Trust in Brands Drives Consumer Spending in Southeast Asia

Adobe has released the results from its annual Adobe Trust Report 2022: APAC – a study of more than 5,000 Asia Pacific consumers and 900 senior business leaders which it says found a strong correlation between brand trust and consumer behavior.

Of the 998 consumers and 200 senior business leaders based in Southeast Asia, 60% say they will stop purchasing from brands that break their trust. The data supports this, showing that consumers tend to spend more each year on brands they trust, said Adobe.

When asked whether they consider digital or in-person experiences to be more important in driving trust, Southeast Asian consumers equally valued digital and in-person experiences (24%), compared to more than a third of APAC consumers (35%) who favored digital experiences.

 
 

“The importance of digital experiences to a trust exchange has come into sharper focus, and the stakes are high. Done right, many consumers will reward brands with loyalty and spend,” said Simon Tate, President, Asia Pacific, Adobe. “When trust is broken, most consumers will walk away permanently.”

Brands’ use of personal data is a key driver of mistrust among APAC consumers, with research indicating that a vast majority (85%) are concerned with how their data is being used, and almost half are ‘very concerned’.

Despite the importance of building trust with consumers, senior business leaders in APAC suggest that “earning trust is increasingly tricky” says Adobe, with almost nine in ten (87%) responding that it has become harder since the onset of the pandemic.

 
 

“APAC consumers’ experiences over the past two years and rise of the digital economy are combining to shift the fundamental drivers of brand trust. More than ever, trust relies on brands’ ability to make a positive impact, use data responsibly and deliver digital experiences on customers’ terms,” said Tate.

Bridging the data trust gap

Brands’ use of personal data is a key driver of mistrust among APAC consumers, with research indicating that a vast majority (85%) are concerned with how their data is being used, and almost half are ‘very concerned’. Interestingly, 55% of Southeast Asian consumers believe the benefits of providing their data to companies are greater than the risks, compared to 38% of APAC customers.

The majority of Southeast Asian consumers also say they’ll stop purchasing from brands if they experience data governance failures. This includes 71% who would stop purchasing from a company that used their data without permission, and in APAC, 67% of consumers would do the same if they experienced a data breach.

Despite this clear message from consumers, 95% of APAC leaders believe consumers trust them to keep their data safe and use it responsibly, and 76% say the benefits customers receive from companies collecting their data outweigh the risks.

The role of technology in engendering trust

Southeast Asian consumers outline a number of factors that can both increase and decrease their trust in brands and enhance the digital experience, with technology playing a prominent role. Almost seven in 10 (68%) say their trust in brands increases when technology is used to personalize their experience, higher than the global average of 56%. 81% of Southeast Asian consumers also find that personalised content delivered at the right time increases their trust in brands.


You can download the full Adobe Trust Report 2022: APAC report here.

Image: Florian Wehde

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