We are in Southeast Asia's golden age
The digital decade that we are experiencing now will bring unprecedented consumption growth to the region
Young and increasingly urbanised population, with working age to increase by 40 million by 2030. Income levels rising at 6- 8% annually, and 90 million people to move into cities.
Deal activity at record high at USD11.5 billion in first half of 2021 alone, 2x of 2020. Foreign direct investment to SEA reached USD155 billion in 2018, exceeding China by 1.2x and India by 3.7x.
By 2030, Southeast Asia will have 575 million internet users, 90% of them through mobile. Since the pandemic, internet penetration at 75%. 8 out of 10 internet users are digital consumers.
New consumption trends
With the rise of new digital consumers and mass digital connectivity, comes a new type of consumption - one that is consumer-centric.
Digital as the new normal
ASEAN digital economy to reach USD360 billion and digital payments to surpass USD1 trillion by 2025.
Sustainability becomes commercial
Circular economy as a value driver. Reframing environmental and social threats as growth opportunities will be more than USD5 trillion by 2030 in Asia.
Social capital and content are king
44% of Southeast Asia's USD109 billion e-commerce market in 2020 was social media commerce. Spending is set to double by 2026.
Rise of health & wellness
Asia represents 40% of growth in global healthcare spending over the next decade. At USD240 billion, it will outpace North America by 2023.
Intersection of digital economy and Web 3.0
Decentralised Web 3.0 creating disruption opportunities in commerce and media. Metaverse creating personalisation and privacy for consumers.
Disrupted global supply chains driving just-in-time, zero inventory model to favour local production. More than 80% of Chinese and Indonesian consumers favour locally produced goods.
We want to invest in what's better for you
Covid-19 has moved the consumer value matrix beyond price, quality and convenience, towards more impactful consumption. (We're investing in better options, income, services, and distributions with tangible metrics to track each.)
Societal needs: Silver economy
By2025, the silver economy in the APAC region is projected to be worth USD 4.6 trillion. Smartphone penetration of >50 years is growing at 2.4x faster than the 18 - 34 years old segment.
Indicators: Ability to maintain a healthy quality of life, including lifestyle behaviour choices to ensure health, avoid preventable diseases and conditions, and live in a balanced state of body, mind, and spirit.
Psychological needs: Gen Z & Millennials
BY 2025, Gen Z will constitute 25% of ASEAN consumers, with USD 143 billion spending power. 6+ hours spent daily online, and more influenced by video content. Consumption vison = identity, sustainability, access.
Indicators: Increased quality of social interactions and a sense of belonging to a community and making a contribution to society, including greater diversity and inclusion.
Self fulfilment needs: New middle class
Middle class to include 67% of Southeast Asian population by 2030, with Indonesia middle class comprising 72% of in country spending. These new consumers will likely make their first online purchase and are growing at a faster rate outside Tier 1 cities.
Indicators: Increased incomes, lower financial stress, and increased sense of financial security.
BETTER DISTRIBUTION & NEW OPTIONS
Basic needs: Emerging micro spenders
Digitalisation will lower costs to serve low-income populations, with new consumption models in tier 2 or 3 cities/rural areas. In 2030, traditional trade and MSMEs remain essential, offering services beyond retail and integrated with digital infrastructure.
Indicators: Creation of economic well-being or better standards of living, satisfaction with material possessions, less economic deprivations