'Shoppertainment' to be the next $1 trillion opportunity for Asia Pacific

Tuesday, Aug 30, 2022 08:37

Shoppertainment could uncover US$1 trillion in market value for brands in the Asia Pacific by 2025. — Photo TikTok

Shoppertainment could uncover US$1 trillion in market value for brands in the Asia Pacific (APAC) by 2025, according to the latest study published by TikTok and Boston Consulting Group (BCG).

Titled “Shoppertainment: APAC’s Trillion-Dollar Opportunity,” the report surveyed markets across APAC, including Indonesia, Thailand, Viet Nam, Australia, South Korea, and Japan, and found that the immense choices afforded by technology have shaped consumers’ appetite for discovery, authenticity and community-driven recommendations, giving rise to the next era of online commerce, Shoppertainment.

Shoppertainment is content-driven commerce that seeks to entertain and educate first while integrating content and community to create highly immersive shopping experiences.

Analysis conducted by BCG also predicted that Shoppertainment is expected to grow at a 63 per cent compound annual growth rate (CAGR) for markets included in the report, with Australia, Indonesia, Japan, South Korea, Thailand, and Viet Nam driving significant value opportunities in this area.

While consumer sentiment varies from market to market, Shoppertainment will grow more rapidly to represent larger shares of the total e-commerce market.

The study revealed that APAC consumers expect brands to focus on entertainment before complementing it with clear product information and intuitive purchasing paths to drive consumers from awareness and desire to conversion seamlessly.

Up to 81 per cent expect storytelling and educational-first content, and 76 per cent are keen on video-first formats. This can be created by influencer and brand collaborations and shown through shoppable TV, livestream broadcasts or even live events online, weaving in comedy to entertain and engage.

Seventy-one per cent find that authenticity is important in making content engaging. Brands can create an authentic brand sentiment with credible reviews and open and engaging community conversations that inspire the community through product reviews or unboxing videos.

Seventy-one per cent expect brands not to force decision-making when engaging consumers. Brands must ensure content is associated with interests and hobbies that align with consumers by targeting good feelings and nostalgic recollections that rekindle excitement while building stories around uplifting and engaging themes.

Sixty-five per cent want to see trusted advice and recommendations on brands online. It is important to include the voices of credible and trusted community experts and facilitate extended conversations between friends and users.

“Shoppertainment can provide the sweet spot for brands to reignite consumers’ purchasing passions in an authentic and consumer-driven way,” said Aparna Bharadwaj, Managing Director and Partner, BCG.

Aligning brand aspirations with consumer demand spaces, especially at key moments of truth when consumers seek new products and experiences, enables highly immersive online experiences that leave a lasting impression on consumers throughout the path to purchase, she added.

“Brands can look forward to carving out a lucrative share of the trillion-dollar Shoppertainment opportunity for growth,” she said.

Shoppertainment during Tet

In the context that the Vietnamese are preparing for upcoming Tet (Lunar New Year), the highest shopping season of the year, TikTok predicts that Shoppertainment is still expected to be a prominent trend.

It found that consumer sentiment wants to seek Shoppertainment experiences to stay optimistic after more than two years of the pandemic, especially during the upcoming Lunar New Year.

Thanks to the creative combination of image and sound, short-form video is an outstanding form of advertising that helps brands capture customers' attention, effectively conveying messages and influencing shopping behaviour.

Nielsen research showed that 83 per cent of users prefer to watch ads in video format over GIFs or text, while 70 per cent of users will not skip an ad if the content is highly entertaining.

A survey by TikTok revealed that up to 85 per cent of users agree that they prefer to watch ads with entertaining content. More than 50 per cent of users purchased after seeing an advertisement on TikTok during the super shopping season.

Heavy users also pay more and even make purchases outside their plan.

In the report summarising the important factors affecting behaviour in the shopping season, TikTok also emphasised that short-form videos would become an important tool, helping businesses find and interact with customers. — VNS

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