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.
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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.
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.
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.
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.
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.
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.
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