery that every other marketplace claims to offer.

    Brand irrelevance

    Brand name and image are no longer a priority of centennials. Only 11 per cent of centennials cite having a prestigious or famous brand as one of their top three attributes when choosing where to shop online. Instead, personalisation and convenience are key, as 76 per cent of respondents are happy to share data with websites, if it makes more relevant recommendations.

    E-commerce payments provide a unique example of this; despite being digital natives, the concept of a cashless society has yet to fully take off for centennials in the six countries surveyed, with 56 per cent of respondents still preferring to pay cash on delivery for their purchases. Whilst preferring digital shopping experiences, the next generation of online shoppers enjoy having a variety of payment methods to choose from, and 43 per cent of centennials will readily abandon their purchases because their preferred payment option is not available.

    This is also accompanied by a shift towards values-based purchasing, with 82 per cent agreeing that they “prefer to buy products from ethical or sustainable brands,” while 70 per cent express a preference for local brands.

    With centennials less responsive to traditional campaign and brand-based purchasing, and increasingly influenced by disparate sources of dynamic information and opinions, retailers can no longer just rely on well-designed stores or brand campaigns to drive sales. Instead, driving a unified brand experience across multiple touchpoints will be key to unlocking the centennial consumer opportunity.

    This year

    So what does this all mean for retail this year and beyond?

    Southeast Asia’s internet economy is expected to exceed US$240 billion by 2025, according to research from Google and Temasek. One in two of centennials surveyed are already spending more than $30 per month online. Nine per cent indicated that they spend more than $100 a month – and as the centennial generation comes of age and joins the workforce, their disposable incomes will increase further.

    This combination of large populations, high connectivity and smartphone penetration rates, and increasing online spending power means the centennial opportunity in Asia is large and growing. We will increasingly see e-commerce technology accelerating this year to help create innovative and memorable brand experiences of the consumer.

    Centennials represent tomorrow’s consumer. They are looking for integrated solutions and a seamless experience that will allow them to purchase anywhere, anytime, and on their own terms. As this new group of consumers become increasingly elusive and multi-channel savvy, retailers need to harness creativity and technology in new ways. Combining new media and technology to deliver innovative and memorable brand experiences is the key to success – and brands are learning quickly in order to tap the huge centennial opportunity here in Asia.

    For example, in Thailand, Cotton USA worked with Vizeum and Isobar to launch the Cotton USA online store through an experiential shopping campaign “Shop the Runway”, partnering e-commerce marketplace 11Street.

    Targeted at the Centennial audience, Shop the Runway was the first real-time online shopping fashion show in Thailand which streamed the live programme on 11Street, while clothes from the catwalk were displayed in real time – within the same page – so viewers could purchase their favourite looks direct from the runway.

    At the heart of the campaign was a unique offline-to-online (O2O) feature within the 11Street mobile application which allowed fashion-show attendees to simultaneously view and shop the runway outfits.

    Shopping coupons were also given to all customers who downloaded and registered their details on the app to further encourage conversions. The campaign drew close to 500,000 campaign visitors, a 13 per cent increase in 11Street app downloads following the campaign, and ultimately boosted Cotton USA sales and brand awareness amongst the target centennial audience.

    Shop the Runway is one example demonstrating how brands can leverage technology and O2O features in innovative ways to reach consumers in today’s competitive e-commerce environment. Combined with a seamless shopping experience, and varied account and purchase options to suit different consumers, moments like these will attract tomorrow’s consumers on their terms, arrest their attention in a hyper-competitive commerce landscape, and allow brands to win in Asia’s digital-led retail landscape.

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  • Tourists devote a quarter of budget to shopping

    Tourists devote a quarter of budget to shopping

    Retail shopping continues to be the largest expense for tourists from China, according to a survey from Nielsen and Alipay, accounting for almost a quarter of total spend. The 2018 trends of Chinese mobile payment in outbound tourism survey revealed that retail spending took up 24.6 per cent of Chinese tourists average spend, followed by accommodation, dining and tourist attractions.

    Interestingly, the report found that Chinese millennials are no longer the single most dominant user of mobile payments.

    “In 2017, 55 per cent of Chinese tourists born between 1960-1979 used mobile payments while travelling overseas – significantly lower than the proportion of millennial tourists,” the report reads.

    “In 2018, the usage rate rose to 68 per cent, almost equalling their younger peers.”

    Average budget for the typical Chinese tourist increased 15 per cent to AU$9,382 over the year, and a familiarity with mobile payments drove increased spend, with 56 per cent of surveyed merchants claiming improved sales after adopting mobile payment system Alipay.

    However, a study by Coresight research in October 2018 found that, while Chinese tourists were travelling more often they were spending around 18 per cent less in the retail environment – a figure driven by a recorded 24 per cent decline in average shopping trip spend.

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  • Samsung factories ready to make 5G and foldable phones

    Samsung factories ready to make 5G and foldable phones

    Samsung Electronics is ready to roll out both 5G and foldable phones, two of most highly-anticipated products from the electronics company. While Samsung has already announced a plan to introduce new Galaxy phones at an unpacking event next month in San Francisco, it is confirmed on Tuesday that Samsung’s global production base in Vietnam has completed preparation to mass-produce 5G phones.

    The 5G phone is tentatively called “Galaxy S10 X.” Two Samsung factories, located in the provinces of Bac Ninh and Thai Nguyen, both north of Hanoi, produce 150 million smartphones a year. The 5G-enabled version of Galaxy S10 produced in Vietnam will be exported globally, starting with the United States. The first one million units of Samsung’s first foldable phone will be produced at the company’s production plant in Gumi, North Gyeongsang.

    The 5G phone “will roll out three to four weeks after the basic Galaxy S10 model hits the market. However, we have finished all preparations to mass produce a 5G phone,” a source from Samsung Electronics said.

    The phone will likely be introduced during the unpacking event on Feb. 20 along with three other versions of Samsung’s 10th-generation Galaxy family: S10, S10+ and S10 light.

    Phones that can connect to the 5G network are expected to bring revolutionary changes in media consumption habits. A 5G phone can download a 1.5 gigabyte movie in under a second.

    Samsung’s first 5G phone is likely to come with a 6.7-inch screen, larger than the 6.1-inch screen of S10 or 6.4-inch screen of S10+.

    The 5G-connected S10 will be powered by the Exynos 9820 chipset.

    Though it is designed for 5G connections, the phone will still be able to connect to 4G LTE as 5G infrastructure development is still underway. Even in Korea, where 5G infrastructure is quickly being built, next-generation connectivity is a work in progress.

    Samsung will first supply 5G phones to five telecom companies, including Verizon, AT&T and Sprint, all in the United States, and SK Telecom and KT in Korea

    Although the 5G phone will be introduced at the unpacking event, the actual launch of the model will come a bit later than the new S10s.

    While basic versions will be released in early March, the actual 5G-capable models will be available at the end of March.

    Samsung has greatly tightened security at its S10 production sites in Vietnam factories after a picture of the Galaxy S10 was leaked online.

    As for the company’s foldable phone, tentatively dubbed the “Galaxy F,” initial production will take place at the Gumi plant. Industry sources project that Samsung is likely to introduce the foldable phone at the unpacking event as well, but will release the phone April at the earliest.

    Federico Casalegno, head of the Samsung Design Innovation Center in North America, said “the foldable phone is a breakthrough in technology innovation,” during a press briefing last week.

    Industry insiders say the main reason for making foldable phones at the local Gumi plant is to prevent technology leaks and better control the initial production volume of the phone.

    “We are not yet ready to mass-produce foldable phones as well in Vietnam,” a spokesperson from Samsung said. “The first one million units of foldable phones and 5G phones to be sold in the Korean market will be produced at the Gumi plant, which is in charge of producing our premium products.”

  • 7 Marvelous Shopify Apps That Can Change Your Life

    7 Marvelous Shopify Apps That Can Change Your Life

    According to https://profitindustry.com/ecommerce-statistics/, there are quite a lot of different ecommerce statistics and trends that you need to pay attention to. Even the slightest miscalculation or a miss could lead to big losses. As there are a lot of different platforms, people need to pick one that suits them the most. At the moment, there is hardly anything better than Shopify. This platform has been around for more than ten years now, but they have become known in the last few years or so.  One of the things that added more fuel to the fire, so to speak, is their constant app improvements. Whether it is an upgrade or something completely new, users can make full use of the advantages of the platform. The number of available apps can be a bit overwhelming. Therefore, we have decided to compile a list of 7 Shopify apps that you absolutely cannot miss!

    EXPORT OrderPro

    Even though reports orders Shopify provides for its users are useful, it was only a matter of time before we saw craving for more information. The more detailed data it is, the easier it is to plan. Everyone who has been in ecommerce for a long time should appreciate this app by MeneLabs. It has been around for a few years and continues to get more praise. With more than 80 different fields of information and live reporting, it would not be a stretch to suggest that this is one of the best apps on Shopify store overall. After all, most users need information on a daily bases. And there aren’t better tools that generate valuable data every day.

    Buymaxx

    Once you have to handle more than a few products in your store, you will begin to realize how difficult it is to deal with pricing. Bulk Price Editor by Buymaxx does exactly what you expect it to do. By using a smart interface you will be able to download the list of your products and quickly change prices, margins, etc. and import it back in without any problems.

    You do not need any coding skills to install the app to your store. It is as quick as it gets.

    Finally, it is also worth mentioning that developers are consistently releasing updates to the app, making it better over time.

    Pushflew

    This push notification app is one of the best on the market. Its main purpose is to inform you whenever there is an abandoned cart or something similar and help you refrain people from leaving the website. Since everyone is using notifications because they are effective, you should do the same. Scheduling, adding images, using the app for multiple domains, support for every browser, and live tracking. Seems more than enough to consider giving this a go, right? Wait no longer and start engaging with your audience and increase the traffic that every other e-shop is after.

    Opinew

    Are you looking to take things to the next level? If that is the case, you might want to consider connecting your shop to the likes of eBay and Amazon. How, you might ask? Well, it is simple. Get Opinew Shopify Product Reviews App and Importer and see the customers rolling in. Your products will showcase the reviews from the biggest online shops in the world. And this information is extremely valuable for people who like to research before clicking the “buy” button. You will be able to improve SEO and customize everything and keep track of how much of the sales occurred because of this app.

    DeepMarkit

    Promoting yourself through more than just sharing on social media is a good way to reach that next level. Of course, it does not mean that you should abandon the idea. Investing in Premium rewards and games the best Shopify conversion app is DeepMarkit. It will be entirely up to your imagination how you are going to manage the whole thing.

    Displaying a discount coupon, promoting a raffle or even coming up with a contest can drive more traffic that one expects. By installing this app you will also access 15 customizable games, another feature that can help you with the venture.

    Conversific

    The fact that there are so many tools for extracting data shows its importance. And since ecommerce is a very complicated thing, you need to gather as much information as possible. Ecommerce analytics from Conversific does just that. And then some.

    This particular app is especially good for those who have not had a lot of experience on Shopify, or managing e-shops in general. The reports are easy enough to understand even for beginners, and the amount of information is not overwhelming.

    As soon as you install Conversific to your Shopify store, you will no longer have to spend time analyzing every trivial thing. That in itself is more than enough to convince you giving this a try.

    Wholesale2b

    Given the number of available products to sell, people who start out tend to struggle quite a bit with making their choice. A possible solution to this? Dropship on Shopify with Wholesale2b.com – add thousands of dropship products to your Shopify store in just minutes. This means that you will be able to pick and add as many as you want. The process is automated, therefore it is easy. The app offers plenty of other great features, including daily updates, profit estimations, updating out-of-stock products, and so on. It is without a doubt a great addition to your Shopify store.

    The list of these 7 Shopify applications should give you more than enough to ponder on. If you are looking to get into ecommerce using one of the most popular platforms, you will need all the help you can get. And apps like these can make all the difference in the world.

     

  • Vietnamese consumers among the most optimistic in the world

    Vietnamese consumers among the most optimistic in the world

    Vietnamese consumer confidence has reached a global high thanks to optimism over jobs and personal finances. The Vietnam Consumer Confidence Index has risen by nine points from the second quarter to reach an all-time high at 129 points in the third quarter of 2018, according to the Global Consumer Confidence Survey.

    The survey results have been released by research association The Conference Board in collaboration with global market research company Nielsen.

    The survey ranks the country in second place in the world in terms of consumer confidence, behind India at 130 points.

    While most Asian economies are vulnerable to the ongoing trade dispute between China and the U.S., Vietnam is a possible exception, as it may attract parts of the global value chain that currently run through China, the report said.

    The rise in the confidence index is also due to greater optimism about employment prospects, personal finances and the level of willingness to spend.

    Eight out of ten Vietnamese surveyed said that they were positive about their job prospects, up nine percentage points from the second quarter.

    Eighty-two percent of respondents expected their personal finances will be good or excellent over the next 12 months, up 6 percentage points from the second quarter.

    The majority of them, 63 percent, said that the next 12 months are a good time for them to buy the things that they want and need, 8 percentage points higher than the second quarter.

    Concerns about having a stable job and health (both at 40 percent) remained the top concerns among Vietnamese consumers. The national economy came in third at 27 percent, 5 percentage points higher than the previous quarter.

    Vietnamese consumers continue to take the lead globally when it comes to saving, the survey found. Seventy-two percent of respondents said that they would save their spare cash, up two percent from the second quarter.

    But Vietnamese people are also more willing to spend on big-ticket items. The percentage of people who would spend their spare cash on home improvements increased 10 percent from the second quarter to 48 percent.

    Over half of them, 53 percent, want to spend the money on new clothes, up 7 percentage points from the second quarter.

    Nguyen Huong Quynh, managing director of Nielsen Vietnam, said that when consumers faced multiple concerns, their purchasing decisions will be affected and businesses should always keep a close track on changes in the spending habits of consumers.

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  • LG sets up lab to conduct appliance technology research

    LG sets up lab to conduct appliance technology research

    LG has established a new research laboratory committed to advances in fridge, oven and other home-appliance technologies. LG Electronics opened the 6,760-square-foot Food Research Institute on Monday at Changwon, South Gyeongsang. At the center, researchers will develop technologies that can be applied to the company’s home appliances, such as refrigerators, kimchi and other specialty food fridges, ovens and electric stove tops.

    Food preservation, the fermentation of kimchi and food preparation will be some of the focuses.

    The company said researchers will work closely with academics from Seoul National University and Konkuk University, as well as experts from government and private agencies, such as the Rural Development Administration, the Korea Food Research Institute and the World Institute of Kimchi.

    LG Electronics often mentions advanced technologies in its marketing materials, using the technology to set itself apart from competitors.

    According to the company, LG refrigerators run on inverter linear compressors, which are 18 percent more energy efficient and create less noise than comparable gas compressors. Its kimchi refrigerators maintain temperatures of 6.5 degrees Celsius (43.7 degrees Fahrenheit), the optimal level for kimchi. At that temperature, the growth of a lactic-acid bacteria that creates a sour taste is suppressed. LG’s electric stove tops can cook food up to 2.3 times faster than gas ranges, the company boasts.

    The facility at Changwon is not the first research lab established by the company to further develop its home appliances. In February, LG Electronics opened a water research lab committed to the making of better water purifiers. In October, it opened a center dedicated to air science to advance its air purification technologies.

    “We will continue investing in research and development related to food, water and air technologies,” said Song Dae-hyun, head of LG Electronics’ Home Appliance & Air Solutions.

  • Global grocery markets growth fuelled by Asia, says IGD

    Global grocery markets growth fuelled by Asia, says IGD

    Global grocery markets are likely to generate an additional US$1.9 trillion in sales by 2023, led by Asian countries, according to new research data. The IGD forecast, based on IMF, World Bank, UN and Oanda base data, predicts Asia will see the strongest real growth – from population growth or consumers spending more on grocery – and is set to account for 47 per cent of the additional spend between 2018 and 2023. The forecast anticipates that nearly half (44 per cent) of extra sales will be created in Asia, which will add more than Africa, Europe and Latin America combined.

    Asia as a region will contain seven of the largest global grocery markets by 2023, with a combined market size of US$3.8 trillion.

    On growth in Asia, Nick Miles, head of Asia Pacific at IGD said: “China’s grocery market is expected to continue growing over the next five years, establishing itself as the largest grocery market globally. While growth varies between markets across Asia, countries such as India, Indonesia, Pakistan and Vietnam will continue to grow in importance for retailers and suppliers given the large populations, improving levels of GDP per capita and the development of modern trade. Retail partnerships have also in some cases helped retailers accelerate growth ahead of the market, and we expect more of these relationships to emerge and develop over the next year.

    “Grocery growth in Asia continues to benefit from a rapidly growing middle class, fast development and adoption of new technology, improved infrastructure and logistics networks, plus improvements to retail standards. Modern trade retailers continue to expand their store networks and improve existing operations.

    Meanwhile, traditional trade still plays a role, with mom-and-pop stores modernising their offerings and tailoring services to local communities. In countries like China and India this is being aided by online retailers such as Alibaba and Amazon.

    “Across Asia the pace of development and focus of retailing varies by market. However, online is expected to be the fastest growing channel regionally over the next five years,” said Miles.

    “Online grocery retailing is already well established in countries like South Korea, Japan and China and we expect the share of sales accounted for by channel in these markets to increase to over 10 per cent by 2023.

    While online grocery retailing is growing rapidly across Southeast Asia we expect it to still account for less than 2 per cent of sales in most markets in five years’ time.”

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  • Samsung is No. 1 in world for R&D spending

    Samsung is No. 1 in world for R&D spending

    Samsung Electronics was the No. 1 investor in R&D in the world this year, according a report from the European Commission. The annual R&D Investment Scoreboard report released by the commission analyzes R&D indicators of top companies in the world, based on their most recent accounts and annual reports. The 2018 report studied 2,500 companies worldwide from 46 countries.

    Samsung Electronics invested a total of 13.44 billion euros ($15.2 billion) in R&D this year, an 11.5 percent year-on-year increase compared to last year’s report, when it took third place on the list. This is the first time a Korean company has come in first since the European Commission first published the report in 2004.

    Tailing Samsung in second place was Alphabet, Google’s holding company. It spent a total of 13.39 billion euros. Volkswagen was ranked third at 13.14 billion euros. The list went on to include Microsoft, Huawei, Intel and Apple, all having spent between 9.7 billion and 12.3 billion euros.

    Samsung was the only Korean company within the top 50 R&D spenders worldwide. However, the report showed that, in terms of the ratio of R&D investment to sales – which the report dubbed “R&D intensity” – Samsung fell behind other major companies higher up the list.

    The local company’s R&D intensity was 7.2 percent – lower than second rank Alphabet’s 14.5 percent and Chinese IT company Huawei’s 14.7 percent. It was slightly higher than Apple, however, which had a ratio of 5.1 percent.

    The report also showed that, apart from Samsung, Korea was falling behind in R&D investment compared to neighboring countries Japan and China.

    The 2,500 companies studied for the report had invested a combined 736.4 billion euros, with 14 percent of that total coming from Japan-based companies and 10 percent from China. The top contributors were the United States at 37 percent and the European Union at 27 percent.

    A total of 70 companies from Korea were included in the study. LG Electronics was the only other one mentioned by name, coming in third place in the “Top 3 companies by R&D for the main industries: Other” category after Japan’s Panasonic and Sony.

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  • Real human call centres still preferred : research

    Real human call centres still preferred : research

    New research reveals 75 per cent of shoppers prefer live-agent support for customer service verses 25 per cent support for self service and chatbots.

    The research, from cloud contact-centre operator NewVoiceMedia, identified consumer concerns about sharing sensitive information, a lack of understanding of bots and their inability to resolve issues.

    “Chatbots can provide customers with quick answers to frequently asked questions or issues, and the survey notes the benefit of chatbots for certain interactions, such as 24-seven service,” the survey’s authors concluded.

    But when it comes to handling sensitive financial and personal information, most customers are more comfortable with a live agent, and just 13 per cent say they would be happy if all service interactions are replaced by bots in the future.

    Foremost among consumer concerns about using chatbots include:

    • A lack of understanding of the issue (65 per cent).
    • The inability to solve complex issues (63 per cent).
    • The inability of chatbots to provide answers to simple questions (49 per cent).
    • The lack of a personal service experience (45 per cent).

    While less than half of the people surveyed (48 per cent) said they would be willing to use chat bots for service – versus the 38 per cent who wouldn’t – 46 per cent also felt that bots kept them from reaching a live person.

    Banks (82 per cent) and medical services (75 per cent) were the businesses that people were least likely to want to deal with bots.

    Customers prefer live agents for technical support (91 per cent); getting a quick response in an emergency (89 per cent); making a complaint (86 per cent); buying an expensive item (82 per cent); purchase inquiries (79 per cent); returns and cancellations (73 per cent); booking appointments and reservations (59 per cent); and paying a bill (54 per cent). However, when asked about buying”a basic item”, 56 per cent would choose a chatbot over a live interaction.

    The top benefit cited for dealing with chat bots was 24-hour service.

    “When a situation becomes emotional or complex, people want to engage with people”, says Dennis Fois, president of NewVoiceMedia. “As businesses add more customer service channels, conversations are becoming more complex and higher value, and personal, emotive customer interactions play a critical role in bridging the gap for what digital innovation alone cannot solve,” he said.

    “For this reason, companies must find the right balance between automation and human support to deliver the service that customers demand. Frontline contact centre teams will continue to be the difference makers on the battlefield to win the hearts and minds of customers, and organisations deploying self-service solutions should ensure that there is always an option to reach a live agent”.

    There is a sense consumers may warm to chatbots in the future, however, given that younger respondents (aged 18-44) were more open to using chatbots overall and across the individual scenarios compared to older consumers (45-60+).

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  • Retail sector Korea in future

    Retail sector Korea in future

    Technology and e-commerce trends are reshaping the global retail industry in profound ways, as the rise of online channels threatens to displace more traditional shopping experiences. However, Korea’s retail sector seems to be thriving in the face of this upheaval, with a 6% year-over-year increase in retail sales by Q3 2018. What are the factors fuelling this encouraging retail growth?

    Firstly, improved relations with China and North Korea have energised the retail sector, with duty-free sales registering an impressive 34% year-over-year growth by Q3 2018. While this retail boost can primarily be attributed to the recent surge of Chinese tourists in Korea, it also reflects the growing international popularity of Korean beauty and lifestyle brands.

    E-commerce is also emerging as a key driver of Korea’s retail sector. Online channels have experienced rapid growth since 2010, and will only keep expanding their foothold as Korean consumers start shifting away from brick-and-mortar stores. With Korea’s e-commerce market predicted to grow by 21% this year, traditional retailers will need to find new ways of adapting to this rapidly evolving landscape.

    Some retailers are already turning to artificial intelligence and other Industry 4.0 technologies in an effort to provide consumers with more innovative shopping experiences. For instance, Hyundai Department Store is using Naver’s virtual assistant Clova to answer customer inquiries – whether they relate to store locations or specific purchases.

    Another interesting example is retail giant Lotte Home Shopping, which has developed its own augmented reality system so that customers can visualize how products would look in their home. As these new technologies get ushered into the mainstream, we can expect to see more and more retailers jumping on the AI bandwagon in the next few years.

    However, this doesn’t mean that we should write off the traditional brick-and-mortar experience just yet. Major brands are still banking on attracting consumers with the enduring prestige of high street locations – such as Maison Kitsuné, which recently opened its flagship store in Seoul’s trendy Garosugil district.

    Many global retailers continue to view Seoul, one of the world’s most famous shopping destinations, as a test bed in Asia. With cosmetics brands like Givenchy Beauty and Armani Beauty making their debut in Seoul this year, and renowned F&B brand Blue Bottle Coffee preparing to enter the Korean market in 2019, it’s clear that leasing demand from foreign retailers is still going strong.

    If we look to other segments of the retail industry that are experiencing growth, it’s worth highlighting the surge of fresh food delivery services across the country. With double-income families emerging as a major consumer force, demand for overnight fresh food delivery has also been rising – and major retailers as well as food startups are turning their attention towards this potentially profitable market.

    The rapid expansion of the food delivery market – and of the e-commerce sector in general – is proving to be a windfall for Korea’s logistics industry. Logistics developers are recognizing the need for large-scale modern logistics centers capable of storing and delivering goods nationwide, with faster delivery remaining the market’s key competitive measure. The growing demand for cold chain facilities is expected to fuel a mass redevelopment of older warehouses, especially in the Greater Seoul area.

    So far, Korea’s retail industry has shown remarkable resilience against a backdrop of technological disruption. More brick-and-mortar retailers are offering F&B, AI and entertainment options to differentiate themselves from their e-commerce counterparts; and this trend will only grow as consumers seek out unique shopping experiences. The question is, will Korea’s retail market keep thriving in the long term?  As long as technology continues to enhance – and not supplant – existing retail experiences, we can venture to hope that a bright future is in store for this challenging and dynamic sector.

    -CBRE-

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  • Trail Camera Market Inching Closer to Wireless Ubiquity, Global Demand to Grow at 3.5% Volume CAGR

    Trail Camera Market Inching Closer to Wireless Ubiquity, Global Demand to Grow at 3.5% Volume CAGR

    The bullish run in the Trail Camera market continues in 2018, with an incremental growth of 18,000 units over 2017According to Fact.MR’s new study, increasing wildlife exploration and rising demand for higher security and surveillance are instrumental in driving sales of trail cameras. The study opines that demand for trail cameras will grow at a CAGR of 3.5% in terms of volume throughout the period of forecast, 2018-2028.

    Technological advancements have significantly transformed the trail camera space, particularly with respect to connectivity and functionality. Possibility of obtaining thumbnail picture with trail camera has been a remarkable step reflecting a technological novelty in the trail camera marketplace.

    Growing proliferation of novel technologies such as Wi-Fi and Bluetooth in the trail camera marketplace are expected to influence the sales of trail camera, in turn presenting a positive outlook of the overall market. The demand for trail camera is being influenced with growing digitalization, as manufacturers continue to focus on researching and developing their products.

    The demand for wireless trail camera is projected to expand at a substantial rate throughout the period of forecast, says the report. As compared to standard trail camera variants, the Wi-Fi variants are expected to account for a relatively higher market share of the overall trail camera market. User friendly features and enhanced convenience continue to drive the sales of wireless trail camera.

    Cellular wireless trail camera products are estimated to largely contribute to the growth of the market. Sales volume of cellular trail camera are estimated to remain resurgent through 2028, dominating the Wi-Fi trail camera variants, according to the report. Fact.MR estimates that the volume sales of cellular trail camera are likely to maintain a 1.5x lead over Wi-Fi trail camera by end of 2028.

    The demand for trail camera with trigger speed up to 0.25 seconds is expected to gain high traction owing to the reduction in delay time while capturing pictures. Faster trigger speeds allow trail camera to capture moving units efficiently, making trail camera with 0.25 seconds trigger speed a valid candidate for forest exploration. However, the report estimates that the sales of trail camera with trigger speeds within the range of 0.25 – 0.75 seconds are expected to be on an upswing in terms of sales volume throughout the period of forecast.

    The report foresees that the demand for trail camera with low glow flash is expected to increase in the forthcoming years. Increasing volume sales of low glow trail camera can be attributed to its efficient picture quality during night, making them a convenient option for enthusiasts to capture wild life activities at night time. Further, the demand for no glow trail camera is also projected to increase at a higher rate throughout the period of forecast, 2018-2028.

    Trade shows, such as the ATA (Archery Trade Association) show, are expected to influence the trail camera market growth by providing a potential platform for manufacturers of trail camera to promote their offerings. Using trade shows as a significant growth platform, manufacturers can enhance their brand visibility. In addition, this aspect continues to influence the demand for technological robust trail camera, in turn contributing to the growth of the trail camera market.

    Sales volume of trail camera is likely to remain concentrated across developed countries in the North America region, particularly the United States. Use of trail camera in commercial buildings for surveillance remains a key determinant of growth in the US, apart from wide life exploration. The report also estimates that the European countries are expected to showcase significant adoption of trail camera in the forthcoming years on the back of growing wide life monitoring and hunting activities. Overall the market for trail camera is expected to follow a positive growth graph, albeit at a modest pace.

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  • Volvo shifts its safety strategy for self-driving world

    Volvo shifts its safety strategy for self-driving world

    In Swedish, “safety” translates to “säkerhet,” but for employees of one of Sweden’s biggest employers, it might as well translate to “Volvo.”

    The automaker, owned by Zhejiang Geely Holding Group of China, is fiercely protective of its reputation in safety. But in an age of autonomous driving and advanced sensor technology, Volvo’s top safety experts are increasingly navigating a blurry line between driving safely and being driven.

    “We’re very focused that you as a driver know that you’re in charge, [and] not giving you so much support that you question who’s in charge,” said Malin Ekholm, director of the Car Safety Center at Volvo Cars headquarters in Gothenburg, Sweden. “It’s nudging rather than giving the feeling of taking over.”

    With a bevy of new tools to ensure passenger safety, the automaker’s safety strategy is shifting from passenger protection to accident prediction and avoidance, Ekholm said.

    New technology, tools

    Volvo has a well-developed apparatus in safety research.

    Its safety center, created in the 1970s, runs crash tests and shares information with Swedish road authorities to document accidents and crashes, so that engineers can better understand scenarios they must guard against.

    But the rise of autonomous and connected-vehicle technology, as well as digital simulation technology used to pioneer self-driving vehicles, have augmented researchers’ approach to safety. Now, for instance, in addition to crash tests, vehicle safety systems run through nearly 30,000 accident simulations.

    Volvo’s increasing investment in autonomous r&d — including a recently expanded Silicon Valley operation — also increases the capabilities of its advanced safety team. Volvo’s City Safety package, for instance, incorporates a front-facing camera to recognize pedestrians, bicyclists and oncoming vehicles and deploy automatic emergency braking to avoid collisions.

    The “sensors and cameras were there, so we could use it,” Ekholm said.

    Avoiding accidents

    Increasing use of advanced technology is shifting Volvo safety researchers’ approach from mitigating accidents through restraint devices to predicting and preventing accidents.

    “More and more, we need to help you avoid the crash,” Ekholm said. Researchers, she said, are asking how automakers can support drivers so the motorists never encounter critical situations.

    Part of the solution is supplying more information on potential hazards through the use of connected technology. In Sweden, the carmaker uses vehicle-to-vehicle technology to send warnings about low-friction roads or hazard-light detection to oncoming traffic.

    But a larger focus is on human behavior, often in response to semi-autonomous technology that lulls drivers into a false sense of security.

    The automaker’s semi-autonomous Pilot Assist system, for instance, is intended to reduce fatigue on long trips, but can be abused if drivers fail to keep their attention on the road. Ekholm has responded by expanding the company’s safety team to include human behavior and biomechanical researchers.

    As vehicles become increasingly automated, Volvo’s researchers will need to pick and choose where the technology can enhance the company’s safety standards.

    “Autonomous has so many aspects to it,” Ekholm said. “What we focus on is the safety research.”

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  • An Overview of E-commerce in South East Asian Countries

    An Overview of E-commerce in South East Asian Countries

    Electric commerce or e-commerce is the activity of buying and selling online. Typical e-commerce transaction includes purchase of online books, music purchase and purchase and sales of many other items.  Three known major areas of e-commerce include online retailing, electric market and online auction. Technologies such as mobile commerce, internet market, electronic funds transfer, and electronic data interchange (EDI), online transaction process and many others.

    The practice of e-commerce in Southeast Asia started during the dot.com era in the 90’s just like in many parts of the world. The dot.com era refers to the period where companies started using doing for most of their businesses on the internet, usually through a website that uses the popular domain “.com”. During the dot com era southeastern Asia mainly purchased items from American and European companies that would be delivered in their countries. During this era companies with electronic commerce had shown great prospect with their fast growth and promising profits. Companies’ stock prices skyrocketed and Asia was pretty happy because the rise had resulted to a bubbling economy through electronic commerce.

    Asia then began to attract nearly half of the total capital inflow from developing countries appealing them with high interest rates. Countries like Malaysia, Singapore, Thailand and Indonesia experienced an increase in their GDP rates. Around the year 2000, the e-commerce market was mainly involved in a business to business (B2B) transaction due to customers mistrust after going through the 1997’s financial crises and the bubble burst in southeast Asia – bubble burst is often identified only in retrospect once a sudden drop in price has occurred – The burst is usually profitable for buyers and not sellers. In the 90’s a lot came up as hindrances to the upspring of electronic commerce

    – In those days, aside mistrust e-companies had other issues of which Southeast Asian countries were also affected. As a result of its structural shortcomings, a much more diverse range of payment solutions have become common in the region. The average internet penetration around southeastern Asia with the exception of Singapore was 38% while leading countries have an internet penetration of 70-80%, this made cash on delivery offered by 80% of the players in both Vietnam and Philippines, though bank transfer is another very popular payment method across the SEA. With each of the countries having 94%, 86% and 79% of merchants in Indonesia, Vietnam and Thailand respectively offering it.

    – In addition to a lack of uniformity in payment methods, there is also significant market fragmentation the Southeast Asian consumers have so many platforms to choose for their daily need.

    – Culture also was an inhibiting factor –the influence of Traditions in the Asian region overtime had made people have low trust in bank system and electronic payment, for example; credit card owners and other means used in payment other than in cash is small – government in those times pushed for a cashless policy in their society by trying to implement laws to suit online transactions.

    – Fraud and high level of corruption was another setback to the growth of electronic commerce in the region.

    The prospects and thrive; the battle for supremacy

    The gold rush in the online ecommerce of the as left traditional offline retailers in the Asia region like Thailand and Indonesia scramble for an online business move.

    Over the years until this day the massive growth in e-commerce around southeastern Asian has attracted big name investors into the region. In 2016 the release of the Google Temasek SEA Economy spotlight highlighted Southeast Asia as the world’s fastest growing internet region.  With an existing internet user of 260M which was projected to grow to 480m users by 2020. In the research they predicted that southeast Asia’s internet economy will grow to 200B by 2025 and that $40 – 50bn in investment will be required over a decade to achieve that goal, fast tracking to 2017 they observed that the southeast Asia’s internet user base continues to grow rapidly. there will be 330m monthly active internet users by end of 2017 adding over 70m new users since 2015 13% CAGR.  They estimate that Southeast Asia’s internet economy will reach $50b in 2017, meaning it will Grow at a rate of 27% CAGR outpacing their 20% 10year CAGR projection.

    Asia as a continent had an increase in of around 4.5  billion in the GMV ( gross  merchandise value ) of first hand goods and has had a 41% compound annual growth rate ( CAGR ) in the past couple of years- 2015 to 2017- as given by Google –Temasek’s economy southeastern spotlight 2017 report. The Temasek report went further to predict that CAGR will rise from $5.5bn of 2015 to $88bn by 2026. 2017 witnessed events which proved high results are expected from the e-market in southeastern Asia.  The explosive growth in E commerce as lured china’s two e-commerce giants Alibaba and sd.com to the southeast online market. Amazon much awaited  recent entrance into the E-market of a southeastern nation ( Singapore to be specific) to fast track its online market expansion in southeast Asia also proved there was an attractive raw material in the cyber space of the region.

    The record breaking 1billion dollar sales of shares of Lazadas to Alibaba with alibaba also putting its grip on Tokopedia; arguably a future competitor in Indonesia. The resilience of another China based heavy weight company; Tencent. Tencent has also kicked start investments in companies like SEA (previously Garena) predominantly a gaming powerhouse that runs Shopee, Go-jek, Traveloka, Tiki.nn and Pomelo. The US based KKR  in a bid not to be left out of this massive growth phase through emerald media put US$65million into e-commerce arms dealer Acommerce. This trends of acquiring more shares and grabbing more local companies across the Asian borders by these online giants  is expected in coming years as all stated above points to the fact that the riches in online space of these Asian nations is worth risking for.

    Currently, predictions have given that the home based Asian companies will have to pick sides with either of or stand their ground against the foreign forces from both the western and eastern part of the world.  Predictions went further  to specify that  foreign based companies like Alibaba, Amazon and Tencent is  likely to have a bloodbath battle for the monopoly of the regions  electronic commerce  or share the  Asian online customers, some term this head to head of the western state and eastern state as the clash of the online titans.  It is hope that this clash will result to a much needed gold-shed To Help in the growth of the developing region

    Joe Tsai, Alibaba vice chairman, in speaking with Retail News was quoted as saying “is there a land grab right now for these kind of assets? I think in the land grab they [Tencent] are following us. They are seeing that we have positioned ourselves very well, and they are sort of playing a catch up game. So what we want to do is to work with local entrepreneurs. ”

    Experienced, grown and growing

    Marc woo, Google head of ecommerce , travel and financial services was quoted to have said “Asia pacific (APAC) accounted for 40% of global ecommerce sales in the 1st quarter in 2017, but vast majority of those sales went to larger or more mature markets in the region, particularly china, but also japan, Australia, South Korea, and India. That leaves Southeast Asia as the next frontier for ecommerce in the region.  “

    A steady increase in the advantages of electronic commerce in the region resulted to a 50% growth last year and now totals 200 million individuals across southeastern Asian’s top six economies. The southeastern Asian nation Singapore takes a top spot in Asia with an average of 14.04 sessions per person per year visiting amazon.com. It is rumored and expected that by the end of the year the ecommerce companies should erect physical stores in their resident southeastern nations. This will make a great boost in the economy of this regions.  This huge development in ecommerce have led southeast Asian governments to launch a bid to introduce taxes on ecommerce sales as they look to claim their dollar-and-cents take from one of their most promising engine towards  economic and  financial buoyancy.

    This though might increase the cost price of goods and services offered by the online companies but cannot override nor underestimate its advantage as compared to import and shipping processes. Taxing online sales will align practice with those of world leading countries. It puts online retailers on a leveled playing ground with brick-and-mortar counterpart. This growing market has also initiated an online network process between the Chinese and the Asian region as Alibaba is working to set up a digital free-trade zone in Malaysia and has signed a memorandum of understanding with the government of the Asian country and the authorities of china to simplify cross-border trade between the two regions.

    If this deal falls through under the current government of china a long term mutual profit making relationship is expected to last for a very long time between the Asian nations and the Chinese government  giving that  the china parliament are rumored to have kick started plans in keeping their president more longer in office than usual.  The critical factors responsible or observed to needed for the spontaneous growth of ecommerce in the southeastern region of the continent are

    • A growing middle class – knowing that the middle class contains the highest number of mobile phone users and also the highest number of common goods purchasing.
    • Rapidly expanding internet access are positive indicators for fast paced e commerce growth in coming years. Internet access needs to be at its best for the effective running of electric commerce in a state

    The middle class population of the Asian region is expected to reach a 400million in 2020 from its 190 million of 2012, according to Nielsen project.

    Internet access in the region as not only being expanding at a high pace but has also improved strongly over the years like stated in the research of Google Temasek SEA economy spotlight report stated above.

    The electric commerce has also shown to be of disadvantage though not significant as compared to the many fruit yielded by the online market.

    • The desire for local business owners and the nation’s mobile phone user population to switch online results to more cases of fraud because this system isn’t used to them.
    • Competition between locals and foreigners which should encourage an healthy business environment is not observed as the big guns will slowly silently phase out the local brands
    • The preference of foreign products to locally made products by locals isn’t favorable for the country’s economy.
    • Owing to the creation of a good relationship with certain world leading countries, good tides with others could be altered.
    • If not properly monitored, foreign companies might have a full grip of the southeastern nation economy.

    One major benefit that has been observed to have taken the front line in the advantage of electronic commerce in the southeastern Asian region is the quest for each nation to outperform each other. Especially between Thailand, Vietnam and Indonesia, this healthy beef has led to varying developments in these nations as none wants to be left behind in the development and modernization of their country. These alongside the introduction of big time investors, the rise in economy growth, job creation in nations, strengthening diplomatic tides and many other advantages.

    Stakeholders and experts have advised to government of these Asian nations to support the region to grow by fixing reasonable tax levies in other not to discourage foreign and local investors, encourage a competitive market, improve online network and provide adequate education to ease communication with foreign partners. With the huge wealth emanating from the electric commerce sector, if properly managed these nations can get a massive boost in their nations wealth and reputation. The potentials possessed to build a nations revenue by employing electric commerce cannot and should not be undermined.

     

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