Tech-empowered consumers are now able to steer their own retail journeys, shifting from transactional to authentic experiential engagement with brands, in turn boosting the shoppertainment retail trend.
We project shoppertainment to unlock a US$1 trillion opportunity by 2025 for brands in the Asia Pacific, increasing from US$500 billion today and growing at a 63% CAGR in the most lucrative high-growth markets — Australia, Indonesia, Japan, South Korea, Thailand, and Vietnam.
A new study has been conducted to help marketers understand consumers’ evolving preferences and to recognize how and tap them as they actively consider new products and brands.
Functional demand spaces, which make up about 60% of the entire e-commerce value ecosystem, encompass three areas where consumers transact out of habit without considering new options:
- Convenience (Easy for me) is about simplifying routine purchases such as groceries.
- Improvement (Better for me) is where consumers look for upgrades within routine purchases, such as discovering a better detergent at a slightly higher price.
- Validation (Confirm for me) is about choosing correctly, especially for products with higher involvement, such as switching to the latest mobile phone.
Emotional spaces are where consumers actively seek new products or brands and account for approximately 40% of the e-commerce value ecosystem:
- Recommendation (Advise me) is where purchases are informed through recommendation
- Indulgence (Spoil me) is when consumers indulge in a new purchase such as a new shade from a favorite lipstick brand.
- Inspiration (Inspire me) is about new experiences and discoveries such as seasonal fashion lines or new brands with trendy styles
Within these emotional spaces, shoppertainment comes alive. Our analysis reveals that emotional demand spaces are where brands can engage consumers with content that ignites excitement, trust, and knowledge to inspire switching behavior and capture consumers in their functional demand spaces, which have the larger share of the e-commerce market.