Professional Documents
Culture Documents
December 2007
2
Asian Markets
Asia - 12 relevant markets
China and India tower over the others (77% on the Asian population)
Population in Million
China 1,316
Taiwan 23
Korea 49
But can China really be
Philippines 90 considered as one market?
Thailand 65
Indonesia 246
Malaysia 25
Vietnam 85
Japan 127
India 1,100
4
Several provinces of China are larger than many other Asian countries
In reality Asia has 40+ markets – most with a population of 10 million+!
5
Asian markets
6
Demographic and Socio-economic trends
1. The Greying Consumer
% of population over 65 years
20
China
Hong Kong,
China
16 India
Japan
12 Indonesia
Malaysia
Philippines
8
Singapore
Thailand
4
Vietnam
Korea, Rep.
0
1975 1980 1985 1990 1995 2000 2005
Apparel
Travel packages
Health care products
% Urban population
90
China
70 India
Japan
Indonesia
50 Malaysia
Philippines
Thailand
30 Vietnam
Korea, Rep.
10
1975 1980 1985 1990 1995 2000 2005
11
3. Rising Incomes and expenditure
Korea, Rep.
20,000 2000
Malaysia
India
10,000 1000
Indonesia
Thailand
0 0
1975 1980 1985 1990 1995 2000 2005 Vietnam
* Note: Left Axis for Japan and Korea Rep., right axis for all other contries
Source: World Bank
Asian economies growing at 7%+ per annum as compared to global growth of only 3%
12
3. Rising Incomes and expenditure
Rate and quantum of increase different for urban and rural
Value (RMB)
13995
13
3. Rising Incomes and expenditure
Implications
14
4. Emergence of the independent female consumer
Traditional concept of “housewife” does not exist in most of Asia
China 75.8
87.8
22.4
India 55.1
Female
48.7 (%)
Taiwan 67.4
Male
Korea 50.3 (%)
74.1
49.6
Philippines 79.2
Thailand 64.0
80.9
Indonesia 48.6
84.7
45.8
Malaysia 79.9
Vietnam 51.2
55.7
Employment%:
*Data estimated in 2005
*Source: Asian Development Bank (ADB)- Key Indicators 2007 (www.adb.org/statistics)
15
5. Smaller families
Smaller families – with distinct marketing implications
Pollution and global warming are now touching the lives of the
people. Concern is no longer merely academic – and is
increasing sharply.
18
1. Environmental awareness
Evidence of increasing concern across Asia…
I would be willing to pay 10% more for groceries/products that are more
environmentally friendly
Ave
India 51 42 5 2 3.4
Philippines 44 46 9 1 3.3
Indonesia 41 47 11 1 3.3
Malaysia 28 55 14 3 3.1
Thailand 26 56 17 1 3.1
Singapore 15 55 27 3 2.8
Japan 10 54 33 3 2.7
s - f ree~
ho sp horu
Eco-friendly is the new status symbol! P
20
2. Internet and Web 2.0
Several Asian countries are at par with the West. Penetration in China
is also very high in large urban areas.
70
Past month internet usage % 67 66 67 68
63
61
Source: Internet World Stats
50
48
44
18
13
9 10
8
4
Malaysia
Thailand
Taiwan
China
Japan
South Korea
Hong Kong
Germany
Vietnam
Singapore
Indonesia
Spain
France
Philippines
USA
India
21
2. Internet and Web 2.0
Surfing in i-cafes, at home, office or school
(0,000) users
20000
Internet population: China is the home to the second
largest internet population in the world!
16000
16200
12000 13700
12300
11100
10300
8000 9400
8700
7950
6800
5910
4000
4580
3370
2650
2250
0
2000.12 2001.06 2001.12 2002.06 2002.12 2003.06 2003.12 2004.06 2004.12 2005.06 2005.12 2006.06 2006.12 2007.06
60%
Internet penetration: Big city penetration 53.4%
50% in China is close to Western cities 47.6%
40% 36.8%
32.2%
30%
20%
10%
8.0%
0%
National, 6+ yrs 36 cities, 15+ yrs 4 cities, 15+ yrs 4 cities, 15-44 yrs 4 cities, 15-44 yrs,
MHI RMB 2000 or
above
Source: CNNIC / CNRS 22
2. Internet and Web 2.0
Implications
Explosion of information
Consumers make much more informed choices
Transparency critical
Web 2.0 or user generated content
An opportunity to tap into consumer creativity
A threat if left unmonitored and ignored
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3. Growing prominence of Asia
Economic performance
Economic clout and influence
Excellence in sports
Reaching for the space!
2% 0% 1%
100% 1%
2% 0% 3% 1%
2% 5% 1% 6%
4% 7%
26% 14%
6% 24% 21% 15%
24% 13%
80% 28%
17%
8%
25%
42%
60% 27% 20%
20% 44%
47%
37%
40% 28%
73% 23%
30%
44% 21%
44% 17% 21%
20%
22% 20%
Cultural influence also ascending – including cross border influence within Asia.
26
Changing consumer mindset
1. From affiliation to individualism
Concomitant of changing demographics
INDIVIDUALITY
Trend-setter
(Individuality)
Connoisseurship
(Taste and ‘Indulgence’
discernment) (Enjoyment
and experience)
‘Bling’ (status)
CONFORMITY
OWNERSHIP EXPERIENCE
29
3. Trade up & trade down
Store label kitchen roll and LV bag
The same consumer displays extreme price sensitivity for one product
(normally functional products of low perceived differentiation) but an
extraordinary premium for another product (mostly visible consumption
products or products of high perceived differentiation).
Asian Luxury products market in China is forecasted to become the
largest in the world in another decade or so.
30
4. Health and wellness
Evidence of increasing concern across Asia …
31
5. Consumer assertivism
Coke and Pepsi targeted in India. SK II in China.
Consumers determined to get the best out of the companies – and pouncing on
any lapse. Tuangou, or team buying, aims to drive unprecedented bargains by
combining the reach of the internet with the power of the group.
32
6. From products and services to solutions and experience
Implications
Moving from functional needs to emotive needs
From functional to emotional gratifications
Hence from products to experiences
Diluting the product category boundaries
Creating opportunities for companies to collaborate
34
7. Ascendance of Design
Design finds a role even in credit cards
35
7. Ascendance of Design
As also in packaging
36
Ten important trends
37
For more details :
Ashok Sethi
Regional Director, Methodology and Analytics
t: +86.21.63601808
ashok.sethi@tns-global.com
www.tnsglobal.com