Engagement opportunities with Muslim consumers in Southeast Asia

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According to the “State of the Global Islamic Economy Report” by DinarStandard, Muslim consumers spent an estimated US$243 billion on apparel in 2015.

Modest fashion purchases by Muslim women, estimated at US$44 billion that year, accounted for 18 percent of that total. Muslim consumer spending on apparel is expected to reach US$368 billion by 2021 – a 51 percent increase from 2015.

The rise of modest fashion

What is modest fashion? It generally refers to looking stylish while remaining relatively covered. Most importantly, the modest fashion movement is more mainstream and multi-brand than ever before. It is not reserved just for those who follow religious customs when it comes to apparel.

Modest fashion is gaining momentum, driven by eCommerce and social media. Mass market retailers and designers are taking notice of the market potential and joining the modest mix. Prominent eCommerce players like Zalora and Lazada are already offering more than 3,077 and 13,310 pieces of modest fashion respectively. Brands like Nike, Zara and Mango have also introduced special collections for the Ramadan season.

The Asia-Pacific region is home to 63 percent of the world’s Muslim population, or nearly one billion people. It is therefore no surprise that we see retail spikes during Ramadan, especially in Indonesia, Malaysia and Singapore.

Based on an analysis of more than 8 million transactions across Southeast Asia, Criteo observed a 67 percent increase in retail eCommerce sales during this period in 2016. This trend is expected to continue during this year’s fasting month, which commenced on 26 May 2017 and will be followed by Eid al-Fitr from 25 to 27 June 2017.

The Eid festival is the biggest holiday in Indonesia and amongst the most widely celebrated in Singapore and Malaysia. During this period, families customarily visit the homes of their relatives and friends, and households would be decorated lavishly and stocked with an abundance of food and snacks to welcome their guests. Naturally, they would also have bought new clothes to mark the beginning of the festivities.

Overall, this represents a great opportunity for retailers, if they take note of the following seasonal shopping trends.

Engaging consumers at the right time

The third week of Ramadan represent the biggest opportunity for retailers to engage consumers when they are actively browsing and purchasing items for upcoming celebrations. During this period in 2016, there was a 67 percent uplift in online retail sales, especially on mobile devices. To reach mobile shoppers, apart from promoting their offers on mobile just before the start of Ramadan, eCommerce players must also intensify their digital marketing efforts towards the season’s end.

One of the hallmarks of Ramadan is dawn-to-dusk fasting, which ends once the sun goes down. That means that throughout the 30-day period, daytime quiet gives way to night time buzz when people can eat and drink, giving retailers more opportunities for incremental sales increases at night.

In Southeast Asia, nearly a third (29 percent) of retail sales happens between 9pm and 5am during the Ramadan period – a 21 percent increase as compared to the pre-Ramadan period. This means that eCommerce players should optimise marketing efforts for the time of day (or night) when Muslim consumers are most likely to shop online.

Engaging consumers on the right device

In Southeast Asia, 46 percent of Ramadan retail buyers use multiple devices prior to purchase, while one in four shoppers switched devices at least three times during their purchasing journey. No matter where your shoppers are, one thing is clear – they are browsing and toggling between mobile devices, desktops and various applications before making the actual purchase. During this season, eCommerce players must ensure that their digital storefronts are optimised for differing consumer paths to purchase.

The success of eCommerce businesses in Southeast Asia will depend on their ability to enable or encourage users to complete purchases on their web, mobile web or app storefronts. To do so, these businesses can turn to machine learning based performance marketing technology that automatically understands customers’ shopping behaviour across devices, browsers and apps, and delivers personalised and compelling advertising content based an individual’s online habits and preferences.

Modesty is both a fashion choice and a lifestyle. Today’s modest fashion buyers select pieces based on style and takes inspiration from many sources – they are no longer just relying on larger mainstream brands, but also turning to smaller players with niche interests and products. Social media platforms also allow individuals who dress modestly to share styles, experiences and views.

Whether it is festive season or beyond, Muslim and modest fashion is still a relatively untapped market, but with massive growth potential. There is therefore no better time than now for eCommerce players to respond to and maximise the opportunities presented by this unique market, by leveraging mobile and cross-device strategies and technology.


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