In a massive shift, Asia is becoming the backbone of the global economy. The driver’s are Asia’s new upper middle class found in dense urban areas spread across the region. It is predicted that by 2030 two-thirds of the global middle class will be living in Asia.
The East-East corridor will form the spine in this new global economy – goods will continue to be made in the East, but an increasingly large portion will also be sold in the East.
The fastest-growing consumer group in Asia is the upper middle class, who are more willing to pay for premium quality goods and services (84%). By 2030, China is expected to have completed its transformation to a middle class society, with 52% of the adults in the top income class, followed by 33% in the middle income group. (Source: CEIC forecast )
This new middle-class consumers are for the first time able to define their own identities through the power of a disposable income and digital connectivity, while still maintaining strong ties to their cultural backgrounds. These blended identities allow them to express and shape new points of view regarding their preferred consumption.
Brands with enough cultural understanding of their consumers need can take advantage of the increasingly sophisticated pockets of demand for high-end products
Consumer behavior is mostly learned behavior, and mobile technology has been a prolific teacher. Mobile phones give consumers the chance for global cultural awareness. Through her phone, a Asian consumers can easily listen to music from Berlin, buy the latest fashions from Paris, and watch movies from Hollywood. With a rising middle class armed with technology, Asian consumers are turning into a driving force in the global economy.
Lastly, as Asia’s households redefine consumption, they will push Asian businesses to redefine investment markets. Market indicators will broaden to include Asian companies that fulfill consumer needs, rather than just manufacturers and commodity produce.
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Johan M Persson / Founder