APAC retailers stay confident, prioritise loyalty amid challenges

A new survey has indicated that a significant majority of Asia-Pacific (APAC) retailers remain confident in executing their customer engagement strategies over the coming 12 months, despite an environment of increasing economic uncertainty.

Retailers signal confidence

The survey, conducted by Twilio at an industry event, found that four in five APAC retailers feel assured in their ability to successfully implement their customer engagement plans for the year ahead. The findings are anchored in input from 288 retail professionals spread across the region.

This confidence persists even as 43% of respondents anticipate both opportunities and challenges in the current market landscape. The report reveals that maintaining customer trust and loyalty is cited as the top concern by 27% of those surveyed, with price-related dissatisfaction (23%) and managing communications on pricing and product availability (21%) trailing close behind.

Loyalty as a focal point

In response to these challenges, many APAC retailers are renewing their focus on loyalty and re-engagement initiatives to reinforce their relationships with customers. Nearly 28% of survey participants identified this area as their most significant untapped opportunity. Product discovery (24%) and post-sale care (18%) were also highlighted as important focal points for investment and improvement within the customer journey.

Retailers are increasingly prioritising tools intended to enhance personalised engagement. Around 25% reported investment in personalised offers and loyalty schemes, 27% in conversational artificial intelligence, and 22% in additional human agent support. These shifts reflect a broader dedication across the sector toward delivering targeted, empathetic, and human-centred experiences for customers at all stages of interaction.

Confidence is high in the region, which is fantastic. However, the brands that truly shine will be the ones that actually do something with that confidence," commented Nicholas Kontopoulos, Vice President of Marketing, Asia Pacific & Japan at Twilio. "Customer loyalty is under pressure. Building resilience means responding to customers with empathy, relevance, and precision. And that begins with a data-driven, customer-first approach.

Data-driven engagement and case studies

The survey also points to a regional trend towards utilising data-driven strategies for customer retention and engagement. Key examples cited in the report illustrate this shift. ZALORA, an eCommerce fashion company serving over 55 million customers in Asia, has consolidated its customer data and introduced self-service tools for teams, enabling marketing campaigns to be launched in minutes rather than weeks, which has led to a doubling of conversion rates.

Pomelo Fashion, another retailer with substantial reach in Southeast Asia, has focused on individualising customer recommendations and product discovery. This tailor-made approach resulted in a 50% increase in product engagement and a revenue uptick of 15%.

Central Group, which is amongst Thailand's largest retail operators, integrated its online and offline customer data, activating more than 80 automated, personalised engagement scenarios. This initiative led to a tenfold increase in campaign revenue directly linked to these new practices.

The cited examples underscore a sector-wide pivot from seeing loyalty as merely a points-based programme towards leveraging it as a strategic asset for relevance, trust-building, and lasting value creation for both retailers and their customers.

Survey context

The survey's findings are based on the responses of nearly 300 retail professionals collected during an industry retail show in early June 2025. Twilio commissioned and analysed the survey to offer insights into current retailer sentiment and planned investments within the APAC region.