Profiting From Consumer Mega-Trends in Asia Pacific: Comfort

Introduction

The Comfort mega-trend is driven by demands for safety, escapism, simplicity and tradition among consumers in the Asia Pacific region. In many ways, the Sensory versus Comfort mega-trend trade-off represents the problems associated with balancing a desire for new experiences and change with desires for stability and familiarity

Scope

*Detailed trend analysis outlining what constitutes 'value' for consumers (trends are, after all, a reflection of what's important to consumers)

*Offers Asia Pacific focused insights, benchmarked against global sentiment, to cater for contextualized regional-specific information needs

*Covers all major FMCG sectors, but also with applicability to wider consumer goods audiences

*Part of Datamonitor's Asia Pacific mega-trend report series which outline the most important issues shaping current and future buying behavior

Highlights

Good trend-watching is about taking the bigger-picture approach. Adopting a broader global perspective to trend-tracking facilitates better decision making by overcoming 'category myopia'. Monitoring the broader FMCG environment will enable bigger picture learning that can be applied more specifically

A considerable 'trust void' is apparent in Asia Pacific when it comes to commercial enterprises in general and the specifics of the products they produce and market. Datamonitor research has found that consumers across the region do not automatically accept stated product claims

Only a minority of consumers in the Asia Pacific region stated that they found food products and ingredients imported from other countries to be either 'trustworthy' or 'very trustworthy'. Given that the majority of consumers are predisposed to distrust foreign ingredients, this is a significant proportion of the market to potentially lose out on

Reasons to Purchase

*Understand the significance of the different Comfort-aligned trends across FMCG sectors to help support market diversification plans

*Gain region specific consumer insight, including a clear and up-to-date framework for understanding Asia Pacific consumers

*Access data from two waves of primary research to increase the likelihood of being 'on-trend' with NPD and marketing in the Asia Pacific region


Report Highlights

[Studien Infos ausblenden]

TABLE OF CONTENTS
Overview 1
Catalyst 1
Summary 1
INTRODUCTION: THE IMPORTANCE OF TREND-TRACKING 7
Tracking consumer mega-trends is fundamental to long-term success 7
THE FUTURE DECODED: DECIPHERING THE COMFORT MEGA-TREND 21
MEGA-TREND SYNOPSIS: Consumers want safety, simplicity, trust and indulgence in response to rising stress and uncertainty 21
TREND: Cautious Consumerism: many individuals in Asia Pacific are concerned about the direction of society, and are distrustful and skeptical of progress and change 22
TREND: Cocooning: the global financial crisis and the ongoing desire to ‘shut off’ from the wider world continues to shape Asia Pacific consumer attitudes and behaviors 39
TREND: Ethnocentrism: ethnocentric preferences among Asia Pacific consumers exacerbate favorability of national or local products and brands 52
TREND: Simplifying and Downshifting: Asia Pacific consumers often aspire to a simplified, less complicated lifestyle and shopping experience 60
TREND: Nostalgic Consumerism and the ‘Return to Real’ 78
APPENDIX 89
Definitions 89
Methodology 89
Further reading and references 90
Ask the analyst 92
Datamonitor consulting 92
Disclaimer 93


TABLE OF FIGURES
Figure 1: Datamonitor’s mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories 9
Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a ‘trend hierarchy’ 10
Figure 3: Datamonitor’s mega-trend framework helps set the agenda for the specific topics covered in the New Consumer Insight (NCI) research stream 12
Figure 4: Trend tracking can be a source of (comparative) competitive analysis 13
Figure 5: Trend development is dictated by both ‘consumer pull’ and ‘manufacturer push’ and Datamonitor offers the intelligence tools to capitalize on this reality 15
Figure 6: In a consumerist global culture, the broad consumption spheres/segments transcend geographical borders which is another reason why adopting a broader approach is necessary 17
Figure 7: Several factors distinguish a trend from a fad 18
Figure 8: Opinion is somewhat polarized over whether technology is making society better 22
Figure 9: The issues that contribute to consumer concern and related societal pessimism vary by region 24
Figure 10: Chinese citizens have the highest level of satisfaction about the direction of their own country while Japanese citizens are significantly more pessimistic 25
Figure 11: Societal Pessimism among Indians has subsided considerably in the last decade 26
Figure 12: The extent to which Asians consider crime to be a very big problem varies considerably by country 26
Figure 13: Social trust among Asians is heavily polarized with the exception of China 27
Figure 14: Skeptical Consumerism: there are four reasons why trust and ethos based branding are of increasing importance 28
Figure 15: Majorities in most Asia Pacific countries trust business less following developments in 2008-09 29
Figure 16: Asians in emerging markets are showing more trust in food and beverages claims, while Australians are most skeptical about claims aimed at children 30
Figure 17: In Asia Pacific, consumers are generally skeptical about claims made by personal care products and household care products 31
Figure 18: Japanese, Australian and Korean respondents express considerable skepticism towards declarations of ethicality 32
Figure 19: A number of consumer watchdog groups in the region ensure misleading product claims are brought to consumers’ attention 32
Figure 20: In Asia Pacific, worries about genetically modified foods are prevalent 35
Figure 21: The growing number of ‘GM-free’ claims reflects increasing concern over unfamiliar production methods 35
Figure 22: In Asia Pacific, consumers express high concern about additives and chemicals used in products, particularly with household care and laundry products 36
Figure 23: In Asia Pacific the level of skepticism about science and technology is generally very low 38
Figure 24: A downward global economic cycle is the precursor to a renewed phase of cocooning behavior 40
Figure 25: Japanese and Korean consumers are the least confident about their general health and overall nutritional quality of their diets 42
Figure 26: South Koreans in particular appear to be cutting down more on their meal spending in order to save money 44
Figure 27: In an effort to save money, Japanese consumers appear less concerned about cutting down on their usage of spas or salons, while South Koreans exhibited the most behavioral change 45
Figure 28: Asia Pacific consumers, more than their global counterparts, report that that have been making more conscious efforts to drink more frequently at home 46
Figure 29: Products that enable consumers to enjoy out-of-home experiences in the home have grown in popularity throughout the region 46
Figure 30: Japanese consumers do not subscribe to the notion that they are houseproud 48
Figure 31: Indian and Australian consumers exhibit the most interest in growing and consuming their own food 51
Figure 32: Consumers are displaying a higher concern about where the groceries they buy come from than whether the products are produced locally 53
Figure 33: More than one-in-five consumers across the five Asia Pacific markets covered are frequently trying to purchase food and drinks products locally to where they live 54
Figure 34: Products touting local ingredients appeal to a growing number of ‘locavores’ in Asia Pacific 55
Figure 35: Asia Pacific consumers are concerned about the origin of products they buy, with consumers in the more developed markets especially skeptical about imported food products 57
Figure 36: Though more consumers believe immigration to be a good thing than a bad thing, there are sizable numbers embracing opposite perspectives 59
Figure 37: Chinese consumers are the least tolerant towards consumers of different nationalities/ethnicities 60
Figure 38: Consumers want to slow down the pace of life and form stronger relationships with loved ones 61
Figure 39: Asia Pacific consumers tend to agree that too much choice exists in the grocery market, but that choice is influential on where they do most of their shopping 63
Figure 40: Consumers in Asia Pacific are more attentive towards new food products than soft drinks 64
Figure 41: Personal care/beauty consumers in developing markets tend to be more influenced by habit or preferred brands, especially in India and China 64
Figure 42: Japanese consumers are least attentive towards new household cleaning and laundry products, and are less influenced by habit or preferred brand 65
Figure 43: Japanese and Korean consumers are more attentive to new alcoholic drinks and are less influenced by brands 65
Figure 44: The abundance of choice across virtually all product categories requires point-of-purchase marketing to be all the more compelling 66
Figure 45: Most consumers in the Asia Pacific region agree that there is too much advertising nowadays 68
Figure 46: Many Asia Pacific consumers view leading a less complicated lifestyle as important 70
Figure 47: The prevalence of stress in the region has led to the proliferation of FMCG offerings that seek to address this 70
Figure 48: Consumers in North-East Asia place a lot of emphasis on accumulating material possessions 73
Figure 49: Indicative of their ubiquity and popularity, credit cards in Japan are as much a fashion accessory as a form of payment 73
Figure 50: Japanese and Korean consumers express the least satisfaction with their work-life balance 75
Figure 51: Only a small proportion of consumers in Asia Pacific believe it has become less important to spend time with their friends and families 76
Figure 52: Maximizing leisure time is important for consumers in Asia Pacific with high tempo lifestyles 76
Figure 53: Korean parents are the most dissatisfied with the time spent with their children 77
Figure 54: There are different forms of nostalgia, some of which provide more mass marketing opportunities than others 79
Figure 55: A lack of consumer confidence in difficult times is the main driver for nostalgia and traditional products 79
Figure 56: To celebrate its 25th birthday, Maggi in India launched a dedicated website inviting consumers to reminisce about their Maggi experiences and post their own “Maggi story” 81
Figure 57: New Zealand soft drink brand L&P ran an ongoing series of commercials that walked Kiwis through a classic childhood summer before reminding them that “You were there, and so was L&P” 82
Figure 58: Asia Pacific consumers from more developed markets are less likely to have tried new and exotically flavored products 84
Figure 59: Asia Pacific consumers are increasingly willing to experiment with different flavors, however more traditional offerings remain popular in Japan 84
Figure 60: Korean consumers are making the most effort to move from consumption of convenience foods to meals cooked from scratch 86
Figure 61: In Asia Pacific, products marketed as authentic or home-made appeal to consumers but are not necessarily considered an important influencer in decision-making 87
Figure 62: Mother’s tailor-made shopping and ingredient delivery service in Singapore makes home cooking easier and more convenient 87
Figure 63: There are differences between consumer values and attitudes 89


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TABLE OF FIGURES
Figure 1: Datamonitor’s mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories 9
Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a ‘trend hierarchy’ 10
Figure 3: Datamonitor’s mega-trend framework helps set the agenda for the specific topics covered in the New Consumer Insight (NCI) research stream 12
Figure 4: Trend tracking can be a source of (comparative) competitive analysis 13
Figure 5: Trend development is dictated by both ‘consumer pull’ and ‘manufacturer push’ and Datamonitor offers the intelligence tools to capitalize on this reality 15
Figure 6: In a consumerist global culture, the broad consumption spheres/segments transcend geographical borders which is another reason why adopting a broader approach is necessary 17
Figure 7: Several factors distinguish a trend from a fad 18
Figure 8: Opinion is somewhat polarized over whether technology is making society better 22
Figure 9: The issues that contribute to consumer concern and related societal pessimism vary by region 24
Figure 10: Chinese citizens have the highest level of satisfaction about the direction of their own country while Japanese citizens are significantly more pessimistic 25
Figure 11: Societal Pessimism among Indians has subsided considerably in the last decade 26
Figure 12: The extent to which Asians consider crime to be a very big problem varies considerably by country 26
Figure 13: Social trust among Asians is heavily polarized with the exception of China 27
Figure 14: Skeptical Consumerism: there are four reasons why trust and ethos based branding are of increasing importance 28
Figure 15: Majorities in most Asia Pacific countries trust business less following developments in 2008-09 29
Figure 16: Asians in emerging markets are showing more trust in food and beverages claims, while Australians are most skeptical about claims aimed at children 30
Figure 17: In Asia Pacific, consumers are generally skeptical about claims made by personal care products and household care products 31
Figure 18: Japanese, Australian and Korean respondents express considerable skepticism towards declarations of ethicality 32
Figure 19: A number of consumer watchdog groups in the region ensure misleading product claims are brought to consumers’ attention 32
Figure 20: In Asia Pacific, worries about genetically modified foods are prevalent 35
Figure 21: The growing number of ‘GM-free’ claims reflects increasing concern over unfamiliar production methods 35
Figure 22: In Asia Pacific, consumers express high concern about additives and chemicals used in products, particularly with household care and laundry products 36
Figure 23: In Asia Pacific the level of skepticism about science and technology is generally very low 38
Figure 24: A downward global economic cycle is the precursor to a renewed phase of cocooning behavior 40
Figure 25: Japanese and Korean consumers are the least confident about their general health and overall nutritional quality of their diets 42
Figure 26: South Koreans in particular appear to be cutting down more on their meal spending in order to save money 44
Figure 27: In an effort to save money, Japanese consumers appear less concerned about cutting down on their usage of spas or salons, while South Koreans exhibited the most behavioral change 45
Figure 28: Asia Pacific consumers, more than their global counterparts, report that that have been making more conscious efforts to drink more frequently at home 46
Figure 29: Products that enable consumers to enjoy out-of-home experiences in the home have grown in popularity throughout the region 46
Figure 30: Japanese consumers do not subscribe to the notion that they are houseproud 48
Figure 31: Indian and Australian consumers exhibit the most interest in growing and consuming their own food 51
Figure 32: Consumers are displaying a higher concern about where the groceries they buy come from than whether the products are produced locally 53
Figure 33: More than one-in-five consumers across the five Asia Pacific markets covered are frequently trying to purchase food and drinks products locally to where they live 54
Figure 34: Products touting local ingredients appeal to a growing number of ‘locavores’ in Asia Pacific 55
Figure 35: Asia Pacific consumers are concerned about the origin of products they buy, with consumers in the more developed markets especially skeptical about imported food products 57
Figure 36: Though more consumers believe immigration to be a good thing than a bad thing, there are sizable numbers embracing opposite perspectives 59
Figure 37: Chinese consumers are the least tolerant towards consumers of different nationalities/ethnicities 60
Figure 38: Consumers want to slow down the pace of life and form stronger relationships with loved ones 61
Figure 39: Asia Pacific consumers tend to agree that too much choice exists in the grocery market, but that choice is influential on where they do most of their shopping 63
Figure 40: Consumers in Asia Pacific are more attentive towards new food products than soft drinks 64
Figure 41: Personal care/beauty consumers in developing markets tend to be more influenced by habit or preferred brands, especially in India and China 64
Figure 42: Japanese consumers are least attentive towards new household cleaning and laundry products, and are less influenced by habit or preferred brand 65
Figure 43: Japanese and Korean consumers are more attentive to new alcoholic drinks and are less influenced by brands 65
Figure 44: The abundance of choice across virtually all product categories requires point-of-purchase marketing to be all the more compelling 66
Figure 45: Most consumers in the Asia Pacific region agree that there is too much advertising nowadays 68
Figure 46: Many Asia Pacific consumers view leading a less complicated lifestyle as important 70
Figure 47: The prevalence of stress in the region has led to the proliferation of FMCG offerings that seek to address this 70
Figure 48: Consumers in North-East Asia place a lot of emphasis on accumulating material possessions 73
Figure 49: Indicative of their ubiquity and popularity, credit cards in Japan are as much a fashion accessory as a form of payment 73
Figure 50: Japanese and Korean consumers express the least satisfaction with their work-life balance 75
Figure 51: Only a small proportion of consumers in Asia Pacific believe it has become less important to spend time with their friends and families 76
Figure 52: Maximizing leisure time is important for consumers in Asia Pacific with high tempo lifestyles 76
Figure 53: Korean parents are the most dissatisfied with the time spent with their children 77
Figure 54: There are different forms of nostalgia, some of which provide more mass marketing opportunities than others 79
Figure 55: A lack of consumer confidence in difficult times is the main driver for nostalgia and traditional products 79
Figure 56: To celebrate its 25th birthday, Maggi in India launched a dedicated website inviting consumers to reminisce about their Maggi experiences and post their own “Maggi story” 81
Figure 57: New Zealand soft drink brand L&P ran an ongoing series of commercials that walked Kiwis through a classic childhood summer before reminding them that “You were there, and so was L&P” 82
Figure 58: Asia Pacific consumers from more developed markets are less likely to have tried new and exotically flavored products 84
Figure 59: Asia Pacific consumers are increasingly willing to experiment with different flavors, however more traditional offerings remain popular in Japan 84
Figure 60: Korean consumers are making the most effort to move from consumption of convenience foods to meals cooked from scratch 86
Figure 61: In Asia Pacific, products marketed as authentic or home-made appeal to consumers but are not necessarily considered an important influencer in decision-making 87
Figure 62: Mother’s tailor-made shopping and ingredient delivery service in Singapore makes home cooking easier and more convenient 87
Figure 63: There are differences between consumer values and attitudes 89

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