A peek into your consumer's future 2020
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Disclaimer The information in this report is provided on an “as is” basis. This document was produced by and the opinions expressed are those of Google, Asian Consumer Intelligence Pte Ltd, Qualtrics and other third parties involved as of the date of writing and are subject to change. It has been prepared solely for information purposes over a limited time period to provide a perspective on the market. Projected market and financial information, analyses and conclusions contained herein should not be construed as definitive forecasts or guarantees of future performance or results. Google, Asian Consumer Intelligence Pte Ltd, Qualtrics or any of their affiliates or any third party involved makes no representation or warranty, either expressed or implied, as to the accuracy or completeness of the information in the report and shall not be liable for any loss arising from the use hereof. Google does not provide market analysis or financial projections.
In many ways, the world in This rapid digitization Consumer insights have 2020 looks nothing like it ushered in new expectations never been more important, did a decade ago. In 2010, of personalization and particularly in a region as Asia was home to 764 million real-time dialogue between diverse and dynamic as internet users. Digital was brands and their customers. ours. Only by discerning nascent and trends were As we graduate from the what matters to customers often imported from the mobile era into the age are we able to deliver West. Fast forward ten years, of ambient computing, relevant products and and this is no longer the case. advancements in technology experiences. To succeed in Today, there are over 2.3 that offer always-on this increasingly complex billion internet users in Asia.1 assistance, blur the lines and crowded landscape, Infrastructure improvements between online and offline brands need to offer value and affordable devices made experiences, and accelerate by understanding what their the web available to virtually the pace of progress customers think, believe, everyone and fostered a will drive this behavioral expect, and aspire towards. mobile-only mentality. Creative evolution forward. It will I hope the consumer shifts thinkers leveraged the lack represent a paradigm shift in this report will inspire you of legacy systems to create in how consumers gather with new ideas to delight innovative business models information and take action. and help your customers that are now influencing Yet, despite these dramatic in the new decade. their Western counterparts. changes, one core element Access and ingenuity, of great marketing will combined with the region’s remain the same: scale, transformed APAC into know your audience. Simon Kahn the internet’s new capital. Google APAC CMO Source: 1 Statista: Number of internet users worldwide from 2009 to 2019, by region
Intro A peek into your consumer’s future Intro Intro The Importance To succeed in an ever- involves having a balanced Business leaders must changing consumer “art and science” view of carefully consider these of Consumer landscape, it is essential for consumers, where data is insights, gather the relevant Insights and marketers to understand the used in tandem with intuition ones, build a holistic picture, importance of consumers to make critical decisions and most of all, integrate Trends insights and trends. This has about what products and them into the decision- been the core value guiding services should be introduced making processes of their this report since its launch to the market. organisations. Those who in 2018 and continues to end up using these complex define the approach of the Marketers now have access consumer insights to shape 2020 edition. The goal is to an abundance of data strategic perspectives and to encourage marketers about the wants, needs, guide tactical decisions will to adopt an outside-in desires, and aspirations of be able to create the most perspective, one which consumers. Through careful relevant and innovative encourages them to analysis this data can be products and services. understand and adapt to the used for both a broad and And ultimately, succeed. complexities of consumer specific understanding of behaviour. Such an approach current and future customers.
A peek into your consumer’s future Intro The Future of two impossible to ignore countries—India and China— internet penetration is on par with the rest of the world, of the major reasons behind the exponential growth of the Consumer in each with a population of 98% of the users in the region start-up ecosystem and the Asia Pacific over a billion.2 In addition to these behemoths, the region are mobile internet users in comparison to 85% in the US.6 birth of unicorns in the region; with two sectors—ride- boasts of the world’s largest On average, they spend three hailing and e-commerce— Muslim nation, Indonesia, hours on mobile internet growing at a record pace.11 which has a population daily.7 In fact, the top 3 most of over 220 million.3 APAC is engaged mobile internet Southeast Asia is a shining also home to Pakistan, the countries in the world are example of this boom in 6th largest population in the from APAC.8 Thailand is at first APAC. The cumulative world with over 207 million place with an average of 5:13 internet economy of APAC’s transformation from people, which will soon hours per day, followed by Indonesia, Vietnam, Malaysia, follower to leader has been overtake Brazil’s 209 million.4 the Philippines at 4:58 hours Philippines, Thailand, and swift and unprecedented. per day, and in third place is Singapore is currently It has become the most With half of the internet Indonesia with an average of pegged at $100 billion12 and advanced digital economy in population residing in APAC 4:35 hours per day.9 has received more than the world and is leading the and 70% of them owning a $37 billion in capital over way in innovation. smartphone, the region has Since Asian consumers are the last four years.13 While led the charge in global app spending a significant amount the majority has gone to Home to 60% of the global growth by generating 53% of of time on mobile internet, e-commerce and ride-hailing population, APAC is the the world’s total app revenue they tend to be very receptive unicorns, investments in world's fastest growing in 2016, along with 86.2 billion towards new technology and nearly 3,000 start-ups in the internet market and consists downloads.5 And while APAC’s business models.10 This is one region also remain sizable. Sources: 2,3 Think with Google: Insights on APAC Region 4 World Bank: National Accounts Data and OECD National Accounts Data 5 Think with Google: 3 ways to uncover and acquire high-value app users in APAC 6 We are social: Digital in 2018: World’s internet users pass the 4 billion mark 7 Chandler Nguyen: Digital index for APAC countries in 2017 8 Hootsuite: The global state of digital in 2019 9, 11, 12, 13 Think with Google: e-Conomy SEA 2019: Swipe up and to the right: Southeast Asia’s $100 billion internet economy 10 McKinsey Digital innovation in Asia: What the world can learn
A peek into your consumer’s future Intro Beyond economic outside of these countries resonate internationally. development milestones, to learn and explore their With Japanese brands the role of culture and its geographical neighbours. helping to set the global impact on consumption beauty agenda and K-pop choices in APAC is equally There is now also a demand inspiring audiences from important when defining for stories that resonate with Jakarta to Shanghai, the region’s progress. The consumers' individual tastes the intra-Asia influence immeasurable emotions and cultural preferences. on buying behaviour is that comprise each cultural And it has led to a growth in visible across categories experience help shape products and services that like leisure, food service, views and preferences. A deliver relatability in one fashion, health, and learning. love of K-pop could drive a form or another. This shift consumer to book a trip to from the hegemony once Seoul, while a preference led by countries outside of for fine dining on a budget, Asia creates opportunities could lead one to peruse for marketers to celebrate travel sites for weekends the cultural dynamism that in Bangkok. The intangible defines national identity. cultural elements that drive a nation’s people to crave In some cases, the spicy foods and another development of localized nation to favour romantic services specifically created comedies over dramas are for Asian consumers are the facets that help shape now working their way cultural identity. They provide out of the region as ideas the impetus for consumers or business models that
A peek into your consumer’s future Intro Given the significance of APAC as the epicentre of all things digital and consumer trends trailblazer, an in-depth understanding of the region’s consumers and their shift in behaviour “ could transform the reach, growth, and revenue What we are seeing is a demand for better local content. of brands. Whether it is better regional or better local content, it’s really just two sides of the same coin. The region has extraordinary disparate local cultures with iconic local stories being told In this report, we present and a breadth in local context with regard to local languages, three consumer shifts that local customs and religion. There’s a blossoming of local shed light on some powerful culture that I think the internet is really embracing. consumer opportunities 80 percent of the reason why iflix subscribers join the that are likely to impact and service is to access unique local content. It's become such a influence the way marketers truism in our business, we've almost stopped reflecting on it. design, build, and market ” Mark Britt their products and services within the Asia Pacific region. Co-Founder & Group CEO of iflix
A peek into your consumer’s future Intro Using Google Internal data During this sampling phase, Methodology 1 Internal Data and Google Trends14, we we put a weightage on the analyzed a variety of signals numbers of respondents for This report is based like absolute growth, relative each market to the country’s on a triangulated share, and country-by- actual internet populations. methodology across: country comparisons to We conducted the fieldwork Quantitative understand which trends were between the Q2 2019 and 2 Research clearly emerging on Google Q3 2019, and we closed the Search and YouTube content. online survey with a total N of 7166 qualified respondents. We then partnered with Concurrently, we conducted Qualtrics to launch a survey interviews with early 3 Expert Interviews across 12 key markets in APAC: China, India, adopters and industry experts from the region to Indonesia, Japan, Philippines, gather qualitative data and Vietnam, Thailand, South triangulate our findings and Korea, Malaysia, Australia, focus on the key trends we Taiwan, and Singapore. We would bet on. managed to reach online consumers, proportionately The screens used were: represented with the internet Momentum, Integrity, population in each market Identity and Actionability. by means of age and gender. Source: 14 Google Trends
A peek into your consumer’s future Intro 1 Momentum Contributing Do we have any signals Partners that show a historic trend to build up future growth? 2 Integrity Does the shift manifest itself in at least two Qualtrics is a digital Asian Consumer independent sources platform that powers Intelligence is a trend across primary, secondary, surveys related to market forecasting and branding and internal data research? research, customer consultancy focused on experience, product testing, Asia-Pacific helping global employee experience, and companies use strategic 3 Identity brand tracking. Trusted by foresight to position brands Is the shift being driven over 80% of the Fortune more effectively in APAC. from APAC and/or 100 companies, it is used manifesting itself faster by 9,000+ businesses and It informs strategy by than other regions? institutions worldwide. delivering qualitative, Qualtric’s survey software future-forward intelligence 4 Actionability is designed to help clients optimise the four core utilising proprietary technologies to provide Is the shift being driven by key developments experiences of business: marketing insight and in technology that customers, employees, innovation solutions businesses can leverage? products, and brands. to help drive growth.
A peek into your consumer’s future With me With Me [wɪð mi] Consumers increasingly seek participatory content and use online interaction as a means to share experiences
A peek into your consumer’s future With me With Me emphasizes the everyday activities like importance of gaining a cooking, cleaning, packing, sense of community via the or eating, where creators consumption of interactive invite viewers to be a part and experiential online of the action through live videos for consumers. comments or experience a It revolves around the shared solidarity by indulging emergence of live streams in the very same activities. and videos of common More than half (51%) of all the online APAC consumers treat videos and live stream as a way of connecting with friends.15 Source: 15 Google/Qualtrics APAC Consumer Shift Survey, 2019
A peek into your consumer’s future With me More than half (53%) of all the online APAC consumers feel like they are part of a bigger When the practise of YouTube viewers in Korea community ‘mukbang’—an activity watched over 500 years when they watch where creators live stream of With Me content across themselves eating large various categories.17 a live stream.16 amounts of food while interacting with online Other APAC nations reveal audiences—emerged from similar growth patterns South Korea in 2009, it may as consumers shift to have been viewed as fringe interactive viewing. In behaviour. But a decade Pakistan, watch time for later, not only has the trend videos related to With Me of participatory content grew by 150% in the first half gone mainstream, it has also of 2019,18 while in Indonesia expanded beyond eating. it grew by over 180%.19 In the first half of 2019 alone, Sources: 16 Google/Qualtrics Consumer Shift Survey 2019 17 Google Data, South Korea, Jan - Jun 2019 18 Google data, Pakistan, Jan - Jun 2019 vs Jan - Jun 2018 19 Google data, Indonesia, Jan - Jun 2019 vs Jan - Jun 2018
A peek into your consumer’s future With me So, what activities do carrying out their own Asians like to watch? From tasks, apart from factual the unique and rare to the instructions. It’s not too routine everyday like cooking far-fetched to imagine that macarons, shopping for a viewer watching someone outfits, packing suitcases, pack a suitcase could be cleaning bedrooms, simultaneously doing the game-alongs, product same. Especially in a region demonstrations, brushing where consumers are poised up on language skills, and to spend $200 billion on many more. From light- travel online by 2025.21 hearted fare to in-depth tutorials, summary overviews to expert commentary, consuming content while literally consuming is the new norm. Recipients are seeking a sense of community while In Malaysia watch time for mukbang content has grown by over 150% in the last year.20 Sources: 20 Google data, Malaysia, Oct 2017-Sept 2018 vs. Oct 2018-Sept 2019 21 The Telegraph: The unstoppable rise of the Chinese tourist
A peek into your consumer’s future With me In Australia, watch time for "study with me" videos has grown by over 250% in the last year.22 “ As digital natives become more prominent, Gen Z, with four times the spending power of millennials, Beyond watching videos to make homemade laksa trust can help create a multitude of immersive and represent a new perspective. They do not come from or learning Korean to sing sensorial elements that will a pre to post iPhone world but have only known a world the latest Blackpink hit, bring the action closer to where a digital presence and interaction simply exists. Interactions today happen simultaneously in digital and participatory content helps viewers, while also opening physical single space. Connected and controllable. deepen the engagement the doors for experiences between creators and their beyond screens. ” Tim Kobe Design Leader, Founder, and CEO - Eight Inc. audiences. With time this Source: 22 Google Data, Australia, July 2018 - June 2019
Now A peek into your consumer’s future With me Now Gaming has arguably As a new decade starts, pioneered much of the the sheer variety of With behaviour that drives Me content cuts across With Me as over 50 billion categories and varying minutes of gaming content levels of interactivity. From were watched on YouTube watching someone study from June 2017 to June 2018 on a live stream from South globally.23 Participating within Korea to the video of a a virtual team, reviewing leading influencer cleaning gameplay, and watching her house or a content others game, either in creator simply asking fans The Most Viewed recorded or live streams, to “Get ready with me”, Video Games on has long been popular in consumers are seeking YouTube in 2019 the gaming community. In participatory content for Malaysia, the watch time on all kinds of activities. Minecraft: 100.2 billion views Fortnite: 60.9 billion views YouTube for PlayerUnknown’s Grand Theft Auto: 36.9 billion views Battleground, an online Garena Free Fire: 29.9 billion views multiplayer battle royale Roblox: 29.6 billion views game, has tripled in the last year.24 Source: 23 Google data, Global, Jun 2017-June 2018 24 Google data, Malaysia, Oct 2017-Sept 2018 vs. Oct 2018-Sept 2019
A peek into your consumer’s future With me Get Unready with Me In the Philippines, YouTube Creator Michelle Dy asks her viewers to “Get Unready with Me” in a video where she demonstrates how Take the example of “winter to correctly remove makeup. Dy grown cabbage and young starts off the video by talking radish water kimchi” on about the importance of removing Young-Ja's Kitchen, a popular makeup for healthy skin. The South Korean “cook with me” first step in her routine involves using wet wipes to clear her channel. In the video, fresh face, following which she uses a green vegetables are prepared pimple gel and does a product and diced into traditional demonstration. She finally tops it baskets in a garden setting all off with a face spray and reminds before being taken into everyone to take care of their skin. In Japan, the kitchen to be cooked. Watching ordinary tasks watch time such as rinsing vegetables for “cook with on video allows cooks of all me” videos has stripes to sync their own dishes with Young-Ja, even increased by while preparing their own over 500% in versions of the dish. the last year.25 Source: 25 Google Data, Japan, July 2018 - June 2019
Emerging A peek into your consumer’s future With me Emerging Interest in Food Network Kitchen27 is a monthly streaming "cooking tips" service that was launched videos is in September 2019 by Discovery Inc, the parent on the rise company of the Food in Australia, Network. The app enables with watch time subscribers to take live culinary classes with popular increasing by TV chefs and allows them to 60% between text questions to show hosts, June 2018 and making the whole experience highly interactive, personal, June 2019.26 and participatory. Source: 26 Google Data, AU, Jun 2019 vs. Jul 2018 27 Cook with Bobby Flay and Alexa via new streaming app
A peek into your consumer’s future With me The app also has the via video conferencing, potential to add a future they were guided through revenue channel, where two recipes with MasterChef subscribers could shop finalist Sowmiya Venkatesan. for ingredients on partner At S$45 for two participants, platforms, who could then the experience offered a offer Discovery a cut of peek into a monetised future their revenues. While this of With Me that combines particular initiative focuses elements of participation, on the US, brands in Asia are education, and community also scrambling to bring their rolled into one interactive own productions to fruition. viewing experience. A similar service was introduced by YoRipe when they launched RawtoRipe, Singapore’s first ‘live virtual cooking series’ in July 2019. As part of the online event viewers were asked to In India, watch assemble a list of ingredients prior to a broadcast where, time for shop with me videos has increased by over 260% in the last year.28 Source: 28 Google Data, India, July 2018 - June 2019
A peek into your consumer’s future With me Apart from being both @Pernik-BTC Pangkalpinang” interactive and informative, on YouTube. In the video, a lot of With Me videos offer creators Nuria & Mom head consumers a glimpse into the to a mall in Indonesia and lives of creators. They help take some of their 333,000 create a bond between the subscribers with them. In two and also give viewers roughly eight minutes, young the chance to vicariously Nuria examines ‘squishys’ experience numerous or super soft foam toys everyday activities. This is with Mom diligently asking especially true for “shop with questions while filming the me” videos like “SQUISHY experience. The video has LAND 2 - Shopping with me over nine million views.
A peek into your consumer’s future With me “ So far the response has been pretty good. I think my viewers enjoy this type of video because it is more "real" - very unfiltered and unscripted because it's literally just me doing what I would normally be doing even without ‘Calories, Macros, Diet!? those watching with a sense a camera in front of me. So I think some viewers like Come Grocery Shopping of how Sarah really lives. that authenticity. I think another reason would be similar With Me + Food Prep’, is an Some of her 1.33 million to why people like "mukbang" videos, and that is that when they watch the video and they're doing the same equally immersive video subscribers are literally given thing, it makes them feel like they're doing it with the where creator Sarahs Day a taste of her life when Sarah creator—so it creates a bond. I've had people tell me starts her video with a brings her groceries home that watching my "study with me" video made them facial cleansing routine and preps ingredients to feel like they had a study buddy. I think that sense of in her bathroom before make daily snacks and meals. relationship and connection that this type of content taking viewers on a drive fosters is another reason why viewers are drawn to it. through Sydney's streets to a ” Raya Maurelle Cordova YouTube Creator supermarket with her family. Her activities are nothing out of the ordinary but provide
Future A peek into your consumer’s future With me Future As technology evolves, the While the technology line between viewing and is currently in use in participation will continue smartphones and gaming to blur significantly. This joysticks, more complex use transition could potentially for With Me purposes has be facilitated by haptic, proven to be a challenge also known as 3D touch, until now due to the price. a technology which allows However, Miraisens, a users to experience the Japanese manufacturer, sensation of touch through claims to have cracked the vibrations, motions, or force. cost barrier. It is on the verge of making 3D haptics more affordable and compact enough to be embedded in a multitude of devices beyond smartphones.
A peek into your consumer’s future With me Using specific stimulation patterns of the skin to create the sensation of touch and texture, the company is trying to bridge the gap between what’s virtual and real. In the future this technology could allow users to feel the texture of a fabric while watching a With Me video on YouTube or help enhance augmented reality and sensations during video game play. It could also help online marketplaces demonstrate the fabric of a new sofa by sending a 3D haptic motion that shoppers could virtually touch and see. In the leisure category, a hotel brand could provide the feeling of the softness of its bed linen, helping convince consumers to book a stay.
Implications A peek into your consumer’s future With me Implications The formerly passive one- Consumers want to feel A Heist with way relationship that once more involved and connected saw creators and their -- the fact that watch time Markiplier audiences engage in a for content in this genre is non-participatory format increasing rapidly shows YouTube recently experimented with interactive entertainment is rapidly diminishing. It is us online video is helping through the release of A Heist being replaced with With Me address this need. With Markiplier featuring gaming content, which echoes the creator Markiplier in a first-person real time a live concert with The meta nature of this movie that features a storyline the potential for audience development could herald a with 31 possible endings.29 It allows interaction versus watching future with more customisable viewers to control the outcome a movie which plays out a content and deeper of a super-criminal who tries to steal a priceless artefact from the predetermined narrative participant interaction. world's most secure museum. irrespective of what the viewer does. Source: 29 The Star Online: YouTube’s first interactive special stars Markiplier and has 31 possible endings
A peek into your consumer’s future With me The rise of participatory felt tough or boring. Where content may have initially brands can assist in this felt novel. After all, dialogue is by shifting to a mukbang videos were tone that empathises with once characterised by a consumers and the sense of usually small-framed person community that they long for. consuming a huge amount of food, with viewers As viewers look beyond left wondering how their trendsetting categories like stomachs could fit in plate "cook with me", "eat with me", after plate. But for many and "game with me", brands present-day consumers, can look to leverage the eating lunch while watching With Me trend by developing others eat their meals online effective product placement is proving to be a source of comfort or shared solidarity. strategies, as part of their overall marketing plan, and “ At this early stage of this shift, it’s a relatively low- cost entry to YouTube influencers and the nature generate revenue through of the content means brand involvement doesn’t This shows that consumers effective subscription models. seem inauthentic. Take ‘cleaning’ as an example, any are turning to With Me household cleaning brand could easily be inserted content to find videos and into the content. As with all influencer content, live casts that entertain, brands need to be ready to be at the mercy of the talent and allow them to integrate the brand in a provide a sense of way that they know their audience will enjoy. community, and potentially help them get through chores or commitments that would otherwise have ” Charlotte McEleny Publisher, APAC The Drum
A peek into your consumer’s future All to gather All to Gather [ɔl tu ˈgæðər] Digital advancements enable inclusivity and promote the fundamentals to inclusive product and service design to address unmet consumer needs in the region.
A peek into your consumer’s future All to gather All to Gather, a play on the Providing access for the words “All Together”, refers many instead of the few to the practice of using goes beyond doing what’s inclusive design to help perceived as right or good, consumers across sectors it also helps brands reach a and countries gain access wider audience. A diverse to products and services. user base helps companies discover innovation Inclusive design is an ethos opportunities that may that states that products not be discernible when and services should be viewed through limited as accessible as possible perspectives. to people of all genders, ages, linguistic groups, sexuality, and physical ability.
A peek into your consumer’s future All to gather Worldwide searches in English for “diversity meaning” have grown 4x, “equality meaning” by 3x Benefits and “inclusion meaning” of Inclusivity by 2x in the past 5 years. Top cities driving these According to a report titled in APAC include Manila, The Benefit of Designing for Brisbane, Perth, Auckland, Everyone published by PwC in May 2019, Australia’s Centre Kolkata, Delhi, Karachi, for Inclusive Design estimated Gurgaon, Kuala Lumpur businesses could generate as and Melbourne.30 much as $4 billion in revenue through inclusivity. The report 50% of all online APAC Through enhanced design, be a fairer place if more stated that around five million consumers agree that consumers are empowered people practised inclusivity.34 Australians are prevented the practice of inclusivity as individuals to access the A staggering 95% of all access to services and products due to inadequate is important to them31 brands and services they online APAC consumers design, despite possessing and 60% of them feel wish to consume. Consumers agree that a bad user over $40 billion in annual that the world would from China feel very strongly interface would negatively disposable income.37 The be a fairer place if more about inclusivity. 67% of the affect their perception of report examined people with people practised it.32 connected consumers in a product or service.35 This a cross section of barriers the country agree that it is belief is consistent across to access including gender, important to them33 and 78% markets like Japan (91%) and ethnicity, seniors, financial status, and disability. are in agreement with the Singapore (99%).36 statement: The world would Sources: 30 Google Trends, Worldwide, Jan 2015 to Dec 2019 31, 32, 33, 34, 35, 36 Google/Qualtrics Consumer Shift Survey 2019 37 Centre for Inclusive Design: Inclusive design can expand customer reach fourfold
Now A peek into your consumer’s future All to gather Now “ I believe everyone should have the ability to experience the world around them and feel a sense of belonging wherever they're physically at. Having access to new experiences makes me feel more included. ” Wakana Sugiyama Business Analyst, Google Japan The World Health walking trips. This feature Organization estimates that is the first in Google Maps 15 percent of the world’s to be built from the ground population—over 1 billion up by and for people with people—have a disability.38 vision impairments. This Among them, 253 million inclusive product design not people are blind or visually only helps a person get from impaired as of 2015.39 In A to B, but it can also give Tokyo, Wakana Sugiyama, them more confidence and a visually impaired business reassurance when travelling analyst, worked with the alone. It may not sound Google Maps team to roll extraordinary to those with out a new feature that sight, but for people who gives people the ability to are blind or have low vision, receive more detailed voice this can open up a world of guidance and new types of opportunity.40 verbal announcements for Sources: 38, 40 Google Blog - The Keyword: Voice guidance in Maps, built for people with impaired vision 39 IAPB: Vision First: Key messages
A peek into your consumer’s future All to gather The Japanese transport ministry provides a subsidy of 600,000 yen per vehicle to taxi companies that purchase universal design cabs. These taxis are larger than regular cabs, and have wheelchair ramps and other amenities that make it easier for passenger with disabilities to use them. The government plans on In Hong Kong, the visually The wallet was initially having 44,000 such taxis impaired can now accurately created as a prototype in on the nation's streets in count banknotes. Local 2016 and was crowdfunded time for the 2020 Summer designer, Comma Leung to full development over a Olympics in Tokyo.41 Mai-wai, has developed a three year process. This year, wallet with a special inner Standard Chartered Bank panel that allows users to purchased 500 wallets for a slide notes against it and local school for the visually tells their value according impaired to support Leung’s to width. Leung runs her own initiative.42 design studio called Mosi Mosi, which translates to "no worries" in Cantonese. Sources: 41 The Japan Times: Creating a barrier-free transportation environment in Japan 42 asia one: How a Hong Kong designer came up with a wallet that can help the visually impaired identify banknote denominations
A peek into your consumer’s future All to gather A unique product design With an estimated 10% issue was recently of the world’s population addressed in the classified as left-handed, Philippines. Legislators in this design improvement the country recognised provides a substantial that left-handed students number of people in the were struggling with school Philippines with a more desks that were designed comfortable learning for right-handed students. environment. Education They discovered that left- is a fundamental pillar to handed students tended economic growth and to write more slowly when societal development. using desks designed for Providing students with right-handed students an atmosphere that is and suffered with back, conducive to study is neck or shoulder pain critical to ensure growing from twisting their bodies minds are comfortable into positions.43 In August and engaged with their 2019, the Congress of the surroundings. Philippines passed a law that requires all public and private schools to introduce neutral desks suitable for left and right-handed students by 2025. Source: 43 Philippine Daily Inquirer: Left-handed students to get neutral desks
A peek into your consumer’s future All to gather Helping make fashion “We intentionally design more accessible is Love, silhouettes and colours that Wing Stamps had to purchase cosmetics from Bonito, a female direct- can flatter an Asian women’s overseas or from international with The Feisty brands and hope for the to-consumer brand with body proportions and skin Chick best that they suited Asian omnichannel operations tone,” states Charmaine complexions and features. The across Singapore, Malaysia, Chua, VP of Business advent of e-commerce allowed Indonesia, Cambodia Development at Love, Bonito, brands to produce products and Hong Kong as well “and we play to our strengths The Feisty Chick is an that are more inclusive and local as significant online and focus on what we do independent Singaporean consumers the opportunity presence in countries really well.” beauty company that launched to purchase products made its eye cosmetics at the end for them. Our product is not including the United States, of July 2019. Comprising a original in concept—there are Philippines, and Australia. double-headed wing stamp brands outside of Asia offering (for the left eye and right eye) a similar idea—but what our and one felt tip liner, the user- product does is target single friendly products are designed lids, monolids, hooded lids, or to instantly create a fuss-free, more common Asian eye types winged eye-line, a look that is that were not being targeted coveted yet often tricky and by international brands. That Globally, time consuming to create. was a missed opportunity.” Winged eyeliner stamps have With Euromonitor International searches for been around for a few years, projecting that the category "asian size chart" yet these products were not will grow 6.1% over 2019-2021 designed for Asian eyelids in Asia Pacific, making design have grown 9x according to The Feisty tweaks that tap into the needs since 2008.44 Chick’s owner Si Ting Chua. of more consumers in Asia "Until recently, Asian shoppers makes sound financial sense. Source: 44 Google Trends, Worldwide Oct 1, 2008 to Oct 2019
Emerging A peek into your consumer’s future All to gather Emerging All to Gather also means Searches related enabling people who eat specific foods, because to veganism of religious or health and (ヴィーガン) in lifestyle reasons, to buy Japan grew by 8x45 groceries confident in the knowledge that the while searches for products they are buying ketogenic diet in are safe and correct. The UK’s Spoon Guru India grew by 14x developed an AI-powered since 2014.46 database that filters online groceries into options that include vegan, gluten free, low fat, and vegetarian. Sources: 45 Google Trends, Japan. Jan 2014 to Oct 2019 46 Google Trends, India. Jan 2014 to Oct 2019
A peek into your consumer’s future All to gather In May 2019, the food data How well a knowledge specialists teamed up database provides with Woolworths in New information on halal Zealand and Australia, to ingredients, sugar-free launch their proprietary groceries for diabetics,47 search system. Connected or plant-based diets to the supermarket chain’s for vegans could be online storefront, Spoon the difference between Guru’s indexing helped abandoning an online cart to overcome a pain or checking out. It also point some consumers widens the net to include experience when consumers with a range of searching. By providing diverse cultural as well as more information on dietary needs. food ingredients, fewer shoppers felt excluded because of their lifestyle choices or cultural and religious affiliations. Global searches for Halal as a topic have increased by 10x since 2004.48 Sources: 47 WHO: Addressing Asia’s fast growing diabetes epidemic 48 Google Trends, Worldwide. Jan 2014 to Oct 2019
A peek into your consumer’s future All to gather Apart from its role in dietary According to data published upped their game to cater to habits, the concept of halal by Sigma Research in Muslims by setting up their is also an important factor 2017, 85% of Indonesia’s own halal hub. South Korean in cosmetics retail in the consumers still choose local beauty and cosmetics region. According to the skincare brands and 53% conglomerate, Amorepacific, State of the Global Islamic choose local makeup brands. established a hub in Johor for Economy Report 2018/19, Among the local brands research and development “the halal pharmaceuticals dominating the Indonesian on halal cosmetics, especially and cosmetics sectors market, nobody has grown for targeting consumers “ continue to expand as more as fast as Wardah in the last in Asia.51 products are produced and 5 to 10 years. According to Manufacturers are embracing ingredients are increasingly Nielsen Company Indonesia, inclusivity throughout the region. halal-certified.” It states it has become the country’s It’s given rise to more Asian that Muslims’ spending on top-selling cosmetics brand ingredients, and Asian concepts. cosmetics was estimated at with a market share of more Halal products and ingredients US$61 billion in 2017, which than 30 percent. In a survey have grown because people want to be heard. They want a voice in is expected to increase to conducted by Markplus Inc, the products they consume. US$90 billion by 2023.49 Wardah was the top pick Wardah Cosmetics among cosmetic brands in Indonesia, with 37.8 percent of the respondents choosing ” Amanda Lim (Indonesia) is one of the Editor, Cosmetics Design-Asia brands which is forging it as their favorite. Several ahead in halal beauty.50 global industry players have Sources: 49 New Straits Times: Halal Beauty: The next big thing 50 Business Wire: 2018 Success Case Study: Wardah Cosmetics 51 The Jakarta Post: Halal boom changes face of Indonesia’s cosmetics industry
A peek into your consumer’s future All to gather Apart from capitalising on the growth of Halal cosmetic demands, Amorepacific took further steps to an inclusive business approach with the launch of its male makeup brand BeReady in September 2019. The development of the line was inspired by research from the Consumer Trend Centre at Seoul National University which reported More than half of the that three out of 10 men respondents stated that from Gen Z claimed to use they experimented with facial cosmetics on more makeup in middle school.53 than two occasions per week. Developing a cosmetics line for male consumers who In India, watch were already significant time of beauty makeup users shifts tips “for men” on the dialogue away from gendered stereotypes to YouTube grew by create a potentially new over 80% in the revenue stream. first half of 2019.52 Sources: Source: 52 Google data, India, Jan - Jun 2019 vs Jan - Jun 2018 53 The Korea Bizwire: Generation Z men drive growth of cosmetics industry
Future A peek into your consumer’s future All to gather The internet Future economy in the non-metros of Southeast Asia is projected to grow fourfold between 2019 and 2025, twice as fast as the metros.56 With the increasing adoption from non-metro areas. And of digital payments and while the majority of online telecom carrier billing travel bookings today come options, more non-metro from the metros, non-metros subscribers from Indonesia, may soon catch up and Malaysia, Vietnam, Philippines, even overtake the metros, and Thailand are paying as travel-related queries for premium online media grew 1.5x faster outside services such as gaming, the big cities last year.54 music, and video on demand. It is, therefore, essential These trends are also for brands to also consider evident on Google Search. socio-economic inclusivity, In Indonesia, for example, apart from that of race, 46% of all searches for gender, ethnicity, age, and internet packages come physical ability.55 Sources: 54, 55, 56 Think with Google: e-Conomy SEA 2019: Swipe up and to the right: Southeast Asia’s $100 billion internet economy
A peek into your consumer’s future All to gather The annual per capita potential to play a big role spending in metros across in this growth. The OS Southeast Asia is currently can, among other things, around $600, while that provide accessibility in non-metros is almost to Google Assistant six times lower at $100. for a wider audience in Though, the purchasing emerging markets such as power of the consumer Southeast Asia and India. in smaller cities and rural With the proliferation of areas might not be as large voice across the APAC as that of the metros, region, Hindi has already research shows that the become the second-most internet economy of the used language globally non-metros is likely to on Google Assistant after grow by 4x between 2019 English. To widen the and 2025, a rate that is number range of users that almost twice as fast as the can access the product, big cities.57 eight other Indic languages (Marathi, Bengali, Tamil, KaiOS, an operating Telugu, Gujarati, Kannada, system for low-end Malayalam and Urdu) have feature phones, has the been added to Assistant.58 Sources: 57 Think with Google: e-Conomy SEA 2019: Swipe up and to the right: Southeast Asia’s $100 billion internet economy 58 Tech Crunch: Google Assistant gets expanded language and device support
A peek into your consumer’s future All to gather In India and China, more than 2 in 3 people would like voice-activated devices to use local accents and phrases.59 More than half of all the voice-activated devices to Google introduced The app enables online consumers in APAC use local accents and local a new voice recorder consumers, especially feel that voice-activated phrases.61 This demand could app called “Recorder” those with learning devices should display see future devices move with the launch of the and physical disabilities, human-like characteristics beyond regional accents new Pixel 4 in October easily accomplish such as using local accents and languages and become 2019 that automatically common tasks like (53%) or local phrases more personalised with transcribes recordings taking notes during (56%).60 This is especially vocal characteristics that in real time as the lectures, meetings, so for online consumers in appeal to specific segments person is speaking, and other such events. India and China, where more across APAC. than 2 in 3 people would like even when there is no Internet connectivity. Sources: 59, 60, 61 Google/Qualtrics Consumer Shift Survey 2019
A peek into your consumer’s future All to gather McDonalds recently As the LGBTI communities Pride Circle, it provides acquired voice-technology gradually gain greater “immersive travel for the company Apprente, a visibility and mainstream LGBTI community”. The specialist in voice-based acceptance, more brands brand aims to create more conversational technology are catering to this inclusivity with “experiential in September 2019. demographic. But as they travel that includes LGBTI- Apprente creates voice- gain greater visibility and centric interests, history, based platforms for mainstream acceptance culture, events, and complex, multi-lingual, more brands will look to spaces.”63 Along with offering multi-accent, and multi-item cater to them. The Unhotel trips, the travel specialists conversational ordering. In Hong Kong, Company, a boutique were also sponsors of RISE The eventual plan is to watchtime for Indian travel business that (Reimagining Inclusion implement this technology specialises in creating for Social Equity), India’s LGBT content into customer-facing unique leisure experiences, first LGBTI Job Fair held in scenarios for the fast food grew by over launched a new brand Bangalore, demonstrating giant. This technology is set 70% in the first named, Hues, in September The Unhotel Company’s to be deployed at drive- 2019. A collaboration with commitment to targeting throughs as well as on half of 2019.64 local social enterprise underserved audiences. mobile ordering interfaces and kiosks in the near future. It has the potential to create a more efficient system that can overcome a pain point— fully understanding orders despite differences in regional accents.62 Source: 62 Fast Company: McDonald’s just bought a voice-recognition company for high-tech drive-throughs 63 Unhotel: HUES: An Immersive Travel Experience for the LGBTI Community 64 Google data, Hong Kong, Jan - Jun 2019 vs Jan - Jun 2018
Implications A peek into your consumer’s future All to gather Implications Nobody wants to be in a and communication to position where they feel raise awareness about the excluded when accessing benefits of diversity. Such a product or service. an approach can improve Unfortunately, this does user experience and serve happen when brands a larger mass of people. look at consumers as a Examples of such practices monolithic mass, and not a already exist in the form diverse group of people. It of Leung’s ‘readable’ is, therefore, essential for wallet and Google Maps’ brands to understand and voice guidance feature, address the needs of various which provide enhanced groups and also recognize accessibility for the visually the diversity within them. impaired and make them Along with inclusive design, feel included and secure in it is imperative for them to their daily lives. use the tools of marketing
A peek into your consumer’s future All to gather Brands must evolve a Levelling the playing field app SOS feature and Live genuine approach to for people from all walks of Break Chat support—the former diversity and inclusion. life can help brands initiate the Silence sends automated SMSes Paying lip service to the more dialogues with a broad about a driver’s live location cause may yield temporary range of voices. Technology Campaign to friends and family and results, but consumers is enabling this conversation alerts the police during Malaysia is part of a select emergencies, while the will eventually view these by reducing the pain points group of countries that allow latter helps hearing imparied companies as insincere and of reaching previously Persons With Disability (PWD) drivers communicate with opportunistic. Inclusivity ignored segments, and to obtain a commercial driver’s the app’s support team. The is not just about featuring is helping address unmet license. Seeking to open company has also equipped everyone in campaigns, consumer needs. up more opportunities for cars with materials that can it is also about recognising hearing imparied drivers and help deaf driver-partners the differences and With 3 in 5 APAC consumers raise awareness about the communicate with customers demographic, ride-hailing app about navigation routes and diversity within all groups. (60%) stating that diversity Grab launched GrabForGood toll charges. Furthermore, This recognition can is an important concept in 2018 with their Break The Grab is attempting to cater to help open the door to to them, consumers have Silence campaign. The company passengers with disabilities better understanding and made it abundantly clear that used inclusive in-app features via GrabAcademy, a program contextualising a variety fairness matters to them. and marketing campaigns to for driver-partners on how of consumers. Brands across the region are push the initiative. Some of to better assist people with encouraged to use the tools the features included an in- special needs.65 available at their disposal and embrace this philosophy. Source: 65 Grab: GrabForGood: Break the silence to empower lives
A peek into your consumer’s future Shared commerce Shared Commerce [ʃɛrd ˈkɑmɚs] Next generation consumption driven by an ethos of rational purchasing
A peek into your consumer’s future Shared commerce Shared Commerce The main pillars of Shared highlights the positive Commerce are re-commerce, shift in perception towards rational consumption, and second-hand goods and sustainability. Re-commerce, shared experiences among or reverse marketplace, refers people in the region. In the to the growing practise of recent years, the sharing purchasing and selling used economy—led by the likes goods, or renting products of Uber and Airbnb—has not over a digital marketplace only disrupted industries created for this specific but has also changed why reason. Meanwhile, rational users choose to rent or consumption refers to share rather than own. the consumer practice of This shift in consumption is purchasing or borrowing about maximizing the user’s products and services that More than half of all satisfaction when using are considered necessary the online Millennials a product, given limited rather than superfluous. and Gen Zs in APAC resources—usually driven by And sustainability is about believe that pre-owned price, perception, or a sense balancing the need to own products have better of community. products with the desire value than new items.66 to reduce wastage and And more than half have minimal impact on of the region’s online the environment. consumers claim renting helps them save money that they would have otherwise wasted on a new product.67 Sources: 66, 67 Google/Qualtrics Consumer Shift Survey 2019
A peek into your consumer’s future Shared commerce The exponential rise of consumers, closing the loop e-commerce, along with the and re-selling rather than proliferation of smartphones disposing of products is now has greatly boosted the a critical consideration. marketplace model. Online transactions are no longer The potential of the second- limited to e-commerce hand fashion market was websites, they are now also recently highlighted by taking place on C2C platforms America’s leading re- (chat apps, blogs, forums). commerce marketplaces Thred Up. In a report Across Asia this trend is published by the company, rapidly gathering momentum. the US second-hand fashion According to a global survey category is expected to A Re-commerce took shape when one of the carried out by a leading grow to $51 billion in five Success Story three founders had a tough time re-commerce player in April years from its current value selling his second hand phone. 2019, Hong Kong shows of $24 billion.70 This trend Cashify—an online second- From a one-room start-up that the third highest consumer is gathering exponential hand phones and electronics conducted limited business, the interest in sustainable momentum in APAC, marketplace—enables users to company now sees over 100K sell, repair, and manage phones monthly transactions with an fashion, after Italy and especially in China, where and other electronic devices average ticket size of $59.71. Spain.69 The link between the size of the second- at competitive market rates. In 2018, Cashify raised $12 purchase through to end hand market is expected to Founded in Gurgaon, India in million from Chinese investors usage of a product is a double by 2020 to more than 2013—the idea behind this such as CDH Investments and driving factor that impacts US$140 billion,71 as consumers re-commerce success story MorningSide Group.68 Shared Commerce. For some embrace re-commerce.72 Sources: 68 ET Tech: Recommerce player Cashify raises $12M from CDH Investments & MorningSide Group, others 69 Vestiaire Collective Online Survey 70 Thred Up: 2019 Resale Report 71 asia one: Will you give your unwanted items a ‘second life’? 72 The China Centre for Internet Economy Research
A peek into your consumer’s future Shared commerce The growth of Shared For those looking to balance In the beauty and cosmetics Commerce has also the conflict between their industry, major brands such been aided by the fact desire to own certain as Maybelline New York, that a majority of APAC products and their limited MAC Cosmetics, and consumers feel that being financial resources there Nykaa have embraced frugal in life is important.73 is the emerging trend of the trend and offer their Many among them purchasing items in smaller products in small-sized, also feel that acquiring packs, especially in the high tube containers.74 While second-hand products end Consumer Packaged the concept of sachets in is a socially responsible Goods (CPG) category. emerging markets like the practice that prolongs a Philippines and Indonesia product’s life cycle and has been primarily driven by helps reduce wastage. cost, the concept of social responsibility is helping higher-end CPG brands open a new market for consumers to experience luxury guilt-free. Majority of APAC consumers feel that being frugal in life is important. Sources: 73 Google/Qualtrics Consumer Shift Survey 2019 74 Livemint: Small packs are now a thing of beauty in cosmetics industry
A peek into your consumer’s future Shared commerce Australia75 zero waste Singapore76 zero waste 3x growth in searches zero waste shopping 4x growth in searches zero waste lifestyle for “zero waste” for “zero waste” zero waste veganism zero waste sustainability in the past 5 years in the past 5 years zero waste grocery stores zero waste natural environment India77 zero waste Vietnam78 used goods 5x growth in searches for “zero waste” zero waste implementation 7x growth in searches used goods watches in the past 5 years for “used goods” zero waste solar power used goods flea markets in the past 5 years used goods vintage clothing Founder & Editor-in-Chief see change when it comes choices that have a positive of Green Queen Media, to the consumer mindset impact on the planet and on Sonalie Figueiras, whose in Asia. From zero waste to society. It's no longer just publication receives over 3.5 eco living to plant-based about financial-value-based million digital impressions eating, consumers across status but rather eco-value- per month, predicts attitudes the regions are embracing based status. Consumers to Shared Commerce are sustainability at the core of are pricing in environmental growing in magnitude. She their everyday decisions and costs even as businesses are says: “Everywhere I look I looking to make purchasing lagging behind on this.” Sources: 75 Google Trends, Australia. Oct 1, 2014 to Oct 2019 76 Google Trends, Singapore. Oct 1, 2014 to Oct 2019 77 Google Trends, India. Oct 1, 2014 to Oct 2019 78 Google Trends, Vietnam. Oct 1, 2014 to Oct 2019
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