As I keep receiving requests from my dear Omani readers to talk more about e-commerce, I came across a really interesting report recently published by Google that describes consumer behaviours in Southeast Asia in 2019 and 2020.
Gathering those diverse data, I am attempting to take a snapshot projection of the upcoming global trends.
We all know too well that the GCC consumers love shopping in malls, especially when the freezing air- conditioner provides a relief from the scorching hot outdoor temperatures.
However, over the past couple of years, the populations of countries such as Oman, Saudi Arabia and United Arab Emirates have been relying more and more frequently on online shopping.
In order to boost such behaviour it is essential to understand the reasons why we usually prefer to shop in person. One of the top ranking factors is the ability to test the product whilst at the store, something that is virtually impossible for shopping online.
Some may think that an option could be to order online first, then return the item if dissatisfied, but such process delays gratification (delivery time) and risks to incur with additional trouble shall the product fail to match our expectations (return time). However, Google reports a 12x surge in “shop with me” videos being posted on Youtube.
In essence, users rely on other consumers sharing opinions about their shopping experience, and “save” a trip to the mall. In other words they “virtually” go to the mall through the eyes of other consumers.
According to Google’s research, with data surveyed in July 2020, the top growing category for online shopping is Electronics. Countries such as Malaysia have seen growth up to 70 per cent year on year.
The runner-up categories are Apparel as well as Health and Beauty, most probably boosted by the popular “shop with me” videos that describe in detail the faults and the benefits of products that usually need accurate precision.
For instance, a skin lotion can have completely different reactions depending on the skin type, but thanks to online shoppers sharing their entire journey with the product, stay-at-home consumers can quickly gather all the comparable data they need to make a decision.
Similarly with any clothing items, virtual shoppers can compare their body type with the one of the “shop with me” video authors and decide accordingly.
According to Google, 1 in 2 shoppers claimed that a video they watched helped them decide to buy a product instead of another.
If we were to combine all the product review videos uploaded on Youtube in 2019 by people in Southeast Asia alone, it would sum up to 65 thousand years of content.
Given the diversity of languages in the region as well as the segmentation in product categories, customers can pretty much find anything they want being already reviewed in their own language.
In the Middle East this trend has not started yet and could be a great opportunity for both content creators as well as businesses operating in the online shopping community.
stefano virgilli -
stefano@virgilli.com -
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