The Growing Online E-commerce Market in Southeast Asia.
Among the ever growing popularity that is e-commerce, more online retail platforms have continued to crop up within the Southeast Asia pacific. The upcoming, local plays will have to take on giant e-commerce giants such as Amazon and Rakuten once they’ve begun to expand.
Experts has stated that they have value within the online shopping experience, but they also need to work hard to gain credibility amongst consumers.
One of these online retailers is a men’s fashion retailing site, Tate &Tonic, which has offers its customers a personal ‘stylist’ who will be able to help them combine several outfits and have them delivered towards their doors steps. Customers will only have to pay for what they have chosen to keep after trying on the chosen article of clothing.
Co-founder of Tate & Tonic, Matteo Sutto, stated: “We will come to collect the box with all the items which are not bought. You can also mix and match whatever you’ve received with your current wardrobe. There is also a stylist who will make the selection of the clothes.
“So all these elements are pretty unique of Tate & Tonic, and that’s why we’ve been able to grow pretty quickly since we’ve launched one year ago.”
Online grocery market, Redmark, launched during the late year of 2011, selling and delivering a total amount of 8,000 products that varies from household items to groceries.
Beauty e-commerce startup Bellabox for now, has and offering that contains a variety of beauty samples every month to its subscribers. Satisfied customers will be able to purchase the complete set of products directly from Bellabox’s online site.
While new players are appearing with all sorts of creative ways to differentiate their own services, industry experts have stated that they also need to focus on establishing a sense of credibility, uniqueness alone will not be able to carry them.
Associate Professor of Marketing S Ramaswami, from the Lee Kong Chian School of Business at Singapore Management University, stated,said: “It’s going to be difficult to get Singaporeans to shop at these fairly new sites. It’ll take a lot of brand building, a lot of advertising to make sure that people think these are reliable places.
“If I give my money to these folks, the products will be delivered on time, they’ll be delivered in exactly the condition they say it’ll be delivered in — all these things are concerns consumers might have compared to shopping at Amazon, Barnes and Noble and major worldwide websites.
“So I think these are major credibility challenges new retailers are going to have to face.”
Trying to establish and e-commerce presence is not an easy thing to pull off, Japanese internet giant Rakuten has stated that the reputation of an established marketplace can be one of the most crucial important in helping to allure customers. Since Rakuten managed to launched softly in Singapore marketplace during the past December, it has manage to gain a growth that includes over 170 Rakuten merchants, and its member base has tripled.