Marketing to the ASEAN Consumer

Marketing to the ASEAN Consumer

 

The creation of the ASEAN Economic Community (AEC) in December 2015 will unite the ten members of the ASEAN into a single market and production base. This will thrust Southeast Asia into the spotlight, attracting greater attention from multinationals which have so far been drawn mainly to China and India. By 2030, ASEAN is expected to become the third largest economy behind the US and China at US$3.1 trillion in constant 2014 prices.

Poised to become a global economic powerhouse thanks to its expected strong future economic performance, the AEC has real potential of becoming a vast market with predominantly young, dynamic and increasingly affluent consumers, in contrast to ageing China and Japan.

 

 

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Download this white paper to:

  • Learn how much ASEAN consumers earn and where they are spending  
  •  Identify ASEAN’s strengths, weaknesses, opportunities and threats
  • Gain a deep understanding of the region’s four largest markets – Indonesia, Thailand, The Philippines and Malaysia

 

 

July 3, 2015

Changing Income and Expenditure of the Global Middle Class since the 2008-2009 Financial Crisis

An HodgsonAnalyst Insight by An Hodgson - Income and Expenditure Manager

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The middle class in emerging countries has continued to grow and enjoy higher purchasing power since the 2008-2009 global financial crisis while middle-class households in many developed markets have had to cut back on their spending. Rising middle-class spending in emerging economies will create wide-ranging opportunities, but as the patterns of middle-class spending growth are diverse, companies will need to fully understand the target market and adapt their business strategies accordingly. 

Key points                               

  • Half a decade after the global financial crisis of 2008-2009, the fortunes of the global middle class remain mixed. Across the 85 major economies for which Euromonitor International has data, middle class households totalled 475 million in 2014, up from 430 million in 2008 at the start of the global financial crisis. However, 13 out of these 85 major economies have a shrinking middle class, and the decline is not restricted to developed economies; 

  • In a number of countries, where the middle class has expanded in size, middle-income households are not necessarily better off. For example, while Kuwait and the UAE have seen some of the world’s fastest middle class expansions, median household income in both countries fell at the fastest rates globally since 2008. This is because expanding middle class reflects improving income distribution while median household income is a proxy of middle-class purchasing power;   

Continue reading "Changing Income and Expenditure of the Global Middle Class since the 2008-2009 Financial Crisis" »

Contagion Effects of Greek Default Should be Limited

Analyst Insight by Daniel Solomon - Economist

 

Despite the high probability of a Greek “No“ vote in the July 5th referendum, most likely followed by a default, the effects so far on Eurozone financial markets have been quite modest. Italian and Spanish 10 year government bond yields have increased by about 0.25 percentage points during the week of June 25th-July 2nd, and by about 0.2 percentage points for the whole month of June. Eurozone stock market prices declines have been moderate, with a one week decline in the Euro STOXX index of 3.6% as of July 2nd. Sovereign default probabilities for Italy and Spain have also barely increased, rising by less than 0.3 percentage points during the month of June according to Deutsche Bank estimates. These indicators suggest that financial markets do not see a large risk of contagion from a Greek default to financial distress in other Eurozone economies. Several fundamental factors support financial markets‘ assessment.

Figure 1: Major Stock Market Indices since June 25 (June 25 = 100)

Major Stock Market Index

Source: Euromonitor International from Yahoo! Finance and stoxx.com

Note: Euro STOXX Index represents 290 large, mid and small capitalisation companies listed on 12 Eurozone countries. FTSE 100 is a benchmark index for the UK, and SP500 is a benchmark index for the USA.

 

 

Continue reading "Contagion Effects of Greek Default Should be Limited" »

Euromonitor to Speak at Verifone Accelerated Commerce Conference

Verifone

Event Name: Verifone Accelerated Commerce Conference

Location: Bali, Indonesia

Event Description: Held in exotic Bali, Indonesia, the Verifone Asia Pacific Annual Conference is an annual platform consisting of two full days of networking and education exclusively for our regional customers and partners. We are expecting about more than 150 participants from Asia Pacific. The Asia Pacific payments industry is an exciting and diverse market that represents many emerging countries and represents growth opportunities. Our theme for this year’s event is Accelerated Commerce - we hope that you can join us so you can learn more about Verifone’s strategy for accelerating commerce in Asia Pacific.

Continue reading "Euromonitor to Speak at Verifone Accelerated Commerce Conference" »

July 2, 2015

Lessons from Singapore, Unchanged as Doing Business Leader from 2006 to 2015

Carrie_LennardAnalyst Insight by Carrie Lennard - Business Environment Manager

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While other countries have fluctuated in the World Bank’s Doing Business rankings, Singapore has remained at the top spot for nine years, with consistently high performing rankings in all of the sub-categories that comprise its overall Doing Business ranking. Its business friendly procedures mean that it has arguably the most competitive business environment in the world, and its FDI intensity is one of the highest globally as a result at 21.4% of total GDP in 2013. Other economies should pay attention to the importance of cutting red tape for businesses in order to gain a competitive advantage.

Singapore

Source: Euromonitor International from World Bank/ UNCTAD

Continue reading "Lessons from Singapore, Unchanged as Doing Business Leader from 2006 to 2015" »

Russian Electronics Market on the Brink

Justinas lasinskasAnalyst Insight by Justinas Lasinkas - Industry Analyst

Russia showed strong growth in purchases of electronic goods over the last decade, by both private consumers and businesses. Over 2004-2014, private consumption in Russia and economic output grew fivefold and fourfold respectively, resulting in sales of electronics products surging fourfold. However, growth is shifting to decline in sales value, due to the poor performance of the ailing Russian economy.


Troubled Russian electronics sales

Russian sales of core electronics surged at 16% CAGR over 2009-2013, to reach an all-time high of US$40 billion in 2013. However, dynamic growth swiftly shifted to decline. In 2014, value sales experienced 7% slump, while 2015 decline is expected to increase to 26% in US$ dollars, as the Russian economy enters recession (see figure 1).

Continue reading "Russian Electronics Market on the Brink" »

July 1, 2015

Overview of Russian New Car Market Part 1: Insights and Forecasts for Russian Car Industry

Justinas_LiuimaAnalyst Insight by Justinas Liuima - Senior Industry Analyst

Russia was predicted to be Europe’s largest new car market in 2020, although adverse economic conditions sent new cars sales plummeting 15% in 2014. This had a negative impact on carmakers, which experienced shrinking profit margins, but still remain committed to staying in the Russian market. Even though new car sales are expected to stabilise in 2016, the car industry will experience a turbulent future as fundamental problems still remain in the Russian automotive industry.

Promising market no more

Russia is the largest new car market in Eastern Europe, accounting for 66% of Eastern European new car sales in 2014. Due to rapid expansion over the past five years, Russia was predicted to overtake Germany as Europe’s largest new car market in 2020.

However, as economic downturn and Western sanctions hit the country, such forecasts collapsed. Due to the adverse economic conditions, new car sales in Russia plummeted by 15% to 2.5 million units in 2014, the worst result since the 2009 crisis.

Continue reading "Overview of Russian New Car Market Part 1: Insights and Forecasts for Russian Car Industry" »

How Retailers are Addressing Global Food Waste

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Food waste in the grocery retailing industry has become a topic of increased interest thanks to its impact on global humanitarian, environmental and economic causes. Estimates indicate that up to 30% of produce is wasted in the US alone. Efficiency here would not only win hearts and minds of consumers but also result in substantial savings and global benefits for everyone. Listen to the podcast for complete insights.

Continue reading "How Retailers are Addressing Global Food Waste" »

World Urban Population Share to Hit 60% in 2030

Emi_world2030-v1.1

The world population is expected to reach 8.4 billion by 2030, an increase of 19.8% from 2012. Older age groups will increase rapidly during this time influenced by increasing life expectancy, however, over half of the world's population will still be under 35 years of age in 2030. Urban population will continue to rise rapidly, at nearly twice the pace of total population growth, in 2012-2030 and should account for 60.2% of the world's population in 2030.

 

Have a question or a thought to add? Leave us a comment below.

June 30, 2015

Three Trends Driving Forward Remote M-Commerce in 2015

Michelle EvansAnalyst Insight by Michelle Evans - Senior Consumer Finance Analyst

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Back in 2007, Apple set off a smartphone revolution when it introduced the iPhone to market. While some industry observers back then doubted the potential of the iPhone to impact the mobile industry — let alone payments — it has nevertheless jumpstarted a smartphone revolution. Of course, other mobile phone manufacturers have since followed suit to make the smartphone one of the most popular consumer devices on the planet today.

This plethora of such devices has set into motion generational shifts in a number of industries, including payments, retailing, foodservice and travel. The increased availability of smartphones has ushered in new ways of conducting commerce and executing payments. In addition, these technological advances have ushered in a new consumer type — a connected one. Despite all the hype surrounding the potential of in-person or proximity mobile payments, remote mobile commerce accounted for 98% of mobile payments made globally in the 46 markets researched by Euromonitor International.

Continue reading "Three Trends Driving Forward Remote M-Commerce in 2015" »

El Bachaqueo and the Striving Venezuelan Black Market for Tissue and Hygiene Products

Adriana RangelAnalyst Insight by Adriana Rangel - Contributing Analyst

The term bachaquero derives from the word bachaco, a large ant common to the Amazon region of South America. It refers to the leafcutters - hard workers, carrying loads on their backs day and night in order to build their nests. For some years now, this term has been used to describe people who have illegally passed through border controls in the Venezuelan states of Zulia and Táchira, without declaring anything, in order to sell goods at a higher price in Colombia. Similar to a colony of bachaco ants, an increasing number of Venezuelans are working together in purchasing and stockpiling scarce, price-controlled items, and then loading them up, in a seemingly uninterrupted march towards the border, in order to resell them for a profit. 

Continue reading "El Bachaqueo and the Striving Venezuelan Black Market for Tissue and Hygiene Products" »

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Recent Posts

Changing Income and Expenditure of the Global Middle Class since the 2008-2009 Financial Crisis

Contagion Effects of Greek Default Should be Limited

Euromonitor to Speak at Verifone Accelerated Commerce Conference

Lessons from Singapore, Unchanged as Doing Business Leader from 2006 to 2015

Russian Electronics Market on the Brink

Overview of Russian New Car Market Part 1: Insights and Forecasts for Russian Car Industry

How Retailers are Addressing Global Food Waste

World Urban Population Share to Hit 60% in 2030

Three Trends Driving Forward Remote M-Commerce in 2015

El Bachaqueo and the Striving Venezuelan Black Market for Tissue and Hygiene Products