As the ecommerce trend continues in Southeast Asia, a wave of the new generation of moms is joining the party. These moms are relying more and more on online to help them embrace their role as a parent.

Millennial moms expressed their dependency on online for their shopping journey, especially for the Mom & Baby category, during an ecommerceIQ panel session in Jakarta earlier this month.

ecommerceIQ surveyed 1,144 Indonesian moms with results showing that 66% have attempted to purchase Mom & Baby products online. Shopee was voted as the most popular e-marketplace for this category, followed by Lazada and Tokopedia.

Mom & Baby Indonesia Online Shoppers

aCommerce Group CMO Sheji Ho on stage presenting the findings from ecommerceIQ’s report: Digital Profile Mom & Baby Shoppers in Indonesia.

Indonesian actress and Miss Universe 2007 finalist Agni Pratishta was one of the panelists at the event. She agreed with the findings and also mentioned that most women visit numerous websites to find the best deals.

“I have a group chat with other moms where we exchange information regarding which e-marketplace is having a sale right now,” admitted Agni.

Agni was joined in the panel session with the Head of Marketing Baby Care from Softex Indonesia, Wenny Damayanti, and aCommerce Group CMO Sheji Ho to shed light on the current landscape comprising Mom & Baby online shoppers in Indonesia.

What else did we discover from the event?

Panel session during ecommerceIQ event in Jakarta with Agni Pratistha (middle) and Wenny Damayanti (right).

Indonesian moms shop cautiously online

When Indonesian moms were asked about their favorite online shopping platforms, brand websites did not feature much in their answers, with only Mothercare Indonesia appearing on the radar at a score of 4%.

Digging deeper, the result is most likely related to the type of products they are more likely to buy online in this category. Following general ecommerce trends in the country, Baby Clothing (49%) ranked as the most popular product purchased online in this category, followed by Baby Gear (23%) and Toys (18%).

Mom & Baby Indonesia Online Shoppers

Top products purchased online in Mom & Baby category in Indonesia; ecommerceIQ Mom & Baby Customer Survey in Indonesia (2018)

Meanwhile, perishable goods like Baby Personal Care and Baby Food are less popular and the cause of it is rooted in the main reasons why Indonesian moms don’t shop for this category online.

Mom & Baby Indonesia Online Shoppers

Top reasons for consumers to not shop for Mom & Baby products online; ecommerceIQ Mom & Baby Customer Survey in Indonesia (2018)

More conviction is necessary for consumers to purchase perishable goods online; moms require full assurance of product quality, and one way to avoid buying counterfeit products in the e-marketplace is to purchase only from brands’ official online flagship stores.

The top three consumer-favorite platforms all benefit from their official brand-dedicated portal inside their platform.

Mom & Baby Indonesia Online Shoppers

Tokopedia’s dedicated page for brands’ official store; Tokopedia

The importance of word-of-mouth in the digital world

Brands should always take cues from its consumers to adjust and hone their retail strategy. These include instilling customer confidence to overcome the reservations mentioned above. Wenny revealed that internet habits of millennial mothers provided the driving force for Sweety’s shift to digital.

“These moms are constantly searching for information online. TV commercials alone are no longer sufficient. Modern day moms use the internet to talk to their friends, surf for product information and read customer reviews before deciding which products to buy. Sweety took these cues onboard and redefined its online strategy,” explained Wenny.

Sweety’s official flagship store is offering online exclusive offer on ShopeeMall Indonesia.

Product reviews are a key aspect for Indonesian moms to overcome the wariness of doing their shopping online, as seconded by Agni

“Reviews are the make or break point for me when I shop online. When I see a product in e-marketplace with no review, even if the price is right, I wouldn’t risk buying it most of the time.”

Unfortunately, leaving a product review is not a habit mastered by Southeast Asian consumers yet, especially compared to consumers in developed ecommerce market like the US. And most of the time, Southeast Asians are prone to leave only bad reviews as a way to express their dissatisfaction and to caution other consumers.

Brands must concentrate on encouraging satisfied consumers to be more proactive and do the same. Some brands have utilized user-generated content platforms like ReviewIQ to help with the problem. Nivea, for example, achieved an increase in the number of positive reviews with the help of ReviewIQ from real consumers for its flagship store on Lazada Thailand.

“At this stage, brands still need to incentivize satisfied consumers to help generate good, organic reviews,” says Sheji.

How should Mom & Baby brands go about online?

Sheji stresses the importance of brands understanding the nature of their products and their primary objective to determine the optimal online strategy.

“If your products fall into the luxury category, you might as well sell it on your brand website to retain the full control of your channel. However, this strategy requires you to invest extensively in bringing in traffic,” advised Sheji.

But having a website also means owning a proprietary media channel that can be used for marketing and educational purposes. Brands like Sweety and Frisian Flag, for example, use their sites to connect offline promotion with the online audience as well as equip consumers with detailed product information.

For most brands, however, if the objective is to diversify sales channels, then opening an official flagship store on an e-marketplace like Shopee or Lazada is sufficient and also easier to maintain, while providing access to a broader online consumer base.

Drawing on her extensive experience in promoting Sweety to e-marketplaces, Wenny opined that prioritizing e-marketplace sales avenues is paramount for success. Especially in Indonesia where consumers are presented with many options, and competition between e-marketplaces is high, brands often feel the needs to have ubiquitous footprints.

Wenny summed up, “Choosing the right e-marketplace is an important step in the online expansion. Selection must consider the available audience, while also ensuring that the e-marketplace’s infrastructure is compatible with the business.”

Get the full report of Digital Mom & Baby Shoppers Profile here.

Earlier this month, Shopee launched Shopee for Men in the Philippines, an in-app store offering male-oriented products in various categories, ranging from Electronics and Sports to Fashion and Personal Care.

Figure 1: Landing page for Shopee for Men in the Philippines; Shopee Philippines

Similar to the strategy adopted for the main platform, Shopee for Men offers big discounts to attract the male audience. By leveraging its partnership with brands for ShopeeMall, the platform curates the selected products of numerous leading brands favored by the male population such as Asus, Xiaomi, Bosch, and Spalding. The platform also offered limited sales of the newly released iPhone XS during its promotional period.  

Why did Shopee launch its Men platform in the Philippines?

The Philippines is the third market where Shopee launched its dedicated platform for Men, after the previous launch in Indonesia and Thailand, and it’s not without reason.

The country has a slightly higher male population (53.8 million) than female (52.8 million), and the Filipino male population is forecast to rise over the years steadily. Moreover, most of the Philippines’ population belong the younger generations of millennials and gen-Z. These generations are more likely to be digital-savvy, have higher purchasing power, and more willingness to spend money. In short, the driver of ecommerce growth in the Philippines.

Figure 2: There are more male than female in the Philippines; PopulationPyramid.net

A report from Paypal and Ipsos already forecasts the country’s online spending to increase by 32% in 2018 to $2.2 billion (PHP 121. 9 billion) from $1.7 billion (PHP 92.5 billion) in 2017.

However, online shoppers in the Philippines are still predominantly female, presenting a mostly untapped male audience with stronger purchase power, as found in our latest e-marketplace survey.

Figure 3: Male online shoppers in the Philippines are more likely to spend more per online purchase; ecommerceIQ E-Marketplace Survey Philippines 2018

What do Filipino male consumers usually buy online?

OLX Data Hub found that Filipino male consumers like to shop online for items in categories like furniture, sports, health items, and surprisingly baby-related goods. Millennial men primarily are the driver of this growth.

Figure 4: The top three categories with the highest growth in 2016; OLX Data Hub

Shopee’s Head of Commercial Business Macy Castillo confirms this finding as they discovered men aged 25-30 years old mainly buy wellness, hobbies, and sporting goods. However, they also found that the top purchases among age groups differ.

The 20-24-year-olds group tends to buy more fashion items. This group also shops online more often than other age groups, despite their lower purchasing power since they’re either university students or first-time job seekers.

Meanwhile, skincare and baby & children products are more popular among the 31-35-year-olds group, of whom are more likely to have a family and already in the working force, giving them a higher purchasing ability to buy items that are more costly like wellness and children goods.

Figure 5: Most Filipino men marry at ages 25-29; Philippine Statistics Authority

What’s the most popular online platform for Filipino men?

Generally speaking, Lazada is the most popular B2C e-marketplace preferred by most Filipinos, followed by Shopee and Zalora in the second and third rank, respectively.

Figure 6: Number of visitors to Philippines’ B2C ecommerce platforms in October 2018; SimilarWeb, ecommerceIQ

Women make up for the majority of online shoppers in the Philippines, and it can be seen in these sites’ demographic as well. As such, there are more products available on the site for women than men online.

Figure 7: Lazada, Shopee, and Zalora’s visitors are mainly composed of Filipino women; Alexa

For example, a simple search of “men” in Lazada will give you around 4 million items whereas “women” will display almost triple the number (11.8 million) — showing the disparity in the number of goods available for different genders. A similar search on Shopee will also show the same result, depicting high opportunity for ecommerce companies to appeal to the Filipino male consumers.

Figure 8: Search results on Shopee for “Men” and “Women” on 15 October 2018; Shopee Philippines

According to the same Paypal report, the top two reasons to shop online for Filipino consumers are convenience (82%) and the availability of multiple platforms (52%). By presenting male consumers the same convenience to compare hundreds of similar items within minutes and providing more products for them, we can expect to see a rising influx of Filipino male consumers on these platforms in the coming years.

How can ecommerce websites attract more male shoppers?

Having a website or a dedicated landing page solely for male shoppers is a step in the right direction as it allows them to save time from having to comb through products mainly positioned for females and lets them start shopping immediately.

Although in general men and women shoppers value the same characteristics from online shopping platforms, our survey found the subtle differences that e-marketplaces can use to take advantage of in attracting the male segment.

One of the most important values for male shoppers is site reputation, as they’re less likely to browse through multiple sites everytime they’re doing their shopping. By offering an overall good shopping experience and providing additional values such as same-day delivery, a better mobile app, and easy return policy, e-marketplace have higher chance to convert them to be loyal shoppers.

Figure 9: Comparison of the importance of ecommerce characteristics between men and women; ecommerceIQ E-Marketplace Survey Philippines 2018

Compared to women, men tend to shop less frequently online. But many of them are more willing to shop in full price retailers and spend more money per purchase, illustrating how men might not be as price-sensitive as female consumers.

Online platforms like Shopee need to offer more than just low price to get more men to want to shop online.

Figure 10: Online shopping frequency comparison between men and women; ecommerceIQ E-Marketplace Survey Philippines 2018

It’s early days for the male online shoppers in the Philippines, and the verdict isn’t out yet, but if the data says anything, there’s no doubting the potential of this segment. And if Shopee’s attempt proves to gain enough traction, we can expect more male-oriented online platforms in Southeast Asia in the future.

Appearance matters — which is why there are more people purchasing beauty items each year in Thailand. The country’s Cosmetics and Personal Care market is expected to grow 7.7% annually, and with the changing lifestyle that the country’s increasing internet penetration brings, more Thai consumers are turning to online to purchase beauty products.

Why do Thai consumers buy beauty products from online stores

Data from ecommerceIQ Beauty Survey Thailand 2018 shows price is an important factor as 25% of the total 1,874 respondents answered discounts as the top reason to shop beauty products online. Free delivery (24%) followed closely as the second reason.

Figure 1: Reasons why Thai consumers prefer buying beauty products online; ecommerceIQ Beauty Survey Thailand 2018

As the rule of thumb in developing markets like Southeast Asia, including Thailand, consumers tend to be price sensitive.

The Bank of Thailand (BOT) reports that the average salary in the country is approximately 13,789 baht, in line with our report where 35% of our respondents’ monthly income is less than THB 18,000. As such, it’s no surprise why most Thais prefer things that are either free or low-priced, especially for items that aren’t daily necessities.

Figure 2: Average wage categorized by occupation (in baht) in Q2 2018; Bank of Thailand

In addition to price and free delivery, having a wider product selection (19%) is another reason for consumers to purchase beauty products online, most likely due to the lack of offline footprint outside the Metro area. And unlike brick-and-mortar stores, consumers can view and compare a wide array of brands offering similar products in one sitting, allowing them to purchase the cheapest item available in the market in no time.

What beauty items are purchased online?

In general, Thais mostly shop online for skin care products (31%) and color cosmetics (31%), possibly due to high product availability and exclusivity online. Understandably, color cosmetics are mostly purchased by female, while males and third-gender individuals mainly purchase men’s grooming products online.

Figure 3: The category of beauty products purchased by Thai online consumer, depending on gender; ecommerceIQ Beauty Survey Thailand 2018

There are a couple of reasons why color cosmetics are popular among Thai online shoppers. First, there’s sufficient product information for color cosmetics available on the internet, whether it’s from beauty bloggers and vloggers, or product reviews from the consumers.

Figure 4: Search results for make-up tutorial videos on YouTube; YouTube

36% of our respondents say the lack of touch and trial is their main reason why they don’t buy beauty products online. Therefore, the availability of comprehensive product information online might help them overcome the need for having to try it out beforehand.

Figure 5: Top 5 reasons why Thai consumers don’t buy beauty products online; ecommerceIQ Beauty Survey Thailand 2018

Another reason is because color cosmetics are usually priced on a much lower range than other beauty product categories. For price-sensitive societies like Thais, they’re more likely to only shop on affordable products like color cosmetics. This is also supported by our survey findings where over 50% of Thais only spend less than 1,500 baht for beauty products.

Figure 6: The average order value Thais are willing to spend on beauty products in both online and offline channels; ecommerceIQ Beauty Survey Thailand 2018

Where do most Thai shoppers buy their beauty products?

For online purchases, most Thais choose to shop on Lazada (30%) and Shopee (27%), the two biggest ecommerce platforms in Southeast Asia. In line with the top reasons to shop this category online, the two websites are chosen for the many discounts they offer (34%) and because consumers find it convenient to shop on these platforms (35%) as they’re already familiar with the sites.


Figure 7: The online channels Thai online consumers usually buy beauty products from; ecommerceIQ Beauty Survey Thailand 2018

Figure 8: A price promotion banner on the homepage of Lazada Thailand

What does this mean for beauty brands in Thailand?

Generally, Thai consumers aren’t loyal towards a specific brand and are willing to try out other brands. Over 57% of consumers cited looking for variations as the main reason they are open to trying other brands — giving brands the opportunity to always grab more market share.

Figure 9: Factors that drive Thai consumers to change personal care brands; ecommerceIQ Beauty Survey Thailand 2018

And with most Thais using online platforms such as social media and brands’ websites as the place to learn about new beauty trends and products, leveraging online channels have become more important than ever for brands to attract more consumers.

Figure 10: An example of a Thai beauty influencer on social media; Wonderpeach’s Instagram

Figure 11: Social media is the number one destination for Thai consumers to learn about the newest beauty trends; ecommerceIQ Beauty Survey Thailand 2018

However, having a presence online will do brands no good without knowing what consumers actually want. Our survey results indicated that the first thing Thai consumers consider when choosing beauty products is the function (25%), followed by price (22%) and product reviews (17%).

In this context, function means the type of product, for example anti-aging, whitening, or acne-treatment. In Thailand, for example, beauty products with whitening agent is the most popular because of the local beauty perception.

Figure 12: Snail White Body Wash in various ingredients and functions; Snail White Official Facebook

Figure 13: The key features Thais look for when buying beauty products; ecommerceIQ Beauty Survey Thailand 2018

At the end of the day, what matters the most for consumers are good products that bring good results, and product reviews have become an increasingly important part of their decision-making process as it comes from real consumers.

Brands can take advantage of platforms like ReviewIQ to help them connect with real reviewers to leave product reviews after purchase on their official store on e-marketplaces like Lazada.

Figure 14: Using ReviewIQ, Nivea has successfully increased the number of reviews from their consumers for their shop-in-shop on Lazada Thailand.

Over 30% of our Thai respondents are loyal to one brand when choosing products from the beauty category. This shows that as long your brand is offering the right products at the right price and quality, consumers will be less willing to use products from other brands.

The full report for Online Beauty Consumers in Thailand will be out in November 2018. Subscribe to our weekly newsletter and be the first to know.

Are you a beauty brand looking to expand online in Southeast Asia? Contact us at hello@ecommerceiq.asia for expert ecommerce advice on growing your brand.