TUESDAY, April 16, 2024

Future of Shoppertainment in 2024

Future of Shoppertainment in 2024

TikTok and Accenture have recently unveiled insights from the 'Shoppertainment 2024: THE FUTURE OF CONSUMER & COMMERCE' report, shedding light on evolving consumer behaviours in Thailand and across the Asia-Pacific region.

Highlighting that consumer shopping behaviour is evolving due to content, marked by three key changes. Firstly, an increasing reliance on non-sales content for purchase decisions, with over 88% of Thai consumers influenced by it. Secondly, a preference for platforms allowing seamless browsing and buying, with 97% seeking product information and making purchases within the same space and the rise of content-driven communities strengthens brand-consumer connections, with over 60% of consumers influenced by their participation.

These shifts highlight the crucial role of content in shaping decision-making and brand engagement in the digital shopping era.

Future of Shoppertainment in 2024

Consumers in the era of Shoppertainment

The statistics highlighted in the report indicate a shift in consumer preferences and behaviour in the Thai market, emphasizing a decreasing interest in traditional sales-focused content.

With 79% of consumers in the Asia-Pacific showing a preference for non-sales-promoting content. This ranges from 12% in South Korea and Thailand, 27% in Japan, and as high as 41% in Indonesia.

Brands in Thailand need to adapt their marketing strategies to resonate with this trend. Moreover, the emphasis on emotional connections with brands suggests that Thai consumers value authentic relationships and experiences with brands, which should be prioritized in marketing efforts. Additionally, the focus on short-term marketing activities among marketers in APAC shows the ad budget deduction among 30% of major marketers and 74% of them cite it is due to the economic downfall and brands.

This implies a need for agility and responsiveness in catering to changing consumer demands. Additionally, the report unveils 6 online shopping demands, including:

•    Validation: Choosing the latest and greatest products to validate their shopping decisions. 

•    Improvement: Searching for an improvement from products that are latest upgraded for better attributes.

•    Convenience: To easily purchase with convenience, value, and reliable delivery.

Along with 3 emotional response-oriented demands

•    Recommendation: To get advice about products from trusted people and curated sources.

•    Inspiration: The urge to shop for products when feeling inspired by trends and great products.

•    Indulgence: Using a shopping experience or purchase to indulge and spoil oneself.

Future of Shoppertainment in 2024

Shoppertainment Opportunity 

Thailand Opportunity: Thailand is considered a market with strong growth potential, with the opportunity to generate revenue of up to 12.4 billion USD from the total market value of Shoppertainment in the Asia-Pacific region, reaching 1.1 trillion USD by 2025. This is fueled by a large number of consumers ready to engage in shopping through entertaining content and a robust ecosystem of Shoppertainment with elements of e-commerce and strong community creators. Brands investing in meeting the interests of Thai consumers who enjoy entertainment and emotional experiences have helped position Thailand as a key market for growth, significantly contributing to the rising trend of Shoppertainment market value in the Asia-Pacific region.

APAC Opportunity: By 2568, Shoppertainment is anticipated to dominate a significant portion of the e-commerce market, reflecting the robust trend of merging entertainment with online shopping. Main markets like Vietnam continue to grow steadily, with ventures into other countries. Notable markets like Indonesia are recommended to ramp up efforts. Another growing market, Australia, with net sales below 15 billion dollars, is focusing on consumer trend expansion, as is Japan, with net sales below 25 billion dollars, investing to overcome consumer demand barriers for increased trend success.

Top Categories: The top-selling product categories in the Shoppertainment market, include fashion and accessories, beauty and personal care, food and beverages, electronics, and household goods. Video content significantly influences purchasing decisions in these categories.

Future of Shoppertainment in 2024

Growing into the Golden Age of Content

Part of the growth of Shoppertainment stems from the evolution in content presentation to consumers, which can be divided into four stages. It begins with content dissemination and one-way communication through traditional media such as print, then moves into the era of information search via search engines, followed by social networking, until it reaches its peak in the current "Golden Age of Content." This age opens up opportunities for everyone to participate in recommending products and services through platforms like TikTok, reflecting the evolution of content presentation and customization to suit individual consumer preferences. This has led to the emergence of Shoppertainment experiences that blend shopping with entertaining content seamlessly.

The success of this approach is epitomized by the worldwide hashtag #TikTokMadeMeBuyIt, which has garnered over 70 billion views, and domestic hashtags like #TikTokป้ายยา, with a staggering 6 billion views, indicating a similar influence on purchasing behaviour within regional or global markets.

Changing Shopping Behaviors Influenced by Content

Three significant changes in consumer behaviour:

•    Consider: There's a shift in the way consumers make purchase decisions, with buyers tending to consider products intuitively, relying more on their senses and confirming their ideas through content rather than making rushed decisions. Survey results within Thailand reveal that over 88% of consumers are influenced and complete their purchase decisions by non-sales-promoting content, indicating that content helps facilitate decision-making within shopping platforms by enabling consumers to conveniently see the value of products without the need for additional research from other channels.

•    Consume: There's a trend towards effortless browsing-to-buying, where consumers transition from consuming product content to making purchases seamlessly within the same digital platform. Over 97% of consumers express a desire to search for product information, evaluate, and make purchase decisions within the same platform, favouring platforms driven by content and providing access to in-depth information about brands and products.

•    Connect: When consumers have the freedom to consume information and participate in content creation communities, it leads to the growth of community creators and promotes relationships between consumers and brands. This aligns with the desire of consumers seeking freedom in content creation, with surveys showing that over 60% of consumers are influenced by their participation or interaction with content communities.

Future of Shoppertainment in 2024

With the changing consumer behaviours and the growth of Shoppertainment, including efficient consumer decision-making and successful content creation to drive sales, becomes increasingly evident of the importance of adaptation for the survival and success of brands in the future.

Future of Shoppertainment in 2024

"In the rapidly evolving landscape of consumer demands, brands must transcend conventional boundaries by seamlessly integrating content and commerce. However, this is merely the beginning. To truly thrive in this era of constant flux, brands must embrace a culture of adaptability, continuously anticipating and responding to future shifts in consumer behaviour and technological advancements. This forward-thinking approach isn't just about short-term gains; it's about laying the foundation for sustainable growth and relevance in the long term. At TikTok, we envision a future where brands not only meet but exceed the expectations of consumers by staying agile, innovative, and deeply attuned to their evolving needs." - Cholticha Ngamkamollert ,Head of Client Partnership, TikTok said.

Sunard Thanasanaksorn

"Due to the ever-changing consumer demands, coupled with the growing Shoppertainment trend in the Asia-Pacific market, particularly evident in Thailand, it is imperative for brands to seize the significant opportunity to effectively utilize insights derived from research to formulate impactful business strategies. Furthermore, it is essential for brands to continuously keep pace with emerging trends and actively participate in shaping the trends that will manifest in the future." Sunard Thanasanaksorn, Managing Director at Accenture Song added.