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.

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.

In this day and age, a mobile phone can do more than making a phone call; it records the time, takes pictures, orders meals and even measures your heart rate. Who needs a watch these days?

You may be surprised to learn that even though 81.4% of Thais own a mobile phone, many still wear wrist watches.

Mobile phone user penetration in Thailand; eMarketer.com

What do Thais Look for when Buying a Wrist Watch?

Out of the 877 Thai respondents, 94.9% wore a watch and more than half (56.0%) owned three watches or more. Data from the ecommerceIQ Wrist Watch Survey Thailand 2018 indicated that watches remain a necessary accessory among Thai consumers with demand still high despite a large number of smartphone users. Statista reported a total of 25.75 million smartphone users in Thailand but the days of the wristwatch are not yet over.

Apart from the obvious reasons to tell the time (62.5%), 13.5% also wore a wristwatch as an accessory. Male respondents especially mentioned that wearing watches was the easiest and classiest way to look good. Around 8.6% cited that wearing a watch reflected their status and style and helped to boost their confidence.

For this reason, design was naturally the most important factor that Thais considered when buying a wristwatch, followed by price and brand name. Brand name also reflected status and personal style. For example, Rolex is still highly regarded as a prestigious timepiece brand in Thailand. Wearing a Rolex advertises high income and social status.

Price, naturally, is another high-ranking factor. Watches are deemed as expensive accessories and not something to be bought on an impulse. Thais only buy new watches every few years (58.7%). Most respondents indicated that they were comfortable to spend around 1,000-30,000 baht on a wristwatch.

Factors that Thai respondents look for when buying a watch; ecommerceIQ Wrist Watch Survey Thailand 2018

The top three watch brands preferred by Thai respondents were Seiko (25.6%), Casio (21.6%), and Omega and Rolex (10.9%).  What do we learn from this ranking?

  • Seiko is a Japanese company that revolutionized the industry and is known for its long history of watchmaking. Prices range from 5,000 to 30,000 baht and the brand is popular among 20K-50K baht income earners.
  • Casio offers a diverse product assortment and brands including G-SHOCK and Baby G. Casio are known for their affordable but attractive designs.
  • Rolex and Omega are popular among consumers aged 40 and above. These two brands are preferred by the older generation, while youngsters opt for IWC or Tag Heuer as luxury timepieces.
  • Daniel Wellington, is a hipster brand that rose to popularity fast and won the hearts of the younger generation. Up to 75% of respondents aged 18-25 wore this brand. Tag Heuer is also popular amongst the 31-40 age group.

When asked about the media channels they used for news and information about timepieces, 48% of the respondents stated that they received news from social media with 33.7% using brand websites.

In Thailand, 74% of the population are active social media users, as reported by ETDA 2017. Thus, it does not come as a surprise that social media was the main channel respondents used for news concerning watches. Brand websites offer more genuine and trustworthy news about the brand itself.

Media channels that Thais use for news about wrist watches; ecommerceIQ Wrist Watch Survey Thailand 2018

Where do Thais Buy Wrist Watches?

Despite the heavy usage of the Internet to consume news, 76.7% of Thais still buy wrist watches from offline stores. The most popular offline channel used by 55.5% of the Thai respondents was Central Department Store because of the store’s credibility.

Like most department stores in Thailand, Central Department has a dedicated section for wristwatch sales. Apart from their reliable reputation, buying a wrist watch from Central Department Store is very easy and convenient. Up to 19% of the respondents looked for convenience and a holistic service, especially regarding after-sales service when buying a watch. Every Central Department Store has a ‘Watch & Clock Clinic’ that offers after-sales service for watches bought from the store.

Watch & Clock Clinic at Central Department Store, Pinklao Branch

Only 23.3% of the respondents bought wrist watches online. Lazada received the highest scores in terms of an online sales channel where Thais buy watches. The second preferred option would be the brand website, due to its credibility.

The online channels Thai respondents choose to buy watches from; ecommerceIQ Wrist Watch Survey Thailand 2018.

 

Similar to other product categories, the top reason cited for opting for online channels was because of convenience; ecommerce saves time and is hassle-free. On the other hand, some Thai respondents refrained from buying wrist watches online due to a perceived lack of credibility in the sellers and/or marketplaces. Offering a warranty and after-sales service are also factors that some online sellers fail to provide.

Reasons why Thai respondents bought wrist watches from online channels; ecommerceIQ Wrist Watch Survey Thailand 2018

It is also interesting to note how wrist watches are listed by Lazada and Shopee websites as each has a slight difference. From our observations, watches are only found in the ‘watch and glasses’ category on Shopee, while Lazada lists watches under: Electronic accessories, women’s fashion, and men’s fashion. This provides users with more exposure to the products and hence higher conversion to sales.

On the Lazada website, users are able to see watches listed on the e-marketplace more frequently and in more sections than at Shopee. Lazada, watches can be found under Electronics as wearables and accessories, which is also categorized into male, female and child timepieces.

Shopee, on the other hand, only offers watches under the watches and glasses category, and does not categorize watches for different demographics like Lazada.

How Can Watch Brands Take Advantage?

Watches are deemed as a luxury item by Thais. More often than not they are bought as an investment. Thais look for credibility and confidence from the seller, as well as a warranty proving that the timepiece bought is authentic.

It is not enough to list your products on a marketplace and engage in advertising campaigns. Rather, brands should focus on establishing confidence among consumers. One way to ensure this is to be listed as an official seller on LazMall or Shopee Mall, as well as including a clear statement about warranty and after-sales service conditions.

For luxury timepiece manufacturers, an e-marketplace may not be the ideal strategy as it may conflict with the brand’s positioning. Luxury brands should focus on providing beyond-expectation services and ascertaining that information is clearly visible on their websites.

As watches are still mainly sold offline, now is the right time for brands to give omnichannel a try. Take Burberry for example. They created the Burberry Retail Theatre that streams live runway shows into a number of their stores worldwide and through their other online channels. In the Retail Theatres, customers can browse live streaming collections on iPads and purchase items online immediately.

Burberry’s Runway to Reality campaign allowing consumers to order items from the runway in real-time

However, high-end or mid-range Thai timepiece brands should not ignore the power of social media. Daniel Wellington sets a great example through owning its own social media game. The company reduced spending on traditional advertising and turned instead to social media to reach potential consumers through use of the hashtag #DanielWellington. This also leverages user-generated content (UGC) to engage its customers and drive brand loyalty.

An Instagram post was created with #DanielWellington as #DWPickoftheDay and #DWPickoftheMonth

By taking your brand digital, you are embracing an endless supply of consumer data. As Shadi Halliwell, the creative and marketing director of Harvey Nichols stated,

“Data is a conversation; the more data you have on someone, the more conversation you can have.”  

Customer service goes beyond a smiley face and a friendly personality. In the world of ecommerce, where there is a lack of human touchpoints, customer service plays a vital role. When done well, it can help you increase your Average Order Value (AOV), boost your conversion rate, and create brand loyalty.

But gone are the days when customer service translated to 24-hour hotlines. In this day and age, customer service often comes in a form of live chat, recently popularized by all the hype around AI-driven chat bots.

In order to craft an effective customer care strategy, it is important to benchmark the level of customer service in the marketplace. To do that, ecommerceIQ conducted an experiment to test the responsiveness and effectiveness of brands offering live chat on Lazada Thailand.

Methodology

We randomly picked three brands from each category offered on LazMall, sampling a total of 27 brands across Lazada Thailand.

Each of the brands was asked the same single question – “How long does it take to deliver a product from your brand?” – during two time periods: during lunch time and after work. These are typically peaked online shopping hours, translating into peak load hours for live chat operations too.

Results: How Do Brands’ Customer Service Perform on LazMall?

From our observations, 25.9 percent of the brands offer a real-time response through Lazada live chat. 22.2 percent replied within 30 minutes, 22.2 percent replied within the first hour, 11.1 percent replied within 6 hours and 24 hours, and 7.4% of the brands did not reply at all.

It is also noted that the categories that are the most responsive are Electronics & Mobile and Home & Lifestyle.

Since our sample covers after work, off-hours too, this allows us to identify brands that have configured auto-replies for their live chat. Only 37 percent of the brands tested had auto-replies enabled. Setting up auto-replies is easy and a no-brainer in this day and age when everything is on-demand and 24/7.

ecommerceIQ’s observations about the responsiveness of live chat on Lazada Thailand

From our observations, 25.9 percent of the brands offer a real-time response through Lazada live chat. 22.2 percent replied within 30 minutes, 22.2 percent replied within the first hour, 11.1 percent replied within 6 hours and 24 hours, and 7.4% of the brands did not reply at all.

It is also noted that the categories that are the most responsive are Electronics & Mobile and Home & Lifestyle.

Since our sample covers after work, off-hours too, this allows us to identify brands that have configured auto-replies for their live chat. Only 37 percent of the brands tested had auto-replies enabled. Setting up auto-replies is easy and a no-brainer in this day and age when everything is on-demand and 24/7.

Xiaomi’s automatic reply which indicates the working hours and apologizes for the slow response in both Thai and English.

Most brands do add some human touch to their chats, such as using stickers and offering detailed information. But that is not enough to make an impression and the current live chat offering from brands are far from using live chat at its maximum ability.

How can Brands Improve their Live Chat on E-Marketplaces?

With these findings, brands should start paying more attention to their customer care strategies. We spoke with the Ms. Ratchaneewan Vichaisorn, Head of Customer Service at aCommerce, an end-to-end brand ecommerce enabler in Southeast Asia. Here are her suggestions:

1. Equip your Customer Service / Chat Agents with Product Knowledge

As the agents operating your live chat are an extension of your company’s brand, it is important that they receive adequate training for your products. This is especially the case for Mobile & Electronics and Beauty categories as product knowledge are often the deciding factor for shoppers in Thailand.

According to Ms. Ratchaneewan Vichaisorn, Head of Customer Service at aCommerce, during non-campaign periods, 35% of the inquiries through live chat are about products, while the number of inquiries about products surged to 45% during campaign periods like 9.9. (See how to prepare for the annual online mega sales here.)

2. Leverage the Opportunity to Up-Sell and Cross-Sell

Based on their product knowledge, your agents should be able to provide recommendations of similar products or complementary products that consumers may be interested in.

Brands can also take this opportunity to inform consumers of upcoming promotions to keep them coming back to buy the next time too.

3. Collect Data and Monitor For Customer Feedback

Talking directly to your customers is a great way for brands to collect data and feedback from end users. This information can then be used to improve a brand’s products and services. Because live chats are automatically logged, the chat histories can be mined for patterns and insights.

4. Promote Your Brand

Your customer service agent should be encouraged to offer more information about the brand to improve the relationship between the brand and the consumer. Towards the end of the chat, inform the customer about the channels that they can follow your brand for content, updates, and promotions.

These are a few tips that your brand can adapt to improve your customer service. If you’re interested in a similar audit for your own brand or a consulting session to improve your live chat operations, please contact us via hello@ecommerceIQ.asia or fill out the form below: