trendwatching.com's LOCALIZASIAN

LOCALIZASIANWhy ‘from Asia, by Asia, for Asia’ is the

region’s 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But the comparison is outdated ;)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 doesn’t 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 we’re

revisiting it now simply because the accelerating pace of

Asian consumerism means it’s just as - if not more - relevant

than ever!

Want proof? Read on...

lOCAliZAsiAn 2www.trendwatching.com/trends/localizasian

www.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 Apple’s 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

brand’s 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, it’s

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 ISN’T 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 doesn’t 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.

Let’s 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 don’t have a bank account.

But competitive advantage for local brands doesn’t stop

at that: there’s increasing regional cooperation, too. For

example, it’s 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 it’s little wonder there’s 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


http://www.brunei-halal.com/



PotatooIndonesian temporary tattoo brand caters to local sensibilities


http://potatoo1.com/about



Panasonic Cut Out the DarknessJapanese brand’s social initiative brings solar lanterns to Indonesia


http://cotd.panasonic.net/



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


https://www.nttdocomo.co.jp/



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


http://www.mofa.go.kr/ENG/main/index.jsp



Samsung NX MiniKorean brand rides the Asian ‘massfie’ trend


http://www.samsung.com/sg/news/localnews/2014/capture-special-moments-in-style-with-the-new-samsung-nx-mini-smart-camera



Muku ShuttrRemote control device allows individuals to take the perfect selfie


http://www.mukulabs.com/



TongsisThe Selfie Stick and its rise to fame in Indonesia


http://www.huffingtonpost.com/2014/03/17/selfie-stick_n_4976431.html



Reserve Bank of IndiaIndian bank’s system enables the unbanked to withdraw cash


http://www.rbi.org.in/home.aspx



VikaspediaIndian government launches local Wikipedia-style site


http://vikaspedia.in/index



Let’s FoldSouth Korean mobile game inspired by origami


https://play.google.com/store/apps/details?id=air.kr.fivethirty.YouCanFold&hl=en_GB


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 Panasonic’s Cut Out the Darkness

campaign, or NTT Docomo’s Tsunagari

Hot Support App.



NEXT

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

your home advantage by building

‘local’ into your brand’s 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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PAUL BACKMANChief Client [email protected]

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Date post:	13-Sep-2014
Category:	Business
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