Profiting From Consumer Mega-Trends in Asia Pacific: Connectivity

Introduction

The Connectivity mega-trend reflects the consumer desire to connect with both their peers and surroundings. Forgoing strong personal relationships is important to Asia Pacific consumers, especially in difficult times. Similarly, a feeling of responsibility is driving the trend for ethical consumerism and actions which are motivated by a need to do 'the right thing' for the global community

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

Connectivity is a responsibility orientated mega-trend reflecting how consumers are more connected to their environment. Over half of Asia Pacific consumers report that their personal carbon footprint has become more important to them personally compared to two years ago

The effect of branding on consumers in Asia Pacific is extremely important. These consumers not only consider what a brand means to them personally, but also how it connects them to the wider community and defines their social status

Reasons to Purchase

*Understand the significance of the different Connectivity-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 21
MEGA-TREND SYNOPSIS: Consumers desire an altruistic lifestyle that is rich in relationships and belonging 21
TREND: Ethical and Environmental Consumerism: awareness of and concern for ethical environmental issues is at an all-time high and this increasingly guides consumer choices in Asia Pacific 23
TREND: Digital Lifestyles: Asia Pacific consumers increasingly harness new connective technology for multiple purposes 47
TREND: Relational Wellbeing: Asia Pacific consumers want to maximize personal connections with family and friends 63
TREND: ‘Curated’ Consumerism: Asia Pacific consumers are making purchasing decisions based on the advice of other sources 72
TREND: Positional consumption: Asia Pacific consumers are purchasing products based on identity and status 82
APPENDIX 91
Definitions 91
Methodology 91
Further reading and references 92
Ask the analyst 94
Datamonitor consulting 94
Disclaimer 94


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: Consumers desire an altruistic lifestyle that is rich in relationships and belonging 22
Figure 9: There are a number of drivers and inhibitors that influence the connectivity mega-trend 23
Figure 10: Global consumers are more interested in ethical/environmentally-friendly purchases but this is not always possible 24
Figure 11: Over four in five consumers living in urban areas feel they have a personal responsibility to conserve the global environment 25
Figure 12: Only a small percentage of consumers in Asia Pacific do not attach importance towards protecting the environment 27
Figure 13: More than three quarters of Indians have become more aware of the importance of protecting the environment in recent years 27
Figure 14: When it comes to assessing their individual impact on the environment, consumers in Asia Pacific are roughly in line with the global average 28
Figure 15: In October 2009, people in 181 countries around the world came together for ‘350’ to call for strong action and bold leadership on the climate crisis 29
Figure 16: Consumers from emerging markets in the region generally exhibit the most willingness to support environmentally friendly products 31
Figure 17: Supermarkets and governments alike are implementing schemes to reduce dependence on plastic shopping bags 33
Figure 18: Ethical consumerism is important to consumers in China and India, but far less so in Japan 34
Figure 19: Chinese and Indian consumers are proactive about seeking out environmentally friendly products, whereas Australian, Japanese and Korean consumers are more reactive 35
Figure 20: Ethicality is not particularly influential in product purchasing decisions for consumers in Australia and Japan 36
Figure 21: Japanese consumers do not tend to choose grocery outlets solely based on the ethical policies of the retailer 36
Figure 22: Chinese, Indian and Korean consumers are more willing than Australian and Japanese consumers to boycott food and beverage products and services that they perceive to be unethical 39
Figure 23: Only a tenth of Japanese consumers actively avoid unethical household care products and services which is considerably lower than the global average 40
Figure 24: In Asia Pacific, Indians are the least skeptical about the trustworthiness of corporations 43
Figure 25: Consumer watchdogs are keeping shoppers aware and informed about the credibility of environmental claims made by supermarket products 44
Figure 26: With the exception of Indians, Asia Pacific consumers generally exhibit similar attitudes to consumers globally with regards to stated trust in food and beverage products claiming natural or organic ingredients 44
Figure 27: Around a third of consumers in Asia Pacific do not believe cosmetics or beauty brands to make credible claims about being organic or natural, with distrust particularly high in Australia 45
Figure 28: Consumers in Australia and Japan are more skeptical than the global average about the credibility of environmental claims made by household care brands 46
Figure 29: Consumers are generally welcoming the increases in connectivity that technology is facilitating 47
Figure 30: Nearly three-quarters of consumers in North America use the internet —the highest regional penetration in the world 48
Figure 31: Mobile phones in Japan have replaced everything from credit cards to train tickets 51
Figure 32: Mobile phone subscriptions are particularly prominent in Australia 52
Figure 33: Despite a comparably low penetration rate, there are more internet users in China than in other Asia Pacific countries 53
Figure 34: Internet users in Hong Kong, Japan and Korea enjoy particularly high broadband speeds 53
Figure 35: In Asia Pacific the level of skepticism about science and technology is generally very low 54
Figure 36: Consumers in emerging markets in particular are looking to shop more over the internet 56
Figure 37: In the Asia Pacific region, social network online penetration is highest in Singapore, Australia and Korea 58
Figure 38: Citibank and AirAsia harnessed the power of social networking in Malaysia to promote their joint venture 59
Figure 39: Social networks such as Facebook facilitate an extension of the user’s real-life persona, whereas offerings such as QQ are about building a unique reputation in an online world 60
Figure 40: Capitalizing on the online gaming trend, India’s Kingfisher beer devised an online game where users open their own Kingfisher lounge and try to make as much money as they can in 14 days by buying and selling beer 62
Figure 41: Consumers see personal connections as an important part of wellbeing 64
Figure 42: Japanese and Korean consumers in particular report dissatisfaction with their family and social life 67
Figure 43: The fact that spending time with friends and family has not changed much in importance to Japanese consumers suggests a long-standing emphasis on this type of socialization in this country 68
Figure 44: Pakistani and Indonesian consumers are less satisfied with their family lives than other consumers elsewhere across Asia Pacific 68
Figure 45: Japanese consumers rarely entertain friends and family at home, whereas Koreans have found it a particularly appealing way to enjoy themselves during the recession 71
Figure 46: Products that align themselves with restaurants or noted chefs appeal to consumers seeking to replicate the restaurant experience at home 71
Figure 47: Consumers feel that the more information they have available, the better their consumption choices will be 73
Figure 48: In what reflects their relative experience as consumers, Indian and Chinese consumers are heavily reliant on others for advice about product purchases in order to minimize ‘purchase risk’ 76
Figure 49: Online forums in Asia Pacific range from beauty and fashion communities to restaurant and alcoholic beverage reviews 78
Figure 50: Beck’s Uberselektor recommends the best events to attend depending on the location of the consumer 80
Figure 51: Consumers’ propensity to rely on and contribute to online communities has boosted the crowdsourcing trend in Asia Pacific 81
Figure 52: Positional consumption is the result of the ongoing consumer need to define status 82
Figure 53: Consumers often display similar buying patterns so they can noticeably demonstrate what social group they belong to 83
Figure 54: For some Asian consumers, being seen with the right brand is even more important than what a brand means to themselves as individuals 85
Figure 55: The recent popularity of ‘vintage’ wear in Japan has driven the success of second-hand clothing store Hanjiro, which has grown from one store in 1992 to 19 today 85
Figure 56: Blogs are a resource for connoisseurs to meet, share and expand their knowledge 88
Figure 57: The GoodGuide iPhone application gives users access to product ratings and quality checks for over 70,000 items, as well as instant recommendations based on what’s important to them 89
Figure 58: There are differences between consumer values and attitudes 91



[Inhaltsverzeichnis ausblenden]

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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: Consumers desire an altruistic lifestyle that is rich in relationships and belonging 22
Figure 9: There are a number of drivers and inhibitors that influence the connectivity mega-trend 23
Figure 10: Global consumers are more interested in ethical/environmentally-friendly purchases but this is not always possible 24
Figure 11: Over four in five consumers living in urban areas feel they have a personal responsibility to conserve the global environment 25
Figure 12: Only a small percentage of consumers in Asia Pacific do not attach importance towards protecting the environment 27
Figure 13: More than three quarters of Indians have become more aware of the importance of protecting the environment in recent years 27
Figure 14: When it comes to assessing their individual impact on the environment, consumers in Asia Pacific are roughly in line with the global average 28
Figure 15: In October 2009, people in 181 countries around the world came together for ‘350’ to call for strong action and bold leadership on the climate crisis 29
Figure 16: Consumers from emerging markets in the region generally exhibit the most willingness to support environmentally friendly products 31
Figure 17: Supermarkets and governments alike are implementing schemes to reduce dependence on plastic shopping bags 33
Figure 18: Ethical consumerism is important to consumers in China and India, but far less so in Japan 34
Figure 19: Chinese and Indian consumers are proactive about seeking out environmentally friendly products, whereas Australian, Japanese and Korean consumers are more reactive 35
Figure 20: Ethicality is not particularly influential in product purchasing decisions for consumers in Australia and Japan 36
Figure 21: Japanese consumers do not tend to choose grocery outlets solely based on the ethical policies of the retailer 36
Figure 22: Chinese, Indian and Korean consumers are more willing than Australian and Japanese consumers to boycott food and beverage products and services that they perceive to be unethical 39
Figure 23: Only a tenth of Japanese consumers actively avoid unethical household care products and services which is considerably lower than the global average 40
Figure 24: In Asia Pacific, Indians are the least skeptical about the trustworthiness of corporations 43
Figure 25: Consumer watchdogs are keeping shoppers aware and informed about the credibility of environmental claims made by supermarket products 44
Figure 26: With the exception of Indians, Asia Pacific consumers generally exhibit similar attitudes to consumers globally with regards to stated trust in food and beverage products claiming natural or organic ingredients 44
Figure 27: Around a third of consumers in Asia Pacific do not believe cosmetics or beauty brands to make credible claims about being organic or natural, with distrust particularly high in Australia 45
Figure 28: Consumers in Australia and Japan are more skeptical than the global average about the credibility of environmental claims made by household care brands 46
Figure 29: Consumers are generally welcoming the increases in connectivity that technology is facilitating 47
Figure 30: Nearly three-quarters of consumers in North America use the internet —the highest regional penetration in the world 48
Figure 31: Mobile phones in Japan have replaced everything from credit cards to train tickets 51
Figure 32: Mobile phone subscriptions are particularly prominent in Australia 52
Figure 33: Despite a comparably low penetration rate, there are more internet users in China than in other Asia Pacific countries 53
Figure 34: Internet users in Hong Kong, Japan and Korea enjoy particularly high broadband speeds 53
Figure 35: In Asia Pacific the level of skepticism about science and technology is generally very low 54
Figure 36: Consumers in emerging markets in particular are looking to shop more over the internet 56
Figure 37: In the Asia Pacific region, social network online penetration is highest in Singapore, Australia and Korea 58
Figure 38: Citibank and AirAsia harnessed the power of social networking in Malaysia to promote their joint venture 59
Figure 39: Social networks such as Facebook facilitate an extension of the user’s real-life persona, whereas offerings such as QQ are about building a unique reputation in an online world 60
Figure 40: Capitalizing on the online gaming trend, India’s Kingfisher beer devised an online game where users open their own Kingfisher lounge and try to make as much money as they can in 14 days by buying and selling beer 62
Figure 41: Consumers see personal connections as an important part of wellbeing 64
Figure 42: Japanese and Korean consumers in particular report dissatisfaction with their family and social life 67
Figure 43: The fact that spending time with friends and family has not changed much in importance to Japanese consumers suggests a long-standing emphasis on this type of socialization in this country 68
Figure 44: Pakistani and Indonesian consumers are less satisfied with their family lives than other consumers elsewhere across Asia Pacific 68
Figure 45: Japanese consumers rarely entertain friends and family at home, whereas Koreans have found it a particularly appealing way to enjoy themselves during the recession 71
Figure 46: Products that align themselves with restaurants or noted chefs appeal to consumers seeking to replicate the restaurant experience at home 71
Figure 47: Consumers feel that the more information they have available, the better their consumption choices will be 73
Figure 48: In what reflects their relative experience as consumers, Indian and Chinese consumers are heavily reliant on others for advice about product purchases in order to minimize ‘purchase risk’ 76
Figure 49: Online forums in Asia Pacific range from beauty and fashion communities to restaurant and alcoholic beverage reviews 78
Figure 50: Beck’s Uberselektor recommends the best events to attend depending on the location of the consumer 80
Figure 51: Consumers’ propensity to rely on and contribute to online communities has boosted the crowdsourcing trend in Asia Pacific 81
Figure 52: Positional consumption is the result of the ongoing consumer need to define status 82
Figure 53: Consumers often display similar buying patterns so they can noticeably demonstrate what social group they belong to 83
Figure 54: For some Asian consumers, being seen with the right brand is even more important than what a brand means to themselves as individuals 85
Figure 55: The recent popularity of ‘vintage’ wear in Japan has driven the success of second-hand clothing store Hanjiro, which has grown from one store in 1992 to 19 today 85
Figure 56: Blogs are a resource for connoisseurs to meet, share and expand their knowledge 88
Figure 57: The GoodGuide iPhone application gives users access to product ratings and quality checks for over 70,000 items, as well as instant recommendations based on what’s important to them 89
Figure 58: There are differences between consumer values and attitudes 91


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