We’ve already covered how e-commerce is booming in Southeast Asia. But building infrastructure that can support this growth is no small task. It necessitates leveraging advanced technology capabilities in every business area, from marketing and communications to supply chain processes, including distribution, logistics and warehousing.

At Baozun Asia, we help brands navigate the ever-changing e-commerce landscape by understanding consumer behaviour and staying on top of the technological advancements that improve the shopper experience. Here are some of the trends and innovations that are changing the way retailers operate today: 

Smarter supply chains

Supply chain may not be the most exciting aspect of retail, but it is a vital area for companies to 

invest in. E-commerce success is heavily reliant on supply chain management, which means brands must be prepared for manufacturing delays, transportation disruptions and warehouse closures, alongside growing consumer demand for accurate, fast, and reliable delivery.    

While technology and automation have always been used in supply chains, advancements in areas like artificial intelligence (AI), self-driving vehicles, and robotics are now transforming operations and improving efficiency. 

The use of AI, machine learning, and predictive analytics can help brands and retailers improve customer satisfaction and sales by automating warehouse operations, improving delivery times, managing inventory, and optimising third-party communication. Since September 2020, for example, e-commerce giant Alibaba has been deploying hundreds of autonomous robots to assist with deliveries across university campuses in China, which helped manage demand while maintaining social distancing. 

With the rise of on-demand logistics, retailers must also rethink their supply chain networks to keep up with the pace of change. In 2021, for example, e-commerce giant Lazada improved its delivery timelines by 50% by partnering with smart logistics network Cainiao. The partnership allowed Chinese goods to be delivered to Southeast Asian consumers within six days, with 99% delivering within 24 hours of purchase, benefiting Lazada’s customers and significantly increasing its platform sales. 

Distributed digital storefronts 

Even before the pandemic, digital consumer preferences were moving towards more personalised and engaged experiences. Today, it has become a competitive necessity for businesses to move away from one-sided, transactional touchpoints and embrace digitally dynamic, distributed storefronts that are powered by trends like conversational messaging. 

With distributed storefronts and conversational messaging, brands and retailers can provide a personalised experience by facilitating communication via their customers' preferred platforms, such as WhatsApp. According to research, 72% of Singaporeans are willing to make purchases on WhatsApp, illustrating the popularity and importance of having WhatApp in the online shopping experience. The back-and-forth exchange also helps brands build connections and foster trust with their customers, enhancing their omnichannel shopping experience. Ultimately, consumers want to be heard and know they can easily communicate directly with brands, to share their pain points or suggestions. 

For brands yet to embrace distributed storefronts, it is becoming increasingly important to move beyond comfort zones and reconsider how existing touch points are resonating with customers. This also applies to brands using marketplace platforms like Lazada, Shopee, or Tokopedia - while such platforms are able to offer advanced operational and marketing capabilities, brands who tailor their strategy and approach to different channels will be more likely to expand their reach and sustain growth in this competitive landscape.

Social commerce as the next frontier 

Social commerce is the next frontier for Southeast Asia. With China already having pioneered the use of social commerce, Southeast Asia has the opportunity to learn from China's success and adopt new technologies that can harness this tremendous growth engine.  

For example, China has been a forerunner in the use of augmented reality and virtual reality to create immersive social commerce experiences. Brands often collaborate with China's super apps such as WeChat to create virtual fittings and shopping trips to enhance in-store brand experiences. 

Southeast Asia is quickly catching up to these developments. We anticipate that as consumers become more aware of these technologies and their benefits, they will be adopted at a faster rate. Platforms such as Facebook and TikTok are already following China's lead and introducing new features that capitalise on the growing social commerce market. 

Across these trends, technology will play a critical role in helping brands adapt to changes, build supply-chain resilience, increase operational efficiency, and drive long-term, sustainable growth. Finding the right digital commerce partner that understands technology’s role in the evolving landscape will be key to successfully resolving challenges and promoting growth. 

Want to learn how our team of local digital experts can help you better understand your customers, develop tailored strategies and invest in the right technology to win in this new era of digital commerce? Lets talk.