востоковедение
XXI века
мировой экономики
и мировой политики
DIGITAL MARKETING ECOSYSTEMS IN THE ASIA-PACIFIC REGION
Preface
The idea to conduct a comprehensive review of digital marketing trends, practices and tools across the Asia-Pacific region stems from several reasons. First, the Asia-Pacific region has become an economic and business powerhouse that drives the global development. Second, digital marketing in its various forms is a focus of increasing attention of companies, government agencies and multilateral dialogue venues around the world, including the Asia-Pacific region. Third and most importantly, Russia’s policy in the Asia-Pacific region needs clear understanding of these practices, as no economic and commercial activity, of which marketing is an essential part, can be implemented without strong digital support. As Russia aims to expand its economic and commercial presence in the Asia-Pacific region, an outline of most notable regional digital marketing practices is a timely and relevant exercise.
This task is all the more important since HSE University, a globally renowned center of academic and teaching excellence, operates the portal “Orientalia Rossica”. Launched in April 2021, this expert venue brings together both experienced and young specialists in Asian studies with a clear mission to promote trans-boundary professional exchanges.
Although there is no dearth of analytics in the field of marketing in the Asia-Pacific region, the report has several advantages. First, it has been prepared by young specialists with only minimal supervision from the academic mentor. As HSE University students are future opinion leaders, they must practice their analytical skills performing hard and demanding tasks independently. Second, the report is a logical outcome of the HSE University bachelor courses “Economic and Political Development of Southeast Asia and Japan” and “Business and Business Strategies in Asia”, which allowed young specialists to sharpen their skills. Third, the project team is international, which enabled it to look at the digital transformation of marketing processes across the Asia-Pacific region from different perspectives. These factors combined respond to HSE University mission, namely, to improve academic mentorship and train intellectual leaders of the future.
While preparing the report, the project mentor did not aim to impose his views on his younger colleagues. The primary objective was different. As HSE University students are future top government officials, business captains and opinion leaders, the report is premised mostly on their own vision and assessments with only minor amendments. Since student projects carried out by HSE University under the mentorship of Professor Evgeny Kanaev are regularly published, including at the portal Orientalia Rossica, the report is a contribution to previous research papers. Additionally, it is work in progress open to future debates.
Introduction
The digital transformation of trans-boundary commercial exchanges, as well as corresponding marketing strategies and instruments, is increasing in importance. Naturally, this trend strongly influences upon the Asia-Pacific region, an area of burgeoning economic and business activity with profound global implications. In the years to come, the digital support of Asia-Pacific business practices, with huge commercial feedback, is likely to intensify. Among major reasons behind these expectations, several are worthy of note.
First, the region can scale up its consumption-related possibilities. Although making predictions is a hardly enviable task, according to available estimates, by 2050 Asia (part of which is the Asia-Pacific region) will see an exponential population growth. The majority of the global population will live in Asia.
Figure 1. More than 8 out of 10 people in the world will live in Asia or Africa by 2100
Additionally, an increasing urbanization strongly matters. The number of city dwellers in Northeast and Southeast Asian countries is expected to rise from 500 to 900 million between 2022 and 2030. Coupled with the digital transformation of economic and business practices, this factor makes it necessary to expand the usage of digital marketing instruments as an indispensable success factor.
In light of this, the demographic factor bears relevance. On the one hand, the population across the Asia-Pacific region is aging. A revealing picture is presented by 2024 ESCAP (Economic and Social Commission for Asia and the Pacific) Population Data Insights.
Figure 2. Age and Sex Distribution of the Total Population in Asia and the Pacific, 1990, 2024 and 2050
On the other hand, the median age remains relatively low, at least, in some Asia-Pacific countries. It is exemplified mostly by ASEAN member states. There, the average median age is slightly above 30 years, while the percent of elderly people, especially in countries with low incomes, is not significant.
Figure 3. Median Age in ASEAN
Figure 4. Population of ASEAN Country by Age
This situation presents marketers with multiple opportunities. On the one hand, advanced years are not associated with poverty and illnesses, as elderly people are physically and socially active. If so, beauty products of all sorts, as well as “cosmeceuticals” and “nutraceuticals”, are increasing in demand. On the other hand, people of active working age, who belong to an expanding middle class, have increasing discretionary incomes. The remaining share accounts for young people who are digitally-savvy. These factors combined make the Asia-Pacific region an area of considerable commercial benefits. To reap them, digital marketing instruments are necessary.
Second, Asia-Pacific countries implement massive digital transformation programmes. Selected examples include, but are not limited to, the Smart Nation (Singapore), the Digital Park (Thailand), Malaysia Digital, the Digital Cambodia, ASEAN Smart Cities Network, to mention just a few examples. But most importantly, China’s Digital Silk Road, as part of the Belt and Road Initiative is linked with the programs “Make in China 2025”, “China Standards 2035”, “Internet+” and “Civil-Military Fusion”. The cumulative effect stimulates the implementation of advanced economic and business practices. Logically, it generates demand for digital marketing instruments.
Third, the expansion of digital marketing practices is fostered by the construction of advanced digital infrastructure across the Asia-Pacific region. Examples include, but are not limited to, data centers, smart cities, smart logistics, including port development, etc. The prime example is the 5G Internet development. Revealingly, the 5G internet adoption in China is expected to be 88% of all connections in 2030 (while the global average will be 56%). Although in relative terms China’s figures may be less significant than those of GCC Arab States, the US and South Korea (89 million, 392 million and 61 million users respectively), the PRC is far ahead of other countries in absolute terms (1,64 billion users).
Figure 5. 5G Adoption in 2030. Percentage of Total Connections
Simultaneously, digitalization-related topics are grasping the agenda of regional multilateral dialogue venues, including those that do not necessarily focus on trans-boundary commercial exchanges. Examples include APEC Digital Trade Transformation Work Program (2021), the Symposium on APEC ICT Skill Standards for Artificial Intelligence (2021), Research on Potential Applications of Artificial Intelligence to Improve Product Recall Procedures in the Region (2023), Technology Innovation Workshop for Environmental Monitoring, Using Technologies Such as Artificial Intelligence and Big Data in Productive Activities (2024), and others. However, more revealing examples are provided by ASEAN, as the association both equips its multilateral initiatives with digital instruments and launched digital-only initiatives. The e-ASEAN Framework Agreement (2000), ASEAN Framework on Digital Data Governance (2018), ASEAN Agreement on Electronic Commerce (2019), ASEAN Digital Masterplan 2025 (2021), Consolidated Strategy on the Fourth Industrial Revolution for ASEAN (2021), ASEAN Data Management Framework (2021) and ASEAN Guide on AI Governance and Ethics (2024) are main examples. Negotiations on Digital Economy Framework Agreement (DEFA) with a comprehensive vision and multidirectional cooperation are of special relevance.
All factors considered, it is reasonable to expect growing interest in digital business practices across the Asia-Pacific region. They are likely to be implemented at the grass-root level and within the framework of multilateral dialogue venues focusing on economic and business cooperation. Digital marketing is and will probably remain their indispensable part, as in the world as we know it today, no economic and business activity is possible without well-developed and constantly diversifying digital instruments, part of which relates to digital marketing. Lastly, the commercial feedback of digital marketing will probably grow at an exponential rate. Taking these factors into account, the material that follows discusses most notable and commercially promising Asia-Pacific digital marketing trends, issues and practices, including those with a trans-boundary component.
Due to the expanding role of digital business practices in the Asia-Pacific region, clear understanding the foundational elements of e-commerce—particularly, the key players shaping the market—is essential. Online stores serve as primary touchpoints for digital commercial activity, reflecting both consumer preferences and broader digital marketing trends. The analysis that follows focuses on how digital marketing strategies align with the region's evolving retail landscape.
Selected Online Stores (by Country) and Major Types of Sales
To begin with, let's look at the most popular online stores, categorizing them by country. We will analyze the situation on the e-commerce market in Japan, India, China, South Korea and the countries of Southeast Asia.
Japan
Japan is the fourth largest e-commerce market with sales of $105 billion. However, online retail only accounts for about 12% of total retail sales in Japan, so there is a significant potential for growth. The chart below shows the top 5 marketplaces by number of Japanese visitors per month.
Figure 1 Visitors per month on marketplace websites in Japan in 2024 (in millions).
According to the available data, Amazon is the most frequently visited site by Japanese buyers (555.8 million per month). Next is Rakuten with 544.3 million visits per month. Other marketplaces are much less popular: for example, the third most visited site Mercari is characterized by only 75.2 million Japanese visitors per month. Finally, ZOZOTOWN and PayPay Mall are visited by 43 and 31.3 million people per month, respectively. Notably, out of top five companies by visits, four are Japanese (Amazon is an exception, while occupying the first position in the specified rating).
India
India is one of the fastest growing and most populous e-commerce markets in the world. It was worth $123 billion in 2024 and is expected to grow to $145 billion in 2025. Let's take a look at the top 5 marketplaces in India by number of visitors in 2024.
Figure 2 Visitors per month on marketplace websites in India in 2024 (in millions).
According to the data presented, in 2024, Amazon India had the highest number of visits (295.8 million) compared to other marketplaces. Flipkart was in second place with 167.4 million visits per month. Visits to other marketplaces were significantly lower: for example, the number of visits to the Myntra website was 32.9 million people per month, Snapdeal — 15.1 million people per month, Shopclues — 5.9 million people per month. Thus, 4 out of 5 companies in the ranking were Indian. Nevertheless, the Indian branch of the global company Amazon took the first place in the top.
China
China is the largest e-commerce market with sales of $1,773 billion, which accounts for almost 50% of the global e-commerce share.
Figure 3. Most popular online platforms in China (as of September 2024)
The simplification of documentation requirements ensures the extensive expansion of China's electronic markets, which are showing rapid growth. Number of unique visitors amounted to 904.6 million as of 2024.
Companies like Doying and Pinduoduo also contribute to the development of China’s e-commerce market.
South Korea
Sales of the e-commerce market in South Korea amounted to $80.35 billion in 2024. It is one of the biggest e-commerce markets in the world, with bright growth prospects.
It is evident that Coupang, Gmarket, 11Street, Auction and Interpark are top players in South Korea.
Southeast Asia (exemplified by Indonesia, Malaysia, the Philippines, Thailand and Vietnam)
Figure 5. Trends from popular eCommerce Platforms across Southeast Asia as of February-April 2024
As evidenced by the diagram, Shopee is an indisputable leader, follow by Lazada, although in Indonesia the second position of Tokopedia deserves attention.
The material that follows reveals the specifics of digital business models across the Asia-Pacific Region in the B2B (business-to-business), the C2C (customer-to-customer) and the B2C (business-to-customer) segment.
The B2B Segment
Currently, the Asia-Pacific region is one of the global leaders in B2B e-commerce. The increasing number of mobile devices and internet access, the implementation of major economic initiatives that attract capital flows and new technologies (for example, the Belt and Road Initiative – BRI), as well as the development of digital technologies such as cloud computing, big data, and AI (artificial intelligence), generated new opportunities for businesses in the region, allowing them to more effectively connect with buyers, optimize business processes, and access global markets. As a result, there has been rapid growth in B2B E-commerce in the Asia-Pacific region. According to the Ocean report, the Asia Pacific B2B E-commerce market will grow by 12.6% annually with a total addressable market capitalization of US$216,568.4 over 2022-2030.
The largest companies in the B2B e-commerce sector in the Asia-Pacific region are presented by Alibaba Group Holding Ltd., Amazon.com, Inc., Flipkart Online Services Pvt. Ltd., B2W Companhia Digital, and IndiaMART InterMesh Ltd. Their success is premised on the ability of their management to adapt to current regional trends of B2B E-Commerce. In 2023, these trends accounted for the rise of mobile commerce and internet penetration, the expansion of marketplaces, the adoption of AI and automation and an emphasis on personalised experiences (a study conducted by Wunderman Thompson demonstrated that 92% of global B2B buyers want to get the same experience on B2B sites as they get on B2C sites). Thus, the Asia-Pacific region is witnessing the rapid development of B2B E-commerce, and companies are implementing new technologies and strategies to maintain their competitiveness. According to McKinsey Research & Co, almost two thirds (65%) of B2B companies in various industries provide B2B E-commerce opportunities. It means that the sale transaction is fully completed online, which exceeds the figure of 53% at the beginning of 2021. This suggests a significant shift towards digital channels for completing sales transactions within the B2B space and underscores the region's ongoing embrace of online commerce.
Summing up the specifics of B2B platforms exemplified by Alibaba Group Holding Ltd., Amazon.com, Inc., Flipkart Online Services Pvt. Ltd., B2W Companhia Digital, and IndiaMART InterMesh Ltd., the following points are noteworthy.
Alibaba.com. Since its establishment in 1999, Alibaba.com has been at the forefront of transforming the landscape of business-to-business (B2B) E-commerce. This platform has played a pivotal role in shaping the way businesses interact and trade on a global scale. As part of Alibaba Group, Alibaba.com has been involved in different mergers and acquisitions, including the acquisition of South China Morning Post, UCWeb, Youku Tudou and Lazada. Serving both micro-, small and medium-sized enterprises (MSMEs) and large corporations, Alibaba.com acts as a vital link for businesses looking to engage in international trade. By facilitating seamless connections between suppliers and buyers, the platform enables businesses to explore new markets and opportunities. While Alibaba.com does not directly handle logistics operations, it leverages the logistical expertise of Cainiao Network, a logistics entity within the Alibaba ecosystem. This collaboration ensures efficient supply chain management and delivery services for businesses utilizing the platform. Therefore, Alibaba.com is a reliable partner in facilitating smooth transactions and establishing valuable connections across borders.
Amazon Business. Amazon Business is an innovative B2B E-commerce platform that was launched in April 2015 as part of Amazon.com. Since then, Amazon business has become one of the fastest growing businesses in Amazon's history. Its annual sales reached $35 billion in 2023. Recognizing the distinct requirements of businesses, Amazon launched this special platform to streamline the procurement process, improve purchasing efficiency, and offer a diverse selection of products tailored to meet the needs of companies and organizations. As part of Amazon, Amazon Business has been involved in numerous mergers and acquisitions, like, for instance, the acquisition of Zoox, robotic technology company Kiva Systems Inc, etc. Amazon Business leverages its extensive network and infrastructure to reach and serve a global audience that includes corporate buyers, institutions, and organizations. Currently, more than 6 million customers shop on Amazon Business. This includes small and medium-sized companies such as the family-owned Red River Brewing Company in New Mexico, as well as large companies and institutions. Ninety-six Fortune 100 companies use Amazon Business, including Intel and Citi, as well as organizations such as Johns Hopkins University, Seattle Children's Hospital and United Services Organizations, and U.S. government agencies including the state of Utah and the U.S. Air Force. To deliver orders, Amazon Business uses the logistics capabilities of its parent company Amazon. Thus, Amazon Business ensures uninterrupted supply and offers a wide range of products, from stationery and equipment to industrial tools and materials.
Flipkart Wholesale. Flipkart Wholesale is a digital B2B platform launched by Flipkart. It aims to cater to the business-to-business segment and transform the kirana (neighborhood retail) ecosystem in India. It was created and launched in 2020 when Flipkart Group took over the Best Price cash-and-carry business from Walmart India Private Limited. The business claims to serve 1.2 million kiranas and MSMEs. As a relatively new offering, Flipkart Wholesale operates as part of the Flipkart Group, focusing solely on the B2B segment and has no significant mergers or acquisitions as a standalone platform. Flipkart Wholesale primarily operates in select cities across India, providing a wide range of products to participating businesses. Besides, it distributes new brands through its alternate channel programme, helping them enter new geographies. Flipkart Wholesale's target audience primarily encompasses retailers, including kirana store owners, offering them a wide assortment of products, easy order management, and transparent pricing. To ensure the supply of products, Flipkart Wholesale leverages the Flipkart Group's logistics infrastructure and capabilities. Thus, Flipkart Wholesale connects local manufacturers with retailers and brings the wholesale marketplace at their fingertips using technology.
IndiaMART. IndiaMART is India’s largest online B2B marketplace, connecting buyers with suppliers. Founded in 1996, the company’s mission is “to make doing business easy”. IndiaMART is actively absorbing other companies, especially startups. For example, since October 2021 it has bought stakes in nine tech startups including Zimyo, Realbooks, IMPL, Fleetx Technologies, Busy Infotech, Simply Vyapar, Legistify, EasyEcom, M1Xchange, etc. IndiaMART predominantly operates in India. Its digital platform connects a vast network of buyers (187 million) and suppliers (7.8 million). IndiaMART's target audience primarily includes micro-, small and medium enterprises (MSMEs), wholesalers, manufacturers, and suppliers across various industries. It holds 60% market share of the online B2B Classified space in India. Sellers and suppliers on the platform usually handle the logistics aspects related to the delivery and fulfillment of orders themselves. Thus, IndiaMART provides a comprehensive range of products and services for businesses, facilitating seamless connections and transactions.
At this point, common and distinctive features of the platforms considered must be highlighted. One commonality is that most of the B2B E-commerce platforms reviewed operate as part of a large group. So, for example, Alibaba.com is part of the Alibaba Group Holding Ltd., and Amazon Business is part of Amazon. For these companies, creating a B2B E-commerce platform is just one of their activities. Having successful businesses in other areas allows companies to use existing resources to ensure quick start and sustainable development of these platforms.
Another common feature emerging from the functioning of B2B E-commerce platforms within a large group is the use of internal logistics systems. This enables efficient management of supply chains and delivery services for businesses using the platform. As a result, businesses can reduce costs, improve efficiency, and provide better service to their customers.
In turn, the key differentiating feature of the B2B E-commerce platforms considered relates to their reach of the target audience. Thus, Alibaba.com and Amazon Business have a global reach, while Flipkart Wholesale and IndiaMART operate primarily within the country. It is interesting to note that the last two platforms mentioned are Indian. Perhaps, they operate within the country due to high competition in the Asia-Pacific region and high demand for their services in India.
Thus, the Asia-Pacific region is characterized by rapid growth in the B2B E-commerce sphere. It is determined both by global trends, under the influence of which Asia-Pacific companies make decisions, and by processes occurring within the region. This growth is expected to continue in the coming years, making the Asia-Pacific region a key market for B2B E-commerce businesses.
While the B2B segment demonstrates remarkable expansion, the C2C sector is evolving with equal dynamism. In contrast to enterprise-focused models, C2C platforms facilitate direct interactions among consumers, thereby establishing a versatile and readily accessible marketplace.
The C2C Segment
A C2C marketplace is a type of e-commerce in which consumers receive goods directly from other people through online platforms and electronic marketplaces. The prevalence and openness of access in C2C platforms allows a person to be both a seller and a buyer at the same time. Typical examples of C2C are online auction sites, sites with advertisements on specific topics and rental platforms, as well as an abundance of online stores.
The Asia-Pacific region is an area where C2C trading is expanding very quickly. The level of Internet penetration, the main condition for C2C, is growing every year. This is evident primarily in the countries of Southeast Asia, as well as China and India.
Applications aimed at C2C commerce typically include a chatbot feature and a shopping instrument that allows instant messaging with both the seller and the buyer. In addition, there is a function for reposting the product itself – which helps not only to organize them thematically in specialized channels, but also increases the reach of the targeted audience. One of the most developed markets for C2C commerce is Thailand, since mobile communications cover almost its entire territory (89%). More than 80% of consumers use social media to research products. A report prepared by the Thai Marketing Research Society reveals that 71% of mobile internet users make purchases twice a month through online platforms. In addition, 90% plan to do so in the future. In addition, Thailand became the place to test Facebook's new innovations in the field of C2C e-commerce: the company announced that it was introducing the ability to buy goods directly on the site in a few clicks, primarily for users from Thailand. There are a number of applications that facilitate C2C e-commerce in the Asia-Pacific region.
The main example is Taobao. It is a Chinese online shopping application. It is based on the Alibaba Group platform and is a leader in e-commerce. In 2012, the commercial turnover of this platform was equal to such giants as eBay and Amazon, while in 2024, the number of active consumers on the platform reached 903 million people. A huge disadvantage of such a colossally developed platform is the impossibility of supplying goods outside China. Despite the huge assortment, buyers from other countries need to look for intermediaries who could redirect goods to them. Despite minor disruptions in the company's logistics during COVID-19, it remains extremely attractive to customers due to free delivery within China. Taobao Deals has successfully launched and implemented several initiatives to optimize logistics costs and improve the delivery experience for consumers. During the fiscal year and quarter ended March 31, 2024, the number of paid orders on Taobao Deals quickly grew by more than 100% and 35% year-on-year, respectively. In fiscal year 2024 Q2, Taobao sales revenue alone amounted to more than $14,78 billion U.S. Household appliances, consumer products and electronics were most in demand. An instant delivery system was also developed within one of the Chinese cities for food, groceries and other general consumption products.
Taobao is the largest representative of e-commerce based on the C2C model. The company did not spend any budget on advertising its services. On the contrary, it resorted to the “word of mouth” method: people learned about the site communicating with each other. Those Taobao users who were accustomed to trading through it and appreciated the tools invited other users to the site, which allowed the network not only to grow, but also to gain a loyal audience, which formed the basis of Taobao. There was a case where one of the users single-handedly invited 1314 other visitors to the platform. In addition, later the company began to use unique self-promotion systems: for example, using announcements in the subway in its own voice, as well as through advertising on other websites, which contributed to the growing popularity of the site, which already had a completely loyal audience at its core. Moreover, Taobao proved to be a platform that was easy to use as it offered guides to its users. Taobao was one of the first to introduce an instant messaging system, which had a beneficial effect on the possibility of communication between buyers and sellers, and also facilitated negotiations. In addition to security and ease of use, significant parts of Taobao's brand are warm and friendly atmosphere on the site, and the customer focus, which the platform especially emphasizes.
However, the C2C e-commerce model on which Taobao is based differs significantly from a classic C2C model on which, for example, eBay operates. Many transactions are made from businesses to consumers, for example, which puts Taobao in a transitional state between B2C and C2C.
Security, logistics issues and payment processing are the main sticking points in C2C e-commerce throughout the Asia-Pacific region, and this has not escaped the Chinese audience either. According to the study, more than 42% of users were afraid to buy products online.
Thus, reputation and trust play a crucial role in the C2C market, however, in the Asia-Pacific region there are no states yet that have developed special legislation in this area. In addition, it is extremely difficult to identify the user-seller in the event of a fraud.
Another distinctive feature of Chinese e-commerce platforms is the widespread phenomenon of “swift guanxi.” The concept of guanxi, that is, high-quality long-term relationships with business partners, is one of the traditional tools of doing business in China. In the case of “swift guanxi”, such relationships undergo a transformation and penetrate into the digitalized sphere, in which the approach to “guanxi” and even their concept change their traditional meaning. Doing business only with close people reduces the scale effect that can be achieved. Economies of scale are especially important for e-commerce, including C2C, since in the Internet space interaction occurs primarily on an anonymous basis. For this reason, sellers change their approach and establish rapidly forming connections with their target audience, after which buyers who fall under the influence tools have an opportunity to become “swift guanxi” based on mutual trust and harmonious relationships between buyer and seller. Such tools include personalized mailings (both within applications and in the form of notifications about promotions and discounts, as well as via email), instant messaging, as well as a simplified repeat transaction procedure.
Longitudinal data from buyers on Taobao confirms that the use of tools that relate to the “swift guanxi” concept provides increased confidence in the targeted audience and increases both the level of its activity and stabilizes its presence, reducing the number of people who could change platform or leave it.
Based on the foregoing, it is possible to conclude that China is an undisputed leader in the Asia-Pacific region in the e-commerce market using the C2C model. The C2C market, meanwhile, is extremely user-friendly and is actively expanding in all Asia-Pacific countries. However, market users still have concerns related to lack of clear legislative regulation of mechanisms in the C2C market, as well as a relatively small number of platforms that would enjoy trust and a good reputation among the population.
Despite the preeminence of China within the C2C segment and its accelerated advancement, the B2C (business-to-consumer) framework continues to serve as a catalyst for the expansion of e-commerce within the Asia-Pacific region. While the C2C model offers significant convenience to users, it encounters challenges relating to trust and regulatory compliance. In its turn, the B2C model is distinguished by a high level of structural organization, dependable platforms, and vigorous innovation in the field of digital marketing.
The B2C Segment
The B2C (business-to-consumer) sector in the Asia-Pacific region has grown into a global hub for e-commerce and digital marketing. Its origins date back to the early 2000s, when platforms like Alibaba and Rakuten led the charge. These pioneers laid the groundwork for a wave of digital transformation fueled by the region's swift embrace of technology, diverse demographics, and expanding internet access.
Today, the Asia-Pacific region remains at the forefront of global innovation in B2C digital marketing. With its rich cultural diversity, widespread adoption of mobile technology, and thriving e-commerce markets, the region presents both unique opportunities and distinct challenges for marketers. The region's B2C e-commerce market has seen extraordinary growth, surpassing $2 trillion in 2024. This surge is driven by rising internet penetration and the growing use of mobile devices, particularly in India, Indonesia, and Vietnam.
The introduction of 5G networks has revolutionized online shopping by enabling immersive experiences such as augmented reality (AR) and virtual reality (VR). Meanwhile, AI-driven personalization has become a cornerstone of consumer engagement. Platforms like Shopee and Lazada now leverage advanced recommendation engines to elevate user experience, setting new benchmarks for digital innovation in the global marketplace.
Despite its remarkable growth and success, the B2C sector in the Asia-Pacific region faces several significant challenges that require strategic solutions.
One of the primary hurdles is regulatory complexity. Countries like China enforce strict content regulations, making compliance a critical requirement for foreign brands. Failure to adhere to these regulations can result in severe penalties or a restricted market access, necessitating a thorough understanding of local laws and tailored strategies to navigate these frameworks effectively.
Another pressing challenge is content scalability. The region's vast diversity in languages, cultural preferences, and consumer behaviors makes producing localized and culturally relevant content a demanding task. Businesses often find that creating and managing such tailored content across multiple markets might place a heavy strain on resources, both in terms of time and budget.
Additionally, a talent gap in the digital marketing sector poses a growing concern. The demand for skilled digital marketers in the Asia-Pacific region far outpaces the available talent pool, forcing companies to seek alternative solutions. Many turn to AI-driven tools and technologies to optimize their workforce and streamline operations, bridging the gap between talent shortages and growing market needs.
To exemplify, Rakuten, founded in 1997 by Hiroshi Mikitani, was Japan’s first major e-commerce platform. It was initially modeled as a virtual mall, allowing merchants to set up online storefronts. By the early 2000s, Rakuten was synonymous with e-commerce in Japan, becoming a central player in the Asia-Pacific region. The company offered diverse services, including e-commerce, fintech, and logistics, through its ecosystem. Its Rakuten Super Points loyalty program created strong consumer engagement and repeat purchases.
Rakuten focuses on Japan’s domestic market, catering to a middle-income demographic that valued high-quality service, loyalty rewards, and convenience. As of 2024, Rakuten controlled over 28.9% of Japan’s e-commerce market, a testament to its localized focus and customer loyalty. It was among the first to integrate digital payments and financial services into its ecosystem, setting a precedent for competitors like Alibaba.
Rakuten’s logistics strategy emphasized speed and reliability through partnerships with local courier services. However, this company lagged behind competitors like Amazon, which introduced innovations like same-day delivery. Rakuten’s limited global expansion strategy made it vulnerable to competition from international giants. Amazon and Yahoo Shopping captured significant market shares in Japan, leveraging faster delivery options and broader product ranges. Meanwhile, Rakuten struggled to scale its offerings internationally.
Another powerhouse in the field of digital platforms of that time is Alibaba. It was founded in 1999 by Jack Ma and soon transformed the B2C digital marketing landscape in the Asia-Pacific region. With its platforms like Taobao (C2C), Tmall (B2C), and AliExpress (B2B2C), Alibaba has built an ecosystem that connects millions of micro-, small and medium-sized enterprises with global consumers. By 2024, Taobao and Tmall together accounted for 40% of all retail e-commerce sales in China, demonstrating Alibaba's dominance.
Alibaba’s platforms provide easy access to a variety of products and services. Tmall has become a go-to platform for premium brands targeting Chinese consumers, while Taobao focuses on a broad consumer base with affordable options.
Alibaba also introduced integrated solutions such as Alipay (digital payments) and Cainiao (logistics) to enhance customer and seller experiences. Alipay has grown to over 1 billion users globally. Alibaba's Cainiao network offered streamlined supply chain management and last-mile delivery solutions, ensuring rapid and reliable fulfillment even during high-demand periods like Singles’ Day. Furthermore, events like the “Double 11” Global Shopping Festival revolutionized online shopping. In 2024, Alibaba achieved $167 billion in sales during this event alone.
Despite its dominance, Alibaba faces increasing competition from JD.com, Pinduoduo, and global platforms like Amazon. In addition, regulatory challenges and slowing growth in China also hindered its expansion, pushing it to explore international markets like Southeast Asia via Lazada. However, aggressive regional players like Shopee gained ground by focusing on localized experiences and mobile-first approaches.
Although Rakuten and Alibaba are long-standing pioneers in the field of digital B2C platforms, their positions have weakened. Other companies, namely, Amazon, Shopee, Lazada, and Tokopedia, alongside region-specific platforms like India's Flipkart, are taking the leadership role. These platforms leverage technology like artificial intelligence (AI), mobile-first strategies, and localized content to attract a broad audience.
Amazon operates in several Asia-Pacific markets, including India, Japan, and Australia. The company leverages its expansive product catalog, Prime membership program, as well as advanced fulfillment network, to dominate these regions. This digital giant provides an ecosystem of services, including Amazon Web Services (AWS) and Amazon Pay. In India alone, Amazon accounted for over 40% of total e-commerce sales by 2023. This company primarily targets middle- and upper-income urban consumers who value fast delivery and a wide product selection. As for logistics solutions, Amazon’s advanced Fulfillment by Amazon (FBA) system ensures next-day and same-day deliveries in key markets. Its use of drone deliveries and local partnerships addresses the last-mile logistics problem. Its integration of Prime Video and Alexa creates a multi-touchpoint consumer ecosystem. However, it faces challenges in navigating the region’s regulatory landscapes and localized competition.
Shopee, headquartered in Singapore, leads the Southeast Asian market with its mobile-first, localized approach and innovative marketing strategies. Shopee integrates e-commerce with social elements like in-app games and livestreaming. At present, it has recorded over 260 million monthly visits across its markets. Young, mobile-first users are Shopee's core demographic, particularly in Indonesia, the Philippines, and Vietnam. This platform offers Shopee Express and partnerships with third-party logistics providers to support fast delivery across the fragmented Southeast Asian market. Its "shoppertainment" model, combining e-commerce with entertainment, sets it apart. Events like the 11.11 sale, which achieved a 60% year-over-year increase in seller participation, highlight its effectiveness. In addition, Shopee expanded aggressively through strategic partnerships and investments in logistics infrastructure, enhancing its cross-border capabilities.
In April 2016, the Chinese Internet giant Alibaba Group announced the purchase of a controlling stake in Singapore startup Lazada Group. The $1 billion deal was Alibaba's largest overseas investment. Under the terms of the deal, Alibaba invested $ 500 million in new Lazada shares, and the same amount was spent on buying out packages from current shareholders, including German concern Rocket Internet, British retailer Tesco and Swedish Investment AB Kinnevik. As a result of the deal, Lazada was valued at about $1.5 billion. The deal with Lazada allowed Alibaba to expand its influence outside China, in particular in the market of Vietnam, Indonesia, Malaysia, Singapore, Thailand and the Philippines, as well as increase its customer base by 600 million users.
As a subsidiary of Alibaba, Lazada has transformed into a significant player in Southeast Asia, focusing on cross-border trade and integrated solutions. Lazada’s LazMall guarantees authenticity for branded products, and its integration with Alibaba’s Tmall facilitates cross-border commerce. Now Lazada controls a significant share in markets like Malaysia and the Philippines and targets middle- to high-income groups, offering a premium shopping experience. With Alibaba’s Cainiao logistics, Lazada ensures seamless fulfillment and cross-border shipping, optimizing delivery times across its network. Lazada’s synergies with Alibaba provide deep pockets and technological capabilities, although Shopee's aggressive marketing has eroded its lead in key markets. In 2024 Q4 Lazada held a 7.6% market share in Southeast Asia.
Tokopedia, Indonesia’s homegrown giant, excels in combining traditional retail with digital innovation. The platform connects small businesses to consumers, leveraging its merger with Gojek to enhance its logistics and payment systems. Tokopedia holds a 35% market share in Indonesia as of 2024. Its focus is on Indonesia’s vast SME sector and price-conscious consumers. Through its Gojek integration, Tokopedia provides rapid, last-mile delivery solutions even in remote areas. The merger with Gojek enables Tokopedia to dominate Indonesia’s domestic market, though its reach remains limited outside the country.
In 2018, Walmart acquired a 77% stake in Indian retailer Flipkart for $16 billion. It was the largest acquisition in Walmart's history. The rest of Flipkart remained in the hands of the company's current owners, including its co-founder Binny Bansal, as well as Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp. Walmart's management hoped that buying Flipkart would be a good investment for the long term. It took into account the growing middle class in India and the penetration of mobile communications, as well as the huge potential for the development of e-commerce. In 2024 Walmart’s e-commerce penetration showed 18% growth internationally with a total 255 million weekly customer visits.
Flipkart is India’s leading e-commerce platform, competing closely with Amazon. Flipkart offers services like Flipkart Plus (loyalty program) and an expansive product range. It records annual revenue growth exceeding 21 percent in 2024, reflecting improved operational efficiency in India. Its main focus is price-sensitive, urban, and semi-urban consumers. Flipkart’s logistics arm, Ekart, supports robust supply chains, enabling efficient deliveries to even the most remote parts of India. Flipkart’s success lies in its deep understanding of Indian consumer behavior and regional diversity. Its focus on affordability and regional languages helps maintain a competitive edge over Amazon.
These companies remain true leaders in the field of digital marketing in the B2C sector within the Asia-Pacific region. The reason is obvious. They are adapting to regional cultures, languages, and consumer preferences, utilizing AI, AR, and logistics innovations to enhance user experiences, emphasizing affordability, authenticity, and fast delivery to build loyalty. Each of these factors individually, not to say about them all collectively, contributed to the success stories discussed above.
Therefore, the achievements of the B2C platforms within the Asia-Pacific region can be attributed to their proficiency in not only executing sophisticated technologies but also due to their competence in local specifics. The synergy of a customized approach, pioneering solutions, and an emphasis on consumer convenience establishes a solid foundation for sustained growth. Nevertheless, digital transformation extends beyond merely e-commerce platforms; social media networks are progressively exerting a significant influence on consumer behavior, serving as a pivotal channel for sales and marketing.
In this context, social media networks increasingly matter. They are discussed in the material that follows.
Marketing Trends and Tools
The Asia-Pacific region is the world’s most vibrant and rapidly evolving marketing landscape, home to the majority of the global population and a booming digital economy. With countries like China, India, Japan, South Korea, and ASEAN member states driving innovation, the Asia-Pacific region has become a hotbed for cutting-edge marketing strategies, fueled by mobile-first consumers, hyper-digital adoption, and diverse cultural nuances.
Social Media Marketing
In 2023, the Asia-Pacific region had about 60% of the global social media user base. By 2028, the social commerce market size in the region is expected to exceed USD 4 billion, owing to rapid digitalization and integration of e-commerce.
Figure 6. Social Network Users Worldwide, by Region
During the pandemic, the region emerged as the driver of the global e-commerce market and is likely to maintain its competitive edge. The region is set to surpass others in the rapid transition of distributors and manufacturers from traditional physical stores to online platforms, as well as in the shift of consumer preferences towards online shopping. As internet access grows among consumers in the region, online shopping is becoming increasingly common. Enhanced social media engagement plays a crucial role by offering avenues for advertising and sales. The region's e-commerce sector has consistently yielded substantial profits, with prospects for further growth.
Asia-Pacific consumers prefer to shop through mobile devices, with over 70% of internet users preferring to use smartphones for shopping. This indicates the region's readiness for social commerce. Influencer marketing reinforces this trend, with more than half of consumers in the region making purchases based on recommendations from social media. Demand for convenient ways to shop is growing, and a significant portion of consumers prefer to buy directly through social platforms because of their convenience and immediacy. The Asia-Pacific region covers a huge area, which leads to significant differences in the most popular platforms depending on the country. Let's take a look at the main social media platforms used in key countries in the Asia-Pacific region.
In China, Douyin (TikTok), launched by ByteDance in 2016, leads among younger users with over 2 billion downloads and 743 million monthly active users. WeChat, introduced by Tencent in 2013, integrates messaging, payments, and more, with over 1 billion active users and 400 million on WeChat Pay.
India has 467 million social media users, or 32.8% of its population, primarily accessing platforms like Facebook, YouTube, WhatsApp, and Instagram via mobile phones. India leads globally in Facebook users, with 314.6 million in 2023.
In Japan, 92% of internet users are on social media, with LINE (95 million active users) and YouTube (78 million) being the most popular.
The Philippines sees heavy social media usage, averaging 3 hours and 38 minutes daily, with platforms like Facebook and YouTube dominating.
In South Korea, 92% of the population uses social media, spending 1 hour 8 minutes daily. YouTube leads with 46 million users, followed by Kakaotalk (92% penetration) and Instagram.
However, in order to conduct e-commerce in Asia-Pacific countries, not only the number of users, but also political factors are important. Take, for instance, the politics of China. In addition to banning the use of Western social networks, China carefully monitors information on its social platforms. For instance, in 2014, the state passed new regulations on China’s primary social media site, WeChat, barring private users from sharing news, current events, or anything that undermined the socialist system. Since then, the state has closed millions of accounts that do not meet those requirements.
Before presenting particular examples of marketing campaigns, main digital marketing trends in the Asia-Pacific region should be mentioned. Based on this information, it will be easier to analyze marketing campaigns further, including channels, methods and content.
1. Seamless Commerce and Omnichannel Integration
The Asia-Pacific region is moving beyond traditional omnichannel strategies toward a "seamless commerce" approach. This model ensures that consumers experience a unified interaction with brands across all channels—online stores, physical outlets, and social platforms. In this context, social commerce and live-streaming events have gained massive traction, particularly in markets like China, Vietnam, and the Philippines. Platforms such as TikTok, Douyin, and Facebook Live allow retailers to create engaging shopping experiences by combining entertainment, product demonstrations, and instant purchasing options.
This trend is largely driven by Gen Z consumers, who prioritize instant gratification, personalized content, and convenience. They are highly reliant on mobile devices and digital payment systems, further fueling the demand for seamless, frictionless shopping experiences. Retailers adopting this model are investing in advanced technology to integrate inventory, logistics, and customer touchpoints, ensuring that the transition between physical and digital realms is smooth and customer-centric.
2. AI-Driven Personalization
Artificial intelligence (AI) is transforming the way businesses interact with their customers in the Asia-Pacific. AI-powered algorithms are being used to analyze vast amounts of consumer data to deliver highly personalized experiences. For instance, recommendation engines on e-commerce platforms suggest products tailored to individual browsing history, preferences, and purchasing patterns.
In markets like South Korea, and Vietnam, businesses are also leveraging AI for chatbots and virtual assistants, offering 24/7 customer support that mimics human interaction. Additionally, AI helps in inventory optimization, allowing retailers to predict demand fluctuations and minimize overstocking or stockouts. This not only improves operational efficiency but also enhances customer satisfaction. AI is also reshaping advertising strategies, enabling hyper-targeted campaigns that maximize ROI by reaching the right audience with relevant content.
3. The Rise of Digital Payments
The Asia-Pacific region is witnessing a rapid adoption of digital payment solutions, transforming the way consumers transact. Platforms like Alipay, WeChat Pay (China), and ShopeePay (Southeast Asia) have become household names, with their popularity rooted in convenience, security, and speed. Southeast Asia, in particular, has seen a shift from cash-based transactions to digital wallets, as the region leapfrogs traditional banking infrastructure.
In markets like Indonesia and Vietnam, digital payments are complemented by the increasing penetration of fintech solutions that cater to unbanked and underbanked populations. Governments and businesses are also pushing for cashless societies, with incentives such as discounts and cashback rewards for digital transactions. However, underdeveloped markets in the region still face challenges, such as limited infrastructure and digital literacy, making the transition uneven.
4. The Influence of Social Commerce
Social commerce is reshaping consumer engagement and purchase behaviors in the Asia-Pacific. This trend integrates social media platforms with e-commerce functionalities, enabling consumers to discover, evaluate, and purchase products without leaving the app. Platforms like Douyin (TikTok in China), Instagram Shopping, and Facebook Marketplace are creating immersive shopping experiences, particularly for younger demographics.
Live-streaming events are at the heart of this trend. Influencers and brand ambassadors demonstrate products in real time, answer audience questions, and offer exclusive discounts, creating a sense of urgency and community among viewers. For brands, leveraging social commerce reduces friction in the purchasing journey and increases conversion rates. The strategy also allows businesses to tap into the "see now, buy now" mentality, making it a cornerstone of marketing in the region.
Let's move on to an example of a company with good social media marketing strategies in the Asia-Pacific region.
Samsung’s marketing exemplifies sophistication and adaptability, utilizing diverse content formats like videos, reels, static posts, and interactive content to engage audiences effectively. This approach combines global appeal with regional customization, such as separate Instagram accounts for markets like the US, UK, and India. Influencers like Mackenzie McIntyre help the brand connect with local audiences.
Aligning with these trends, Samsung enhances engagement, as demonstrated by campaigns like "Gen X vs Gen Z,". Collaborations with celebrities like BTS, Blackpink, and Jay-Z generate high visibility and excitement for products like special-edition smartphones.
Samsung also fosters interaction through contests, giveaways, and polls on its social platforms, creating vibrant online communities. A key strategy is leveraging leaks and rumors to build anticipation, such as the buzz around potential headphone jack removal before the S8 launch. These tactics capitalize on exclusivity and consumer expectations, amplifying interest and brand loyalty.
Two interesting cases of using WeChat to promote a new product deserve attention.
In 2012, Starbucks introduced a new product called Refresha, derived from green coffee bean extract. To launch this beverage extensively to their Chinese audience, Starbucks initiated a social media campaign that was engaging, memorable, and successfully encouraged participation from their fans.
Utilizing WeChat as the primary platform to promote Refresha, Starbucks kicked off the campaign by placing QR codes in their stores on cup sleeves and posters, enabling users to scan and add the coffee chain as a friend on WeChat. Starbucks then curated a playlist of 26 songs to interact with their customers.
Fans were encouraged to convey their emotions by sending any of WeChat's 26 emoticons. In response, Starbucks would share a fitting song that matched the expressed mood. Within 4 weeks, Starbucks garnered around 130,000 WeChat friends, and remarkably, Refresha sales reached RMB 7.5 million in just 3 weeks, all achieved with a modest budget of RMB 250,000. Additionally, the brand's Sina Weibo account saw a 9% increase in followers and generated over 57,000 reposts and comments.
This campaign underscores the effectiveness of WeChat as a powerful tool for social media marketing in China. It also highlights that Chinese consumers engage with various social media platforms. Success on one platform can bolster your presence on others.
The other example is Montblanc. In 2015, Montblanc initiated the 'Mystic Moon Phase Campaign' to promote their new Bohème and Heritage luxury watch collection. Despite facing competition from other luxury watch brands featuring a 'moon phase' function, Montblanc struggled to distinguish itself and capture consumer interest with this common feature.
However, leveraging WeChat's extensive reach of nearly 400 million monthly active users, predominantly in China, Montblanc successfully engaged with the Chinese audience's fascination with the lunar cycle. The campaign, launched in November 2014, integrated moon phase complexities and real-time lunar transitions. It introduced an innovative WeChat QR code showcasing the lunar cycle, which users could scan. Upon scanning, users were prompted to input their gender and date of birth, generating a personalized report on how their birth moon cycle influenced their personality, relationships, hobbies, and career. Users could also share their personalized moon phase report with friends.
The campaign's hashtag garnered over 10 million impressions on Weibo, a popular Chinese microblogging platform, and received international recognition. By capitalizing on WeChat's diverse features and its substantial Chinese user base, Montblanc achieved significant success. By tapping into the deep-rooted significance of the lunar cycle in Chinese culture, Montblanc not only delivered a marketing campaign but also provided an engaging and informative digital experience for Chinese consumers.
While social media marketing has revolutionized the way consumers do shopping, content marketing remains the backbone of digital engagement. Asia-Pacific diverse markets need culturally relevant, high-quality content that resonates with local audiences – through storytelling, video marketing, or interactive experiences.
Content-Marketing
The interest in social media advertising has skyrocketed because of its captivating nature. These ads often blur the line between pure advertisement and entertainment, presenting themselves as short films or engaging videos that draw viewers in. Content marketing stands as a pillar in modern marketing strategies, aiming to foster enduring connections with target audiences through meaningful content. This method involves thorough analysis and data-driven strategies, widely embraced by marketing teams across diverse industries.
What's particularly fascinating is the fast-paced growth sphere of content creation in the Asia-Pacific region. Here, individuals or small groups take on the role of content creators, reflecting the broader concept of content marketing but on a more personal level.
Revealingly, the rapid expansion of content marketing, especially in developing nations, has led to the rise of individuals creating unconventional and sometimes ethically questionable videos. They attract attention through various means. Additionally, brands are increasingly partnering with these influential figures, blurring the lines between content creation and product promotion, resulting in a surge of product placements within content.
This ever-evolving environment poses a challenge to traditional content marketing strategies. While content marketing typically unfolds as a long-term endeavour, the dynamic landscape necessitates adaptability to avoid audience disengagement. Consequently, there's an urgent call for content marketers to swiftly evolve their strategies to not stay relevant in the swiftly changing digital world, ensuring they maintain creative touch amidst technological advancements.
The primary hurdles confronting marketers in the Asia Pacific region can be categorised into three main areas:
While content creator is crucial, marketers sometimes prioritise quantity over quality. It's essential to produce valuable and engaging content rather than simply increasing volume. Understanding audience preferences and aligning content with brand goals is key. Their main purpose is to share their experience or their hobby, knowledge, rather than to make profit.
Content marketing strategies also matter: Proper leverage of compelling content is vital for effective content marketing. This involves identifying audience platforms, maximising content usage across platforms, driving engagement to the website, and considering supplementing with paid options.
Integration of content creation and marketing must be mentioned individually. A cohesive marketing strategy requires both targeted content creation and effective content marketing. Quality content creation is foundational to successful content marketing efforts, emphasising the importance of thorough research and engagement with the audience. Success in marketing strategy evolves over time through continuous testing and optimization.
All in all, content marketing is defined as the strategic creation of textual content, infographics, and various multimedia formats aimed at cultivating and enhancing awareness, interest, and comprehension regarding a particular product or service. The primary objective is to motivate the audience, particularly the specified consumer base of the brand, to engage in a predetermined action, like, for instance, acquiring a product or embracing a service.
The burgeoning prominence of social media platforms and the associated professions related to 'content' is evident, as platforms including TikTok, Douyin (the Chinese counterpart of TikTok), WeChat, Instagram, YouTube, and Facebook have emerged as pivotal arenas for content marketing initiatives. Pacific Asia is distinguished by considerable user engagement within a digital landscape, wherein social media platforms serve multifaceted purposes, encompassing social interaction, entertainment, education, and commercial transactions. Consequently, the vocation of content creator has attained increasing popularity, particularly among the youth demographic.
For instance, during the COVID-19 pandemic, a period marked by widespread isolation, the act of creating and consuming digital content became integral to the daily lives of individuals. The accessibility of content creation tools, such as applications for video and graphic editing, has catalyzed the emergence of independent creators who can derive financial benefits through brand partnerships or by monetizing their platforms.
Figure 7. Digital Advertising (Asia)
A salient trend in content marketing within Pacific Asia is the phenomenon of Shoppertainment, a concept that synergizes shopping with entertainment. This trend has proliferated, facilitated by platforms such as TikTok and Taobao Live, where users engage with entertaining video content while simultaneously participating in shopping activities.
A 2022 study conducted by TikTok in collaboration with the Boston Consulting Group indicates that Shoppertainment has unveiled substantial opportunities for brands operating within the region. The market for Shoppertainment in the Asia Pacific is projected to attain a value of $1 trillion by the year 2025. Rather than merely seeking out products, present-day consumers anticipate engaging with captivating and pertinent content that algorithms can present to them.
While Shoppertainment is reshaping consumer experiences by blending entertainment and shopping, the success of such strategies hinges on a deep understanding of regional cultural nuances. Overall, content marketing in Pacific Asia varies significantly across countries, reflecting unique values, traditions, and audience behaviors.
Cultural Characteristics of Content Marketing
In each nation within Pasific Asia, the practice of content marketing exhibits distinctive features, shaped by cultural nuances and audience preferences.
In the Chinese context, robust ecosystems such as WeChat, Douyin, and Taobao have prompted brands to adopt a holistic approach, integrating social media, e-commerce, and live streaming. Here, innovation, interactivity, and localized content are highly esteemed.
The Japanese marketplace is characterized by a profound dedication to quality and aesthetic appeal. Japanese brands frequently produce content that emphasizes traditions, emotional resonance, and visual elegance.
Influenced by the Korean wave (K-wave), which encompasses K-pop and Korean dramas, content marketing in South Korea actively leverages celebrities, musical elements, and visual artistry to augment product promotion.
Across Southeast Asia, in nations such as Vietnam, Indonesia, and Thailand, there has been a notable uptick in the popularity of localized content tailored to youthful audiences. Likewise, TikTok is being employed vigorously to elevate brands and products.
Given minimal barriers to entry within this profession, a multitude of individuals are embarking on their content creation journeys equipped with merely a smartphone and essential applications. In Asia-Pacific, there exists a pronounced emphasis on the production of unique, engaging, and utilitarian content that resonates with a broad audience.
In sum, content marketing across the Asia-Pacific region is undergoing a significant transformation, responding to cultural nuances, advancements in technology, and evolving consumer preferences. Digital platforms such as TikTok, Douyin, WeChat, and Taobao Live have emerged as pivotal instruments that facilitate distinctive opportunities for brand and product promotion. Nonetheless, the swift expansion of content marketing is accompanied by formidable challenges. Prominent obstacles encompass the necessity of ensuring high-quality content. Relatively low entry barriers associated with content creation have resulted in market saturation, compelling marketers and brands to prioritize the production of distinctive, valuable, and ethically sound content. This scenario underscores a critical need for the amalgamation of creative quality content with sustainable marketing strategies. Achieving success in this domain hinges upon adaptability, ingenuity, and the capacity to respond to the rapid evolution of the digital landscape. Brands that commit to the development of localized, innovative, and precisely targeted content will not only sustain their competitive advantage but also cultivate the trust and loyalty of their consumer base.
Consumer Portrait
A consumer portrait is one of the most important aspect that can be defined as an intricate and comprehensive representation of the quintessential customer that a business aspires to engage with, which serves as a pivotal tool for organizations to gain profound insights into the myriad needs, underlying motivations, and behavioral patterns exhibited by their target audience. The creation of this in-depth profile is of paramount importance, as it lays the groundwork for the formulation of highly personalized marketing strategies, the enhancement of customer experiences, and the customization of products or services in a manner that effectively aligns with the expectations and desires of the customer base. Through the analysis of consumer data, enterprises may segment their audience, prioritize high-value customers, and execute well-informed decisions that propel growth. An expertly constructed consumer portrait guarantees that resources are utilized effectively and that marketing communications resonate with the needs of the target audience. An outline of Asia-Pacific consumer portrait is presented below.
Asia-Pacific consumers are recognized as being among the most digitally sophisticated globally, with mobile-centric behaviors prevailing throughout the region. The high penetration of smartphones and the accessibility of affordable internet services have engendered a cohort of consumers who predominantly utilize their mobile devices for product inquiries, social engagements, and e-commerce transactions. For instance, organizations are placing a premium on mobile-optimized experiences to effectively serve this demographic. By developing seamless and visually captivating mobile interfaces, brands ensure that their websites and applications are user-friendly and efficient. Generation Z and Millennials, who are the primary proponents of mobile-centric behaviors, anticipate immersive experiences that encompass in-app shopping, augmented reality (AR) tools, and social media initiatives that integrate entertainment with commercial activities.
Social media platforms such as TikTok, Instagram, and WeChat have transformed the consumer purchasing journey. Consumers interact with brands through live-stream shopping events, influencer marketing campaigns, and peer endorsements, rendering social commerce one of the most efficacious marketing conduits. For example, to align with this consumer behavior, enterprises are integrating social commerce into the core of their digital marketing strategies. By employing interactive elements such as live question-and-answer sessions, opinion polls, and gamified content, brands amplify consumer engagement and stimulate sales. In markets such as China and Vietnam, companies are investing in live-stream sales facilitated by influencers, whereas in Southeast Asia, user-generated content and peer testimonials play a pivotal role in fostering trust.
Consumers in the Asia-Pacific region demonstrate a strong value orientation, consistently seeking high-quality products at competitive price points. E-commerce platforms like Shopee and Lazada flourish by offering flash sales, cashback incentives, and seasonal promotions. While price sensitivity is pronounced in markets such as India and Indonesia, more developed economies like Japan and South Korea emphasize premium experiences and reputable brands. As enterprises are implementing dynamic pricing strategies and frequent promotional initiatives to appeal to price-sensitive segments. For more affluent markets, brands concentrate on delivering exclusive, premium experiences that underscore quality and reliability. By segmenting their consumer base according to purchasing priorities, organizations can harmonize affordability with high-end offerings to address the diverse needs of various consumer groups.
With the escalation of digital interactions, trust has emerged as a pivotal consideration for consumers across the Asia-Pacific region. Growing apprehensions regarding data privacy and security are particularly pronounced in nations such as Australia, Japan, and Singapore, where consumers are increasingly demanding transparency in data handling practices. Brands are cultivating trust by implementing secure payment mechanisms, guaranteeing reliable delivery services, and providing responsive customer support. Organizations are also prioritizing transparent data management policies to mitigate privacy concerns among consumers. By incorporating features such as encrypted transactions and real-time tracking, businesses are fostering enduring loyalty in markets that are particularly sensitive to privacy issues.
By perpetually refining consumer portraits and employing instruments such as analytics and customer feedback, enterprises can sustain competitiveness and adapt to the dynamic demands of consumers. For instance, mobile-first strategies in Indonesia, investments in social commerce in Vietnam, and premium offerings in Japan exemplify how corporations modify their methodologies to align with regional consumer behaviors. A meticulously defined consumer portrait serves as an essential framework for enterprises, facilitating their navigation through diverse markets such as the Asia-Pacific region. By harnessing insights into digital behaviors, social interactions, value preferences, and trust issues, companies can formulate strategies that resonate with their target audience and secure sustained success.
Celebrities and Influencers: the Powerhouses of Modern Communication
In today’s digital landscape, influencers aren’t just promoting products — they’re reshaping how people perceive brands and trends. From mega-influencers with global clout to niche nano-influencers, each category has its unique magic.
Mega-influencers: titans of the digital realm. Picture the likes of global superstars with millions of followers, like Cristiano Ronaldo or Kylie Jenner. They dominate social media with sheer numbers, offering brands unparalleled reach — at a premium price, of course. In the Asia-Pacific region there are some of them, too:
Macro-influencers: bridging the gap. Think of them as the self-made stars of the internet. With audiences often in the millions, macro-influencers have earned their fame through relatable content like vlogs, expert advice, or entertaining skits. Popular names like Emma Chamberlain and Marques Brownlee strike a perfect balance: wide reach paired with a more focused audience. Their followers trust them, making macro-influencers a prime choice for targeting specific demographics while maintaining scale.
Micro-influencers: masters of niches. Micro-influencers are the unsung heroes of the influencer world. Focused and knowledgeable, they captivate audiences through genuine expertise — whether it’s travel blogging or fitness tips. While their reach is narrower, their impact is profound. Sponsored posts are cost-effective, and their engagement rates often outshine those of larger influencers. If you’re a brand looking for authenticity and trust, micro-influencers are your golden ticket.
Nano-influencers: the community whisperers. Nano-influencers may have a modest following, but they wield tremendous power within their communities. Authenticity is their hallmark, and their word carries weight among close-knit audiences. Although they lack wide reach, their intimate connection with followers can create brand loyalty. However, collaborating with multiple nano-influencers can demand significant effort, making it a less scalable strategy for larger brands.
AAPI Influencers: voices of diversity and connection. The Asian American and Pacific Islander (AAPI) community is a kaleidoscope of cultures, languages, and histories. With roots in over 40 countries and connections to iconic regions like China, Japan, and the Philippines, AAPI influencers bring unmatched diversity to the social media sphere. While some influencers focus on reaching American audiences, others build bridges between Southeast Asia and the West by collaborating with global brands and creating bilingual content.
Prominent names like Leaf Greener, Jeline Catt, and Yoyo Cao blend cultural insights with a modern flair, connecting with audiences worldwide. These influencers often leverage their heritage, blending authenticity with a global outlook — a strategy that resonates deeply with followers.
Chinese celebrities and Southeast Asia’s market: A cultural symphony. Southeast Asia is experiencing a Chinese drama boom, where hit series like Nirvana on Fire and Till the End of the Moon captivate millions. This cultural wave isn’t just about TV shows — it’s a reflection of strengthened ties between China and SEA under initiatives like the Belt and Road Initiative. The region’s affinity for Chinese language and culture further amplifies the appeal.
Chinese stars, fueled by their regional popularity, have become e-commerce juggernauts. Imagine this: a beloved actor hosts a live shopping event, showcasing a skincare product. Within minutes, sales skyrocket. Platforms like Alibaba’s Taobao Live are leading this trend, blending entertainment with direct-to-consumer sales. Numerous celebrities have embraced live commerce to capitalize on their marketability. Among them, Chinese actress and presenter Zuo Yan stood out as the top performer on Douyin in 2023, selling an impressive 12.76 million items through the platform. Fellow actors Chai Biyun and Jia Nailiang also made significant strides, either achieving sales volumes exceeding 10 million.
While influencers continue to shape digital landscapes and consumer behavior, another major force in redefining how users interact with the online world accounts for mobile applications. In particular, the rise of super apps in the Asia-Pacific region signals a shift toward digital ecosystems that offer far more than just social engagement. These all-in-one platforms merge commerce, communication, entertainment, and financial services, paving the way for a new era of digital convenience and connectivity.
Mobile Apps and VR: New Ways to Promote Products
Mobile Applications
Since the mid-2010s, globally and particularly in the Asia-Pacific region, major e-commerce corporations have demonstrated an increasing interest in the concept of "super apps." A super app constitutes a digital ecosystem that provides consumers with a comprehensive array of services, including financial transactions, ride-hailing, and goods delivery. These apps frequently incorporate marketplaces (e-commerce platforms), social networks, entertainment services like music, video streaming, and gaming platforms, as well as tools for booking travel and accommodations. Developers of super apps simplify consumer access to these integrated micro-applications, replacing traditional app stores. This approach boosts the visibility of service providers, drawing more users and achieving economies of scale. Users of super apps can curate personalized experiences by selecting and installing mini-apps designed to perform specific tasks. Over time, super apps are anticipated to integrate advanced functionalities, including chatbot support, Internet of Things (IoT) technologies, and immersive experiences.
According to a study by PYMNTS and PayPal, published in 2023, approximately 72% of consumers expressed interest in super apps. Projections suggest that by 2027, if current user growth trends persist, half of the global population will have access to such applications. Consequently, analyzing the development of this concept in Asia-Pacific markets has become a pertinent subject of study.
Prominent corporations in Southeast Asia have ventured into super app development, drawing inspiration from the success of WeChat, which pioneered the category. WeChat, introduced by Tencent in 2011, achieved immense popularity, partly due to strong governmental support, including its adoption among government officials. By 2016, WeChat had an audience of 889 million users, and by 2018, 93.5% of internet users in China had downloaded the app. In turn, in 2024, WeChat had more than 1.3 billion monthly active users.
WeChat was the first social network in Asia to introduce an integrated online payment system, WeChatPay. This digital wallet enabled instant peer-to-peer transfers without requiring additional confirmation, as user data is collected during the registration process. WeChatPay's success spurred the development of a business platform supporting both B2B and B2C operations. In the B2C domain, brand owners could promote their products through official accounts, while the B2B segment functioned as a social network for entrepreneurs. Merchants leveraged WeChat to retain customers and direct them to other platforms like TaoBao, without facing restrictions from the super app. This cooperative approach, combined with in-app payment systems, contributed to WeChat's success, as every fifth user had been with WeChat Business by 2015.
Another example of a successful super app is Alipay, which is owned by Ant Group, a subsidiary of the world-famous Alibaba Group. Since its launch, Alipay has established itself as a one-stop platform that provides users with a wide range of financial services and options for conveniently managing their financial assets. Alipay allows users to pay for both online and offline purchases easily and quickly, making it an indispensable tool in everyday life. Users can make transfers from one account to another. In addition, the app provides instruments for storing balances directly in the app itself. The platform supports a variety of payment methods, including credit cards, debit cards, and bank transfers, making it accessible to a wide audience of users. With its digital wallet, Alipay ensures fast and secure transaction processing, which is especially important in the context of the rapid growth of e-commerce. However, Alipay is not limited to just payment services, as it offers users a variety of financial services such as asset management, insurance, and investments. This allows users not only to make payments, but also to effectively manage their finances, plan for the future, and increase their savings. Thus, Alipay is not just a payment service, but a full-fledged financial ecosystem that meets the diverse needs of users in the field of financial services. As a result, Alipay has taken a leading position in the market and continues to expand its functions, attracting more and more users. At present, the number of active users of the super app exceeds 660 million people per month.
Asia-Pacific super apps have either adopted WeChat’s model or introduced significantly enhanced functionalities. Grab serves as a notable example. Launched in 2012 as the MyTaxi app, Grab initially operated as a taxi aggregator. Its rapid popularity and investor interest stemmed from stringent quality control, trip safety measures, and guaranteed driver payments—challenging tasks within Malaysia’s extensive informal economy. To address lack of banking services available to many users and drivers, Grab began offering assistance in obtaining loans and business accounts. By November 2017, it introduced the cashless digital payment service GrabPay and started issuing non-personal bank cards. Following strategic acquisitions, including Uber’s operations in Southeast Asia and startups such as Ovo and Ikazz, Grab turned into a comprehensive super app by 2020. It now offers services ranging from food delivery and courier services to hotel bookings, car sharing, insurance, and business payment solutions. The company also adopted the "buy now, pay later" model, further enhancing its financial offerings. In December 2020, Grab received a license to establish a digital bank in Singapore. By 2024, Grab's services were available in six countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—with a market share in taxi and delivery services ranging from 58% in Indonesia to 94% in Malaysia. In 2024, the app had 41 million monthly active users. Unlike WeChat, Grab operates under less stringent governmental oversight and has forged partnerships with numerous Western companies, leveraging investments and expertise from Chinese firms such as Tencent and Didi Chuxing.
Another significant player in the region is Gojek, Grab's closest competitor. Founded in 2010 as a motorcycle taxi service, Gojek capitalized on Indonesia’s large domestic market, focusing on two-wheeler passenger and courier services. The company secured substantial investments from tech giants like Google and Tencent. Gojek transitioned into a super app in 2021 after merging with Tokopedia, a major e-commerce platform with its own payment system, Mitra Tokopedia. By 2024, Gojek streamlined its services to concentrate on core offerings such as delivery, taxis, digital payments, and a B2B platform named GoToko, designed to simplify procurement for small and medium-sized enterprises. Gojek currently has over 190 million downloads. Additionally, as of 2024, Gojek had over 40 million monthly active users.
Finally, another example of a super app in Southeast Asia is Shopee. It has an expanded product range and supports them with integrated payments for a smoother payment experience. Shopee has also integrated various other services into its platforms such as digital payments, logistics, and entertainment features such as live streaming and games that can win coins and vouchers for in-app spending. To become a super app, Shopee’s parent company, Sea Group, acquired a major food delivery service and changed its name to Shopeefood in 2017. In turn, Shopee’s integration with SeaMoney, the fintech arm of Sea Group that owns Shopee, has helped provide a robust financial ecosystem that facilitates transactions and increases financial inclusion in underbanked areas. Shopee is currently ranked among the top three food delivery apps in Vietnam. As of 2024, Shopee’s user base is over 295 million. Thus, Shopee’s transformation into a super app has allowed the service to become one of the best in Southeast Asia.
Despite their expansive service range, super apps face criticism and regulatory scrutiny, particularly in regions like the United States and Europe. Concerns revolve around their potential to monopolize markets and the vast amounts of personal data they collect. For instance, Chinese authorities have mandated that platforms like WeChat open their ecosystems to competitors. Replicating the WeChat model in other regions poses challenges due to saturated smartphone markets, congested app stores, and stricter advertising regulations. Furthermore, super apps’ reliance on extensive data collection increases the risk of significant breaches. A notable example occurred in 2020 when Tokopedia suffered a data breach affecting 91 million users, highlighting the vulnerabilities inherent to super apps.
As super apps like WeChat, Alipay, Grab, Gojek and Shopee continue to redefine the digital service landscape by integrating multiple features into a single platform, the emergence of virtual reality (VR) technology represents a unique opportunity for these apps to further expand their capabilities. By adopting VR, super apps can increase their user engagement and provide innovative solutions for social interactions, e-commerce, and financial transactions.
The VR Dimension
Virtual Reality (VR) and Augmented Reality (AR) are two transformative technologies making waves across the globe and the Asia-Pacific region. The regional entertainment industry is at the forefront of adopting VR, capitalizing on its potential to offer audiences profoundly immersive experiences. Countries like China, Japan, and South Korea have embraced VR, with a surge in VR arcades and theme parks. These aren't just technological marvels; they allow visitors to engage with games and films in a fully immersive virtual world. This innovation has redefined what it means to enjoy entertainment, setting new standards for customer engagement.
In corporate settings, companies across Asia are increasingly integrating VR technology into their training programs. Prominent corporations, like Samsung, have adopted VR for employee training, creating immersive virtual environments that simulate real-world scenarios. This approach is redefining corporate training, providing employees with hands-on learning experiences relevant to their roles in industries like manufacturing and retail.
Nations such as China, Japan, South Korea, and India lead the development of innovative VR content and applications, positioning Asia as a key player in the global VR market. The region's VR market is expected to grow at an impressive CAGR of 7.44% between 2025 and 2029, projecting a market volume of USD 22 billion by 2028. Notably, VR hardware remains a dominant segment, with its market volume anticipated to reach USD 5.4 billion in 2025. By 2028, the user base in the Asia-Pacific region is expected to expand to approximately 2.39 million, while user penetration is forecasted to increase from 52.7% in 2024 to 56.1%.
A closer look at large companies that show the best performance in the region deserves special attention.
Pico VR is a Chinese virtual reality (VR) technology company headquartered in Beijing. It is a subsidiary of ByteDance, the parent company of TikTok. It was founded in 2015 as Beijing Smartisan Technology Co., Ltd. and later acquired by ByteDance in 2021 and rebranded as Pico VR. Its known products are Pico Neo Series (a range of standalone VR headsets designed for gaming, entertainment, and enterprise applications) and Pico 4 (the company's flagship VR headset, released in September 2022). Pico VR Headsets do not require a PC or console to operate, offer sharp and immersive visuals, and provide a more natural and engaging VR experience. Pico VR has a strong presence in China and is expanding its global footprint. It competes with other major VR headset manufacturers such as Meta, Sony, and HTC. Company is investing heavily in research and development to advance VR technology.
HTC Vive is a virtual reality (VR) headset and platform developed by HTC and Valve. The cooperation began in 2015. VR was released in April 2016 and was one of the first high-end VR headsets on the market. HTC Vive is known for its high-quality hardware, immersive experiences, and commitment to innovation in the VR industry. HTC Vive is presented in China, Japan, South Korea, Singapore, Malaysia, Thailand, Indonesia, Vietnam, the Philippines. The distinctive feature of the HTC Vive is its room-scale tracking system. Vive uses a system of base stations and sensors to track the position of the headset and controllers in a room-scale area of up to 5m x 5m. This allows users to move around freely in VR and interact with their surroundings in a natural and immersive way. HTC Vive has been used for a wide range of applications, including gaming, entertainment, education, training, and design. It is also popular in the enterprise market, where it is used for training simulations, product design, and collaboration. Overall, HTC Vive is a premium VR headset that offers high-quality and immersive VR experience. It is a good choice for gamers, enthusiasts, and businesses.
Samsung Electronics VR is a division of Samsung Electronics that develops and manufactures virtual reality (VR) products and services. Samsung has released several VR headsets, including the Gear VR, Odyssey, and Odyssey+ headsets. These headsets are powered by Samsung's mobile phones and offer a range of VR experiences, including games, movies, and educational content. Samsung also develops and distributes VR content through Oculus Store. The store offers a wide variety of VR games, experiences, and applications. Samsung provides a range of VR services, including a streaming service that offers a library of VR movies and videos. It is a platform that allows users to watch live VR events and concerts and provides VR educational content for students and teachers. Samsung Electronics VR is committed to developing and delivering high-quality VR products and services that make VR more accessible and enjoyable for everyone. Samsung Electronics VR is a major player in the VR industry, and its products and services are popular around the world. The company is well-positioned to continue to grow and innovate in the VR space in the years to come.
XReal is a Chinese company that develops and manufactures augmented reality (AR) and virtual reality (VR) headsets and software. The company was founded in 2015 and is headquartered in Shanghai. XReal is one of the leading AR and VR companies in China. The company has a strong track record of innovation and is well-positioned to continue to grow in the rapidly expanding AR and VR market. XReal's products are designed to meet both consumers’ and businesses’ expectations. The company's consumer product line includes the XReal Pro and XReal Moon AR/VR headsets. XReal's business products include the XReal Engine, a software platform that enables developers to create AR and VR applications. The company's products have been used in a variety of applications, including gaming, education, and training.
Sony Interactive Entertainment VR (SIE VR) is a division of Sony Interactive Entertainment (SIE) that focuses on the development and marketing of virtual reality (VR) products and services. SIE VR was established in 2016, and its first product was the PlayStation VR headset, which was released in 2016. PlayStation VR is a head-mounted display that is designed to be used with the PlayStation 4 console. The headset features a 5.7-inch OLED display with a resolution of 1920x1080 per eye. It also has a built-in microphone and motion sensors. PlayStation VR has been a commercial success, with over 5 million units sold worldwide. The headset has been used to play a variety of VR games, including Resident Evil 7: Biohazard, Beat Saber, and Superhot VR. In addition to PlayStation VR, SIE VR is also developing other VR products and services. In 2022, the company announced the PlayStation VR2 headset, which was released in early 2023. PlayStation VR2 features a number of improvements over PlayStation VR, including a higher resolution display, a wider field of view, and improved tracking. SIE VR is one of the leading companies in the VR industry. The company's products and services have helped to make VR more accessible to consumers. SIE VR is well-positioned to continue to grow in the rapidly expanding VR market.
In the Asia-Pacific region, the approach to VR technology is distinctively characterized by a focus on collective experiences rather than personal ownership, as commonly observed in Western societies. This cultural inclination towards shared activities manifests strongly in the prevalence of VR arcades and gaming cafes throughout the continent. These venues, active and thriving particularly in South Korea, China, and Japan, as well as in Southeast Asian malls, are emblematic of a community-driven model of engagement, adding a social dimension to VR that enriches users' experience in a way less prevalent elsewhere in the world.
The regional VR landscape is further defined by a burgeoning community of local VR/AR content creators who tailor experiences to resonate with specific cultural contexts and preferences. This shift away from a dependency on Western content has resulted in a rich tapestry of localized experiences that are more immersive and personally engaging for Asian audiences. There is a noticeable uptake of VR content drawing inspiration from regional folklore and mythology, incorporating AR filters with a focus on traditional salient features, and developing educational applications that emphasize Asian history and languages. Such initiatives contribute to crafting VR environments that resonate deeply with cultural themes and values.
Asia-Pacific VR/AR preferences are also notable for their innovative blending of cutting-edge technology with traditional artistic styles. This fusion creates a distinct aesthetic landscape where modern VR/AR environments often reflect traditional architecture and exhibit AR filters incorporating calligraphic designs. Moreover, VR experiences frequently juxtapose electronic music with traditional sounds, producing a culturally rich and visually unique experience.
However, the immersive nature of VR/AR in Asia does not come without challenges. The risk of fostering addiction, prolonged screen time, and social isolation stands in stark contrast with the communal values central to many Asian cultures. As VR technology becomes more individualistic—particularly concerning entertainment—there are concerns that it could gradually erode traditional social structures focused on communal interaction and harmony.
Moreover, the VR market is quite fragmented with a wide range of headsets available, from economical options like Google Cardboard costing around $15 USD to premium models such as the HTC Vive Pro priced at approximately $1,500 USD. The disparity in capabilities and standards, often accompanied by costly, platform-specific content creation, complicates widespread adoption and interoperability. The development of best practices for effective, cross-platform content creation remains ongoing, underscoring the urgency of VR standardization.
Privacy concerns represent a significant issue in the context of VR/AR as devices often collect extensive user data, including biometric and interaction information. In some Asian countries, where data protection regulations may not be as rigorous, users are at increased risk of privacy breaches, unauthorized surveillance, and data misuse. Additionally, the logistical challenges of VR setup—such as lengthy configuration and adjustment times for demos—can limit user throughput during exhibitions, hindering VR's accessibility and appeal at public events.
Finally, there are the physical discomforts associated with extended VR use, like eye strain, nausea, and motion sickness, as well as potential long-term health implications, which remain areas of concern requiring ongoing investigation and mitigation efforts to enhance user safety and comfort.
In sum, the rise of the Asia-Pacific region as a central figure in the VR and AR landscape underlines a paradigm shift in technological applications across the world. These cutting-edge technologies not only promise to transform industries but also herald a future where the boundaries between the virtual and real worlds continue to blur. With its innovative spirit and robust market growth, the Asia-Pacific region is poised to lead the global charge in VR and AR advancements, significantly impacting societal norms and industry practices.
Conclusion
The foregoing analysis of digital marketing trends, practices and instruments across the Asia-Pacific region performed by the working group of young researches from HSE University leads to several broad assessments.
First, although the digital marketing across the Asia-Pacific region is likely to increase in relevance and significance, success in promoting digital marketing instruments depends upon a synergy of digital and non-digital assets. The latter are especially important, as they are the backbone of economic development that has been supported by digital tools relatively recently. For instance, trans-boundary infrastructure projects, mostly in the transport and logistics sphere, enable collaborations between digital platforms and logistics companies to overcome the last mile delivery problem. According to recent estimates, 91% and 30% of Southeast Asian consumers are ready to pay a premium price for free and faster delivery respectively. In these circumstances, it is useless to upgrade advanced digital marketing instruments in case transport infrastructure remains underdeveloped.
A point to make individually relates to the popularity of e-sport in the Asia-Pacific region. The reasons are numerous. Arguably, an increasing urbanization and its implications matter the strongest. Additionally, the development of 5G internet and the smartphone penetration are role players. In 2030, the market value of e-sport in the Asia-Pacific region is estimated to be 7,5 billion dollars. Aware of this trend and its commercial feedback, brands and influencers use e-sport for advertising purposes, develop partnerships with popular gaming streamers, offer search advertising, sponsor popular events for reputational bonuses etc. Logically, digital marketing instruments increase in relevance, as AI-enabled predictive analytics and hyper-personalization help brands to reach and expand their target audience.
Second, a new phenomenon, namely, the establishment of digital marketing ecosystems with a notable scale effect, is evident. Examples include “retailtainment” practices in which the buying process and related factors like service, delivery, wrapping etc. matter no less strongly that the functional characteristics of the product. Omni-channel practices that integrate the online and the online format with a multiplier effect loom all the larger in digital marketing ecosystems across the Asia-Pacific region. Logically, the hyper-personalization of goods and services and the hyper-connection of consumers generate demand for efficient digital marketing instruments.
Notably, among those instruments, the popularity of AI is increasing. To exemplify, 29% of Southeast Asian consumers, as compared to the 21% across the world, feel positive about AI-enabled advertising campaigns. By 2030, the CAGR (compound annual growth rate) of Asia-Pacific AI and Gen AI market is expected to be 20% and 28% respectively. If so, martech, in which AI instruments and practices that can anticipate hyper-localized consumption trends are gaining momentum, will further increase in demand across the Asia-Pacific region.
Third, the martech integration, which is logical from a commercial point of view, is problematic. The reasons are numerous, but the most important one relates to the data localization factor. Among Asia-Pacific countries, there are contrasts in approaches to data localization, ranging from restrictive (China and Vietnam) to much more liberal (Singapore). This factor undermines regional trans-boundary data exchanges, including in marketing-related information. The problem is aggravated by the patchwork of digital provisions outlined in FTAs in which Asia-Pacific countries participate, as well as by an intensifying Sino-American controversy over trade and technological issues. With those factors in view, major changes in data regulation are unlikely, which carries negative implications to prospects for martech integration. Trans-boundary digital marketing campaigns with precise customer insights that aim to create cohesive and seamless consumer experience are problematic.
For Russia, the factors discussed above undermine prospects for expanding economic and business relations with Asia-Pacific countries. Russia lacks global value chains scattered across the Asia-Pacific region, while GVC are a vital component of industrial development and, eventually, brand digitalization. Another notable point relates to superapps like, for instance, WeChat (China) or Grab (Singapore), that are based on the networking rent in order to create and expand the scale effect. Russian digital ecosystems like Yandex Afisha, Yandex Lavka etc. are and will probably remain inward-oriented (i.e. focused on Russian rather than on foreign consumers). Russian media products are not popular among Asia-Pacific consumers, which decreases the efficiency of advertising campaigns and their digital support. This stands in stark contrast with South Korean soap operas, K-Pop groups, virtual influences and other Hallu components that can be converted into market popularity with corresponding commercial feedback. Specifically, South Korean marketing agencies have ample chances to promote Korean products using efficient digital marketing instruments, as their target audience is well prepared. This strategically important advantage is missing in Russia’s case. These factors suggest that Russia has a long way to go to establish its commercial presence across the region, make its brands recognizable and equip its marketing strategies and practices with efficient digital tools.
In these circumstances, much depends upon the intellectual support of Russia’s economic and business policy in the Asia-Pacific region. It includes efforts to elaborate on and upgrade digital marketing strategies as an essential tool for promoting Russia’s products in Asia-Pacific markets. Hopefully, young intellectuals that specialize in Asia-Pacific studies in Russian universities, among which HSE University ranks the highest, will take on this task and eventually succeed in accomplishing it.
The Project Contributors:
EVGENY KANAEV, Professor, School of International Regional Studies, Faculty of World Economy and International Affairs, HSE University (the Project Mentor)
ANASTASIIA KRAYUSHKINA, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics (the Project Supervisor)
SOFYA AVDONINA, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics
EVGENIY GALINOVSKIY, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics
SOFYA GER, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics
ALEXANDER DMITRIEV, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics
LINH HOAI PHAN, 4th year student of Bachelor’s Program in World Economy, Faculty of World Economy and World Politics, National Research University Higher School of Economics
VALERIA MAZAVINA, 4th year student of Bachelor’s Program in World Economy, Faculty of World Economy and World Politics, National Research University Higher School of Economics
ANNA YASKOVA, 4th year student of Bachelor’s Program in International Affairs, Faculty of World Economy and World Politics, National Research University Higher School of Economics
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