We are living in the future of retail. In the last two years, the retail industry has seen more innovation than it has in the previous decade. The 2020 Covid-19 pandemic has accelerated the adoption of digitalisation for both businesses and consumers globally. By 2025, global e-commerce sales are expected to have reached US$7.4 trillion, up by 50% from US$4.9 trillion in 2021.

 

Southeast Asia, the region with the fastest eCommerce growth, is expected to close US$89.67 billion in eCommerce sales this year, a remarkable increase of 240% from the US$37.22 billion recorded in 2019, before the pandemic. The use of digital technology has become a way of life for Southeast Asians.

 

Retail market conditions are changing rapidly, and with consumer expectations also on the rise, how can brands and retailers continue to thrive in an increasingly technology-driven retail world?

 

In this interview, Baozun Asia's Vice President, Victor Liu, shared his business perspective on the future of retail in Southeast Asia, the opportunities for accelerating growth, and digitalisation in this booming digital consumer market

 

A brief introduction to Baozun Asia?

 

Victor: Baozun Asia is the new Asian headquarters (HQ) for Baozun, a leading eCommerce enabler in China with over 15 years of experience. Over the last ten years, Baozun has expanded across Asia, starting in Hong Kong in 2013, and then in Taiwan. COVID-19 has changed consumer behaviour, especially amongst Southeast Asians and will continue to shape retail in the coming years. I think we opened our office here at just the right moment.

 

Why is Singapore the Headquarters of Baozun Asia?

 

Victor: The business environment in Singapore is very favourable for start-ups and entrepreneurs – the business infrastructure and financial systems are well-established and efficient. A number of global companies have regional headquarters in Singapore, many of which are part of Baozun's client portfolio. Singapore’s diverse pool of talented people is also crucial for Baozun Asia's growth. By locating here, we can localise our approach with the right talent to support local businesses. Plus, Singapore’s location makes it strategically accessible to the rest of Southeast Asia. I think our Asian headquarters will perform well here given how the Singapore government has done a great job laying the next generation of innovation tracks in digital assets, cryptocurrency, and artificial intelligence!

 

As an ‘eCommerce partner with a forward-looking perspective’, what is Baozun all about?  How does it stand out from other Asian eCommerce enablers?

 

Victor: From the very beginning, Baozun was built on technology. Our mission is to empower brands with tech to achieve sustainable success. eCommerce in China has come a long way and is evolving rapidly. In China, we work with many international brands to thrive in the Chinese eCommerce market. For example, we helped one of the top sportswear brands open its dot.com years ago, and most recently, we’ve worked with them on their metaverse launch with TMall. In fact, as of the end of the second quarter, we have managed the store operations of 355 brand partners!

 

Our strength is in technology – we have nearly 1,000 engineers in China who innovate around complex and ever-changing online platforms.  Our mission is to maximise operational efficiency and accelerate future growth by understanding the business needs and goals of our clients, from basic day-to-day operations to merchandising, marketing and fulfilment. By combining Baozun's technological capabilities, we collect, review, and analyse all critical data to develop customised solutions for our clients.

 

How will Baozun develop in Asia in the next six months - what is your plan as its Vice President?

 

Victor: Despite our successes in China, this region is still new to us. We will take some time to learn the local ways and get used to this new environment but getting to know this region well and quickly is our top priority.

 

We're confident about our technology and we know that different regions will require different approaches. With our deep experience in digital commerce, and given the multifaceted customer journeys of today, we offer our clients a different kind of value in this area – we shorten the process of digitalisation.

 

We help our clients grow in a sustainable and high-quality way. Not short-term transactions, but long-term relationships. By learning from our local partners, we can innovate and grow the Asian market together. It is in our plans to expand businesses in Asia within the next three-to-five years.

 

How does Baozun Asia intend to serve the diverse Asian market, and its consumption patterns and needs? 

 

Victor: I'd like to approach this in perhaps two parts.

 

The first, of course, is to pick at the low-hanging fruit in the market and establish a foothold. We will provide eCommerce-enabling services – consulting and localising our solutions to meet the needs of the clients here. As a matter of fact, I’m excited to share that we will be making our debut at the eCommerce Expo Asia 2022 on 12 and 13 October. Come and meet us at our booth! It'll be a great chance for business leaders and retailers to get to know Baozun Asia and what we can do to help with the eCommerce landscape here.

 

The next part has very much to do with our long-term vision – we want to drive innovation here, but not like how we did in China. Our vision is to transform retail digitally with local partners, brands, and distributors, taking advantage of Southeast Asia's booming online trend. By leveraging our strengths in eCommerce in China, and localising our approach, we will build an ecosystem that drives growth with local partners.

 

What do you think your biggest challenge is currently? 

 

Victor: With Southeast Asia's myriad needs, the real question is how to apply what we've learned in China and adapt technology and experience to the local context! And finding the right talent to innovate for this region.

 

In your short time here, how does eCommerce in Southeast Asia compare to China?

Victor: In China, the shopper journey has evolved – for example, from recommending specific products based on shopping behaviour, we're aggregating data across a diverse omnichannel network to identify exactly what consumers want. Making sense of big data across platforms will be key to driving the right kind of marketing engagement.

 

Next, Southeast Asia still has some tolerance when it comes to delivery expectations, maybe because the countries are fragmented and spread out. However, in China, one-day and even same-day delivery is the norm! We need a cost-effective logistics solution that will reduce delivery times regardless of geography.

 

Finally, live streaming is a hot topic these days. In Southeast Asia, live streaming is still in its infancy, compared with China, where it's contributed greatly to sales. The Chinese KOLs or creators are highly engaging and interactive when they stream, and they convert sales well. In this area, Southeast Asia has the potential to grow, especially in fashion and beauty.

 

How are you seeing eCommerce evolve today?

 

Victor: Digital commerce is the future, and it's here. I say this because, we at Baozun have been fortunate to witness, and be part of the eCommerce revolution. In a broader sense, thanks to technological breakthroughs and innovations, retail will be more hybrid, more experiential and even more convenient. Shopping in the future will be more convenient and fun!

 

Are there any recent trends in digital commerce that business owners and industry partners need to be aware of, for example, the metaverse – how it will impact digital commerce since Baozun operates in a technology-driven industry?

 

Victor: Indeed, there’s a lot of talk about the metaverse. However, frankly speaking, we're still in the exploration stage. I think Gen Z's understanding and being part of it comes more naturally since they grew up in a digital world. I’m sure it'll change retail.

 

Apart from pioneering new consumer engagement technology, I also see a lot of brands focusing on their business fundamentals in the current challenging global economic environment. To stay up with the changing consumer landscape, they are taking a much closer look at their target consumers and their journey as a whole by leveraging technology.

 

Any parting thoughts or key takeaways?

Victor: Generally speaking, we've been too obsessed with commercial effectiveness that we've sort of neglected what retail is really about. It's all about people – it’s about engagement. We need to rethink engagement in this new normal, and omnichannel world; reimagine retail to be more immersive and interactive than it is today.

 

How can we use technology to create personalised, memorable experiences for our customers and deliver on the brand promise?

 

 

 

Baozun Asia located in Singapore, is the new headquarters of Baozun, the leading eCommerce business partner in China, with more than 15 years of experience empowering businesses and brands to reach beyond borders.

 

Discover how tech can transform retail and fuel growth by dropping us an enquiry here or connecting with Victor on LinkedIn.

 

 

--------------

 

Read Less...