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The Rising Power of the Asian Consumer

The Asian consumer is becoming a powerful engine in the world economy. However, the regionu2019s consumption, spurred by increasing income and high standards of living, is just the beginning. According to Brookings Institution, the world will be more prosperous in 2030 with a middle class of over 5.5 billion people, predominantly in Asia. The analysts expect the Asian middle-class markets to expand from $20 trillion today to $36 trillion by 2030.

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The Rising Power of the Asian Consumer

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  1. Asia Fund Managers

  2. The growing power of the Asian consumer Asia's consumers are becoming a powerful engine of the global economy. However, consumption in the region, which is being spurred on by rising incomes and a high standard of living, is only just beginning. According to the Brookings Institution , the world is slowly becoming wealthier and will have a middle class of over 5.5 billion people by 2030, mostly from Asia. Analysts estimate that the Asian middle class market today is $ 20 trillion. USD to 36 trillion USD will grow in 2030. Investors who want to participate in this market should pursue a strategy that is tailored to the diverse culture and local tastes of Asians.

  3. Essentially, the Asian population attaches great importance to family relationships, according to the Institute on Asian Consumer Insight (ACI). Hard work, saving, planning and thrift are important to them. In addition to their livelihood, they were looking for fun, amusement and nature. Different cultures, ethnic groups, religions, political disparities and different phases of economic development shape the consumer culture. Geography also dictates the qualities of the various market segments and the different preferences of consumers. For example, a study by global consulting firm McKinsey found that consumers in Guangzhou, China, prefer cameras with unique LCD screens, while those in Shenzhen, 100 km away, like lighter, more portable models. So, in order to woo shoppers in the area, one needs to understand local preferences for industries and trends.

  4. Asia consumers: promising countries & industries The coronavirus pandemic has also continued to fuel the Asian consumer market. E-commerce has boomed in Southeast Asia, moving most people from cash to online wallets. Sales of flat screens and notebooks, video conferencing and cloud software have also increased because people have had to work from home. According to the 2019 Ipsos Affluent Asia study, the 20.64 million affluent consumers in the Asia-Pacific region are "younger and well educated." They are attracted to the most exclusive products and travel frequently. According to the management consultancy Bain & Company, the global luxury industry is expected to grow by up to 20 percent per year due to the interest of Chinese consumers.

  5. As for the technology sector, according to market research company Canalys, India overtook the US as the second largest market for smartphones in the world in 2017. China as number one has already reached more than 110 million 5G users this year - while large parts of the rest of the world are still discussing or developing 5G networks. Chinese companies are also taking the lead in 5G. According to Strategy Analytics , Huawei, Vivo, Xiaomi and Oppo account for more than 60% of the global 5G market share. In Asia, too, technology plays a major role in people's health and everyday life during the pandemic . In China, Alibaba-backed workstation app DingTalk saw downloads increase 1,446%. In South Korea , 22,000 pharmacies are able to share their inventory of face masks via an open application program interface.

  6. Contact us: invest@asiafundmanagers.com https://www.asiafundmanagers.com/de/

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