More than half of Asia’s shoppers are set to significantly increase their spending, start buying earlier and combine online product research with bricks-and-mortar purchases this festive season, requiring marketers to adjust their campaign strategies accordingly.
This according to new research from MiQ Asia Pacific, that found six in 10 shoppers across India, China, and South-East Asia are expecting to spend more this holiday season, compared to 2021.
The figures – 58% in India, 50% in China, and 47% in Singapore who will spend more – are well above the global increased spending rate of 46%, with MiQ attributing the rate to Asia’s strong financial resilience during the worldwide pandemic slowdown, the company said.
They added that, “Although Asian customers are set to spend more money, they are likely to buy fewer products, be more selective and do their homework, with seven in 10 people conducting product research, such as reading reviews and comparing goods, before making a purchase.”
The report predicts a bumper holiday shopping season worldwide. While essential items remain top-of-mind with most 2022 customers (74% globally), shoppers in Asia are set to spend big on consumer electronics and entertainment purchases.
Online shopping events such as Black Friday and Cyber Monday in November will see online shopping surge in the lead up to Christmas said MiQ.
For brands looking to increase their ROI and engage new audiences this holiday season, omnichannel shopping options remain critical. Four in 10 customers are continuing to toggle between online and offline shopping platforms, with trends like “click and collect” and “research online, buy in-store” driving hybrid shopping behaviours and a predicted surge in physical shopping closer to Christmas.
MiQ APAC CEO, Jason Scott said meeting customers in the moment would be critical to a successful holiday shopping campaign, along with implementing solid frameworks for measuring success.
“Brands need to understand that this year, their shoppers have different budgets, priorities, and shopping plans, so they need to adjust their campaigns accordingly,” Scott said.
“Timelines are changing too – people are shopping earlier to try and overcome supply chain issues and cost-of-living pressures, and they’re doing more research, so campaigns need to start earlier and tap into that user demand for information.”
Marketers should look at a measurement framework that connects campaign KPIs with actual business impact, the report says, investing in future-proof measurement plans now for long-term success.
Scott added that the holiday season was also set to have a significant effect on programmatic inventory, driving a 12% to 18% uptick in average CPM levels, compared to the rest of the year.
“Over the past two years, many Asian markets has experienced significant variations in CPM during the holiday period, especially during the last two weeks of November, as businesses undertake last-minute bids to engage online shopping audiences,” said Scott.
“Emerging channels such as CTV and DOOH are likely to have less competition compared to traditional digital inventory. We’re also expecting a big jump in CPM levels on mobiles, especially on in-app programs, this holiday period.”
Methodology: The data was sourced from digital devices including PCs, laptops, and viewing data from connected TVs. Historical campaign learnings and inventory trends were examined to understand seasonal variations. This data was then combined with critical insights from a survey of more than 8,000 consumers across 10 countries.