In a region as digitally vibrant as Southeast Asia, the intersection of cutting-edge technology and deep-rooted cultural values creates a unique marketplace unlike any other in the world. As we navigate through 2026, the retail landscape has shifted from simple transactional interactions to a complex ecosystem of trust, where social circles and artificial intelligence coexist. To help us make sense of these dynamics, we are joined by Zainab Hussain, a seasoned e-commerce strategist with an extensive background in customer engagement and operations management. Zainab has spent years analyzing how Southeast Asian consumers balance their appetite for new tech with their traditional reliance on community and word-of-mouth. Today, she shares her insights on the enduring power of human connection, the nuances of AI adoption across different borders, and the massive financial shifts defining the region’s $219 billion retail future.
Our discussion explores the hierarchy of trust in consumer decision-making and the surprising ways that family and friends continue to outshine digital influencers. We also examine the varying speeds at which markets like Vietnam and Singapore are embracing generative AI for product discovery and the specific tactics—such as in-video tagging—that are driving record-breaking conversions. Finally, we break down the sheer scale of the regional market and the specific role that affiliate marketing plays in sustaining this double-digit growth.
With the rapid integration of technology into our daily lives, why do you believe personal recommendations from family and friends still carry more weight than even the most sophisticated online reviews or creator content?
It really comes down to the “warmth” of the recommendation and the history of trust that no algorithm can replicate yet. When we look at the data, recommendations from inner circles—family and friends—scored 2.42 out of four, which puts them at the very top of the influence ladder. This comfortably outranks online reviews at 2.36 and creators at 1.98. For a shopper in Jakarta or Bangkok, hearing a cousin talk about a product’s durability over dinner feels much more reliable than reading a comment from a stranger online. There is an emotional safety net there; you know that a friend isn’t trying to sell you something for a commission. Even as we see 67% of consumers making purchases based on a creator’s word, that final push often happens because the product feels “vetted” by the community. It’s a sensory experience of trust—knowing the person behind the advice makes the transaction feel less like a gamble and more like a shared success.
Generative AI is clearly making its mark on the region, but the adoption rates seem quite fragmented across different markets. How are consumers in places like Vietnam or Singapore actually using these tools to change how they discover products?
What’s fascinating is how adoption varies based on the local digital culture. Across the region, we see about 24% of consumers using tools like ChatGPT or Gemini for that initial spark of product discovery, and that number climbs to 28% when they get into the nitty-gritty research phase. Vietnam is absolutely leading the charge here with a 34% adoption rate for discovery, which shows a massive appetite for tech-driven efficiency. On the other hand, Singapore, despite being a global tech hub, recorded the lowest usage at just 14%, suggesting that shoppers there might still prefer more traditional search engines or direct brand interactions. In markets like Indonesia, where usage sits at 31%, AI is becoming a digital shopping assistant that helps filter through the noise of massive marketplaces. It isn’t replacing the human element, but it is certainly narrowing down the choices before a shopper goes to their social circle for that final 2.42-rated stamp of approval.
We are seeing a massive shift toward video-based commerce, with influencers playing a pivotal role. What specific conversion methods are proving to be the most effective in turning a viewer’s interest into a confirmed sale?
The “see it, want it, buy it” cycle has become incredibly streamlined, and the data shows that friction-less paths are the clear winners. In-video product tags are the undisputed champions of conversion, accounting for 56% of purchases made through creator channels. It’s all about capturing that immediate sensory impulse—when a viewer sees a creator wearing a specific shade of lipstick or using a new kitchen gadget, being able to tap a tag right there in the frame is much more effective than making them search for a link. Beyond that, we see 43% of conversions coming from links in descriptions or comments, and 41% coming from stories. YouTube is currently the powerhouse for this type of engagement at 23%, followed by TikTok at 17%. These numbers tell us that consumers want a blend of entertainment and utility; they want to be told a story, but they also want the checkout button to be within arm’s reach the moment that story ends.
The financial trajectory for e-commerce in this region is staggering, with forecasts hitting hundreds of billions. How significant is the role of affiliate and influencer marketing in reaching those targets?
The scale we are talking about is truly massive, with regional sales forecast to grow by nearly 15% year-on-year to hit $219 billion this year. If we look further ahead, we’re looking at a market that could almost double to $410 billion by 2031. Within that $219 billion pie, influencer and affiliate marketing are responsible for a whopping 32% of sales, which translates to about $70 billion in transactions. This isn’t just a side marketing budget anymore; it’s a core engine of the economy. Indonesia and Thailand are the heavy hitters, together making up 58% of all e-commerce sales in the region. Interestingly, the way people engage with these sales varies; for instance, 69% of Singaporean shoppers are obsessed with cashback and deal sites, whereas in Vietnam and Indonesia, those numbers drop to 28% and 25% respectively. Brands that succeed in this environment are the ones that realize they aren’t just selling a product; they are navigating a complex web of cultural preferences and high-speed digital trends.
What is your forecast for the Southeast Asian e-commerce landscape?
I expect to see a “hybrid trust” model become the standard across the region over the next few years. While the market is set to reach that $410 billion milestone by 2031, the real story will be the seamless integration of AI research and human validation. We will see AI tools becoming much more localized, moving beyond basic search to providing personalized shopping “mood boards” that consumers then share with their friends and family for a final opinion. The 32% share currently held by influencers will likely grow as creators move away from generic promotions and toward deeper, long-term affiliate partnerships that feel more like the “family and friends” recommendations consumers value so highly. Ultimately, the brands that win will be those that use technology to remove friction while keeping the human connection at the center of the story.
