Key findings

Rising cost-of-living concerns in Asia Pacific

Low inflation in Asia Pacific has kept cost-of-living issues minimal in this region. However, due to recent economic slowdowns, job instability and rising prices are driving consumers to adopt more cost-conscious spending. The concept of “value” now includes more than just price, with consumers focusing on maximising worth in their purchases.

Understanding the definition of “value”

Asia Pacific consumers define “value” as more than simply a competitive price; they view it as a balance between cost and various factors, such as quality, brand reputation, experience and personal preferences. This broader concept of value reflects a blend of financial and emotional considerations that shape purchasing choices.

Enhancing value and engagement through retail channels

Asia Pacific consumers are seeking for values beyond dollar value through private label and discounts but also through loyalty programmes, personalisation of recommendations through Gen AI utilisation, as well as seamless online-offline shopping experiences including expansion of unmanned stores in Asia Pacific.

Evolving consumer values: Adapting consumer preferences for profitability

Long-term consumer values such as convenience and health remain strong, but perceptions of value are evolving. Market players must assess meaningful value across multiple segments including countries, age groups and genders. By aligning the insights from the assessment and offering an aligned solution to consumers, businesses can drive profitability.

Rethinking strategy for affordable premiumisation

International premium brands in Asia Pacific must look beyond affordability as a primary strategy. Key moves include expanding product portfolios, acquiring local products and tapping into second-hand platforms. Local brands should emphasise regional features and ingredients, combining these with premium quality at a reasonable price.