Southeast Asia: How to Win in This Booming Commerce Field
With Southeast Asia’s (SEA) consumer goods market valued at almost US$100 billion, it is rapidly becoming a choice destination for growth opportunities. In 2018 alone, SEA registered sales value growth of +3.3% as compared to 2017, and this growth is nearly double of that for the previous year. The stakes are increasingly high in this region, consisting of a growing middle class with increased spending power.
With the spotlight on the region, food takes up a larger portion of this growth (76%), although it is growing at a moderately smaller rate of +3.2% as compared to the non-food category, that exhibited a +3.6% growth rate. As such, business opportunities are available across diverse sectors, and firms can capitalize on interactive, multidisciplinary dynamics to increase product range or cultivate brand identity through various touch points.
Indonesia is the largest market in the region, while the Philippines is the fastest-growing one, with Malaysia as the following second. On the whole, SEA economies are stable and improving, and to profit from this booming trend, it is crucial for brands to understand the detailed financial patterns and evolving ground sentiments of the consumers. Through developing products and services that are contextually appropriate to the lifestyles, culture and value systems of the target audience, brands can capture the attention and hearts of their consumers.
SEA shoppers are increasingly willing to pay premium prices for brands but are also making more selective choices about their spending and time. Retailers and manufacturers can win their audiences through crafting marketing strategies to stand out in the crowded industry, and this can be done so by harnessing deep insights into the competitive landscape and overall brand performance.
Solutions like Nielsen’s Market Information Digest (MID) provide a comprehensive snapshot of the SEA Consumer Packaged Goods (CPG) landscape, helping retailers and manufacturers unveil pockets of organic and inorganic growth. Covering more than 500 categories across seven SEA markets, including the top five brands in each category and their growth and share percentage, MID is the tool to unlock growth in the region.