As each year draws to a close, the APAC region begins bustling with festivities. For over 60% of the world’s population, this time is for gathering with family and friends and gift-giving. This critical period for retailers comes with a spending spree on food, clothes, electronics, and more.
Shoppers are often willing to spend much more across categories. In India, estimates around the willingness to splurge jumped from 35% in 2022 to 50% in 2023. Shoppers start planning their purchases as early as September, looking for the best deals and offers. How and where they spend is, however, a bit more complex.
For example, the Lunar New Year is often used interchangeably with the Chinese New Year, but it is actually a broad term for celebrations across several Asian countries. While some traditions, such as handing envelopes, are common, the food consumed or the clothes worn on the occasion differ culturally. Understanding the complex cultural nuances and consumer behavior patterns is crucial for businesses aiming to capitalize on the surge in spending during this time.
Read ahead to find how marketers can boost sales with retail media marketplaces this festive season:
Utilizing Consumer Data
When 66% of consumer journeys involve sites like Amazon, retail media marketplaces are in the best position to utilize past consumer data to create personalized shopping experiences that resonate with festive shoppers. By analyzing browsing and purchasing patterns in a demographic, retail media can tailor offerings to the taste and needs of the shopper. This level of personalization enhances the shopping experience and increases the likelihood of conversions.
Employing AI/ML
Marketers could be limited by their cultural experiences and knowledge. AI and machine learning can enable marketers to predict shopper behavior and deliver highly effective targeted ads. AI algorithms can analyze vast amounts of data to identify patterns and trends, allowing retailers to anticipate the festive season demand well in advance. This information can help in optimizing inventory and strategizing pricing and ad placements.
Bridging digital and physical stores
The mobile ecosystem will play a crucial role in the upcoming shopping peak. In 2023, InMobi found that 44% of Indian consumers prefer online shopping for the festive season. At the same time, the survey also found that 54% of Indian consumers prefer hybrid shopping. Here’s where retail media marketplaces can bridge the gap between digital and physical stores through strategies like click-and-collect, in-store promotions, and mobile integration. These strategies allow for a seamless online shopping experience while driving footfall to the physical stores and offering consumers greater flexibility.
- Offering festive-themed promotions: Marketers can create a sense of urgency by offering limited-time discounts, encouraging shoppers to purchase quickly before the deals expire. Moreover, festive-themed promotions can boost conversion by tapping into the festive mood of the shopper.
- Creating immersive experiences: Technologies like AR, VR, and live shopping can create immersive shopping experiences that attract festive shoppers. These tools can help customers visualize their purchase by creating virtual showrooms or allowing customers to try products virtually. Shoppify’s data shows that products advertised with AR content witness a 94% higher conversion rate than those without. On the other hand, live shopping can create an interactive platform for buyers and sellers in real-time.
- Enhancing the shopping journey with AI-driven assistants: Personalized recommendations are becoming increasingly important to consumers. As many as 81% of consumers prefer companies that provide them. AI can make the shopping experience more personalized by suggesting products based on the user’s browsing or purchasing history and the data from other users in the demography.
The festive season in the APAC region presents significant opportunities for retailers to boost sales and strengthen consumer relationships. By understanding the behavioral trends of festive shoppers, leveraging data and AI technologies, and focusing on high-ROI channels and tactics, businesses can effectively capture festive spending and drive growth.
