For Asia’s retailers, the pinnacle of the retail calendar is nearing. As Black Friday, Cyber Monday lead into the peak gift-giving season of Christmas and New Year, most retailers are looking to attract new customers, build loyalty with existing ones and most of all increase revenue.
Fresh research from Adyen, the financial technology platform, shows that in the lead-up to the holiday season, Asian consumers are not halting their spending – but their shopping habits reflect some of the most price-conscious shoppers in the world.
This year – like any other recently – the holiday season will see shoppers loosen their purse strings after holding out for the best bargains. For example, 40 per cent of consumers in Malaysia and Singapore and 35 per cent in Hong Kong wait for key calendar moments before making purchases to get the best discounts.
Shoppers are also spending more time deciding what to buy and searching online for the best deals – 54 per cent of Malaysian consumers, 42 per cent in Singapore, and 41 per cent in Hong Kong.
But, as Adyen’s country manager in Singapore and head of commercial, SEA & HK, Priyanka Gargav, explains: “It’s also a time when businesses’ entire operations are put to the test – from increased online and in-store traffic to higher rates of payment fraud.
“With fresh challenges increasing the complexity of a successful sales season, businesses need to find ways to work smarter rather than harder – to seek previously overlooked ways to optimise their product offer and sales performance not just during the peak season, but beyond.”
With so many consumers spending more time searching for bargains both online and in-store it is all the more important that retailers get their peak season promotion, delivery and security just right, explains Gargav. “But businesses can’t simply hire a host of new staff, or overhaul an entire e-commerce setup at the drop of a hat.
“Decision makers know they need to cut complexity, keep things simple, and do more with less, with automation, upskilling, and retention now taking top priority. Optimisation and retention will be achieved through innovation.”
Gargav urges businesses to invest in technology solutions that simplify existing challenges, streamline operations, and bring speed and scale to value. This is an area where payment optimisation can play a key – yet often underestimated – role, not just in simplifying and securing transactions, but in gathering vital data on consumer preferences and shopping behaviour. That data can be used elsewhere in the business to gain better insights into customer behaviours, operational learnings, and marketing opportunities.
Demand is growing for omnichannel retail solutions
As consumers become more savvy about omnichannel shopping, and frequent both online and offline stores, they are seeking the convenience of being able to interact on multiple channels, even in a single transaction.
For example, 73 per cent of Singaporean consumers are more loyal to retailers that allow them to buy out-of-stock items in-store and have them shipped to their home and 70 per cent are more loyal to those who allow items bought online to be returned to a physical store.
That proportion was similar in Hong Kong (74 per cent and 69 per cent respectively) and Malaysia (69 per cent and 70 per cent.)
A strategy to simplify the sales season
Adyen has developed a Simplifying Sales Season strategy for payment optimisation with four key pillars for retailers to follow ahead of the peak season: Prepare, Personalise, Protect, and Predict.
Prepare by prioritising a flexible, personalised checkout flow both in-store and online to increase conversion rates and build customer loyalty. In Malaysia, 79 per cent of customers say they want to see more personalised discounting and rewards at brands they shop regularly with, while in Singapore, 74 per cent of consumers would be more likely to shop with a brand if their loyalty program worked directly through their payments card.
Personalise by understanding and meeting your customers’ unique needs better, offering the payment preferences preferred in the market and leveraging payment data to tailor loyalty rewards and offers. Adyen’s research showed 66 per cent of Hong Kong consumers will abandon their purchases if they can’t pay using their preferred methods – whether in-store or online – along with 55 per cent of Malaysians and 56 per cent of Singaporeans.
“It’s not about offering every single payment method everywhere, but simply offering the right ones in the right place,” explains Gargav.
Protect by striking the right balance between risk and revenue – preventing payment fraud and recognising legitimate shoppers. A significant number of consumers in all three markets voiced concerns about fraud protection when shopping online. In Malaysia, 84 per cent believe online shopping is becoming less attractive due to the risk of fraud, in Singapore 75 per cent and in Hong Kong 55 per cent. In all three markets, a significant majority of respondents said they want businesses to better communicate their efforts to protect transactions from fraud.
“Every business is different, and risk management needs to be tailored to your unique challenges,” says Gargav.
Predict by using cross-channel insights to help with contingency planning and by adapting to changes in real-time. Deploying software solutions that reduce manual work and the probability of error – as well as recognise shifts in consumer behaviour as they occur – can help businesses predict when to roster additional staff to cover peak periods, structure promotions and foster brand loyalty.
In Hong Kong about half of the businesses (48 per cent) concede it is harder to categorise customers by their behaviours or needs because consumers are seeking a truly personalised shopping experience.
In closing, Gargav says that while the upcoming peak season is a challenging time for retailers, it also offers an exciting opportunity to attract new customers, build loyalty and optimise sales.
“Peak season is all about testing yourself against the major changes you’ve seen growing in the industry all year. It isn’t just customer behaviour changing – circumstances, environments, and costs are also in a constant state of flux.
“It’s important to adapt your planning for peak season to the current needs of your customers by ensuring you have flexible, reliable mechanisms in place that can help you predict and pivot if necessary.”
* Download your own full copy of Adyen’s Simplifying Sales Season Whitepapers to gain more insights into consumer buying behaviour. There are individual reports for:
