PETALING JAYA: Post Covid-19 pandemic and the looming global recessionary risk have made Asian consumers more cautious than ever, according to global trend forecasting company WGSN.
The company’s senior consultant of Asia-Pacific Jess Tang said, for example, “Thrifty Indulgers” would look for creative solutions that allow them to retain a sense of lifestyle, and enjoy little moments and things that bring them joy.
Thrifty Indulgers are consumers who would spend effort on hunting for products and services that bring them joy on a limited budget.
Despite being budget-conscious, these consumers are not looking for the cheapest prices available, and are instead trying to maximise value by balancing quality and price.
For example, the rise of Buy Now, Pay Later in South-East Asia in recent years enables consumers to invest in non-essential purchases while looking for alternative ways to fit them into their budget, she told StarBiz.
“On the other hand, “Present Hedonists” are determined to live more intentionally and in the moment – including thinking about their approach towards money and also considering their life priorities.
“They will make the most of the present and enjoy life to its fullest post-pandemic, craving for curated and tailored shopping experiences to regain a sense of control in their lives and deepen their emotions to create a sense of escapism and feel-good optimism,” she noted.
Present Hedonists are shoppers who prioritise the present and are looking to enjoy life to its fullest post-pandemic by indulging in pleasurable experiences, engaging in spontaneous activities, and seeking immediate rewards.
Regionally headquartered in Hong Kong, WGSN is one of the global authorities on consumer, lifestyle and product design trends. It helps brands worldwide create the right products using expert trend forecasting combined with data science to help them get ahead of the right trends.
On the Asian (including Malaysian) shopper trend in the coming years, Tang said the Asian shopper landscape would see a shift back to pre-pandemic trends, through physical and omnichannel retail, as consumers in Asia-Pacific drive a physical comeback to stores.
While physical shopping remains a significant part of Malaysians lifestyle, particularly on weekends, she said consumer profiles like “Sensory Adventurers” would seek in-person events and crave in-real-life, sensory and engaging experiences, after spending an increased amount of time online.
They are now looking for memorable happenings that enrich their lives and bring people together, and especially feel the need to be awed, she noted.
Sensory Adventurers are shoppers who are seeking memorable in-person experiences, events and activities that foster creativity and excitement.
Therefore, Tang said brands and retailers could help consumers overcome digital fatigue by focusing on amplifying the tangible and sensory elements and inspire returning consumers through engaging experiences.For instance, HP Malaysia and Mothercare have recently launched new experiential stores in Malaysia, focused on enhancing physical customer experiences by incorporating new experiential concepts and interactive technologies in their stores.
She said many Malaysian retailers have been quick to adopt and invest in retail tech such as artificial intelligence, automation and Internet of Things, shifting their focus towards digital engagements in-store.
With the increase in technology usage, Tang said consumers, including first-time digital shoppers, now have greater choices and access than before. Customers now expect to compare stock in other locations and order products in real-time in the store, and look to the help of extended reality and virtual fit technologies.
A recent study by Dutch payment company Adyen has also revealed that 87% of Malaysian consumers said they would prefer to shop with retailers that utilise technology to enhance the customer experience, especially in-store.
“To meet the evolving demands, brands should audit and refresh omnichannel strategies to ensure connected commerce systems and accessible in-store technology are in place to cater to the phygital (physical and digital) consumers that are able to move seamlessly between online and offline channels,” Tang noted.
With retail vacancy rates remaining a concern in Asia including Malaysia, how can brands then use physical retail spaces better to serve the demand and preferences of shoppers?
To this end, she said Malaysian shoppers, for instance, are now more inclined to respond better with unique retail experiences and interaction over material possessions, such as pop-up shows and interactive displays.
“With that being said, brands and retailers should prioritise experiences over transactions to build stronger connections with their customers.
“However, while hyperphysical stores and activations can work to attract attention and create buzz, retailers can also look to refresh the in-store experience by exploring in-store activations focused on branded education to encourage potential new customers to shop,” Tang noted.
