E-commerce still growing in APAC despite physical retail revival
Physical retail has bounced back since 2022, but e-commerce continues to grow for categories like CPG, Beauty, Apparel, and Consumer Electronics. The APAC region shows a high level of digital adoption, with e-commerce sales expected to account for more than 65%1 of the global market by 2024.
Many brands have gone online to adapt to the changing customer and merchant behavior, but not all have achieved the same level of success and advancement. Each brand has its e-commerce strategy, which depends on its product category, investment level, and vision. This results in different needs when it comes to working with agency partners in this area. These partners are also called e-commerce enablers.
To help marketers navigate the partnership options, R3, with the support of WFA, surveyed ‘Working with e-commerce enablers in APAC’. The survey was based on evaluations of 47 enablers in Singapore, Thailand, Malaysia, Indonesia, and Japan.
The e-commerce enabler ecosystem in APAC
The survey showed that the e-commerce enabler market in APAC is still evolving, with new services being added as agencies grow.
Singapore has the most e-commerce enablers in APAC. However, most of them are local and do not have offices outside their home country.
This indicates that the providers are divided between well-funded, established agencies and smaller, emerging operators.
The most common service offered by agencies is E-Commerce Management and analytics, while Content Creation (82%) is the most preferred marketing-specific service.
The main enabler management capability in APAC is Marketplace Store Management (82%), followed by Promotions and Campaign Planning Execution (62%) and Marketplace Store Development (60%).
Among holding groups, Omnicom and WPP have the widest range of e-commerce enabler capabilities.
Identifying a future-fit partner
There are three key factors to consider:
1. Define your e-commerce organization archetype
The e-commerce organization archetype is a way of categorizing the different types of e-commerce businesses in the APAC region. It can help you choose the right agency to support your e-commerce goals and define the scope of work.
The four archetypes are:
Marketplace: A brand sees e-commerce as a source of extra revenue. It sells products on third-party platforms like Amazon or Lazada. It controls the message and price, but not the distribution.
Bolt-on Brand: A company has a range of online-only products on its e-commerce website and handles both marketing and distribution functions. It is separate from offline retail. The marketing focus is on building relationships with customers and getting first-party data.
Omni-channel Retailer: A company sells products both online and offline, to offer retail and delivery options to existing customers. E-commerce platforms are owned by the brand and customers can order online and pick up their purchases in-store.
E-Commerce Pure Play: This is best shown by pure e-commerce DTC companies. Products are sold online, and the whole marketing strategy is based on online business only.
2. Decide on high integration or high specialization
The e-commerce enabler landscape consists of agencies from holding companies and networks, as well as independent ones. Brands with in-house e-commerce expertise are likely to prefer enablers who specialize in a certain area, while a company without an internal e-commerce team will probably look for an agency that can integrate well with other marketing functions (such as data, CRM, and shopper).
3. Decide if the support needed is at a regional or local level
The e-commerce enabler landscape consists of agencies from holding companies and networks, as well as independent ones. Brands with in-house e-commerce expertise are likely to prefer enablers who specialize in a certain area, while a company without an internal e-commerce team will probably look for an agency that can integrate well with other marketing functions (such as data, CRM, and shopper).
The type of capabilities needed will also indicate whether a holding company or independent provider is suitable. E-commerce business analysis as a function, for instance, can be done effectively regardless of location, while inventory management requires on-the-ground capability.
Overall, as marketers look to accelerate e-commerce growth, a good understanding of e-commerce enablers, based on up-to-date analysis of the market, can foster company growth and development for key sectors in the new digital APAC landscape.
