Enough
has already been written about the size and demographic profile of the Asian
middle class, in other places also referred to as the consuming class. Some
studies estimate that, by 2030, the Asian Middle Class could account for as
much as 65% of the 4.9 billion middle class individuals around the world*. For
an interesting infomercial with interesting data on the Asian middle class,
click here: http://www.bbc.co.uk/news/business-22951558
However,
not enough has been written about how they consume, their attitudes and
behaviours in relation to consumption and, how marketers need to respond to
this. This article hopes to articulate some common shopping behaviors of this
consuming class, and how marketers could respond to these behaviours.
Here
are six guidelines for ‘Middle Class Marketing’ Asian Style -
1#
A
growing economy, increasing disposable income and high optimism about the
future is responsible for the rise of ‘modernity’ aspirations among the Asian
middle class. While these modernity aspirations are progress markers,
equally importantly, they are also for showing a better face to the world.
Hence, these modern aspirations have an extra emphasis on outward
manifestation. In other words, people seek obvious symbols of upward mobility.
No wonder then that their value mindset demands big brands and loud logos.
Marketing
Mantra: Celebrate the aspiration, blatantly.
2#
Large-scale
urban migration has been a reality across Asia (and indeed the world) for some
time now. The first waves of migrants came to the city searching for better
economic prospects. However, increasingly, the larger segment in many markets
is the second generation of people whose parents migrated to urban cityscapes. These
second generation migrants have a rose-tinted view of small town, rustic
living. This nostalgic fondness
translates into a desire to possess traditional, culture rich symbols like
handicrafts or ornate furniture. They are the city dwellers yearning for their
small town roots. This has led to the emergence of local designers who create
unique blends of Eastern design and Western sensibility in varied categories from
fabrics to furniture.
Marketing
Mantra: Look to blend the local culture with the universal brand.
3#
Dwelling
units across urban Asia are getting standardized into less than 1000 square
feet for a 2BHK (two bedroom, hall and kitchen – for the uninitiated). Simply
put, small dwelling units imply a premium on ‘organization’ ideas. With family
members making several competing demands on the same space, ‘organizer’ ideas
that streamline and simplify life are always desired. In fact, these space
savers capture our urban imagination at a visceral level. Take a look at
multi-purpose collapsible furniture, narrow closets, sofa-cum-beds, and so on! This
also may explain the peculiar Asian infatuation for shopping bags and storage
boxes.
Marketing
Mantra: Deliver savings beyond unit price into insightful convenience.
4#
Ever
wondered why so many grandparents accompany the family in the shopping
expedition? That’s because we, in Asia, tend to reside in nuclear families, but
live within the extended arm of our parents and siblings. Asia has the youngest
demographic in the world, and it is also becoming smaller in family size.
However, these smaller units of ‘family builders’ do not directly translate
into independence of thought and consumption. Since most Asian societies are
relationship and conformity driven, the long arm of the ‘extended’ family impacts
purchase decisions (specially, the high ticket ones).
Marketing
Mantra: Engage with family motivations while satisfying individual desire
5#
There
was a time when value was attached to durability – to the simple idea that
stuff should definitely last a lifetime and preferably be passed over to the
next generation. Today, obsolescence is
hard-wired into our thinking – from technology to celebrities to furniture. We
value what is fashionable and current. And, yet Asians are loathe throwing away
the old. It is this conflict that holds
us back from purchase – what to do with that old television, old computer, old
cupboard? Smart marketers are actively using exchange schemes as a part of
their marketing mix to overcome this incumbency mindset.
Marketing
Mantra: Pave the path to upgrade with creative disposal strategies.
6#
Organized
retail is a relatively new idea in Asia. For the novice shopper, the sheer
choice offered by organized retail is contrasted by the inherent risk of having
to decide-for-yourself. Hence, even a simple purchase at a supermarket becomes
an emotionally challenging. Shopper research indicates that shoppers go through
a range of emotions, even on a simple shopping expedition to the neighborhood
supermarket. This ranges from the sheer excitement of choice, followed by
confusion, debate, trade-offs, post rationalization and, if navigated
successfully, ultimately purchase. High involvement purchases only compound
this emotional roller coaster. As retail formats evolve, one needs to make this
shopping experience culturally relevant and emotionally convenient.
Marketing
Mantra: Boost brand presence in modern retail with navigation aides.
As
people grow into the aspirational middle classes of consumption, these six
guidelines should help bolster the brand’s inherent positioning and make it resonate
with the desires of the Asian middle class.
As
the famous poet TS Eliot once said “One starts an action simply because one must do something.”
Here are six possible actions. Go ahead and start somewhere!
And, for starters, please comment or email me! I would love to know what you have learnt on marketing to the middle class.
First published at http://www.ogilvydo.com/middle-class-marketing/
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