Insights valleyconference (24 may 2012)

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  • 1. Understanding the Asian ConsumerPresented by : Barry Ooi Managing Director Kadence International Sdn BhdVenue : Penang, MalaysiaDate : 24 May 2012
  • 2. Presentation Content1) Diversity of the Asian consumer & market2) The urban population in Asian cities3) The diversity dilemma4) Focus on the BIG common 2 2
  • 3. Diverse population sizeChina : 1.3 billion South Korea : 49 millionIndia : 1.2 billion Malaysia : 29 millionIndonesia : 248 million Taiwan : 23 millionJapan : 127 million Sri Lanka : 21 millionPhilippines : 104 million Cambodia : 15 millionVietnam : 92 million Hong Kong : 7 millionThailand : 67 million Singapore : 5 million Source: CIA World Factbook 2011 3 3
  • 4. Variable economic sizes & different levels of economic development Source: CIA World Factbook 2011 4 4
  • 5. Varying levels of urbanisation Urbanisation Rate 100% 100% 83 % 72% 74 % 67 % 47 49 44 % % 34 % 30% 30 % 20% %14% Source: CIA World Factbook 2011 5 5
  • 6. Diverse religious practices 6 6
  • 7. Opportunities to connect with Asian consumers Four distinctive development: 1 Urban agglomeration of citiesGrowing dilemma 2 Halal lifestyle amongst the Muslim population 3 Popularity of K-pop culture 4 Wide adoption of internet, What to do? mobile and social media 7 7
  • 8. 1 Urban agglomeration –Asia populated cities are in 13 out of top 20 most PopulationRank City Country (million) 1 Tokyo Japan 34.3 2 Guangzhou (Canton) China 25.1 3 Seoul Korea (South) 24.6 4 Delhi India 24.1 5 Mumbai (Bombay) India 23.5 6 Mexico City Mexico 22.9 7 New York USA 22.0 8 Sao Paulo Brazil 20.8 9 Manila Philippines 20.2 10 Jakarta Indonesia 18.8 10 Shanghai China 18.8 12 Los Angeles USA 18.0 13 Karachi Pakistan 16.9 14 Osaka Japan 16.8 15 Calcutta India 16.7 16 Cairo Egypt 15.4 17 Buenos Aires Argentina 14.8 17 Moscow Russia 14.8 19 Dhaka Bangladesh 14.1 20 Beijing China 14.0 Source: United Nations Habitat Report 2011 8 8
  • 9. 1 Consumer patterns in megacities Rising income - more middle income consumers Changing household pattern - demand for consumer durables and home entertaintment Multiple shopping channels - growth of modern trade & shopping malls Branded lifestyle - affirmation of success 9 9
  • 10. 2 Sizable halal consumers in Asia India – 248 million Indonesia – 210 million China – 135 million Malaysia – 18 million 631 million Philippines – 10 million people Thailand – 7 million Sri Lanka – 2 million Cambodia – 1 million Source: Carnegie Endowment for International Peace 10 10
  • 11. 2 Concept of Halal extends beyond food Halal generally refers to things or actions that are permissible under Syariah (Islamic law) Pharmaceuticals Islamic banking Hotel & tourism Personal Care and finance Cosmetics 11 11
  • 12. 3 Popularity of K-Pop Culture Search for "K-pop" on Google yielded over 86 million results in English globally 2.1 million results in Indonesian 2.2 results in Thai 3.1 million results in Vietnamese 12 12
  • 13. 3 Factors driving K-Pop or Hallyu across Asia • Common practices of Confucianism, Buddhism & Cultural Taoism; Proximity o amongst North East Asian countries • Korean TV dramas provides self-affirmation of Familiar being Asian; Values o family narratives / filial relationships o gentle mannerism / humilty • Amongst less developing countries, they see their aspired future;Aspirational o Korea a symbol of a capitalist-consumerist future • Female and male groups are popular amongst the Unique & youth in Asia; o handsome & beautiful singers Fun o songs are catchy with repetitive chorus o synchronised group dancing > YouTube 13 13
  • 14. 4 Huge internet population driving e-commerce transactions and digital activities Source: Internet World Statistics 2011 14 14
  • 15. 4 High mobile usage unites the region Mobile subscribers • There are now almost 6 billion mobile subscribers worldwide (87% of world population) • growth led by China & India • both account for over 30% of world subscribers Mobile web • There are now 1.2 billion mobile web users worldwide • Asia is top region • South Korea and Japan lead in broadband penetration with 91% & 88% respectively • Mobile devise accounts for 8.5% of global website hits Source: 15 15
  • 16. High percentage of consumers in Asia are accessing4 the web via their mobile phones/devices On Device Research (Dec 2010) No. of respondents: 15,204 Source: 16 16
  • 17. High adoption rate of mobile devices will set the pace4 for digital innovations that will be Asian in origin Source: Web analytics firm, StatCounter Globals Stat, Oct 2010 17 17
  • 18. 4 Low internet penetration belies the actual social network potential Source: Burson-Marsteller Asia Pacific Social 18 18 Media Inforgraphiics Booklet Aug 2011
  • 19. Implications on consumer segmentation1 • The dynamics of rural/urban-urban/rural Urban mindsetAgglomeration • Family values and extended family concept are very much in vogue2 • Consumer segment that is under-served Halal • Seeking for brands that fulfills their values and Consumers lifestyle3 • Opportunity to connect with youths that cuts across cultures/countriesK-pop Culture • Digital platforms eg. YouTube are effective brand communication tools4 • High level of adoption and absolute size Internet & presents huge opportunities for innovation Social Media • Adoption of regional branding is inevitable in a borderless environment 19 19
  • 20. References:1. Consumer behaviour in Asia ; Hellmut Schutte and Valerie Vanier – Insead Euro-Asia Centre2. Asian Brand Strategy; Martin Roll3. The Changing Face of Mega Cities in Asia’s Emerging Economies - Keiichiro Oizumi, Center for Pacific Business Studies, Economics Department Japan Research Institute4. K-Pop, A new force in pop music – by Korean Culture and Information ServiceMinistry of Culture, Sports and Tourism 20115. Berry, C., Mackintosh, J. D., Liscutin. N. (Eds) (2009) , Cultural Studies and Cultural Industries in Northeast Asia: What a Difference a Region Makes, HongKong University Press6. Marchable-Tech; Sarah Kessler - Mobile by the numbers (Inforgraphic) 20 20
  • 21. Thank YouFor more information please contact: Barry Ooi Kadence International (T) 03 – 2267 7222 (e) booi@kadence.com