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The rising tide

Are you ready to ride the next wave?

Most businesses today face unprecedented challenges and, simultaneously, unparalleled opportunities in their markets. For the consumer products and retail sectors, these are present in the form of a demanding and evolving customer base, shifting market dynamics, as well as increasing pressure for innovation and collaboration among participants in the business ecosystem.

Although developed markets remain the primary generators of profitability, the burgeoning middle classes in developing markets promise to be the greatest opportunities for growth. Among the dynamic and fast-changing economies within the region, Indonesia and the Philippines look the most poised for growth, while Myanmar holds the key to the final frontier in Southeast Asia.

The rise in purchasing power, coupled with a sluggish global economy, has led to consumers demanding better value, greater choice, and higher quality all at once. Organisations are pressed to innovate, resulting in product proliferation. Small format convenience stores and minimarkets are also gaining popularity with urbanisation and the development of urban slums. In addition, demographic transitions and an emerging egalitarian dynamic are also shaping businesses as untapped customer segments begin to surface with women forming significant proportions of workforces and increasingly participating in purchase decisions with high stakes.

Consumer products companies will need to reassess their trade promotion strategies in the face of rising costs, the shift of power towards modern trade retailers and the slow but increasing acceptance of private labels. Increasing rental rates and the rise of online shopping are also driving retailers to rethink their suburban and online strategies, as well as capitalise on their economies of scale.
In an environment that can sometimes be unpredictable in terms of new governance laws, natural disasters, or simply the lasting effect of a shared and tumultuous history between neighbours, consumer products and retail companies will require new thinking, decisive action and flawless execution to fulfil the needs and expectations of these consumers.

In this publication, we examine the five megatrends that are directly impacting the Southeast Asia consumer products and retail sectors, followed by specific country snapshots of the more vibrant retail economies of Malaysia, Indonesia, Thailand, Myanmar and Vietnam.

For more information on this publication, please contact us here.