Four consumer trends in Asia for 2023
The COVID-19 pandemic has had a significant impact on consumer behavior and trends, and these changes are likely to persist even as the pandemic subsides.
Businesses should be aware of these changes when planning their retail expansion abroad, especially in Asia where the "new normal" is emerging. It is important to consider new consumer perspectives, trends, and emerging patterns in order to identify new marketing opportunities and make strategic decisions. Below are some of the trends businesses should keep in mind.
NEED FOR UNIQUENESS
Despite ongoing challenges, many Asian consumers are becoming more optimistic about the future and have been showing an increasing willingness to spend money on goods and services.
This is particularly true for premium and luxury goods, as household incomes are rising and consumers are becoming more willing to spend money on these types of products.
Additionally, many consumers in Asia are placing a higher value on uniqueness and exclusivity, which creates opportunities for new entrants in the market, as long as they have a solid market entry strategy.
OMNICHANNEL STRATEGY
Consumers are looking for convenience in all aspects of their lives, including shopping.
Online shopping saw a significant increase during the pandemic as it provided a safe and easy way to purchase goods without leaving home.
Consumers are now looking for ways to shop online that save time and effort, and cross-border apps such as WeChat mini programs, Tmall, and Lazmall have become popular options.
When planning your retail expansion strategy, it's important to keep in mind that a sole offline strategy is no longer viable. Brands should also consider developing a strong online presence, such as creating local social media presence and using cross-border apps to reach consumers.
It may be also important to have a checklist to see if your brand is ready for expansion and understand how to help brands in developing local social media presence.
HEALTHINESS AWARENESS
The COVID-19 pandemic has made "staying healthy" a top priority for many consumers, leading to a shift in preferences towards more sustainable and natural alternatives in both food and personal skincare. Consumers are becoming more conscious of the products they are consuming and are attracted to aesthetically pleasing packaging, with clean labels and positive nutritional claims.
The beauty segment is also undergoing a similar transition, as the increased use of masks has led to increased awareness of skin problems, and people are spending more time at home experimenting with skincare routines. The new normal consumer is looking for natural products that enhance skin features and overall well-being.
In China, clean beauty is growing rapidly, and many Chinese brands are offering skincare products that use natural ingredients and traditional Chinese medicine. This trend is expected to continue as consumers become more conscious of the impact of their consumption on the environment and their health.
FURNITURE MARKET
As people spent more time at home due to pandemic restrictions, they began to focus more on making their living and working spaces more comfortable, which led to an increase in expenditure on furniture. The furniture market is expected to grow annually by 9.12%, and while many people will still prefer buying in physical shops, an increase in the share of consumers shopping online is also expected.
Retailers in the furniture segment should be aware of the buying behavior of millennial consumers, who are expected to buy their first home in the next few years. This demographic is likely to contribute significantly to the growth of the furniture market.
In addition, both commercial and residential projects have resumed across Asia, giving an optimistic outlook for the furniture market in 2023.
Reach out to us to better understand how to grow your retail presence in Asia at info@texereadvisors.com.
If you wish to further explore this topic, take a look at the recent video interview with our Managing Director, Andrea Bonardi, on how to grow your brand internationally.
Sources
https://daxueconsulting.com/china-beauty-industry/
https://www.hoganlovells.com/en/events/asia-regional-market-outlook-for-asia-2022--2023
https://www.prophet.com/2020/06/five-consumer-trends-in-the-post-covid-19-era/
https://www.mckinsey.com/industries/retail/our-insights/catering-to-asian-consumers
https://www.statista.com/outlook/cmo/furniture/asia#revenue
https://www.mckinsey.com/industries/retail/our-insights/catering-to-asian-consumers
https://www.mckinsey.com/featured-insights/asia-pacific/beyond-income-redrawing-asias-consumer-map