Asia's high disposable income segment is more than ever prepared to spend on new, high-ticket goods and services, according to the latest PAX data.
Fuelling this are rising incomes. Between Q3 of 2003 to Q2 of 2004, and the same period over 2004 and 2005, average monthly incomes rose from US$4,773 to $5,054. Singletons, widowers and divorcees earn, on average, $607 more than their married counterparts.
Fuelling this are rising incomes. Between Q3 of 2003 to Q2 of 2004, and the same period over 2004 and 2005, average monthly incomes rose from US$4,773 to $5,054. Singletons, widowers and divorcees earn, on average, $607 more than their married counterparts.
"They (are likely to have) mortgage commitments and the household income may be less if mum is at home looking after the kids," notes Synovate's media director for Asia-Pacific, Steve Garton. "Across the board, increasing confidence and prosperity (are key trends) leading to increased spending. The PAX audience seems to be feeling comfortable with its accomplishments, and willing to go out and spend."
Any residual discount mentality has been shrugged off, with 65 per cent of respondents from over the past year stating that "paying for extra quality is worthwhile" -- a three per cent rise over 2003/2004. Top tier Asians are also viewing themselves as more international --and 58 per cent valued having an international perspective, with respondents from Jakarta, Seoul and Hong Kong respectively scoring highest in how important they perceived this to be. High on the value chain for almost half of respondents were more traditionally Western cultural attributes such as preferring to be a group leader rather than a follower. Respondents outlined a more vocal tendency to indulge "sometimes liking to treat themselves to something special" (48.5 per cent) and "buying a new product or service if it makes life more enjoyable" (50.2 per cent).
In terms of media, lifestyle broadcasting continues to hold strong, with Discovery Channel continuing to outstrip its rivals -- albeit with a drop from 31.2 per cent previously to 28 per cent this year. "The data shows healthy growth for most major channels. Distribution has played an important role and audiences will always reward channels which offer a clear and differentiated platform," says James Chadwick, insights director, MindShare Asia-Pacific. "Discovery's success is a great example of a focused brand and product strategy that is paying off. Advertisers want to connect with consumers in meaningful ways, and lifestyle channels offer a valuable platform to do so."
Discovery Networks Asia VP, marketing and communications, Kevin Dickie believes the network's overall performance is key. "There has been fragmentation in many markets as a result of the introduction of new channels. This has had some impact on a number of broadcasters, including Discovery. That said, we maintain our leadership position and the latest viewing data from key markets indicates that."
In tandem with the increased desire to spend is a willingness in today's elite consumers to consider buying new brands, with 35.9 per cent of regional respondents expressing more adventurous shopping intent versus last year's 31.9 per cent. The desire to buy cars outstripped all other household quality items, on par with last year at just over 19 per cent. Not surprisingly, perhaps, LCD or plasma TVs soared from last year's 9.35 per cent to 11.54 per cent in terms of purchase aspirations.
Overwhelmingly, the outlook for marketers looks rosy: "The appetite for new gadgets, upgrades, the latest fashions, leisure travel, new cars seems insatiable," says Garton. "For B2B, air travel and hotels are all able to benefit from the upsurge in activity."
