If you ask someone from Generation Y — more known as millennials — what they’re aspired to be growing up, you are more likely to hear answers involving occupations like doctors, engineers, or lawyers. However, ask people from Generation Z, and you will be surprised by how many of them mention social media influencer.

Why are more people pursuing this career path? Simple. They get paid to do something that they already love to do on a daily basis: posting on social media.

An influencer, someone with a substantial number of followers on social media, can generate a paycheck in the range of from US$124 to US$1,405 for one sponsored post, depending on the follower count.

How come a social media post worth that much? Moreover, why are so many brands willing to invest time and money in influencer marketing? 

The Influence of Social Media

One reason why influencer marketing becomes a powerful marketing tool is that influencers understand what today’s consumers want. Many of these influencers are regular people that gained their followers by curating contents that resonate with many people — earning them the power to influence their audience’s opinion and are more likely to be trusted by consumers.

Tofugear found that 55% of Gen Z consumers bought products due to the content shared by influencers. TBWA\Hakuhodo’s chief creative officer and executive creative director, Kazoo Sato, explained the phenomenon.

Influencers brings an entirely different perspective from ad agency creators. He understands what creates buzz for the smart-phone obsessed generation, and we intend to leverage this sensibility and perspective to involve brands in culture.

As a result, they’re able to devise contents that appeal to the brand’s target customers.

It’s also worth noting that influencers usually have their own niche and have followers that are interested in the same group, allowing brands to target the right audience effectively. Markerly found that those with fewer followers have higher engagement rates, most likely because the audience is interested in the product or the topic the influencer is advocating rather than just being fans of the influencer.

Figure 1: Instagram accounts with fewer followers have higher engagement rates; Markerly

In a region where social media is highly popular like Southeast Asia, where 55% of the population (around 360 million people) are avid social media users, it’s become more critical for brands to gain relevancy among their consumers in this platform.

Figure 2: Social media users in Southeast Asia account for only 55% of the entire region’s population; Hootsuite, We Are Social

Thanks to social media exposure, younger consumers also have an easier time connecting with the other consumers online and trust their opinion more than the ‘official’ brand channels or traditional media, because these people have experienced using it or are experts in the specific field.

The rise of social media usage has also raised the popularity of social commerce in this region. According to PayPal, 80% of Asian merchants use social media to sell online. The number is even higher for the three largest Southeast Asian countries. Thailand recorded the highest percentage of merchants using social commerce at 95%, followed by 87% of Philippines merchants, and 80% of Indonesian merchants.

Figure 3: Social commerce is popular among Asian merchants; PayPal

Case Study: Building a $1 Billion Business through Instagram

One of the most successful examples of influencer marketing is Daniel Wellington (DW), a Swedish watch company established in 2011. During its initial conception, DW is famous for leveraging several smaller influencers on Instagram to promote their product instead of choosing a celebrity to gain the same ‘viral’ effect with lower cost. 

By contacting many of these smaller influencers to post images of them wearing the DW watch in exchange for a free watch, the brand manages to invoke public curiosity and place their products in the eyes of potential customers and have the images speak for itself.

Figure 4: A Daniel Wellington Instagram post by Thai influence bikwansr; Bikwans’ Instagram

The result? Almost 4,700% revenue growth in the three years leading to 2015.

An effect to this extent won’t be as easy to achieve now as it did before as more brands are utilizing Instagram as their marketing channel and the platform has since set up posting guidelines to make it more transparent for users to see whether or not an advertiser sponsors a post. Still, it’s evident how powerful influencer marketing is when done right.

The Key to Influencing

There isn’t one right answer on how to choose the right influencer(s) for brands. However, there are some key rules brands should keep in mind when doing influencer marketing.

1. Alignment with Brand’s Audience

Know your audience. Enlist the influencer that has the same audience as your brand or product is targeting to, to ensure your message falls into the right ears and maximize the promotional effectiveness. One of the brands that did a good job with this was Lenovo.

Brief: To promote its new product line of YOGA 3 Pro and YOGA Tablet 2 Pro computers, Lenovo hired influencers, bloggers, and YouTubers to advertise their product on their platform using images, videos, and blogs that detailed their day using the product and promoted a giveaway. One of the influencers that were chosen was Kileen, a Dallas software developer and fashion blogger that works full time and has two kids.

The rationale behind this influencer: As a mom and fashion and beauty blogger, Kileen’s audiences are active, fashion-conscious women who are interested in fashion or lifestyle products. This match with Lenovo’s target, which wanted to position their YOGA 3 Pro and YOGA Tablet 2 Pro computers as a product that can be used daily for all kind of consumers, including active women.

Result: Although the blog post was only able to attract 62 comments, with other posts from other influencers, the campaign was able to garner 51 million social impressions and rank number eight as trending national topic in the US on Twitter. The giveaway also attracted over 61,000 entries.

Figure 5: A blog post by fashion and beauty blogger Kileen regarding Lenovo YOGA Pro 3; Kileen’s blog

2. The Influencer’s Engagement Rate

Brands should also take into account an influencer’s capability on engaging the audience and whether or not they’re someone your target audience can relate to and trust on, just like what Clinique did.

Brief: To promote better skin care routine among Men audience in general and introduce their new product line for men, Clinique for Men, the cosmetics and skincare brand partnered with 37 influencers from numerous fields, including stylists, filmmakers, lifestyle bloggers, and outdoorsmen. One of the influencers it worked with was Mikey de Temple, a surfer, photographer, and filmmaker from New York.  

The rationale behind this influencer: By partnering with someone unrelated to the fashion industry and more known for his professional works, Clinique was able to display how its new product line is used by regular people as a part of their daily activities.

Result: Despite his post only acquiring 748 likes (around 2.68% engagement rate), the campaign from the 37 influencers was able to garner an engagement rate of 3%, or 3.8 times higher than the post from Clinique’s official Instagram account. The campaign was also able to achieve 2.4 million impressions and over 67,000 interactions.

Figure 6: An Instagram post by surfer, filmmaker, and photographer Mikey de Temple to promote Clinique for Men; mikeydetemple’s Instagram

3. Do Homework on the Influencers

When choosing the influencers, it’s also important to see the history of their professional works to be able to judge their integrity and make sure all parties involved can able to meet all contractual obligations to prevent any future problems. Sadly, many brands failed to do this when they hired Instagram influencer and local photographer Daryl Aiden Yow.

Brief: Numerous big brands like Reebok, Dyson, Uniqlo, and Sony had hired Singaporean photographer and Instagram influencer Daryl Aiden Yow to promote their products on his Instagram platform. However, Mothership.SG exposed how he had been using stock photos from websites like Shutterstock and Pinterest and photoshopping himself in the images to promote their brands. Critically, Mustsharenews claimed that Yow had done this with the brands’ full awareness and approval.

The rationale behind this influencer: With Daryl Aiden Yow’s reputation as a photographer and his production of high-quality images, having him promote products on social media would show how picturesque and good the products are to his 115,000 Instagram followers.

Result: Post the expose, many individuals like APD’s Tim Sharp and Singaporean influencer Wendy Cheng and brands like Scoot and F&N Seasons have slammed both Yow and the brands. This not only damaged his reputation as an influencer but also brought down numerous brands’ name, resulting in contract termination from brands such as Sony and Issey Miyake.  

Figure 7: The number of Instagram posts on Yow’s channel drastically decreased from 1165 posts to 42 posts; darylaiden’s Instagram

Influencer marketing is an effective way to directly reach and attract your target audience without needing to spend millions of dollars on advertisements. However, like any other best marketing practices, personalization is needed when choosing these influencers to make sure you reach the highest level of engagement and in turn, your conversion rate.

The overall pet industry in Thailand is worth $2.8 billion and it is expected to continuously grow at a 10-15% rate per year. Pet food is the largest segment in the overall pet industry in Thailand and makes up 45% of the industry’s value.

Asian Trends in Pet Food and Health; Euromonitor  2017

Out of the 1,015 survey respondents ecommerceIQ has commissioned in August, we have found that 65% of them keep more than one pet.

Let’s dive into what we found out about Thai’s pet food buying behavior.

Kind-Hearts Get Thais More Pets

With the increasing number of singles, married couples without children, and an overall aging society, the pool of pets owners in Thailand is growing faster than ever.

40% of 65 million people in Thailand are working-class singles. An average Thai family now bears only 1.6 child per family even though the government recommends 2.1 children per family to prevent the country from becoming an aged society. Inability to provide the best for their children, whether it is education, safety, or financial stability, is among the most popular reasons why Thais are refusing to give birth to a child. This is why many rather choose to keep pets instead. More often than not, Thais refer to their pets as ‘Luk’ which means baby or child. This shows that they regard their pets as their children that they do not have.

Among the 65% of the respondents who keep more than one pet cited that they want pets to keep each other company. Being a Buddhist society, more than 35% of the respondents keep more than one pet because they do not have the heart to see them being astray.

The reasons why Thai respondents keep more than one pet; ecommerceIQ Pet Food Survey Thailand 2018

Thais are Pet Pleasers When It Comes to Food

Dry food has become the most popular pet food type among Thai pet owners as 40% of them said that they feed their pets with dry food. This does not come as a surprise since dry pet food has many advantages. It doesn’t need to be stored in a refrigerator and it lasts all day, which is important to pet owners who are not always at home. They can simply leave dry pet food for their pets for whenever they feel hungry.

There are also health advantages to dry food. According to Pedigree, dry pet food has distinct benefits for your pet’s oral health. Chewing kibble helps to keep their teeth healthy by reducing plaque and tartar buildup, also resulting in better breath.

While 31% give pets a mix of pet food because they believe that each type of pet food provides different nutrients and has different benefits.

The types of pet food Thai pet owners use; ecommerceIQ Pet Food Survey Thailand 2018

Regarding pets as their children, Thais are willing to choose the best food for their pets. This explains why 22% of respondents say that product quality is the most important factor when buying pet food.

While the second factor depends on pet’s preference, meaning that food types and brands are selected based on the liking of their pets, this factor will continue to be the reason why Thai pet owners change pet food sometimes. It is reflected that 32% of the respondents change pet food when their pets refuse to eat or grow bored with the current food.

The factors that Thai respondents consider when choosing pet food; ecommerceIQ Pet Food Survey Thailand

The Pet Food Industry in Thailand isn’t Betting on Ecommerce Yet

For a country with high Internet penetration and familiarity with ecommerce like Thailand, it is surprising to learn that only 14% of the respondents are currently buying pet food from online channels, with 74% of those buying from online marketplaces, such as Lazada and Shopee.

One would think that pet food, given its bulkiness, purchasing frequency, and lower risk, is a perfect category to triumph in the online space. However, Thai respondents are too comfortable with buying pet food at the pet food shop or supermarket that they did not see why they should switch to buy it online.

Since cheaper product price is the factor that Thai online shoppers value the most, according to the ecommerceIQ E-Marketplace Survey Thailand 2018, discounts and promotions offered through marketplaces are a good incentivized motivation for them to start buying pet food online.

Brands can also implement an e-sampling strategy which will allow consumers to get a free sampling product and learn whether their pets will like the food or not. This is also beneficial to the brand because consumers will be willing to provide the brand with their personal data, in return for the sample-sized pet food. Brands may also use this information to customize and target the communications strategy towards their potential online shoppers in the future.

Through the e-sampling service of aCommerce, Mars Petcare in the Philippines successfully rolled out an e-sampling campaign that was able to gain awareness on social media organically; aCommerce.

How else can pet food brands increase their online capability? Sign up to receive ecommerceIQ’s report on the pet food industry in Thailand here.

Earlier this year, Amazon partnered with the Vietnam Ecommerce Association (VECOM) to provide ecommerce services for local online businesses under VECOM. They also held numerous workshops for sellers, the latest one being in Hanoi and Ho Chi Minh City, called Selling Globally on Amazon.

Similarly, Alibaba-backed AliExpress has been looking to sign up more Vietnamese sellers on its platform since July as it teams up with OSB Investment and Technology JSC to support international exports by Vietnamese small and medium-sized enterprises (SMEs).

Why Vietnam?

Vietnam is one of the biggest exporters in the world, ranked at number 28 out of 225 countries at $214 billion of export value in 2017. Based on 2016’s exports data, Vietnam’s main exports are machinery products, textile goods, and footwear and headwear products.

Figure 1: Vietnam’s amount of exports and its categories in 2016; OEC

Vietnam has become a manufacturing hub with one of the lowest minimum wages in the ASEAN region at $147 to $167 per month (Figure 2). Expanding infrastructure for new projects and a rapidly increasing working age group have promoted low-cost mass-production with many global companies establishing manufacturing bases in the country.

Global companies are benefitting from low production costs but local businesses also have access to ready-to-sell goods at competitive prices. In Vietnam, some 600,000 SMEs are searching for appropriate channels to expand their market share. Ecommerce offers this opportunity from the comfort of their homes.

Figure 2: Minimum wage in ASEAN for 2017; World Economic Forum, Philippines’ National Wage and Productivity Commission, The ASEAN Post

As in all other developing countries, ecommerce in Vietnam is mushrooming. Statista forecast annual growth at 16.8%, higher than Thailand (12.8%) and Indonesia (13%). However, the Vietnamese market is small and still in its infancy. Therefore, the international market offers economic opportunities for local retailers.

Vietnamese merchants are attracted to global e-marketplaces which access customers searching for a broader variety of products and enable international sales at low cost. Online merchandising boosts sales while mitigating the risks of the local economic downturn.

AliExpress executive Yang Ninh commented, “Vietnam, as one of the most diverse manufacturers in the world, is an important destination for Alibaba.”

Comparing between Amazon and AliExpress

To know which platform suits Vietnamese sellers, we compared the specifications of the two platforms in the table below.

Amazon

AliExpress

  • 2.435 billion monthly visits at an average of 6 minutes per visit
  • Most Amazon customers have a high annual income (above $30,000)
  • Visitors are mainly from the Americas, Australia, Western Europe, and South and East Asia (Figure 3)
  • Available in different languages with localized websites in the US, UK, and Japan
  • Monthly subscription fee of $39.99 for those selling over 40 items per month – professional plan or per-item fee of $0.99 for each item sold – individual plan
  • Referral fee of 3-45% of total sales price or a $1 applicable minimum referral fee, whichever is greater, depending on the product category
  • Shipments completed either by sellers using courier services from providers like UPS, DHL and local post or fulfillment by Amazon
  • 549 million monthly visits at an average of 8 minutes per visit
  • Most AliExpress customers have lower annual income (below $30,000)
  • Visitors are mainly from the Americas, Australia, Europe, Asia, and a few African countries (Figure 3)
  • Available in different languages such as French, Spanish, and Korean serving over 200 countries
  • Annual service fee of at least $1,436 (RMB 10,000) and 5-8% seller commission; amount depends on the product category
  • Annual service fees are eligible for 50% and 100% discount if sales reach a certain amount depending on the product category
  • Shipments completed either by sellers, AliExpress or other delivery companies

Figure 3: Where visitors of Amazon (top) and AliExpress (bottom) are located and their average income; Alexa

Whether Vietnamese sellers choose Amazon or AliExpress depends on the target market

Those selling high-end, expensive products may prefer to sell on Amazon because site visitors have higher purchasing power and the majority hail from developed countries. Those wishing to target consumers in the Americas may also prefer Amazon which has a stronger top-of-mind awareness in the region.

Conversely, AliExpress offers Vietnamese sellers a wider global customer base. AliExpress has a more extensive global presence (Figure 3), with site visitors to the platform spending on average 2 minutes longer than at Amazon.

However, the annual service fee at AliExpress is higher than Amazon. Sellers with limited funds or those just starting out might be better to opt for Amazon which also offers different pricing plans for individuals and professionals. Meanwhile, AliExpress discounts annual service fees for retailers if they manage to attain the required annual sales specified for particular categories. This offers value for those selling hundreds or thousands of items.

Vietnam has many local ecommerce players, providing sellers with alternative options for domestically growth. However, reliance on these e-marketplaces alone is not sufficient for Vietnamese sellers to tap international customers.  Listing on either or both of the AliExpress or Amazon platforms offers the most realistic opportunity to maximize sales.

The ecommerce world today is all about data. It’s not a nice-to-have but rather a must-have. Why? Because the richer the data, the better the decision brands make.

Collecting data is easy when brands have their own ecommerce website or what we call 1st party data. Some channel partners do share their data to a certain extent, that’s called 2nd party data. The 3rd party data, which is a set of data collected from sources by a company that isn’t directly involved in the transaction, will help brands drive successful action and increase their ecommerce sales.

Types of data in today’s ecommerce world; BrandIQ

Brands in Southeast Asia are accustomed to ‘surveyed data’, but have a limited amount of data from online marketplaces, so much so that it is insufficient for them to craft a successful online marketplace strategy.

BrandIQ is envisioned to provide brands in Southeast Asia with measurable data and actionable insights for their online commerce strategy. Using sophisticated ecommerce data collection and proprietary machine learning technologies, BrandIQ will empower brands to monitor online merchandise, analyze competitors, offer better promotions, understand consumer sentiments, and improve the overall ecommerce experience.

When 4Ps is not enough. BrandIQ Analytics will be able to provide brands the data and insights across 9Ps; BrandIQ

At Okura Prestige Bangkok, three brands – Beiersdorf, Kimberly Clark, and L’Oreal, were brought together by BrandIQ to discuss and share their experience about the growing influence of data usage and user-generated reviews.

From left: aCommerce’s Group Director of Product, Poonpat Wattanavinit as the moderator, and panelists: Praponsak Kumpolpun, Senior Ecommerce Manager, L’Oreal CPD Thailand, Aviroot Prasitnarit, Sales Director – Kimberly Clark Thailand, and Phunnapa, Limtansakul, Senior Ecommerce Manager SEA – Beiersdorf Thailand

This is what was discussed:

Keep your Friends Close, Your Enemy Closer

By having an understanding of your competitor’s movement, brands can gain a significant advantage to help guide its own pricing and marketing strategy.

Tracking your competitor can be easily done offline, especially the price. Brands can simply send an intern to take note of the price. In the country’s FMCG industry, prices change every two weeks. Online channels? Every minute.

“Unlike offline, monitoring our competitors’ online movement is extremely challenging. Promotions are constantly changing and without a proper tool, it is impossible for a human to keep up,” says Aviroot Prasitnarit, Sales, Kimberly Clark. “My team once woke up to a surprise that our competitor could perform really well overnight because of its flash sales at 10 PM. None of my team members was standing by to track that.”

Being in the competitive FMCG industry, Kimberly Clark aims for a double-digit growth. Therefore, taking up more market share from its competitor is very important to Aviroot. So when it comes to price, Aviroot suggests keeping friends close, enemies closer.

In addition to direct competitors, brands should also be aware that grey sellers on the online marketplace can be a threat. According to BrandIQ, 35% of e-marketplace sales happen through grey sellers. This should raise a concern among brands because not only can grey sellers take away your share on an online marketplace, brands will not be able to create a unified brand experience.

Because at the end of the day, consumers will not differentiate if the sellers are grey, authorized or official. They will perceive it as one brand.

The New Rising Star: Nano Influencer

Besides price, reviews and ratings are also important for L’Oreal Thailand where the cosmetic industry is a “Red Hot Ocean”, according to Praponsak Kumpolpun, Senior eCommerce Manager, L’Oreal CPD Thailand.

“Thailand has many strong local beauty brands that are 40-50% cheaper than L’Oreal with roughly the same quality. So monitoring 4Ps (Price, Product, People, Place) is not enough.”

BrandIQ also found that the FMCG category has almost 70,000 reviews with most comments regarding the quality and speed of delivery. This is because FMCG has a “need it now” characteristic, making consumers very sensitive to delivery lead-time.

The number of reviews versus % of reviews that are about delivery across the categories on Thailand’s leading online marketplace; BrandIQ

Aviroot also added that a survey conducted by his team revealed that commercials on televisions are not convincing for consumers today. 80% of respondents also say they’d rather listen to recommendations of their friends and family. This is where the concept of nano influencers comes in.

Influencer marketing is not new in Southeast Asia. Around 40% of companies’ social media advertising spending has been allocated to influencer marketing in Thailand, up from 15% three years ago. Thailand, being the home to 57 million active Internet users, consumers are fairly familiar with social media. Seeing the success of established influencers and bloggers in the industry, many could not help but aspire to be one, in hope to enjoy the perks brands offer; overseas trips, free products, and a large amount of side income.

The trend to become influencers made the social web of today home to a millennial digital entrepreneurial society. Brands make a good use of it by handpicking matured ambassadors, ready to promote their values, from the army of new social influencers.

“Whether they are macro, micro, nano, influencers play a big part in convincing the digital consumers. Knowing that Nano influencer is new to the market, I think it is a big opportunity that brands should start considering.” – Phunnapa, Limtansakul, Senior Ecommerce Manager SEA – Beiersdorf Thailand.

What Can Brands Take Away from This?

Time and again, brands are constantly curious about two things: what is my competitor doing? How do my consumers feel? As ecommerce and social media become a bigger part of consumers’ daily lives, brands are looking for ways to gather data and gain insights from platforms such as Lazada and Shopee as a rich and dynamic data set.

The metrics that BrandIQ will be able to offer to brands.

And the metrics that brands should start paying more attention to, tools like BrandIQ will be able to track and analyze consumer behavior and sentiment on marketplaces, in addition to tracking their own performance as well as benchmarking against competitors selling similar products.

Interested in monitoring your competitor? Get BrandIQ’s free trial here.

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.