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Navigating Value for the Consumer in Asia Pacific

1/17/2025
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Economic slowdowns, job instability and rising prices are pushing consumers in Asia Pacific to adopt more cost-conscious spending habits. The concept of "value" now encompasses more complex considerations, as consumers weigh both financial and emotional factors in their purchasing decisions.

72% of Asia Pacific consumers are concerned about the rising cost of everyday expenses

Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded in January and February 2024

In this context, consumers are “spending wiser”, maximising worth in their purchases by considering multiple added values including functionality, quality, convenience, time-saving merits, and health. This shift in behaviour aligns with the trend identified as Wiser Wallets, one of Euromonitor’s top global consumer trends for 2025.

Retailers boost affordability, technology, and loyalty through innovation

Retail channels in Asia Pacific that offer affordability are showing strong growth potential. Warehouse clubs, exemplified by Sam’s Club, are gaining traction among Chinese consumers, while variety stores like Daiso and Miniso are doing well across multiple Asia Pacific countries.

Chart showing Sam's Club Performance in China 2018-2023Private label offerings also contribute to this trend, spanning not only offline but online as well. For instance, Foodpanda launched its private label brand, Bright, on its Pandamart platform, while leading e-commerce players such as Temu and Coupang provide unbranded products at more budget-friendly prices. 

Secondly, tech solutions are paving new opportunities in retail. Technologies like AI-powered skin analysis are at the top of the list, catering to this demand, and simple innovation is also transforming traditional practices. For example, Jago Coffee in Indonesia leverages AI to modernise the coffee-on-bikes, where sellers offer brewed sachet coffee powder from bikes. Real-time inventory management and digitalised order processing through mobile apps provide cost reduction and greater convenience.Graphic shpwong jagocoffee.comUnmanned stores are another representative example of digitalised retail operations that maximise efficiency for both retailers and consumers. For example, South Korea’s Munguya Nolja, a stationery store, offers a unique digital experience where customers can preorder items, earn points, and manage prepaid accounts allowing parents to control and fund their children’s purchases in real time.

Thirdly, loyalty programmes are also a key strategy which retailers use to attract cost-conscious consumers.

Nearly 50% of those participating in loyalty programmes indicate that their participation is based on receiving discounts or offers

Source: Euromonitor’s Voice of the Consumer: Digital Consumer Survey, fielded in March and April 2024

That goes even higher to almost 60% in emerging markets such as Indonesia and Thailand, where finding bargains remains a significant driver of consumer behaviour.

Chart showing "Receiving Discounts or Offers" as the Top Reason for Participating in Loyalty Programmes 2024

Affordable premiumisation set to be a key strategy to appeal to consumers seeking added value

Affordable premiumisation is an emerging strategy used by brands to appeal to consumers’ pursuit of value. Brands have responded by providing products offering added value alongside affordable pricing. This is especially driven by local brands, which use cheaper materials and ingredients or even lowered prices while being positioned as having premium quality. This is evident in beauty and personal care in China, where brands such as Proya offer high-quality ingredients and positioning such as anti-ageing at an affordable price point of USD70. Similarly, local brands of luxury goods in Asia Pacific have been offered at affordable price points, and collaboration with partners is seen in e-commerce platforms such as Tmall and Flipkart. This serves to widen consumer reach, especially to rural areas where physical stores may not be present. Also, e-commerce platforms are popular with young consumers due to their high engagement with social media livestreaming.Images of LOreal and CeraVe brandsTo compete with local brands, international premium brands have also responded by demonstrating credible added-value features. Besides price promotion, international brands have widened their product portfolio through affordable ingredients or lower concentrations in affordable premium products. For example, L’Oréal has two products – SkinCeuticals 242 Cream (CNY1,580) and CeraVe C Cream (CNY99). While there is a big difference in price, both products serve the same purpose in restoring the skin barrier.

Wiser Wallets: What’s next to win in Asia Pacific

Looking ahead, most Asia Pacific countries are expected to maintain moderate levels of per household consumer expenditure. However, consumers are becoming wiser, carefully planning how to allocate their budgets. As such, a stronger focus on how consumers perceive value is essential.

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Consumers in Asia Pacific are set to become more sophisticated, seeking products with premium quality yet demanding affordable pricing. It is critical for brands to adopt solutions that convey clear benefits and added value. This includes constant product innovation to strengthen their brand positioning, as well as tapping into new channels, such as second-hand platforms. 

Moreover, it is important for retailers to leverage technology to drive value for consumers. 

30% of Asia Pacific consumers believe that Gen AI enhances personalised assistance in their shopping experience

Source: Euromonitor’s Voice of the Consumer: Digital Consumer Survey, fielded in March-April 2024

By boosting operational efficiency and reducing labour costs, this contributes to retailers’ cost savings that can be passed on to consumers. Moreover, the shopping experience can be enhanced with innovations such as unmanned stores and seamless online-offline integration.

Read our report, Beyond Price: What Value Means to Consumers in Asia Pacific, for more analysis of how “value” is evolving, along with innovative strategies and marketing approaches adopted by market players in order to win consumers and maximise profits. Our article, Top Five Global Trends in Income and Expenditure, provides more analysis on opportunities for brands to drive growth in a challenging economy.

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