Trend Localizasian

LOCALIZASIAN
Why from Asia, by Asia, for Asia is the

regions 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But the comparison is outdated ;)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 doesnt 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 frst published in 2013. But were
revisiting it now simply because the accelerating pace of
Asian consumerism means its just as - if not more - relevant
than ever!
Want proof? Read on...
LOCALIZASIAN 2 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 Apples 9 million, putting Xiaomi ahead for the
frst time. In fact, Q1 Xiaomi sales were 53% higher than
total sales in 2012, as Asian consumers embrace the tech
brands targeted mix of high performance and low prices.
Furthermore, March 2014 saw the frst 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 frst batch sold out in
eight minutes.
Tech lust among Asian consumers? Increasingly, its
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 AFFLUENCE
Millions 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 frst.
WHY NOW?
2. LOCAL LOVE
The grass ISNT greener on the
other side.
The emergence of Asia as an economic powerhouse
means increasing cultural power and confdence, 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 doesnt 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 ADVANTAGE
Local knowledge and cross-border
agreements mean local brands are
harder than ever to beat.
Lets 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 dont have a bank account.
But competitive advantage for local brands doesnt stop
at that: theres increasing regional cooperation, too. For
example, its 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 its little wonder theres 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 Halal
Ready made halal foods for Malaysian
consumers
Potatoo
Indonesian temporary tattoo brand caters to
local sensibilities
Panasonic Cut Out the
Darkness
Japanese brands social initiative brings
solar lanterns to Indonesia
Tsunagari Hot Support
App
Japanese cellphone service helps family
members keep track of elderly relatives
Chinese Tourists VIP
Card
South Korean government initiative offers
privileges to Chinese tourists
Samsung NX Mini
Korean brand rides the Asian massfie trend
Muku Shuttr
Remote control device allows individuals to
take the perfect selfie
Tongsis
The Selfie Stick and its rise to fame in
Indonesia
Reserve Bank of India
Indian banks system enables the unbanked
to withdraw cash
Vikaspedia
Indian government launches local
Wikipedia-style site
Lets Fold
South Korean mobile game inspired by
origami
NEXT
So what does LOCALIZASIAN mean for brands inside
and outside the region?
Take aim
Want 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 MOVEMENTS
One 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 Panasonics Cut Out the Darkness
campaign, or NTT Docomos Tsunagari
Hot Support App.
NEXT
Tap some LOCAL LOVE
If you are a local Asian brand, utilize
your home advantage by building
local into your brands 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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or questions then please do let us know.
Just email:
PAUL BACKMAN
Chief Client Offcer
paul@trendwatching.com
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