Generation Z Shopping Has a Big Impact on Asian Retail Markets.

 

Online shopping has surpassed brick-and-mortar retail as the most popular mode of purchase in several Asian regions, according to CBRE's new Asia Pacific Consumer Survey. In the future years, consumers aged 18-24, popularly known as 'Generation Z,' are expected to play a significant role in the regional retail industry. Landlords and merchants will need to be proactive in order to stay competitive as a result of issues like these. used cars in qatar under 10 000

While 50% of Asia Pacific customers still visit a store to make a purchase, studies suggest that in rising markets such as China and India, the majority of respondents (76 percent and 68 percent, respectively) prefer to shop online. This is also true in more developed economies such as South Korea and Taiwan, where 73 percent and 55 percent of customers, respectively, reported that internet shopping is their primary mode of purchasing.

"Given the scarcity of high-quality retail space in emerging markets, particularly in lower-tier cities, advances in technology and logistics networks mean that online retail is often the most efficient way for retailers to reach their customers," said Jonathan Hsu, CBRE Asia Pacific's Head of Occupier Markets Research.

Pricing, along with convenience, is one of the top reasons why people shop online; 63 percent of those polled said it was the most important element in their decision. When buying in a real store, they are the same deciding factors.

"Price transparency is a crucial issue for businesses to address, with 56 percent of Asia Pacific consumers utilizing their desktop or laptop to check pricing of products online. We urge that merchants rethink their regional pricing approach, especially in China and South Korea, where more than two-thirds of consumers cite lower prices and better deals as the primary reasons for shopping online. Due to import duties, exchange rates, and the franchise model, foreign brands, particularly luxury labels, are often more expensive in Asia Pacific than in other regions. This may drive customers to look for better offers through alternative sales channels, such as overseas online markets "CBRE Asia's Senior Director, Head of Retailer Representation, Joel Stephen, stated.

Another important element for consumers in the region while purchasing online is the option to compare products without having to physically visit different establishments. This trend is especially pronounced in emerging economies like Vietnam (64 percent), China (61 percent), and India (58 percent), where high-quality shopping malls or stores are commonly spread out.

Retailers face new challenges as Generation Z emerges.

Generation Z is predicted to have a considerable impact on the retail sector in the coming years, as their earnings are expected to rise significantly once they enter the workforce.

"Generation Z customers have unusual shopping tendencies in compared to other demographic divisions, having spent the majority of their life using the internet and other connected technology. Stronger trust in online information, increased social media participation, and a need for differentiation are all important features of their online shopping habits. These considerations indicate how technology is becoming increasingly essential in influencing customer decision-making "Mr. Hsu adds his two cents.

Retailers and landlords must be proactive in reaching out to and connecting with their customers in order to be competitive in the digital age. Mobile shopping is particularly common in emerging nations, where smartphones are often the first—and often only—point of internet connection for many consumers. As a result, smartphones are driving the rise of online retail. Push notifications for smartphone apps or social media platforms depending on a consumer's buying history, location, and interests, for example, can assist tailor their shopping experience.

"Landlords and retailers must become more digitally savvy, keeping up with the newest trends in smartphone applications and social media in order to strengthen their relationships with customers, particularly Generation Z. These digital platforms are two important online retailing mediums that should be incorporated into retailers' omni-channel strategy in order to take advantage of Online-to-Offline (O2O) business potential "Mr. Stephen stated.

Click-and-collect services are also an effective way to drive in-store sales, creating a synergy between both online and offline platforms, with around 70% of consumers in Asia Pacific picking up their online orders in-store—and 90% of them purchasing additional items when picking up their online order—creating a synergy between both online and offline platforms. Landlords should work with tenants to assist them integrate their online and offline offerings by providing the appropriate amenities and ensuring that they are updated on a regular basis.