THE fashion retail industry in Southeast Asia was not spared from the impact of the COVID-19 pandemic. Due to the lockdown, the world shifted its focus to virtual and online platforms. Thus, there has been a marked shift in favour of online shopping championed by the millennials and Gen Z-ers.
“We have discovered that our market share was dominated by millennials and Gen Z-ers – a considerable step away from Baby Boomers and Gen X,” said Zalora’s inaugural Southeast Asia TRENDER report.
The report also stated that individuals with the highest disposable income who spend most of their time shopping online fall into the age group of 26 to 30 years old, accounting for 24% of the total Zalora market share.
As large amount of millennials or Gen Z-ers in Southeast Asia are still residing with their parents, this allows them to be free of financial burdens like mortgages, rent, or even utilities bills. This enables such young consumers to be fiscally liberated, often leading to an accelerated shopping habit exacerbated even further by the influence of social media.
Also, the region is home to over 200 million millennials and Gen Zs, who are expected to comprise the largest shopping base in the years to come as they reach mid-20s and attain higher disposable incomes.
Meanwhile, a study by Boston Consulting Group reported that millennials – who have become the largest segment of the population – will increase their per capita spending by more than 10% over the next five years, while Gen Z consumers will increase their per capita spending by more than 70% in the same period.
Besides that, it is not an undeniable fact that women are biggest spenders in the retail history. They are also often swayed by fashion trends.
“The liberated millennial woman’s (as well as Gen Z-ers, for that matter) purchasing habit is validated by an 80% sale representation, in comparison against a low 20% by men. A polarised disparity, to say the least, representing an even larger untapped market value of US$2.4 tril,” Zalora commented.
Over the past few decades, the roles of women in Southeast Asia have changed tremendously with many climbing up the career ladder and making their name in the corporate world, becoming key decision-makers. Many of these women are millennials – – individuals who have fully harnessed and embraced the wonders of the Internet.
These individuals have led a boom in the e-commerce as well as online retail space and they will continue to be shaping the future of e-commerce in the Southeast Asia region. – Dec 2, 2020