2014-07-LOCALIZASIAN

LOCALIZASIANWhy from Asia, by Asia, for Asia is the

regions hottest consumption story.

AsiA Trend BulleTin

JULY 2014

Are Asian brands out-innovating those in the West?Well, sure: in plenty of cases.

But the comparison is outdated ;)

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 doesnt 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 were

revisiting it now simply because the accelerating pace of

Asian consumerism means its just as - if not more - relevant

than ever!

Want proof? Read on...

lOCAliZAsiAn 2www.trendwatching.com/trends/localizasian

57% of Indonesian consumers say they prefer

local brands, against 37% who say they

prefer foreign brands.

JANA, SEPTEMBER 2013


One (powerful) example of the by Asia for Asia phenomenon? Xiaomi.

The Asian tech brand, founded in 2009,

outsold Apple in China in Q1 2014.

In Q1 2014, Xiaomi sold 10.4 million smartphones in China

against Apples 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

brands targeted mix of high performance and low prices.

Furthermore, March 2014 saw the first batch of Xiaomi

Mi3 smartphones entering Singapore; stocks ran out in

two minutes. That followed 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, its

about local brands.


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lOCAliZAsiAn | in rising numbers, Asian consumers are embracing new products and services targeted at their needs and wants by Asian brands that understand them better than competitors outside the region. The result? A deluge of by Asia for Asia innovation!

DEFINITION


Three underlying forces are helping to push LOCALIZASIAN forward.Rising affluence. Local love. Home

advantage.

WHY NOW? Explosive growth in the Asian middle classes means millions more Asian consumers with high

expectations.

Asian consumers are increasingly determined

to invest in, reimagine and showcase their own

localities, traditions and cultures.

No one understands Asian consumers quite like

Asian brands.

1. RISING AFFLUENCE

2. LOCAL LOVE

3. HOME ADVANTAGE


1. RISING AFFLUENCEMillions more middle class consumers

means a virtuous circle of high

expectations and targeted innovation.

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.

WHY NOW?


2. LOCAL LOVEThe grass ISNT greener on the

other side.

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 doesnt 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).

WHY NOW?


3. HOME ADVANTAGELocal knowledge and cross-border

agreements mean local brands are

harder than ever to beat.

Lets 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 dont have a bank account.

But competitive advantage for local brands doesnt stop

at that: theres increasing regional cooperation, too. For

example, its 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 its little wonder theres no

stopping by Asia, for Asia consumerism!

WHY NOW?


FEATURED INNOVATIONS

Take a look at these Asian brands already targeting the needs, wants and desires of Asian consumers.


FeATured innOVATiOns: lOCAliZAsiAn

Brunei HalalReady made halal foods for Malaysian consumers



PotatooIndonesian temporary tattoo brand caters to local sensibilities



Panasonic Cut Out the DarknessJapanese brands social initiative brings solar lanterns to Indonesia



Tsunagari Hot Support AppJapanese cellphone service helps family members keep track of elderly relatives



Chinese Tourists VIP CardSouth Korean government initiative offers privileges to Chinese tourists



Samsung NX MiniKorean brand rides the Asian massfie trend



Muku ShuttrRemote control device allows individuals to take the perfect selfie



TongsisThe Selfie Stick and its rise to fame in Indonesia



Reserve Bank of IndiaIndian banks system enables the unbanked to withdraw cash



VikaspediaIndian government launches local Wikipedia-style site



Lets FoldSouth Korean mobile game inspired by origami


NEXTSo what does LOCALIZASIAN mean for brands inside

and outside the region?


Take aimWant to start innovating? Take your pick.

Asia is home to a myriad of consumer

characteristics and unique needs.

Seniors in Malaysia? Teens in Shanghai?

Get close to your target, and learn about

their lifestyle, behaviors and aspirations.

NEXT


NEXT

BRAND MOVEMENTSOne actionable angle on local needs

and wants? Think beyond just profits,

and ask how your brand can start a

BRAND MOVEMENT around a shared

local concern or value. Take inspirations

from Panasonics Cut Out the Darkness

campaign, or NTT Docomos Tsunagari

Hot Support App.


NEXT

Tap some LOCAL LOVEIf you are a local Asian brand, utilize

your home advantage by building

local into your brands DNA. Think

campaigns and content that stress your

homegrown credentials.


NEXT

Competition Alert!Neither an Asian brand nor operating

in the region? This trend still has

implications for you. Your next

competitor could be an Asian exponent

of LOCALIZASIAN, who succeeds,

grows and expands to your doorstep.

Why not start thinking about an Asian

partner today!


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If you have any comments, suggestions or questions then please do let us know. Just email:

PAUL BACKMANChief Client [email protected]

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2014-07-LOCALIZASIAN

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