LOCALIZASIAN

When it comes to innovation – and delighting consumers – the idea that ‘western’ brands are still the yardstick against which Asian brands should be measured just doesn’t stand up anymore.

Today, Asian consumerism sets its own standards. And that means Asian consumers are now flocking in rising numbers to Asian brands that are catering to their lifestyles and their wants and needs – and doing it with the kind of expertise that only a local brand can bring.

LOCALIZASIAN is a trend we first published in 2013. But we’re revisiting it now simply because the accelerating pace of Asian consumerism means it’s just as – if not more – relevant than ever!

Want proof? Read on…

In Q1 2014, Xiaomi sold 10.4 million smartphones in China against Apple’s 9 million, putting Xiaomi ahead for the first time. In fact, Q1 Xiaomi sales were 53% higher than total sales in 2012, as Asian consumers embrace the tech brand’s targeted mix of high performance and low prices.

Furthermore, March 2014 saw the first batch of Xiaomi Mi3 smartphones enter Singapore; stocks ran out in two minutes. That followed the launch of the midrange Redmi in Singapore earlier in the year; the first batch sold out in eight minutes.

Tech lust among Asian consumers? Increasingly, it’s about local brands.

1. RISING AFFLUENCE

Explosive growth in the Asian middle classes means millions more Asian consumers with high expectations.

2. LOCAL LOVE

Asian consumers are increasingly determined to invest in, reimagine and showcase their own localities, traditions and cultures.

3. HOME ADVANTAGE

No one understands Asian consumers quite like Asian brands.

Across Asia, the middle classes are exploding.

In China, the number of households earning over USD 35,000 in real terms will triple to almost 80 million by 2022 (Ernst & Young, February 2014).

Meanwhile, the number of middle class and affluent consumers (MACs) in Indonesia will double by 2020, to 141 million people (Boston Consulting Group, March 2013).

One consequence? Millions more Asian consumers have money to spend on products and services that truly target their needs and wants. And local brands have more reason than ever to put local consumers – their lifestyles, their desires – first.

The emergence of Asia as an economic powerhouse means increasing cultural power and confidence, too. No wonder rising numbers of Asian consumers are determined to invest in, reimagine, and even showcase on the world stage, their own localities and traditions.

That doesn’t just mean a change in global tastes when it comes to music or fashion. It has impacts across consumerism.

Just one snapshot of those impacts? In Indonesia, 65% of consumers say that supporting local companies is a key advantage of buying local (Jana, September 2013).

Let’s keep this simple: Asian brands know Asian consumers – their lifestyles, aspirations, needs and wants – better than anyone. One case in point? Just see below how Reserve Bank of India is innovating for consumers who don’t have a bank account.

But competitive advantage for local brands doesn’t stop at that: there’s increasing regional cooperation, too. For example, it’s intended that 2015 will see the southeast Asian nations create the ASEAN Economic Community, a single market to allow the free flow of goods and services between the constituent members.

Put the two together, and it’s little wonder there’s no stopping ‘by Asia, for Asia’ consumerism!