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Understanding the Asian Consumer
Presented by : Barry Ooi
Venue : Penang, MalaysiaDate : 24 May 2012
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Presentation Content
1) Diversity of the Asian consumer & market
2) The urban population in Asian cities
3) The diversity dilemma
4) Focus on the BIG common
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Diverse population size
China : 1.3 billion
India : 1.2 billion
Indonesia : 248 million
Japan : 127 million
Philippines : 104 million
Vietnam : 92 million
Thailand : 67 million
South Korea : 49 million
Malaysia : 29 million
Taiwan : 23 million
Sri Lanka : 21 million
Cambodia : 15 million
Hong Kong : 7 million
Singapore : 5 million
Source: CIA World Factbook 2011
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Variable economic sizes & different levels of economic development
Source: CIA World Factbook 2011
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Varying levels of urbanisation
Source: CIA World Factbook 2011
14%20%
30% 30%
34%
44%
47%
49%
67%
72% 74%
83%
100% 100%Urbanisation Rate
66
Diverse religious practices
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Opportunities to connect with Asian consumers
Growing dilemma
What to do?
Urban agglomeration of cities
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Four distinctive development:
Halal lifestyle amongst the Muslim population
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Popularity of K-pop culture33
Wide adoption of internet, mobile and social media
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Urban agglomeration – 13 out of top 20 most populated cities are in Asia
Source: United Nations Habitat Report 2011
Rank City CountryPopulation
(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
1
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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
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Sizable halal consumers in Asia
Source: Carnegie Endowment for International Peace
India – 248 million
Indonesia – 210 million
China – 135 million
Malaysia – 18 million
Philippines – 10 million
Thailand – 7 million
Sri Lanka – 2 million
Cambodia – 1 million
631 million people
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Concept of Halal extends beyond food
Halal generally refers to things or actions that are permissible under Syariah (Islamic law)
Pharm
aceuticals
Pers
onal C
are
Cosm
etics
Hote
l &
tourism
Isla
mic
bankin
g
and finance
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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
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Factors driving K-Pop or Hallyu across Asia
Cultural Proximity
• Common practices of Confucianism, Buddhism & Taoism;o amongst North East Asian countries
Familiar Values
• Korean TV dramas provides self-affirmation of being Asian; o family narratives / filial relationshipso gentle mannerism / humilty
Aspirational
• Amongst less developing countries, they see their aspired future;
o Korea a symbol of a capitalist-consumerist future
Unique & Fun
o synchronised group dancing > YouTube
• Female and male groups are popular amongst the youth in Asia;o handsome & beautiful singerso songs are catchy with repetitive choruso synchronised group dancing > YouTube
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Huge internet population driving e-commerce transactions and digital activities
Source: Internet World Statistics 2011
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High mobile usage unites the region
Source:
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
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4 High percentage of consumers in Asia are accessing the web via their mobile phones/devices
Source:
On Device Research (Dec 2010) No. of respondents: 15,204
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4 High adoption rate of mobile devices will set the pace for digital innovations that will be Asian in origin
Source: Web analytics firm, StatCounter Globals Stat, Oct 2010
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Low internet penetration belies the actual social network potential
Source: Burson-Marsteller Asia Pacific Social
Media Inforgraphiics Booklet Aug 2011
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Urban Agglomeration
Implications on consumer segmentation
• The dynamics of rural/urban-urban/rural mindset
• Family values and extended family concept are very much in vogue
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HalalConsumers
• Consumer segment that is under-served • Seeking for brands that fulfills their values and
lifestyle
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K-pop Culture
• Opportunity to connect with youths that cuts across cultures/countries
• Digital platforms eg. YouTube are effective brand communication tools
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Internet & Social Media
borderless environment
• High level of adoption and absolute size presents huge opportunities for innovation
• Adoption of regional branding is inevitable in a borderless environment
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References:
1. Consumer behaviour in Asia ; Hellmut Schutte and Valerie Vanier – Insead Euro-Asia Centre
2. Asian Brand Strategy; Martin Roll
3. The Changing Face of Mega Cities in Asia’s Emerging Economies - Keiichiro Oizumi, Center for Pacific Business Studies, Economics Department Japan Research Institute
4. K-Pop, A new force in pop music – by Korean Culture and Information ServiceMinistry of Culture, Sports and Tourism 2011
5. 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 Press
6. Marchable-Tech; Sarah Kessler - Mobile by the numbers (Inforgraphic)
Thank You
For more information please contact:
Kadence International
(T) 03 – 2267 7222
Barry Ooi
