APAC Markets: Growth, Investments And Opportunities

Jul 22, 2022

The Asia-Pacific (APAC) region has always been the leading player in the world economy. 

The importance of APAC on world GDP plays a key role when one considers that its value has increased from 27% in 2000 to around 37% in 2021. 

Over the next 20 years, the region's economic weight is expected to increase further, reaching about 42% of world GDP, thanks mainly to the further economic expansion of China, India, and the ten South-East Asian countries that make up ASEAN, which drive growth in world demand.

These figures are in contrast to those of the European Union, which experienced a significant decrease from 26% of world GDP in 2000 to 8% in 2021, and to those of the United States, which decreased from 30% in 2000 to 24% in 2021.




Intensifying Intra-Regional and Domestic Relations

The covid-19 pandemic has shown us how resisting the unexpected is more important than ever.

The positive increase in domestic demand in ASEAN helped sustain the recovery of growth in early 2022, despite global uncertainties due to the Russia-Ukraine war, inflation and China's economic slowdown.

Indeed, while global markets suffered an unexpected crisis, the share of goods traded within Asia remained stable at 60%. Moreover, in developing countries, as the trend of consuming what one produces spreads, companies are more inclined to locate in the Apac region and no longer abroad.

In the next two decades, therefore, ASEAN exports will be facilitated to other expanding Asia-Pacific markets and to domestic markets. In particular, Mainland China and Hong Kong SAR will account for 22.6 percent of goods exports and intra-ASEAN trade for 21 percent.


APAC's Driving Force: The Retail Market 

APAC's consumer markets will become the driving forces behind global demand growth and winning the digital engagement race is likely to be vital.

People are buying more through apps such as WeChat, Paytm, KakaoTalk and Social Media, particularly through mobile phones and this trend is set to deepen: 70% to 85% of e-commerce will be conducted by phone in 2023 in key regional markets. 


Are your selling channels future-proof?

  • 7 in 10 customers are well aware that a significant portion of the entire day will be spent inside the home. Therefore, they are eager to buy home decor,self‑care, personal grooming stuff, and make a living at home

  • Buyers in Southeast Asia browse eight websites before actually making a purchase and usually buy items from up to eight categories. Both figures have increased from the last year



Knowing What the Future Trends Will Be Keeps You Ahead of Competitors

  • Up to 57% of shoppers in Southeast Asia consider value for money as crucial decision-making consideration

  • Southeast Asia consumers are eager for the new brands in the market. Four in ten buyers in the region are likely to buy from a new entrant in the market, even upon discovering it just a few days before purchase

  • Southeast Asia consumers have increasingly become health conscious. Healthy food, fitness and whatever ensures good health will not skip from the wishlist

  • Beauty retailers should achieve a 5% cagr by 2026 and consumers across Asia prefer individualised, one-on-one consultations and want to shop in store to try products before making a purchase. Retailers in this space need to use tech to enhance the in-store experience

  • Food and beverage e-commerce sales in Asia have consistently posted double-digit growth. Businesses need to  implement creative strategies to compete in an aggressive landscape and help grocery retailers gain access to a larger consumer base, shorten delivery times and maintain a competitive advantage


What Do You Need to Stay Competitive

  • Make sure you are present online. Your store profile should be as appealing as possible.  Asian consumers always research a brand online before purchasing, this is especially important for brands with low awareness in the Asian region

  • Invest in  marketing. Make sure you have a strong, localised strategy that includes local media and social media channels 

  • Keep customers updated on the latest news, dedicated promotions or discounts with frequent email newsletters

  • Ensure that your customer support and logistics team are prompt and efficient, as consumers are less patient than ever before


How Texere Can Help your Business

Despite the fact that Asia is one of the world’s most favoured markets for business expansion, it also has its own set of challenges. To be successful, businesses must perform their due diligence prior to selecting an Asian market and developing an entry strategy.

To deal with the economic shift from West to East and follow the rise of the already dominant Asian markets is essential to have by your side the right planning and a partner you can trust.

Since 2013 we assist brands in driving a sustainable retail expansion in strategic markets, specialising in lifestyle, consumer goods, fashion, and gourmet food.

We help brands in every aspect of their internationalisation, from brand assessment to omnichannel strategy development and its implementation.


Get in touch today for a complimentary consultation at info@texereadvisors.com

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