Influencers reshape Southeast Asian eCommerce market

A report by impact.com and Cube Asia highlights the role of influencers in shaping the eCommerce landscape in Southeast Asia, including Singapore.

The report, titled 'E-commerce Influencer Marketing in Southeast Asia,' examines the region's changing eCommerce environment, focusing on the importance of strategic differentiation driven by evolving channels, new platforms, and transforming consumer expectations. Influencer marketing has been identified as crucial in enhancing brand visibility and consumer engagement.

Data from a survey of over 400 Singaporean adults suggests YouTube and Facebook as leading platforms, with 83% and 80% usage respectively. This aligns with the broader Southeast Asian region where YouTube is used by 88% and Facebook by 84% of consumers. Mega and macro influencers hold significant sway in Singapore, impacting 48% and 46% of respondents respectively. However, the influence in purchase recommendations is lower in Singapore, with 67% compared to 82% across the region. Influencers most affect beauty and fashion purchases in Singapore, impacting 57% and 55% of respondents.

Antoine Gross, General Manager, Southeast Asia and India at impact.com, commented, "In Southeast Asia, the eCommerce landscape is shifting rapidly, moving beyond mere expansion to a critical need for strategic differentiation. Traditional advertising channels are losing their impact as consumer attention shifts to more authentic and engaging content. Influencer marketing is no longer just an option—it's a necessity. Our latest report reveals a powerful truth: influencers are driving conversions not just in physical goods, but also in high-growth sectors like online travel and subscription services."

"Through multiple consumer surveys and expert consultations with top brand marketers and creators, we've uncovered that the recommendation power of influencers is reshaping the way brands connect with audiences in Singapore and across the region. The time to act is now. Brands that fail to pivot to influencer marketing risk being left behind," Gross added.

The report highlights that influencer recommendations are influential in Singapore, with 41% of consumers valuing these endorsements. This suggests that strategic partnerships with influencers can significantly increase brand engagement and visibility and build trust with target consumers.

The rise of subscription services is also notable across Southeast Asia, with 86% of residents subscribing to at least one service. In Singapore, the Media & Entertainment sector leads this trend with 67% adoption. Influencers play a vital role in driving this growth, particularly in News & Literature (86%), Pets (85%), and Health, Wellness & Food (81%).

In the travel industry, Singapore leads the region in flight purchases, with 63% of consumers having made a purchase in the past year. Within Singapore, accommodation bookings are prevalent at 69%, while purchases of activities and attractions stand at 56%. Notably, 90% of Singaporean respondents reported buying at least one travel product in the past year, surpassing the Southeast Asian average of 85%.

Live commerce adoption is noted among 77% of Singaporean consumers, though slightly below the Southeast Asian average of 88%. TikTok and Facebook are top platforms for live commerce, each used by 49% of Singaporean users. Consumers engage with live commerce primarily to find good deals and for entertainment and product reviews.

The report incorporates insights from extensive surveys and in-depth interviews with brands and influencers, giving a comprehensive view of influencer marketing's evolution in the region.