Zalora expects robust growth in SE Asia’s retail landscape in 2022

KUALA LUMPUR, Nov 23 — Zalora Group expects robust growth and reinvention in South-east Asia’s (SEA) retail landscape going into 2022.

Chief executive officer Gunjan Soni said as consumers become more discerning and connected, Zalora, which is South-east Asia’s (SEA) leading fashion and lifestyle e-commerce player, is seeing incredible innovations happening in the retail sector that completely reimagines the shopping experience.

“The overall opportunity in SEA continues to be huge, especially in the medium-term. We have seen it in the data with more consumers shopping online, online penetration in the region now stands at 66 per cent and it continues to grow at eight per cent year-on-year.

“So, I think that’s the most interesting and exciting trend that continued all the way from 2021 to 2022,” she said at the 2022 Fashion and Retail Forecast: Launch of Zalora’s SEA Trender Report with Google.

Soni said the other interesting shifts include brands moving online in 2021 and moving forward, the industry is going to see the online transformation and strengthening of how brands engage with consumers across retail.

In its latest Trender 2021 Report, the company outlines key technological shifts in digital payment and consumer experience that come hand in hand with shoppers’ rising digital savviness and taste for luxury and sustainability, among others.

The report said 90 per cent of South-east Asians referred to at least one digital channel in their shopping journey as the pandemic boosts digital savviness and appetite for shoppertainment (term used to describe the convergence of live streaming, entertainment, and commercials) and social media videos.

The report said Malaysia recorded the highest percentage of digital natives at 88 per cent or 22 million, which Malaysian shoppers spend close to nine hours online on average, and are the most likely to be value-driven.

The report also finds an uptick in demand for beauty and personal care, kidswear, and luxury items sustained across the region, alongside rising adoption of “Buy Now Pay Later (BNPL)” and digital payments.

“Moreover, appealing payment options from monthly instalments to zero per cent interest fee provide access to quality products and services, further broadening financial inclusion,” the report said.

It said Zalora offers 21 payment methods across the region, including cash-on-delivery and BNPL options across its markets, making it easier for shoppers to buy their favourite brands.

According to Google Search Trends, consumer e-wallets usage has surged from 45 per cent in SEA compared to pre-Covid times, and the transaction value is expected to more than double by 2025.

Digital payment transactions, meanwhile, are set to almost double to US$1.2 trillion (RM5 billion) by 2025. — Bernama