Trend Report eCommerce, Retail & Messaging in 2021 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io C H APT E R 1 What is Chat Commerce? Chat commerce - or c-commerce - is a $35 Billion USD market where buyers and sellers communicate and transact through messaging channels. Currently predominant in Asia and emerging economies, c-commerce is also gaining traction around the world, growing at a rate of 10 - 18% per year over the next 5 years. With c-commerce accounting for about 60% of e- commerce transactions in some economies, it is no doubt a force to be reckoned with. 2 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Why chat commerce? Although it’s called chat commerce, the key lies in the quality of conversation and level of customer engagement. Customer communications can come in many forms, be it online through your website, o ff line through your advertisements at bustling transport exchanges or even on desktops through emails. The possibilities are endless but the goal is the same - cultivate interest so strong that customers are compelled to reach out. As such, c-commerce can also be used across various industries spanning f inancials, education, beauty and many more to streamline customer communications in sales, marketing & support. 3 S A L E S M A R K E T I N G S U P P O R T s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io The bene f its of conversational commerce Additional information on products Ability to negotiate on price & o ff ers Instant response Trust in brand/seller Easy way to shop Product customisation Flexible payment terms Get personalised advice 29% 30% 33% 33% 34% 35% 35% 58% Source: Facebook & Boston Consulting Group (2019) 4 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io C H APT E R 2 Changing Consumer Habits With 6.4 billion people across the globe owning smartphones & 60% of website visits originating from mobile devices, mobile is connecting and empowering users all over the world. As the world becomes increasingly digitised, consumers are also spending more time & money on mobile, clocking in an average of 4 hours daily and contributing to 45% of all e-commerce transactions. 5 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Accelerating smartphone usage and 5G rollouts are expected to accelerate tech growth with digital consumers in Southeast Asia expected to reach 310 million Fuel For Future Growth 6 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Most popular consumer app categories Consumers are reporting increased usage of social media, video streaming, instant messaging, eCommerce as well as food delivery apps. Though seemingly di ff erent, the commonality between these types of apps are the ability to communicate and connect - be it by leaving comments and engaging with other users, by asking and answering questions or by simply having a conversation. As such, the importance of human connection and a personalised experience should not be overlooked when looking to better engage customers and users alike. Social media Video streaming Instant messaging eCommerce Food delivery 17% 23% 30% 35% 38% Source: YouGov syndicated tracker (SG, MY, ID, PH, TH, VN), 2020 7 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Dominance of mobile transactions Indonesia Thailand Philippines China Malaysia Vietnam India Singapore United States 52% 41% 29% 35% 44% 24% 28% 34% 25% 39% 51% 55% 59% 64% 64% 66% 69% 80% Purchase via Smartphone Purchase via Laptop or Desktop Source: DataReportal (2019) 8 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Digital consumer growth surpasses expectations Number of digital consumers (millions) 2018 2019 2020F 2025F 2025 (Previous Forcast) 310 340 310 280 250 Source: Facebook and Bain & Company (2020) 1.4X Online spending has grown and outperformed estimates. By 2025, the digital consumer will spend 3.5x more on average, compared to 2018 - more than the 3.2x previously forecasted in 2019. Southeast Asian consumers are also consuming more across a larger variety of categories, going from 3.7 categories in 2019 to 5.1 categories in 2020, resulting in a 40% increase in just one year 9 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Endless opportunities for conversation Monthly Active Users (millions) 514 550 606 1,242 1,300 2,000 Source: Statista (2021) Snapchat The top 3 most popular messaging apps in the world are WhatsApp, Facebook Messenger, and WeChat. Together, they have more than 4 billion monthly active users Currently, WhatsApp has the highest distribution of all messaging apps worldwide , with a prevalence in South America, Africa, Russia and many parts of Asia. There are only 25 countries in the world where WhatsApp is not the market leader and there are about 100 billion messages sent via WhatsApp every day. Telegram QQ 10 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io A rising new generation In 2020, Generation Z (aged 11 to 25 in 2021) became the largest generation , consisting of 2.47 billion people and making up 32% of the global population , surpassing both the Millennials (aged 26 to 41 in 2021) and Baby Boomers (aged 57 to 75 in 2021). Not to be ignored is the Millennials - the most trusting but least engaged consumers in the marketplace - that place more value on online customer experience than unusual or unique experiences. Both generations are digital natives, valuing convenience, saving time, and getting information quickly. G E N E R AT I O N Z 1 9 9 6 - 2 0 1 0 M I L L E N N I A L S 1 9 8 0 - 1 9 9 5 G E N E R AT I O N X 1 9 6 5 - 1 9 7 9 B A B Y B O O M E R S 1 9 4 6 - 1 9 6 4 T R A D I T I O N A L I S T S 1 9 2 5 - 1 9 4 5 11 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io C H APT E R 3 The Challenges with Traditional Commerce Brick and Mortar stores have been around for ages and they aren’t going anywhere soon as they are an important touchpoint for consumers to feel, try and experience products. However, with e-Commerce o ff ering customers more choice, f lexibility and autonomy as well as shutting consumer purchasing habits, operating a Traditional Commerce alone comes with its own set of challenges. 12 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io The challenges faced by traditional commerce Long queues for payment checkout Products are out of stock when I visit the store Di ff iculties in locating products in the store Not being able to f ind a store associate to help me Lack of product information when selling products 24% 26% 40% 48% 60% Source: Statista (2019) 13 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io eCommerce’s rising dominance Share of eCommerce Sales 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 21.8% 21.1% 20.4% 19.5% 18% 13.6% 12.2% 10.4% 8.6% 7.4% Source: Statista (2021) The growth of eCommerce sales was undoubtedly accelerated by various global factors and will continue to grow into the future. Being able to solve the customer pain points of long queue waiting times , di ff iculty of locating products and the lack of product information as well as reviews give eCommerce stores an edge when it comes to conversions. This edge can be further strengthened through conversations over customer support channels, live chat, email and even text messaging as customers build a personal relationship with brands. 14 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io C H APT E R 4 Let the Conversation Flow Conversations both online and o ff line have become an important part of our daily lives. 83% of users contact businesses to f ind out more about their products or services while 76% message businesses to get support and 75% make a purchase through messaging. Keep the conversation going by constantly engaging customers before, during and after purchase to spur conversions. 15 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io The Conversational Commerce Flow SEARCH EVALUAT ION PURCHASE P OST PURCHASE Visit the business’ website and search for products and contact. Customer Support & Re-marketing Product Size Addre s s Product Size Addre s s Account Product Size Addre s s Account Order con f irmed Customers enquire about price and product information. Place order. Con f irm product and delivery details with seller. Request payment details (e.g. bank account ). Receive order con f irmation from the store after payment. 16 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io The Customer Conversation Funnel A WA R E N E S S I N T E R E S T A C T I O N D E S I R E Campaign Message Conversation Connection Conversion Marketing teams can send out mass yet personalised broadcast messages containing limited time o ff ers, “Happy Birthday” messages and introduce your products while building a bridge to connect with your customer. Sales teams can then build a personal relationship with customers over messaging by gaining a deeper insight into their wants and needs. Use a chatbot to automatically assign conversations and even reply enquiries instantly. Customer support teams can swiftly answer queries and build personal relationships and easily send pricing, shipping and product information links with tracking codes to track user behaviour metrics. Use automation drips to spur action by allowing customers to check out both online and o ff . Send them a payment link that allows them to complete payment on mobile and keep them updated with regular shipping update on text or give them a promo code to make payment and redeem a free gift in-store. 17 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io C H APT E R 5 WhatsApp Business O ff icial API You’ve probably heard of WhatsApp, an instant messaging app used by millions around the world to communicate with family and friends. And then there’s, the WhatsApp Business App, an upgraded version of the WhatsApp app designed for small businesses with Business features such as a business pro f ile and quick replies. Finally, there’s the WhatsApp Business API that does even more, providing businesses of all sizes the ability to integrate WhatsApp capabilities with their online store as well as ordering and booking systems to automate work f low processes. 18 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io Worldwide growth opportunity Source: Statista WhatsApp is the most popular messenger app in 100+ countries. Here’s a map which shows all of the countries where WhatsApp is the #1 leading messenger app In most of the countries marked in grey, WhatsApp has a very strong market presence and comes in second to Facebook Messenger. 19 s le e k f l ow.i o | +852 6452 2442 | hi@sl eek f l ow. io 20 Veri f ied Green Tick Badge of con f idence for customers to trust and converse with the business account. Company Name Full company name is displayed even without the customer adding the number to contacts. Of f icial Business Account States that it has been veri f ied as an Of f icial Business Account along with business name and details. Unique Business Features