The latest insights from NIQ’s Consumer Outlook 2024 report indicate a consistent global trend in consumers' financial outlook, reflecting the enduring polarization in global finances. Within the Asia Pacific region, while 30% of consumers express concerns about their financial situation compared to the previous year, 38% feel they are in a better position.
“In today's ever-evolving market landscape, it's imperative for businesses to recognize that a one-size-fits-all approach simply won't suffice. Understanding the unique nuances of consumer behaviors and sentiments in each market is paramount,” said Nadya Ardianti, NIQ Consumer Panel Services lead in Asia Pacific. “With actionable insights, businesses are empowered to navigate and capitalize on these distinctions effectively.”
Despite ongoing financial concerns, consumers in the Asia Pacific region persist in prioritizing spending on groceries and household essentials, thereby maintaining a crucial foothold in the consumer market. Fresh foods and wellness products are at the top of the priority list, followed by home essential products, dairy, and fresh meat.
Four key strategies for success in Asia Pacific in 2024 according to NIQ
To uncover opportunities and flourish amidst divergent consumer sentiments, NIQ recommends the following crucial strategies:
1. Expanding the value concept: The appeal of lower price tiers, private label products, and enticing promotional offers continues to resonate with consumers across online and offline platforms throughout the Asia Pacific region. NIQ's analysis shows a clear trend of price tier divergence within fast-moving consumer goods (FMCG) categories. Both mass-market or FMCG brands with a price index of 41-80 (+0.2pt) and luxury or FMCG brands with a price index greater than 201 segments (+0.1pt) are experiencing growth. Emphasizing the value-for-money proposition becomes imperative, especially given the prevailing economic conditions.
2. Maximizing moments at home: In 2024, notable events such as The Olympics, Euro 2024 Football tournament, and election coverage are anticipated to exert considerable influence. While 49% of APAC consumers intend to maintain their usual spending on in-home entertainment, categories like beverages and snacks typically experience a surge in sales during these occasions. Marketers can capitalize on global and local opportunities by aligning their strategies with current news cycles to remain relevant to consumer interests.
3. Relentless innovation: NIQ's data underscores the pivotal role of innovation in driving growth, with its impact proving to be exponential. Companies experiencing growth in innovation sales are 1.8 times more likely to achieve overall sales growth compared to those with stagnant or declining innovation sales. Moreover, a significant portion (59%) of APAC consumers express openness to new or innovative products tailored to meet their health and wellness needs.
4. Playing to channel dynamics: As omni-channel journeys become increasingly prevalent, accurately identifying consumer purchasing behaviors and leveraging key global channels become imperative. Discounters, traditional trade, and e-commerce platforms have consistently outperformed the market in terms of growth. With 72% of APAC consumers indicating increased store switching to manage expenses, understanding the channels that resonate most with shoppers and identifying successful categories in specific locations can significantly boost growth.
About NIQ
NIQ is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. In 2023, NIQ combined with GfK, bringing together the two industry leaders with unparalleled global reach. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full ViewTM.
NIQ, is an Advent International portfolio company with operations in 100+ markets, covering more than 90% of the world’s population. For more information, visit NIQ.com.