Organisation:
EuroGroup, French Trade Advisors
Resource Link:
Published in 2023, Link
My Key Takeaways
“The Asian consumer has gone from a kart to a Ferrari in just 20 years, compared to 60 years in Europe.” 🏎️
My takeaways from an Eurogroup Consulting report on the New ASEAN Consumer:
Association of South East Asian Nations’ (ASEAN) Phenomenal Growth
- ASEAN is responsible for 1 in 6 households entering the world’s consuming class (16% share of the world) and nearly 575M internet users by 2030. (Pg 3)
- 5M people will move into cities each year, and urbanisation is projected to sustain through 2050, extending to Tier 2 and 3 Cities. (Pg 14)
- ASEAN is on track to become the world’s 4th economy by 2030 with an average annual growth of 4%. (Pg 3)
ASEAN’s Immense Diversity
- 670M people, 1,000 languages and dialects, and income levels from $1,210 to $72,794 p.a. (Pg 23-25)
- Unique cultural and economic characteristics shape consumer behaviour.
- For instance, “Christmas is widely celebrated in some countries, while in Vietnam, New Year at the end of January is a major event… opportunity for advertising and promotional campaigns.” (Chic APAC, Pg 23-25)
Six Trends Driving the Future of Consumption in ASEAN
- Localisation: In Indonesia, the top personal brand Rinso is global (Unilever), but the next most popular brands are local (So Klin, Daia). In the hot drinks sub-category, local companies outperformed multinationals by 9% annually over the past 5 years. (Pg 35)
- Digital democratising info/comparison: 53% of consumers switched their most-purchased brand in the last 3 months. ~65% would change brands if their preferred option was not available. (Pg 40)
- Health & Wellness: Consumers are willing to pay 30% more for organic products.
- Pricing: Price remains a top consideration for 62% of high-income consumers, indicating a continued focus on value. ASEAN consumers are price-sensitive on essential products but become less price sensitive and more interested in perceived value on luxuries.
- Entertainment: Increasing spend on entertainment, tourism, and leisure activities.
- Sustainability: Demand for sustainability is set to surge due to growing consumer and institutional awareness, coupled with a willingness to pay. (Pg 8)
Pg 54 – scan of electric vehicles (EV) value chain across SEA (e.g. Hyundai’s S$400M EV innovation centre and manufacturing site in Singapore)
Recommended Growth Areas For ASEAN
- Renewables, Digital Economy, Tourism, Manufacturing, and Healthcare. (Pg 67)
- For example, Indonesia set an ambitious target of attracting 7.4M foreign tourists for 2023, almost double number in 2022.
➡️ Pg 58 is a great reminder of digital customer acquisition strategy
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Many ASEAN markets differ from developed one as brands here need to align their product prices and offerings to not just today’s demographic.
Brands win and retain customers by aligning themselves to the fast upgrading pattern of their future ASEAN consumer.
Follow me for the latest insights on Southeast Asia. My LinkedIn post here.
About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting global corporate and startup ecosystems to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Follow me on LinkedIn for the latest insights and reach out if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
