Asian spending unaffected by threat of recession: Agility Research & Strategy

“Asia is one of the fastest growing regions in the world today, and there has been an increase in the number of affluent consumers in the region," commented Amrita Banta, managing partner, Agility Research & Strategy. Banta added that this consumer-segment was, for the most part, recession-proof and that companies could not afford to ignore the region. 

 

By market, less than a quarter of respondents in China and Hong Kong were willing to reduce their spending on luxury items this year. In comparison, nearly half of the respondents from Malaysia were willing to reduce their luxury spending as were countries like Singapore (34 per cent), India (40 per cent) and Indonesia (39 per cent). 

 

The research also found that not all luxury products are valued equally in the eyes of the Asian consumer. Traits like quality were more valued while "trend, popular and indulgent" implied an "extravagance that could be seen as fleeting," said the report. 

 

Across markets, gadgets (49 per cent) were most associated with quality, followed by cars (44 per cent) and hotels (41 per cent). Buyers of products in these categories were able to rationalise expenses by convincing themselves that they are fulfilling a functional need and were willing to spend more on quality items for the sake of safety and durability. The same was said of hotels where higher rates were often regarded as synonymous with a higher grade of cleanliness and study, found the survey. 

 

However, for other categories of products, different criteria become a priority. Luxury holiday destinations, for example, are perceived as  popular (30 per cent) and indulgent (41 per cent) and when it comes to fashion, trendy (41 per cent) trumps quality. 

 

"It will be important for marketers to  keep the core values of Asian consumers at the top of their minds and give them a reason to buy without guilt," advised Asha Choksi, managing partner, Agility Research & Strategy.