Beyond Price: What Value Means to Consumers in Asia Pacific

December 2024

While product value for consumers across Asia Pacific was traditionally defined by price, quality and quantity, a broader concept of value is emerging reflecting a blend of financial and emotional considerations that shape purchasing choices. By understanding how consumers in Asia Pacific are spending wiser, companies will be able to strategize through innovation and marketing, in order to win consumers and maximize profits.

EUR 1,375
Request More Information

Delivery

This report comes in PPT.

Key findings

Rising cost-of-living concerns in Asia Pacific

Low inflation in Asia Pacific has kept cost-of-living issues minimal in this region. However, due to recent economic slowdowns, job instability and rising prices are driving consumers to adopt more cost-conscious spending. The concept of “value” now includes more than just price, with consumers focusing on maximising worth in their purchases.

Understanding the definition of “value”

Asia Pacific consumers define “value” as more than simply a competitive price; they view it as a balance between cost and various factors, such as quality, brand reputation, experience and personal preferences. This broader concept of value reflects a blend of financial and emotional considerations that shape purchasing choices.

Enhancing value and engagement through retail channels

Asia Pacific consumers are seeking for values beyond dollar value through private label and discounts but also through loyalty programmes, personalisation of recommendations through Gen AI utilisation, as well as seamless online-offline shopping experiences including expansion of unmanned stores in Asia Pacific.

Evolving consumer values: Adapting consumer preferences for profitability

Long-term consumer values such as convenience and health remain strong, but perceptions of value are evolving. Market players must assess meaningful value across multiple segments including countries, age groups and genders. By aligning the insights from the assessment and offering an aligned solution to consumers, businesses can drive profitability.

Rethinking strategy for affordable premiumisation

International premium brands in Asia Pacific must look beyond affordability as a primary strategy. Key moves include expanding product portfolios, acquiring local products and tapping into second-hand platforms. Local brands should emphasise regional features and ingredients, combining these with premium quality at a reasonable price.

 

Why read this report?
Key findings
Asia Pacific: Moderate inflation, living costs at concerning level but with expected spending
Asia Pacific consumers shift to value-driven strategic spending amid economic slowdown
Optimistic potential ahead, but finding the right way to approach consumers is needed
The evolution of consumer perception of value - looking at price and product features
Retail channels with affordable product offerings are seeing bright prospects in the region
Loyalty rewards: Rewarding consumers through bargains and special experiences
Best pricing and convenience push growth of e-commerce, especially quick commerce
Unmanned stores: Efficiency for both retailers and consumers
Physical/Digital hybrid enables seamless shopping experience for consumers
Opportunities for retailers lie ahead through affordable offerings and digital adoption
Diverse values are shaping consumers’ purchasing decisions
Convenience justifies paying premiums for completing essential daily routines
Health is the new wealth for both consumers and manufacturers
Unique values help premium products gain consumer acceptance across industries
Opportunities for growth revealed by diverse values
Affordable premiumisation driven by local brands, posing competition to international brands
Specialist coffee shops: Local brands emerge offering quality coffee at affordable prices
Beauty products and luxury goods see rise of local brands offering affordable alternatives
International beauty and fashion brands: New platforms and product portfolios for growth
International drinks players: Price discounts and localisation are key to win over consumers
Opportunities for growth of affordable premium products in Asia Pacific
Opportunities to win the wiser consumer in Asia Pacific
Evolution of b eyond price tags: Navigating value for consumers in Asia Pacific
Questions we are asking
Euromonitor’s research spans 210 countries and 99.9% of the world’s consumers

Retail

Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.

See all of our definitions
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!