How spending patterns have changed the business landscape
According to the latest financial study, the high-growth market in Asia will lead global trade in the next decade, and its proportion of consumption in the whole world will raise from less than 14% in 2010 to 25% in 2020. Asia has gradually transformed its role from the world factory to the consumer market with high potential. Most international brands have already set foot in Asia markets by partnering with local distributors, holding exhibition events periodically, expanding their store network or show rooms to promote their brands.
Additionally, the M-type society trend in Asia also creates a segment of affluent consumers with enormous purchase power far greater than the others. “Who are these people? And how is their consuming pattern?” These are the million-dollar questions every business want to know.
Another fact is that the age of target customers is elder than before. In East Asia, the average life length has increased from less than 45 years in 1950 to 72 years (China: over 71; India: 64) recently. Moreover, the population aging and retirement extension happening in most Asian countries also greatly impact the whole society, and indirectly change the business landscape in the market.
Traditionally, the stereotype of the elder life in Asian countries is that women stay at home taking care of grandchildren for younger generations, and men leisurely play chess and drink tea with friends in the same age. There is no way they are the active consumer segment in business market before. However, it turns out that the trend rolls to the opposite direction: these growing elder customers in Asia, especially the baby boom generation, would raise and become an important driver in the market. They have not only more financial freedom in terms of the retirement compensation, investments, savings etc, but also more free time to enjoy life by luxury spending than the younger generation with the burden to put food on the table now. Some still maintain the passion to willingly explore new experiences in new products and technology, and also live longer due to the good healthy system support nowadays, even active and valuable in job market.
Therefore, it is crucial that enterprises spend time studying more about where they are and their shopping behaviors, to innovate the business model, products, and services to go with the inevitable flow in Asia market right now.