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From masstige to MASSCLUSIVE: middle class premium consumption evolves in Asia.'s MASSCLUSIVITY

  1. 1. september 2014 ASIA TREND BULLETIN MASSCLUSIVITY From masstige to MASSCLUSIVE: middle-class premium consumption evolves in Asia.
  2. 2. Middle-class premium consumption in Asia is all about masstige ... right? Any observer of the Asian consumer arena is familiar with masstige: Masstige = mass-market products infused with prestige elements (think smartly packaged USD 20 shampoo sold in supermarkets), catering to emerging middle classes with an appetite for premium, but budgets that do not stretch to true luxury. But as millions more consumers join Asia’s emerging middle classes, masstige consumption is becoming more commonplace. The result? Masstige consumption is not the status marker it once was. Now, more affluent and sophisticated Asian middle-class consumers are demanding new, innovative and surprising forms of premium. Says the Asian caveman. MASSCLUSIVITY 2
  3. 3. 2009 2030 3.22 billion GLOBAL The APAC middle-class population is estimated to grow from 516 million people in 2009 to 3.22 billion in 2030, when it will comprise 66% of the global middle-class population. WORLD ECONOMIC FORUM, 2013 516 million MASSCLUSIVITY 3
  4. 4. Of course, conventional masstige is still going strong. One conventional masstige tactic? Mass market products going premium. 2014 saw Unilever launch Magnum, its premium ice cream brand, in India. The FMCG company also launched Pond’s Men, its premium skincare line for men, in both India and the Philippines earlier this year. Another standard masstige play? Luxury products go mass market. Japanese premium cosmetic brand Shiseido is expanding its business in the Indonesian market with its masstige line Za. And Saturday, Kate Spade’s lifestyle (read: more accessible) line recently opened a third store in Singapore’s Takashimaya Department Store after its first launch in October 2013. The takeaway? Yes, there will still be opportunities to delight the new Asian middle class with traditional masstige offerings. MASSCLUSIVITY 4
  5. 5. So if masstige is the norm, what’s the innovation camp doing? Just as happened with traditional high-end luxury (first in the West and now increasingly in Asia), middle-class premium consumption is becoming more fragmented. No longer just about products and services with a little better quality, more polished packaging, and slightly higher price points, instead it is now about displays of taste and sensibility, artisan and local offerings, exclusive locations, rare and unusual experiences, and more. The middle-class premium consumer is moving from masstige to MASSCLUSIVE. Affordable premium is evolving beyond “mass goes premium, luxury goes mass”. MASSCLUSIVITY 5
  6. 6. DEFINITION MASSCLUSIVITY | A form of affordable premium consumption that combines the mass with the truly exclusive: tasteful, rare, experiential, compellingly storied, and more! MASSCLUSIVITY 6
  7. 7. WHY NOW? 1. Overcrowding From Jakarta to Mumbai, walk down any supermarket aisle and you’ll see masstige products crowding the shelves. A million mass-market brands are employing premiumization strategies to cater to the demands of the exploding middle class. Meanwhile, Asia’s middle classes are getting larger and richer. That means even MORE people who can afford middle-class premium. The result? Conventional masstige is now becoming a little too mass, and no longer delivering the excitement and status boost it once did. The masstige space is too crowded… MASSCLUSIVITY 7
  8. 8. 2009 2030 32.9 trillion GLOBAL The total middle-class spending in APAC is estimated to grow from USD 4.9 trillion in 2009 to USD 32.9 trillion in 2030, when it is projected to comprise 59% of global middle-class spending. WORLD ECONOMIC FORUM, 2013 4.9 trillion MASSCLUSIVITY 8
  9. 9. WHY NOW? 2. Evolving tastes While the masstige space becomes more overcrowded by the day, Asian middle classes are also becoming more sophisticated and demanding. They want products and services that go beyond a higher price point and upgraded quality, and that truly mark them out from the crowd. As a result, witness the emergence of new kinds of premium offerings – novel experiences, storied products, artisanal goods, new mass/premium partnerships, and more – aimed at Asia’s middle-class consumers. Middle-class status is moving beyond product upgrade and wealth display. MASSCLUSIVITY 9
  10. 10. We obviously offer much more than monthly Trend Bulletins... Our Premium Service Your complete trend and innovation solution. Find out more 2015 Trend Report 1 Trend Framework Innovation Database 2 3 Industry Updates Apply Toolkit 4 5 Monthly Updates 1-page Trend Handouts 6 7
  11. 11. FEATURED INNOVATIONS Take a look inside Asia’s MASSCLUSIVE consumption sphere! MASSCLUSIVITY 11
  12. 12. FEATURED INNOVATIONS: MASSCLUSIVITY Chef Creations by 7-Eleven 7-Eleven Philippines partners with local chef Claude Tayag on gourmet ready meals MASSCLUSIVITY 12
  13. 13. FEATURED INNOVATIONS: MASSCLUSIVITY A Festival About Coffee Jakarta event caters to emerging gourmet coffee culture MASSCLUSIVITY 13
  14. 14. FEATURED INNOVATIONS: MASSCLUSIVITY Jeans by Kamine Zoo Limited-edition jeans ‘made’ by zoo animals MASSCLUSIVITY 14
  15. 15. FEATURED INNOVATIONS: MASSCLUSIVITY Hotel Chains in India Hotel chains improve services for Indian consumers MASSCLUSIVITY 15
  16. 16. Do you want to be featured in the next Asia Bulletin? We’re doing something different for October’s Bulletin and featuring the region’s best innovations with local insights, directly from our Happy Spotting network. These examples and insights will be read by thousands of our subscribers around the world … and could feature you! Interested? Sign up to our Happy Spotting network and we’ll be in touch with more information. MASSCLUSIVITY 16
  17. 17. FEATURED INNOVATIONS: MASSCLUSIVITY Burger King Japan Burgers with black cheese and black everything else MASSCLUSIVITY 17
  18. 18. FEATURED INNOVATIONS: MASSCLUSIVITY The Inspired Chef Celebrity chef ice cream available in Singaporean supermarkets MASSCLUSIVITY 18
  19. 19. FEATURED INNOVATIONS: MASSCLUSIVITY Fresh New Zealand seafood shipped for Chinese consumers MASSCLUSIVITY 19
  20. 20. FEATURED INNOVATIONS: MASSCLUSIVITY Vogmask Pollution masks launched at Hong Kong Fashion Week MASSCLUSIVITY 20
  21. 21. FEATURED INNOVATIONS: MASSCLUSIVITY Colgate SlimSoft Charcoal Oral hygiene brand launch black charcoal toothbrush in India MASSCLUSIVITY 21
  22. 22. FEATURED INNOVATIONS: MASSCLUSIVITY Harlem Shakers Harlem inspired gourmet sandwich eatery in Bangkok MASSCLUSIVITY 22
  23. 23. FEATURED INNOVATIONS: MASSCLUSIVITY Suntory Hibiki Japanese whisky brand creates world’s first interactive glass MASSCLUSIVITY 23
  24. 24. FEATURED INNOVATIONS: MASSCLUSIVITY Suzhou Village Chinese integrated affordable luxury shopping compound MASSCLUSIVITY 24
  25. 25. FEATURED INNOVATIONS: BONUS EXAMPLE IKEA Singapore Furniture brand launches spoof-premium catalogue MASSCLUSIVITY 25
  26. 26. SO WHAT’S NEXT? Turn DRAB products into FAB innovations for the Asian MASSCLUSIVE sphere! MASSCLUSIVITY 26
  27. 27. NEXT Go from drab to FAB MASSCLUSIVE innovations are all about moving beyond product ‘upgrades’ and thinking more broadly about premium. How can you offer something truly different that will mark your customers out from the (ever growing) middle-class crowd? To start, read on! MASSCLUSIVITY 27
  28. 28. NEXT 1. DETAILS are FAB A premium consumer experience can often be created via attention to details. Extravagant service design, such as recreating a Silk Road village from the Middle Ages down to the very last detail, is one way to do it. But even the smallest individual detail can pay dividends if you pay it attention: just look at how Suntory Hibiki innovated around whisky glasses. MASSCLUSIVITY 28
  29. 29. NEXT 2. STORIES are FAB Surprising, compelling, unique. And Instagrammable :) These always turn drab into FAB. Especially when they provide an outlet for self-expression and let consumers shout about it to their peers. Jeans ‘made’ by zoo animals that also let consumers contribute to the WWF? Definitely a shareable story. MASSCLUSIVITY 29
  30. 30. NEXT 3. EXPERIENCES are FAB In the sea of dime-a-dozen masstige offerings, one-of-a-kind experiences are spelled P-R-E-M-I-U-M. A two-day festival celebrating speciality coffee? A unique drinking experience beyond the usual ‘premium’ bar and sake? Definitely FAB. MASSCLUSIVITY 30
  31. 31. Consumer Trend Canvas Use our free CONSUMER TREND CANVAS to start innovating around this trend - instantly » MASSCLUSIVITY 31
  32. 32. MORE... If you have any comments, suggestions or questions then please do let us know. Just email: PAUL BACKMAN Chief Client Officer Want more? About us Established in 2002, is the world’s leading trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. Our Premium Service counts many of the world’s leading brands as clients, while our free monthly Trend Briefings go out to over 260,000 subscribers in 180 countries. More at Free Publications Premium Service LIVE: Keynotes & Workshops

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From masstige to MASSCLUSIVE: middle class premium consumption evolves in Asia.


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