New Unified Commerce Report shows US$1 Trillion Opportunity for Retailers in Asia Pacific
Adyen’s latest research shows creating immersive multi-channel consumer experiences has a huge impact on loyalty, near- and long-term revenue for APAC retailers
SINGAPORE – Media OutReach – 6 August 2019 – Adyen, the payments platform of choice for many of the world’s leading companies, today released new research commissioned from 451 Research, on the state of the APAC retail industry. By prioritizing frictionless digital shopping experiences for customers, retailers in the region can realize a US$250 billion lift in sales. Retailers who choose not to adopt unified commerce can expect losses of up to US$785 billion dollars.
“Unified commerce is now the competitive edge that retailers must have in order to succeed in a digitally transformed retail industry. Especially in Asia-Pacific, customers have high standards for a frictionless shopping experience. They expect to be able to shop in the way that they prefer. Anything less than a frictionless experience will result in them abandoning their purchases”, said Warren Hayashi, President, Adyen, Asia-Pacific.
Consumers are making purchases across multiple channels.
Of more than 1,000 consumers surveyed across Asia Pacific, respondents did not indicate an overwhelming preference for shopping online or in-store. Instead, they are increasingly making multi-channel purchases.
- 42% of consumers prefer to shop in a physical store, while 29% prefer digital shopping channels.
- 58% of consumers made a purchase as a direct result of a retailer offering a cross-channel buying option in the past six months.
- APAC retailers are continuing to expect more than a third of sales to be online within three years, up from roughly a fourth today.
The move towards digital transformation in retail experiences has increased the importance of making frictionless digital shopping experiences a priority for consumers. However, many companies have been slow to act or are unsure how to proceed with their digital journeys due to several friction points such as lack of preferred payment options to out-of-stock. This has resulted in an average loss of about US$75 billion to US$149 billion within the APAC region.
Consumers value personalized shopping experiences.
Personalized intelligence is essential to fostering a positive and memorable shopping experience where customers are more likely to grow in brand love and loyalty.
- 48% of consumers use social media to shop; while only 20% of consumers make purchases on social media. This shows that there is opportunity for retailers to leverage social touchpoints to convert shoppers into buyers.
- Three in five shoppers made at least one additional purchase due to a personalized offer they received in the past six months. Personalized shopping experiences exert a positive influence over customer purchasing behavior.
Consumers expect to have frictionless check-out processes with their preferred mode of payment.
Poor shopping experiences cause US$86 billion in initially abandoned sales annually. Consumers want to be able to shop how and when they want with the payment methods they prefer.
- One in two shoppers have been unable to use their preferred payment method with a retailer in-store, prompting them to abandon their purchase entirely.
- One in two shoppers abandon a purchase at the payment stage due to lengthy payment forms that require manual data entry which are the biggest contributor to online checkout friction.
- 60% of consumers in Singapore and Hong Kong in particular, showed an above average amount of online purchase abandonment due to lack of preferred payment options.
For more information and for a copy of the report, visit the URL HERE.