CLICKINSIGHTS - Southeast Asia Online Shopping in 2020 Genzs Vs Millennials PDF

SOUTHEAST ASIA ONLINE SHOPPING IN 2020: GENZs vs.
MILLENNIALS
1 IN PARTNERSHIP WITH
SOUTHEAST ASIA ONLINE SHOPPING IN 2020: GENZs vs. MILLENNIALS
CONTENTS
1. Introduction 3
1.1 Methodology 4
1.2 About ClickInsights 5
1.3 Foreword from Magento, an Adobe Company 6
1.3.1 About Magento 7
2. Executive Summary 8
3. Online Shopping 12
3.1 Frequency of Online Shopping 12
3.2 Online Shopping Volume and Categories 13
4. The Buying Journey 14

4.1 Awareness 15
4.1.1 Channels 15
4.1.2 Influencers 17
4.2 Interest 19
4.2.1 Information Gathering 20
4.3. Conversion 21
4.3.1 Online Shopping Sites 21
4.3.2 Physical vs. Online Shopping 22
5. Online Customer Experience 26

5.1 Online Shopping Considerations 26
5.2 Online Shopping Concerns 28
6. Online Payments 31
6.1 Payment Methods Used 31
Indonesia 31
Malaysia 32
Philippines 32
Singapore 33
Thailand 33
Vietnam 34
6.2 E-wallets 34
6.2.1 Reasons for Using E-wallets 35
6.2.2 Reasons for Not Using E-wallets 37
7. The Future of Online Shopping in SEA 38
8. Conclusion 39
Appendix A 40
1. INTRODUCTION
As mobile technology and digital media have growth will progress in each of the region’s
reached nearly every consumer in Southeast major markets and what it means for
Asia (SEA), consumer preferences and habits their consumers.
in the region have changed significantly.
Being online is no longer niche; people Each section covers one aspect of online
across SEA are using website, social media shopping and the data has been analysed
and ecommerce platforms to satisfy by dividing responses by generation and, in
everyday needs. some cases, by country.
To discover what the region’s shift to digital

media means for companies who sell to
them, we surveyed over 1,000 consumers in
SEA. The results, which have been analysed
in this report, aim to provide readers with
an overview of regional trends from three
perspectives.
Firstly, this study explores consumer online

shopping behaviour. Topics covered include
where consumers spend their time online,
where they shop online, concerns they have
about ecommerce, and their views on online
shopping in the future.
Secondly, the study takes a look at a new

generation of consumers. Known by a variety
of names including Centennials, GenerationZ
or, as used in this report GenZs, these are
people who were aged between 16 and 22
when the study was conducted in January
2020. The study compares their online habits
with those aged 23 to 37, more commonly
known as Millennials.
Thirdly, where relevant, the study provides

a cross-sectional view of consumer
online shopping behaviour in six distinct
SEA markets - Indonesia, Malaysia, the
Philippines, Singapore, Thailand and
Vietnam.
Source(s)
Ecommerce in SEA is set to grow from $100
billion in 2019 to $300 billion by 20251 and 1
eConomy SEA (Google, Temasek, Bain) -
this report aims to shed light on how this https://www.blog.google/documents/47/SEA_
Internet_Economy_Report_2019.pdf
1.1
METHODOLOGY
The research in this report
is based on a survey of
consumers in Southeast Asia
carried out in January 2020.
Respondents are from
Indonesia, Malaysia,
the Philippines, Singapore,
Thailand and Vietnam
representing the majority of
the region’s population.
The consumer survey consisted of 1,206 adult responses

across age groups. Respondents were sourced via a
survey panel. Those that were younger than 16 or older
than 37 were disqualified. Those who never shop online
were excluded, as well.
Figures in some charts may not add up to 100% due to

rounding up.
If you have any questions about the research, please

email ClickInsights’ lead for the Asia Pacific region,
Jefrey Gomez (jefrey@clickacademyasia.com)
1.2
ABOUT CLICKINSIGHTS
It can be difficult to keep up with all the changes to digital marketing. Social
networks fall in and out of favour, ecommerce best practices keep changing and
new technologies are springing up all the time. Yet, marketers must stay on top of it
all to keep their companies top-of-mind with consumers and drive repeat business
with customers.
ClickInsights helps marketers in Asia-Pacific stay up-to-date by providing them

with data, information and insights on the ever-changing digital marketing and
ecommerce landscapes.
Our data is sourced from regular consumer surveys conducted in partnership with
top-tier B2B marketing companies who share our passion for discovering new,
online behaviours. Survey responses are collated and analysed to discover new
information about regional adoption of digital technology. Insights derived from our
analysis are then presented to our readers through reports with illuminating data
visualisations and detailed commentary.
And, as we only use recent, bespoke data and in-house analysis, our observations
about consumers and marketing in Asia-Pacific are timely, relevant and not
available elsewhere.
So, whether you’re a marketer, a manager, business owner, tech vendor or a c-suite
executive, you can visit our website, download ClickInsights research and get a fresh
look at what’s happening in digital in the Asia-Pacific today.
OFFICE ADDRESS facebook.com/CInsightsSG

10 Anson Road,
International Plaza, #36-01, linkedin.com/company/clickinsights/
Singapore 079903
1.3
FOREWORD FROM
MAGENTO COMMERCE
We live in extraordinary times: rapid change This means taking a holistic approach. No matter
surrounds us in all aspects of life. I’m a member where or how shoppers interact with you online,
of Gen X. When I was born, there was no email you need to anticipate their expectations, and
or Internet. And indeed there weren’t any that’s where the research in this report comes in.
smartphones. eCommerce didn’t exist. By giving customers a chance to tell us what they
want, retailers can listen and act in kind.
Yet Gen Z and Millennials couldn’t imagine
life without these technologies. According to Get ready for the future! It’s going to be exciting to
January’s Digital 2020 report, 103% of watch the next generation and all that they offer.
the Asia-Pacific population have a mobile
phone connection – We have more phones
than people!
NICHOLAS KONTOPOULOS
That’s why our younger generations see online Regional Head of APAC
shopping, social media and eCommerce as a Adobe DX Commercial
natural part of life. Marketing,
Adobe
We designed this report, Southeast Asia
Online Shopping in 2020: GenZs vs.
Millennials, to help you understand the two
age groups, across Indonesia, Malaysia, the
Philippines Singapore, Thailand and Vietnam.
We look deep into their online shopping
behaviours and analyse how retailers should
cater to these groups.
These are pedantic and astute shoppers.

They expect superior service wherever they
interact with your brand. Whether it’s on
Instagram or in your store, they want to be able
to find what their item quickly, enjoy quick
checkout, pay using their preferred method
and track their shipment home.
Customers don’t appreciate how challenging

it is for retailers to deliver this seamless
experience. But it’s up to businesses to create
a dynamic and memorable customer
experience in all instances. Otherwise,
customers will go elsewhere.
1.3.1
ABOUT
MAGENTO COMMERCE
Magento Commerce, part of Adobe Experience Cloud, is the leading commerce
solution for merchants and brands across B2C and B2B industries and was recently
named a leader in the 2019 Gartner Magic Quadrant for Digital Commerce.
Magento Commerce boasts a strong portfolio of cloud-based omnichannel

solutions that empower merchants to successfully integrate digital and
physical shopping experiences.
Magento is the #1 provider to the Internet Retailer Top 1000, the B2B 300 and
the Top 500 Guides for Europe and Latin America. Magento is supported by a vast
global network of solution and technology partners, a highly active global developer
community and the largest eCommerce marketplace for extensions available
for download on the Magento Marketplace. More information can be found
at www.magento.com.
OFFICE ADDRESS
Suntec Tower Three #06-02, facebook.com/magento @magento
8 Temasek Boulevard
Singapore 038988 linkedin.com/company/magento/ @magentocommerce
2. EXECUTIVE
SUMMARY
MILLENNIALS SPEND
MORE MONEY ONLINE
AND BUY ONLINE MORE
FREQUENTLY THAN GENZs
• Across Southeast Asia (SEA), consumers
aged 23 to 37, or Millennials are more
likely to shop online every week (34%)
than consumers aged 16 to 22, or
GenZs (16%).
• Millennials are also more likely to have

spent the equivalent of US$100 online
in 2019 for every major consumer
goods category.
FACEBOOK IS THE
MOST POPULAR
SOCIAL NETWORK FOR
MILLENNIALS, INSTAGRAM
FOR GENZs. TIKTOK
REMAINS NICHE
• More SEA Millennials use Facebook
every day for 30 minutes (63%) than
any other digital media apart from
streaming video.
• Instagram is the most popular GenZ

social network in the region, though in
many countries Facebook is still used by
a majority of GenZs as well.
• Fewer than 1 in 5 from either

generation currently use TikTok for
more than 30 minutes daily.
BOTH GENZs AND

MILLENNIALS FIND
INFLUENCERS
HELPFUL ACROSS
MANY PRODUCT
CATEGORIES
• Clothing and beauty products
are the best categories for
brands to use influencers for
both GenZs and Millennials
across SEA.
• Millennials are more open

to influencers across other
categories though - and find
them most helpful when
TRAVEL IS THE MOST POPULAR ONLINE
shopping for travel destinations. PURCHASE FOR SEA CONSUMERS,
GROCERIES THE LEAST
MOST SEA GENZs
AND MILLENNIALS • Perhaps because of the ease of comparing prices and
destinations, more than 3 in 4 GenZs and nearly 9 in 10 (88%)
BUY ONLINE Millennials in SEA will buy their next travel package online.
THROUGH
• Online grocery shopping is slow to take off in the region with
MARKETPLACES, fewer than 1 in 4 (23%) of the region’s Millennials saying they will
FEWER USE buy them next online, and only 15% of GenZ saying the same.
BRAND WEBSITES
SEA CONSUMERS LOOK FOR SECURITY
• Online marketplaces, such as
Lazada, Tokopedia and Amazon,
AND POSITIVE REVIEWS WHEN
remain the most important CHOOSING ONLINE DESTINATIONS,
online shopping destination in
SEA and are used by more than
NOT LOYALTY REWARDS
2 in 3 GenZs and 3 in 4 Millennial
online shoppers. • Around 8 in 10 SEA online shoppers said that website security
and positive user reviews are among the most important
• Brand websites are far less
considerations when deciding where to buy online.
popular, with only 41% of
Millennials and fewer than • Surprisingly, only around 1 in 3 in SEA consider loyalty
1 in 3 (32%) GenZs using them rewards to be an important factor in choosing an online
to shop online. shopping destination.
FAKE GOODS ARE A

MAJOR CONCERN FOR
ONLINE SHOPPERS IN
SEA, ESPECIALLY IN
THE PHILIPPINES AND
MALAYSIA.
• Both GenZs and Millennials rated fake
goods as one of the top three concerns
they have when shopping online.
• For GenZs in Malaysia and the

Philippines, though, fakes are the most
frequently cited worry with more than 8
in 10 expressing their concern.
E-WALLETS ARE TAKING OFF IN THE REGION

• Millennials across the region are flocking to e-wallets. In that age group, 7 in 10 Indonesian, 68%
Vietnamese and 66% Malaysians use them for online shopping.
• E-wallets are popular because they are easier to use than other forms of payments and consumers
appreciate the discounts and incentives, they get for using them.
THE FUTURE IS BRIGHT FOR ONLINE SHOPPING IN SEA

• Most SEA GenZs and Millennials said that they spent more online in 2019 than the year before and
expect to spend even more in 2020.
• GenZs were the most cautious, though, with more than 1 in 3 uncertain whether they will be increasing
their online spend this year.
3. ONLINE SHOPPING
The Google, Temasek and Bain report eConomy SEA2 calculates that the size of the online shopping
economy in SEA is at least a $100 billion industry in SEA and will approach $300 billion by 2025.
However, these figures don’t provide insight into how important online shopping has become to people
in SEA on a daily basis. To understand this, it is necessary to know how often people in SEA shop online
and how many shoppers are spending more than a token amount online.
3.1 FREQUENCY OF ONLINE SHOPPING
SEA consumers have the option to buy online in many product categories across numerous websites and
apps. But are they using the online facilities created for them to do so?
FIGURE 1: HOW OFTEN DO YOU MAKE ONLINE PURCHASES?
Fortunately for online retailers, the majority of GenZs and Millennials in SEA shop online regularly. More
than 60% of people aged 16 to 37 shop online at least a couple of times a month (figure 1).
SEA Millennials are significantly more likely than GenZs to shop online weekly, though. Across the region,
only around 1 in 6 of GenZs (16%) buy something online every week, and more than 1 in 3 (34%) of
Millennials do the same.
This result may surprise those who think that successive generations are becoming increasingly ‘digital’
and so younger generations should shop more online than older. This reasoning, however, ignores the
fact that Millennials, or those aged 23 to 37 for the purpose of this study, are likely to have more buying
requirements than GenZs, aged 22 and below. And as these needs can often be fulfilled by online
merchants, it makes sense that the older generation would buy more frequently online than the younger
– whether they are more ‘digital’ or not.
As such, marketers need to put aside their preconceived ideas and instead review the data to determine
which demographic segments purchase more. Older consumers in SEA shop online more often than
younger ones, so brands seeking frequent, repeat purchases are advised to adjust their beliefs as well as
targeting in SEA accordingly.
Source(s)
2
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.pdf
3.2 ONLINE SHOPPING VOLUME AND CATEGORIES
It is clear that SEA consumers use ecommerce frequently, but that’s only one aspect of the online
shopping story. Of equal if not greater importance is knowing how much consumers spend online.
FIGURE 2: IN 2019, DID YOU SPEND MORE THAN $100 ON ...

(% WHO ANSWERED ‘YES’)
The survey data indicates that Millennials are far more likely to have spent $100 online across all
categories (figure 2). More than one in four did so in 2019 for every category, except for games and apps.
The only categories on which around one in four GenZs spent $100 in 2019 were for items which are
relatively expensive such as electronics, travel and clothing (28%, 24% and 22% respectively).
There are many possible reasons for these differences. Firstly, as mentioned above, GenZs are less likely
to buy things at all than Millennials. Few will have families to support and many may still be relying on
their parents for everyday purchases. Additionally, GenZs probably have less disposable income, so they
may not be able to spend as much as Millennials, online or offline, even for items that they need.
Finally, it’s possible that many GenZs will either still be in school or early in their careers and not have
the same time pressures as Millennials. This would mean that GenZs have more spare time to shop for
leisure, resulting in lower online spending.
Footnote: Respondents answered questions using local currency figures and this study has translated all the amounts into US
dollars using the prevailing exchange rates.
4. THE BUYING JOURNEY

Every online purchase involves several
distinct steps and each step of the ‘buying
journey’ represents the different mindsets
as a consumer learns about a product and
decides whether or not to purchase it.
There are many methods for dividing up

the stages of the buying journey, but a
straightforward approach is to think of it
as having three stages (diagram 1):
DIAGRAM 1
1) AWARENESS
The consumer moves from not
knowing much about the product to
understanding the brands which sell in
a category.
2) INTEREST
The consumer identifies a need for
the product and actively looks for
information about it.
3) CONVERSION
The consumer chooses the best
available option and makes a
purchase.
Marketers often use the buying journey

model to isolate, analyse and address the
needs and concerns of consumers to help
them reduce friction points in the journey
and increase the number of consumers who
become customers.
Below are insights about each step of the

online buying journey in SEA. There will help
marketers to better understand the region’s
consumers and generate ideas about how to
improve their customer experience.
4.1 Awareness
4.1.1 CHANNELS
One of a brand marketer’s many tasks is to allocate budget to channels which create awareness of a
company’s product. But for marketing to deliver a positive return, marketers must invest in channels
regularly used by their target audience or risk their adverts not being seen.
Consumers in SEA use a wide variety of online channels every day, but some are used significantly
more than others. A way to determine whether a channel is popular in a particular country is to look
at how many of its consumers spend a significant amount of time using the platform on a regular
basis. For this study, consumers were asked whether they spent thirty minutes or more daily on a list
of channels to determine which were the most important to their everyday lives.
FIGURE 3: DO YOU SPEND AT LEAST 30 MINUTES DAILY... (% WHO ANSWERED ‘YES’)
The two most popular digital channels, free and paid streaming video were used by at least 2 in 3
(66%) of members of each generation (figure 3). Slight differences between generations exist, however.
GenZs are more likely to spend time on free streaming videos every day than Millennials (80% Z, 74%
M) and a greater percentage of Millennials watch paid streaming videos (66% Z, 70% M) daily.
Differences for traditional media consumption are much wider. Millennials across the region are
significantly more likely to watch tv (44% Z, 54% M), read magazines and newspapers (18% Z, 26% M)
and listen to the radio (18% Z, 30% M) every day for 30 minutes than GenZs.
GenZs, on the other hand, are more likely to spend 30 minutes daily on digital channels, such as video
games (56% Z, 51% M), streaming music (54% Z, 51% M) and the latest social media sensation, TikTok
(18% Z, 14% M).
The decline in traditional media consumption by the younger generation is an interesting trend,
but marketers should be careful about how they interpret it. For example, it is probably not enough
evidence to support the decision that their brand should only use digital media to reach GenZs.
While GenZs are less likely to spend a lot of time watching TV or listening to the radio, traditional
media is still considered by many to be the best way to raise mass market awareness. Marketers
who insist that brands can achieve the same performance without it should review Adidas recent
announcement that the company overspent on digital recently and was boosting their traditional
marketing budget3.
Regional differences in how social media channels are used are quite small, too. Instagram is only
slightly more likely to be used by GenZs on a daily basis (56% Z, 50% M) and Facebook is used by only
12% more Millennials every day in the region (51% Z, 63% M). In certain countries, however, the usage
gap for these channels is significantly wider.
FIGURE 4: % WHO SPEND MORE THAN 30 MINUTES PER DAY

ON FACEBOOK BY COUNTRY AND GENERATION
Source(s)
3
https://www.marketingweek.com/adidas-marketing-effectiveness/
More than half of Millennials (51%) in Singapore are on Facebook daily for half an hour while only
a quarter (26%) of GenZs use it to the same extent (figure 4). Indonesian Millennials are also much
more likely to spend 30 minutes on Facebook than the country’s GenZs (49% M vs. 30% Z). In the
Philippines, Thailand and Vietnam, though, differences in Facebook usage between the generations
is negligible.
These differences reveal an interesting trend. It appears that Facebook appeals to an older audience
and Instagram, a younger. Yet, with the possible exceptions of Singapore and Indonesia, the
generational differences are small and so marketers are advised to continue to consider both as
excellent channels for reaching both age groups via digital media.
Overall, consumer media consumption is not the same across generations or countries in SEA. While
generational differences are slight, they do exist. Marketers should, therefore, consider both where
they are investing and which age group they are targeting when deciding on the channels to use for
raising awareness in the region.
4.1.2 INFLUENCERS
Another way brands can gain consumers attention is via social media celebrities with large followings,
commonly known as influencers. By offering sponsorship deals in exchange for access to their
audiences, marketers can potentially reach millions of consumers with their brand messaging
embedded in an influencer’s social media post.
Influencer posts are often considered more genuine than paid post advertising have become an
increasingly popular way for brands to reach young consumers and niche markets.
Deciding on whether a campaign should use influencers often depends on the product being
advertised, however, as influencers are more appropriate for some categories than others.
FIGURE 5: WHEN SHOPPING ONLINE, FOR WHICH PRODUCTS DO YOU FIND INFLUENCERS HELPFUL?
Our survey showed that SEA GenZs and Millennials are open to influencers across a variety of
categories. For nearly every product category, at least one in three GenZs and Millennial consumer
indicated that they found influencers helpful (figure 5). For some, such as clothing and beauty, more
than half felt influencers helped with online shopping.
There were, however, a few notable differences of opinion between the generations.
GenZs are slightly more likely than Millennials to find influencers helpful when shopping for clothing
(60% Z, 55%M), but Millennials find influencers more useful for all other categories. Travel destinations,
for example, are a particularly good category for using influencers to reach the older generation (54%
M find them helpful) but less so for the younger (38% Z, the same).
FIGURE 6: WHEN SHOPPING ONLINE, FOR WHICH PRODUCTS

DO YOU FIND INFLUENCERS HELPFUL? (VIETNAM)
Country-level data revealed other differences in how SEA consumers view influencers. In Vietnam,
Millennials are far more likely to find influencers useful than GenZs for fashion items such as clothes
(55% Z, 74% M), shoes (38%Z, 59% M) and accessories (36Z, 50%M) (figure 6).
FIGURE 7: WHEN SHOPPING ONLINE, FOR WHICH PRODUCTS

DO YOU FIND INFLUENCERS HELPFUL? (SINGAPORE)
But in Singapore, the opposite is true (figure 7). Singaporean GenZs who are more likely to find
influencers useful for clothing (58% Z, 40% M) and shoes (35% Z, 26% M), though both GenZs and
Millennials find them around equally as relevant when buying accessories (31% Z, 29% M).
What these generational and country differences means is that marketers need to be familiar with
how consumers view influencers in the market they are targeting before using them. Our data
shows that marketers should be more concerned about the category they choose for influencer than
whether the target audience in GenZs or Millennials.
4.2 Interest
While getting consumer attention is essential to the start of the buying process, most buying journeys
begin in earnest when consumers start seeking information about products.
This was not always the case. For decades, brands could use an advertisement to both raise awareness
about a product and furnish enough details to empower the consumer to make a purchase decision.
Now, however, adverts may help people discover new products but most who are interested will
quickly turn to the internet to find out more.
4.2.1 INFORMATION GATHERING
FIGURE 8: WHERE ONLINE DO YOU FREQUENTLY SEARCH FOR PRODUCT INFO AND REVIEWS?
In SEA, Google dominates the information-seeking, or interest, phase of the buying journey for both
GenZs and Millennials. Google’s search and the company’s video sharing site, YouTube, are both used
by more than 2 in 3 of SEA consumers in both generations (figure 8).
This is the reason brands spend billions of dollars each year on paid search advertising and invest
heavily in search engine optimisation (SEO) so that their sites appear at the top of Google search
results and capture clicks from consumers.
What is interesting, though, is that other channels are struggling to be included in the ‘interest’ stage
of the customer journey, especially with the younger generation. Social media and marketplaces
are popular with Millennials seeking product info and reviews (used by 61% and 57%, respectively),
but only half of GenZs (50%) are using social media to research products and even fewer (43%) use
marketplaces.
Also notable is that fewer than 1 in 5 (17%) of either generation are using other websites for
pre-purchase information, including Amazon. A Google search is likely to steer consumers toward
these other sites from their initial search, but it is noteworthy that few online shoppers in SEA use
websites as a starting place for their research.
Marketers throughout the region should, therefore, continue to invest heavily in Google and YouTube
and ensure the right product information is reaching SEA consumers through these channels. This
means keeping the company’s website updated with high-quality, detailed product information,
investing in SEO and buying Google search ads for relevant keywords.
4.3 Conversion
Generating awareness and building interest are necessary steps in the buying journey, but marketing
needs to generate business so that companies can achieve positive return on their marketing
investments. To do so, marketers need to measure more than the reach and clicks of their digital
marketing; they must also understand which platforms online consumers are using to buy the
products they are promoting.
4.3.1 ONLINE SHOPPING SITES

When shopping online, SEA consumers are spoiled for choice. Each country has numerous online
marketplaces, store websites, brand websites, social marketplaces and even eBay-like consumer-to-
consumer ecommerce platforms.
FIGURE 9: WHERE DO YOU SHOP ONLINE?
One destination is more popular with both generations than all the others in SEA: Online
marketplaces (69% Z, 78% M) (figure 9). These sites offer products from multiple merchants and are
either local to their respective country (e.g. Tokopedia), part of a pan-Asian network (e.g. Lazada) or
global in scope (e.g. Amazon).
Less popular, but still used by half (50%) of both GenZ and Millennial online shoppers is social
media. This is notable as, outside of China, social media has historically been used by consumers
only for discovering and discussing products. Now it seems that social media platforms have become
shopping destinations in SEA as well.
Travel sites, which are the least popular with GenZs, are among the most popular online shopping
destinations for Millennials (30% Z, 53% M). While this is a notable difference, as mentioned
previously, Millennials are more than twice likely to make major online travel purchase than GenZs
(24% Z, 54% M) (figure 2 – Spending $100 in 2019). It’s not surprising, therefore, to see that the older
generation is more likely to shop on travel sites by around the same percentage.
What is surprising, though, is that the least popular shopping destination for Millennials (and second
least in popularity for GenZs) are brand websites (32% Z, 41% M). This may concern client-side
marketers who have invested heavily in branded ecommerce sites over the past few years.
One possible reason for this is that SEA consumers prefer the simplicity of integrated marketplaces
over shopping via multiple brand website. Learning how to find what they are looking for on a brand
website, navigating its checkout flow and entering personal and credit card details may be off-putting
to all but the most determined online shopper.
Another perspective on this result, though, is that brand websites and marketplaces may satisfy
different online consumer needs. Shoppers may visit a brand site for inspiration and then make their
purchase on a marketplace.
Brand marketers, therefore, first need to work closely with marketplaces to ensure that there is
a seamless customer experience between the two including branding, promotions and product
availability. Marketers should also repurpose some of their company website to highlight brand social
media channels, user-generated content and community-building special events. Finally, marketers
are advised to entice brand site visitors with products which are not available in marketplaces and
promote other unique brand experiences, such as flagship stores.
4.3.2 PHYSICAL VS. ONLINE SHOPPING

Knowing which online venues are the most popular with consumers can help marketers align their
activities with consumer demand. But if brands only pay attention to online markets, they risk missing
out on a much larger competitor for consumer spending – physical, offline shops.
There are many reasons people prefer to buy at a store than online. Consumers may need to judge
the quality of a product, such as fit, feel or freshness, before making a purchase. They may have an
immediate need which can only be satisfied by a trip to the store, or a store may carry a product that
is not available online.
Regardless, consumers have an ‘online shopping comfort level’ for different products, reflected in
whether their next purchase in a category will be online or at a physical store.
FIGURE 10: PERCENTAGE WHO WILL MAKE THEIR NEXT CATEGORY PURCHASE ONLINE
For every category, Millennials across SEA are more likely to make their next purchase online than
GenZs. With the exception of travel (76%), less than half of GenZs plan to their next purchase in any
category online (figure 10).
This result is unexpected. Predictions for ecommerce adoption in SEA are virtually unanimous in their
verdict – online shopping is increasing in the region and will continue to do so for the foreseeable
future. For this to happen, though, online commerce must be used to a greater extent by each
successive generation. This is clearly not yet happening in SEA.
A recent survey by Wunderman Thompson also uncovered evidence that GenZs are not as enthusiastic
about online shopping as many previously thought. According to their recent report, 62% of GenZs
(defined as 13 to 23) prefer to buy in a physical store4.
There are some exceptions to the trend. GenZs in Indonesia are more likely to buy beauty online than
the country’s Millennials (69% Z, 53% M) (figure 11).
Source(s)
4
https://www.thedrum.com/news/2020/02/20/gen-z-apac-will-eat-less-meat-and-prefer-ominchannel-shopping
FIGURE 11: PERCENTAGE WHO WILL MAKE THEIR NEXT CATEGORY PURCHASE ONLINE
(INDONESIA)
And in Singapore GenZs are more likely than Millennials to buy fashion online including accessories
(50% Z, 41% M), clothing (47% Z, 44% M) and shoes (38% Z, 27% M) (figure 12).
FIGURE 12: PERCENTAGE WHO WILL BUY NEXT TIME ONLINE

(SINGAPORE)
Yet across the region, GenZs appears to be more reluctant to buy online than the older generation.
The younger generation’s lower rate of adoption of online shopping could be interpreted as a negative
sign for ecommerce in the region and a reason to doubt sunny growth projections.
The differences in likelihood to shop online could, instead, be age related. As many GenZs in SEA have
yet to start their career and may not yet have bank accounts, the difficulties they face transacting
online could be enough to discourage online shopping. Should this be so, then online retailers have
little reason to worry. As noted previously (figure 3) GenZs are already spending a lot of time on digital
media, so when they have money and online payment options, there is little reason to doubt that
their online spending will rise substantially.
Regardless, GenZs relatively low rate of ecommerce adoption should be seen by online retailers as
a growth opportunity, provided they can make their online shopping experience easy for the
younger generation.
5. ONLINE CUSTOMER
EXPERIENCE
To win over offline shoppers, marketers must do more than optimise campaigns for clicks and website
conversions. They also need to understand what consumers are thinking about when deciding
whether to buy via online channels.
Much of what drives this decision is the brand’s online customer experience. This includes both the
considerations which can entice the customers to buy online and concerns which may convince them
to remain an offline shopper.
5.1 Online Shopping Considerations
FIGURE 13: WHEN SELECTING A PLATFORM TO BUY FROM,

WHAT DO YOU FEEL ARE THE MOST IMPORTANT THINGS TO CONSIDER?
Website security is a key concern for both GenZs and Millennials in SEA, with around 8 in 10 from
each (81% Z, 79% M) indicating that they consider this when deciding where to shop online (figure
13). In 2020, this should not be a surprise to brands and security should be a top priority for every
company selling online.
In addition to security, both generations want to see positive user reviews (81% Z, 79% M). They want
to know other customers have had a good experience when buying from the brand.
Marketers may find it more challenging to address this concern as user reviews cannot be bought or
engineered by the brand. Discovering and fixing customer pain points is one thing marketers should
focus on to encourage positive reviews. They can also monitor social media and respond quickly to
critical comment. Whatever approach they take, marketers need to understand that good user reviews
are essential for growing ecommerce businesses in SEA.
When marketers prioritise factors that goes to making delightful CX for the Millennial and GenZ,
having engaging visuals (65%Z, 61%M), intuitive website navigation(51%Z, 52%M) and fast
check-out(48%Z, 49%M) tops the list. While CX factors may not top the minds of shoppers, it is still
important for marketers to prioritise their spend to ensure their CX does not divert potential buyers.
Across countries and generations, SEA consumers have similar priorities when deciding where to
shop online. There are, however, several generational differences within countries.
FIGURE 14: WHEN SELECTING A PLATFORM TO BUY FROM, WHAT DO YOU FEEL
ARE THE MOST IMPORTANT THINGS TO CONSIDER? (VIETNAM)
In Vietnam, GenZs are less interested in customer experience than their Millennial peers. Fewer than
1 in 3 Vietnamese GenZs (31%) seek easily accessible customer service, compared to 53% Millennials.
GenZs in Vietnam are also much less likely to care about loyalty rewards programs (24%) than their
Millennial peers (41%). This is more evidence that marketers need to research their target market and
understand their interests before investing in new CX programmes.
FIGURE 15: WHEN SELECTING A PLATFORM TO BUY FROM, WHAT DO YOU FEEL
ARE THE MOST IMPORTANT THINGNS TO CONSIDER? (THAILAND)
GenZs in Thailand are also less interested in customer service than Millennials (43% Z, 60% M) they
care less coupons and sales promotions as well (42% Z, 62% M) (figure 15). GenZs are, however, more
interested in the ecommerce experience, which include positive user reviews (75% Z, 65%M) and
high-quality product information (60% Z, 45% M).
Overall, it’s clear that marketers shouldn’t make assumptions about what their customers care about.
Marketers often misread consumer interests and presume that speeding up the checkout process or
offering loyalty programs will win repeat business when consumers are more interested in website
quality, security and positive user reviews.
When marketers are weighing up what improvements should be made to boost ecommerce revenue,
they are advised to speak with their customers and discover what they truly care about before
investing in customer experience improvement programs.
5.2 Online Shopping Concerns

To boost ecommerce for their brand, marketers also need to be familiar with common consumer
anxieties about online shopping. Again, it is wise not to make assumptions, as consumer concerns
about buying online are often not what they are expected to be.
FIGURE 16: WHEN SHOPPING ONLINE, WHAT ARE YOUR PRIMARY CONCERNS?
The primary concern for both SEA GenZs and Millennials when buying online is product quality
(74% Z, 70% M) (figure 16). Marketers can see the intensity of this concern in SEA marketplace forums
where consumers frequently complain about a poor delivery experience, faulty packaging and order
mix-ups.
Product size and fit is also an issue for both generations of consumers (65% Z, 64% M). For clothes and
shoes this is understandable but, left unchecked, this concern may also prevent the online purchase
of furniture and large durables, such as washing machines and refrigerators. Marketers who sell
products in these categories online should address this concern to boost sales.
SEA consumers also worry about buying fake goods when shopping online (67% Z, 62% M).
Corporate marketplaces are often accused of allowing unscrupulous vendors to peddle cheap, fake
branded goods, making it more difficult for brands to sell genuine items. In their defence, corporate
marketplaces understandably struggle to police thousands of vendors at all times.
Interestingly, concerns about fakes differs significantly between countries. GenZs in Malaysia, the
Philippines and Singapore are most concerned about fakes (85%, 80%, 70%, respectively), whereas
fewer than half (44%) of Indonesia Millennials and only around a third (36%) of Thai GenZs feel the
same (figure 17).
FIGURE 17: PERCENTAGE CONCERNED ABOUT FAKES WHEN SHOPPING ONLINE
Regardless, marketers need to remain vigilant about the prevalence of fake goods on online shopping
venues and partner with marketplaces to take the appropriate action against fraudsters. Brands may
also be able to capitalise on this concern by reminding consumers that items purchased from the
brand’s ecommerce site are always the genuine article.
Overall, though, more than two in five from both generations indicate that they are concerned with
each item on the list above. Marketers, therefore, need to keep all consumer concerns in mind to
boost ecommerce revenue in the region. Making extra efforts to address these anxieties will help
brands forge deeper connections with online shoppers in the region.
6. ONLINE PAYMENTS
One of the SEA consumer’s primary considerations when deciding where to shop online is the
payment methods available. Because of this, companies seeking to sell directly to consumers in the
region need to cater for the payment methods used by consumers in each market.
6.1 Payment Methods Used

In the previous section, the study showed that more than 3 in 4 consumers in SEA (76%, figure 16)
cite payment options as a consideration when choosing where to shop online.
However, each country has a preferred payment method that differs greatly between markets. For this
reason, data on this topic needs to be reviewed on a country-by-country, as well as generational, basis.
INDONESIA
FIGURE 18: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (INDONESIA)
Indonesia has the most diverse payment portfolio of all the SEA countries. Each payment method,
except for credit cards, is used by at least half of online shoppers in the country. Millennials have
adopted e-wallets to a great extent (70%) but bank transfers remain popular (64%) with them, too
(figure 18).
GenZs in the country seem to favour physical payment touchpoints (ATM/convenience store, cash on
delivery) and use e-wallets (52%) more than credit and debit cards (19%).
MALAYSIA
In contrast to Indonesians, Malaysian consumers tend not to use physical touchpoints for payments
and prefer online bank transfers instead.
E-wallets are a strong second payment option for Malaysian Millennials (66%) but GenZs still favour
bank-based payments, such as transfers (89%) and credit/debit cards (52%) (figure 19).
FIGURE 19: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (MALAYSIA)
PHILIPPINES
FIGURE 20: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (PHILIPPINES)
In the Philippines, cash is still king and those selling online to consumers in the Philippines must
support cash on delivery (95% Z, 85% M) (figure 20). Electronic payments are not as popular in the
Philippines as in other countries in the region, though nearly half of Millennial online shoppers now
use a credit/debit card (47%) or e-wallet (42%).
SINGAPORE
FIGURE 21: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (SINGAPORE)
Singapore has the highest income levels of all the countries in the region and nearly everyone over the
age of 25 (98%) has a bank account.5
Because of this, nearly all ecommerce purchases are made, by both GenZs and Millennials, using
bank-issued credit and debit cards. E-wallets are starting to gain traction in the country (43% M, 44%
Z) but they may struggle to grow as credit and debit cards have already captured the online payments
market.
THAILAND
FIGURE 22: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (THAILAND)
Source(s)
5
https://sbr.com.sg/financial-services/news/chart-day-98-singaporeans-have-bank-account
Much like Malaysian consumers, Thais favour online bank transfers (66% Z, 67% M) and many also
use cash on delivery (62% Z, 59% M) to pay for online purchases (figure 22). E-wallets are gaining
popularity in the country, especially with Millennials, and are gaining ground on cash on delivery
payments.
VIETNAM
FIGURE 23: WHAT PAYMENT METHODS DO YOU USE WHEN SHOPPING ONLINE? (VIETNAM)
Vietnamese consumers use a wide variety of payment methods, but they are most likely to pay for
their purchases with cash on delivery (84% Z, 80% M).
E-wallets and bank transfers are relatively popular with Millennials in Vietnam (68%, 52%
respectively), but, for now, merchants need to support cash on delivery in the country until other
payment methods become more popular.
6.2 E-Wallets
Most of the payment methods mentioned above are well-established. Until recently, it was assumed
across the industry that most consumers would eventually adopt credit cards as the primary way to
pay for online purchases.
But e-wallets have emerged as a new challenger to credit cards. Almost unheard of just a few years
ago, e-wallets are now commonplace across SEA and most countries have multiple online wallet
facilities for consumers to choose from. Google Pay, Apple Pay, banks, PayPal, taxi apps (such as Grab
and Gojek) and countless start-ups now offer payment facilities which fill the financial gap between
consumers and merchants.
E-wallets are particularly relevant to consumers in developing economies as they allow people to pay
online without having a credit card, which means there’s no need to establish a credit history.
Before jumping to the conclusion that e-wallets will be the frontrunners for payments in SEA in the
future, it is worth considering why consumers in the region use them and what concerns remain.
6.2.1 REASONS FOR USING E-WALLETS
FIGURE 24: IF YOU USE AN E-WALLET FOR ONLINE PURCHASES, WHAT IS THE MAIN REASON YOU DO SO?
GenZs and Millennials in SEA use e-wallets for three main reasons. First off, they find that e-wallets are
faster and easier to use than other payment methods (74% Z, 68% M) (figure 24). Being easy to use is
particularly important as it means that e-wallets can gain market share in countries which currently
use credit cards for online payments and be adopted quickly by those which do not.
SEA consumers from both generations also use e-wallets because they can earn discounts, incentives
and bonuses when using them (57% M, 69% Z). This feature makes e-wallets more competitive than
bank accounts, which typically do not offer benefits, and some credit cards, which may charge fees.
Receiving a bonus every time a payment is made without having to pay annual fees is a very attractive
incentive, indeed.
Finally, GenZs and Millennials in SEA crave convenience and the ability to pay without carrying a
physical wallet is reason enough for more than half (51%) of SEA consumers to adopt e-wallets.
However, this doesn’t translate into e-wallets becoming a digital version of a real wallet.
Few consumers (22% Z, 25% M) indicated they use e-wallets to organise other items such as
membership and customer loyalty cards.
FIGURE 25: IF YOU USE AN E-WALLET FOR ONLINE PURCHASES,

WHAT IS THE MAIN REASON YOU DO SO? (SINGAPORE)
Singaporean GenZ consumers are less interested in earning discounts than Millennials (31% Z,
67% M) and more motivated by how easy they are to use (69% Z, 48% M) (figure 25). With these
figures in mind, GenZ-focused merchants could use e-wallet payment options to attract younger
consumers. Companies targeting Millennials in Singapore should consider offering discounts for
e-wallet customers.
6.2.1 REASONS FOR NOT USING E-WALLETS
The rapid rise in popularity of e-wallets in SEA is strong evidence that they will be universally adopted
in the region.
It is possible, however, that the majority of consumers likely to use an e-wallet in the region are
already doing so. To judge whether e-wallet usage will increase in SEA, it is necessary to also consider
what aspects of e-wallets prevent non-users from coming on board.
FIGURE 26: WHAT IS THE MAIN REASON YOU DO NOT USE AN E-WALLET, IF YOU DO NOT USE THEM?
The main reason both GenZ and Millennial consumers give for avoiding e-wallets is that they are not
yet convinced that e-wallets are secure (44% Z, 36% M) (figure 26). Such concerns could slow e-wallet
growth in the region as consumers need to trust e-wallet technology before using them instead of
other payment methods – and building consumer trust takes time.
Additionally, around 2 in 5 SEA consumers (39% Z, 42% M), feel that other payment methods are
faster and easier to use. This is a significant obstacle for e-wallets and may prevent them from
achieving mass adoption in SEA. Providers may be able to overcome this reluctance by partnering
with merchants to ensure that e-wallets have a premium position in the checkout workflow and by
offering onboarding assistance at the point of purchase.
There are also aspects of e-wallets which do not seem to concern many SEA consumers. Few (12% Z,
15% M) indicate that they are concerned that e-wallets lack privacy, either shrugging off the risks or
appearing unaware of them.
The biggest difference between generations is that Millennials are more likely (21% Z, 34% M) to avoid
e-wallets because they don’t want their money in multiple deposits. This difference may exist because
Millennials typically have more money than GenZs and are therefore more aware of the downsides of
having their wealth. spread across multiple accounts.
7. THE FUTURE OF ONLINE

SHOPPING IN SEA
This review of behaviours, expectations and concerns of online shoppers in SEA has covered a
wide range of topics and provided insights which should help marketers and others interested in
boosting ecommerce in the region. But perhaps the greatest boost to future online revenue will
come from growth in overall digital spend by the countries’ online consumers. The most important
questions remain - is ecommerce in SEA growing and are the regions’ consumers going to spend
more online in the future?
FIGURE 27: I SPENT MORE MONEY ONLINE While there are small differences
IN 2019 THAN I DID IN 2018 between generations, our survey
indicated that ecommerce is growing in
SEA, with more than 3 in 4 (79% Z, 89%
M) of both age groups spending more
online in 2019 than 2018 (figure 27).
We also look at whether SEA consumers

expected to spend more online in 2020
than in the previous year.
Again, the answer is yes with 3 in 4

FIGURE 28: I WILL SPEND MORE MONEY ONLINE IN (75%) of Millennials anticipating they
2020 THAN I DID IN 2019 will spend more money online in 2020
and 2 in 3 (63%) GenZs feeling the same
(figure 28). This is strong evidence that
most consumers in both generations will
spend more online next year.
These results are good news for

companies that have invested in their
online presence in SEA over the years.
They may have launched into small markets, but as the SEA countries get richer and spend more
online, as our study suggests, ecommerce pioneers will be the first to benefit.
But signs that ecommerce is growing in the region should be a wake-up call for those that haven’t
invested in online commerce. Opportunities still exist throughout the SEA region and more
revenue in the market means that there will be room for more participants in the ecommerce
economy – including laggards, if they move fast enough.
Inevitably, there will come a time when SEA ecommerce growth will slow down and companies
will have to work harder to earn the regional consumer’s attention and online spend, but we are
not there yet.
8. CONCLUSION
Southeast Asia has all the fundamentals in place to enjoy tremendous growth in ecommerce
over the next five years. This study focused on how online shopping has become a part of
everyday life in the region and whether its influence will continue to grow. Additionally,
it concentrated on the demographics which will be affected most by the changes, those
currently aged 16 to 37, divided into two groups - GenZs (16 to 22) and Millennials (23 to 37).
Through analysing survey data comparing these two groups, a picture emerged of the
importance of digital media and ecommerce in the region:
• Time spent on digital media: Millennials and GenZs are both likely as to spend a
lot of time each day on digital media, but GenZs use different social networks and
spend significantly less time on traditional media.
• Online shopping: Both GenZs and Millennials are keen to buy online, especially
travel packages and fashion. Both also believe influencers are helpful when
shopping in these categories.
• Buying habits: Millennials are much more likely to buy something online every
week than GenZs and Millennials also spend more money across all categories.
• Ecommerce considerations: GenZs and Millennials look for high security and
positive user reviews when deciding where to buy online. Millennials are more
concerned about customer service and loyalty programs than GenZs.
• Ecommerce concerns: Both GenZs and Millennials are concerned about

accidentally buying fake goods online. GenZs in Malaysia and the Philippines and
particularly concerned about fakes.
• E-wallets: Millennials are more likely to use e-wallets across SEA, with the greatest
difference in Indonesia, Vietnam and Malaysia.
And the outlook for online shopping in 2020? Both generations in every country surveyed
indicated that they will buy more online in 2020 than they did last year - and so this study
concludes, with some confidence, that the future of ecommerce in Southeast Asia looks very
bright, indeed.
APPENDIX A
Survey Respondent Demographics
A1. HOW OLD ARE YOU? A2. IN WHICH COUNTRY

DO YOU LIVE?
Vietnam
13%
Singapore
27%
Thailand
14%
GenZs Millennials
58% 42%
Malaysia
14% Philippines
16%
Indonesia
16%
A3. AGE BY COUNTRY
GenZs
Millennials

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SOUTHEAST ASIA ONLINE SHOPPING IN 2020: GENZs vs.

4. The Buying Journey 14

5. Online Customer Experience 26

7. The Future of Online Shopping in SEA 38

To discover what the region’s shift to digital

Firstly, this study explores consumer online

Secondly, the study takes a look at a new

Thirdly, where relevant, the study provides

The consumer survey consisted of 1,206 adult responses

Figures in some charts may not add up to 100% due to

If you have any questions about the research, please

ClickInsights helps marketers in Asia-Pacific stay up-to-date by providing them

OFFICE ADDRESS facebook.com/CInsightsSG

These are pedantic and astute shoppers.

Customers don’t appreciate how challenging

Magento Commerce boasts a strong portfolio of cloud-based omnichannel

• Millennials are also more likely to have

• Instagram is the most popular GenZ

• Fewer than 1 in 5 from either

BOTH GENZs AND

• Millennials are more open

FAKE GOODS ARE A

• For GenZs in Malaysia and the

E-WALLETS ARE TAKING OFF IN THE REGION

THE FUTURE IS BRIGHT FOR ONLINE SHOPPING IN SEA

3.1 FREQUENCY OF ONLINE SHOPPING

FIGURE 1: HOW OFTEN DO YOU MAKE ONLINE PURCHASES?

3.2 ONLINE SHOPPING VOLUME AND CATEGORIES

FIGURE 2: IN 2019, DID YOU SPEND MORE THAN $100 ON ...

4. THE BUYING JOURNEY

There are many methods for dividing up

Marketers often use the buying journey

Below are insights about each step of the

FIGURE 3: DO YOU SPEND AT LEAST 30 MINUTES DAILY... (% WHO ANSWERED ‘YES’)

FIGURE 4: % WHO SPEND MORE THAN 30 MINUTES PER DAY

FIGURE 6: WHEN SHOPPING ONLINE, FOR WHICH PRODUCTS

FIGURE 7: WHEN SHOPPING ONLINE, FOR WHICH PRODUCTS

4.2.1 INFORMATION GATHERING

4.3.1 ONLINE SHOPPING SITES

FIGURE 9: WHERE DO YOU SHOP ONLINE?

4.3.2 PHYSICAL VS. ONLINE SHOPPING

FIGURE 12: PERCENTAGE WHO WILL BUY NEXT TIME ONLINE

5.1 Online Shopping Considerations

FIGURE 13: WHEN SELECTING A PLATFORM TO BUY FROM,

5.2 Online Shopping Concerns

FIGURE 17: PERCENTAGE CONCERNED ABOUT FAKES WHEN SHOPPING ONLINE

6.1 Payment Methods Used

6.2.1 REASONS FOR USING E-WALLETS

FIGURE 25: IF YOU USE AN E-WALLET FOR ONLINE PURCHASES,

6.2.1 REASONS FOR NOT USING E-WALLETS

7. THE FUTURE OF ONLINE

We also look at whether SEA consumers

Again, the answer is yes with 3 in 4

These results are good news for

• Ecommerce concerns: Both GenZs and Millennials are concerned about

A1. HOW OLD ARE YOU? A2. IN WHICH COUNTRY

A3. AGE BY COUNTRY

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