5 key takeaways from Meta’s report for D2C startups

Summary:

• Exciting opportunities await the region’s D2C companies as changing economic conditions rewrite how consumers in the US, the UK, and Australia perceive value.
• Brands need to be consistent across various platforms and channels, given the complexity of the modern consumer’s purchase journey.
• Trust must now be earned, and shoppers heavily rely on social proof like trusted customer reviews when making purchasing decisions.
• Dive deeper into these insights in Meta’s report called “Unlocking Cross-border Growth: A Blueprint for Leveraging Evolving Consumer Trends in Australia, the UK, and the US.”

Though still far from effortless, selling across borders is no longer as difficult as it once was. Thanks to the power of the internet, global commerce, and logistics networks, a Singaporean handbag company can leverage a host of tools and platforms to forge personalized connections with US-based customers who appreciate its quirky designs, thereby unlocking a whole new world of opportunity.

The US, the UK, and Australia have emerged as exciting prospects for Southeast Asian direct-to-consumer firms. These three economies are established, mature ecommerce markets, where ecommerce is part of daily life and people regularly shop online. Consumers in these markets are also comfortable with cross-border purchases, indicating an openness to international brands.

Nicole Tan, managing director at Meta Singapore / Photo credit: Meta

“For cross-border companies, new markets present new opportunities in terms of market size, purchasing power, and willingness to try new things,” says Nicole Tan, managing director at Meta Singapore. “At Meta, we aim to be the bridge to foster connections between brands and consumers.”

To dive deeper into these possibilities, Meta has launched “Unlocking Cross-border Growth: A Blueprint for Leveraging Evolving Consumer Trends in Australia, the UK, and the US,” a report outlining key D2C trends and insights for businesses looking to expand into these markets.

Here are five key insights from the report.

1. The tipping point when it comes to price increases is 20%

While price isn’t the be-all and end-all, it’s still important, especially as consumers feel the bite of ongoing economic uncertainties in their wallets.

Meta’s report identifies 20% as the tipping point: Shoppers rethink purchases once prices rise around that much.

Specifically, consumers are eager to maintain their lifestyle and the quality of the products they enjoy while minimizing cost increases through more deliberate shopping behaviors.

Photo credit: Bigc Studio / Shutterstock

This reality could present a strategic opening for Southeast Asian D2C firms, which can emerge as alternatives to existing products and services by providing the value consumers seek at reasonable price points.

The report also notes that 50% of consumers across Australia, the UK, and the US are receptive to buying from foreign brands online – a clear sign that, as budgets tighten, shoppers broaden their search for value, quality, and choice.

2. Value is being redefined

Shifting economic conditions have reshaped what value means to shoppers. Now it’s not only about price but also about what exactly they’re getting for that amount.

The report says 67% of consumers have changed their shopping habits in the past six months to accommodate new economic realities. These include buying less, switching to cheaper brands, buying in bulk, and even delaying purchases.

Photo credit: blackCAT / iStock

The report adds that D2C brands will need to pay attention to economic conditions in the markets they want to reach. They should structure both pricing and messaging strategies accordingly, focusing on the value they offer.

It’s worth noting, however, that this shift in how value is perceived sets the stage for D2C brands outside of the US, the UK, and Australia, allowing them to offer alternatives to locally available products at more affordable price points.

As value becomes the new measure of loyalty, thriving brands will be the ones delivering both quality and transparency. This will help consumers feel confident that every dollar spent is worth it.

Download Meta’s report and unlock key insights for your D2C growth

3. Multi-platform and multi-channel is the way to go

With more choices and channels than before, Southeast Asian D2C brands will need to leverage multiple touchpoints to effectively connect with consumers. This is especially true in new markets, where their brand names may not be established.

The report breaks down the modern consumer journey into four key stages:

• Discovery – Customers have their initial exposure to products and brands here. This usually takes place through social media, online searches, and in-store browsing.
• Research – This focuses on information gathering and specification checks. Brand websites, review sites, and comparison tools come into play in this phase.
• Validation – It’s all about building confidence and mitigating the risk of purchase. Customer reviews, peer input, and content from experts, such as influencers, are very important at this stage of the journey.
• Purchase – Transaction and fulfillment finally occur. The customer decides to buy and should have a seamless experience leading to checkout.

With most respondents using two to four platforms regularly, the non-linear and multi-touch pattern highlights why brands need to stay consistent across channels.

The report notes that while Amazon remains a primary purchase channel in the US, the UK, and Australia, social commerce and platforms such as Temu are emerging as other avenues for connection.

At the same time, platforms like Facebook and Instagram continue to serve as significant sites for discovery and research. Services such as Meta’s ad solutions will be crucial for D2C brands’ efforts in boosting visibility and connecting with this new pool of customers.

All these underscore the need for Southeast Asian D2C brands to meet potential consumers where they are.

4. Trust paves the way for purchase

Gone are the days when trust was simply assumed. Now it must be earned through proof, consistency, and credibility across all touchpoints.

The report explores three different product categories: fashion and lifestyle, health and beauty, and furniture and electronics.

Consumers have different considerations and thresholds for each category, yet a recurring theme has emerged: the wisdom of the crowd.

Photo credit: ME Image / Shutterstock

Across all three categories, reviews from other customers are extremely important for making purchase decisions. For example, in the furniture and electronics category, 64% of shoppers said they rely on reviews when deciding whether to buy something or not, as items under this category tend to be high-value purchases.

In general, respondents cited customer reviews as a primary influence in making a decision, prioritizing authentic, detailed, and recent feedback.

At the same time, customers trust recommendations from friends, influencers, and

social content, particularly for items with smaller ticket sizes, such as clothes. While the report considers these as “secondary influences,” they still play a crucial role in shaping customer purchase decisions, with the report saying they have an impact of 30% to 50%.

5. A strategic approach will shape your outcomes

Southeast Asian D2C brands looking to expand into the US, the UK, and Australia should focus on price strategy, trust, and visibility, according to the report.

Aside from following market-specific pricing and promotion strategies, companies will need to invest in verified customer review systems across all platforms. They also have to maintain quality listings across key marketplaces like Amazon and local retailers to increase brand presence and visibility.

Working with local influencers and platforms will boost these firms’ credibility as well, making it easier for consumers to connect with them and make a purchase.

Moreover, services such as Meta’s ad solutions can be an important tool in helping businesses strategically connect with customers. To reach multiple customer segments, they can raise brand awareness through different types of advertising across various platforms and formats.

Made local, going global

Given Southeast Asian D2C companies’ success in their local markets, the US, the UK, and Australia present promising avenues for expansion and growth.

According to the report, consumers will remain cost-conscious on the road ahead. They will also be more open to switching brands, creating new opportunities for agile newcomers. At the same time, cross-border shopping will be more sophisticated, and customers will be more discerning.

“Brands that adapt to these changes and build genuine customer relationships will be best placed to grow in these markets,” says Meta’s Tan. “Economic pressure and digital maturity have created this rare window for D2C expansion, creating the prime conditions for cross-border businesses looking to expand.”

Meta’s mission is to build the future of human connection and the tech that makes it possible.

Its latest report, titled “Unlocking Cross-border Growth: A Blueprint for Leveraging Evolving Consumer Trends in Australia, the UK, and the US,” covers cross-border opportunities for Southeast Asian D2C companies, providing insights to help businesses scale and grow. Download the report today!

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This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.