A new report by NielsenIQ (NIQ) has revealed that consumer behaviour in the Asia Pacific region is shifting somewhat as rising food prices, economic downturn, and increasing utility bills remain key concerns in the region over the next six months.
The report is based on the feedback of over 17,000 online consumers in 23 countries, including countries such as Australia, China, India, Indonesia, Singapore, South Korea, and Thailand.
It shows that 36% of consumers surveyed feel better off financially compared to only 27% who feel financially worse and that 'intentional spending' is starting to come into play.
“Asia Pacific consumers are demonstrating remarkable resilience and shifting towards intentional spending,” said Craig Houliston, APAC Customer Success Above Market Consulting and insights leader at NIQ. "This intentional spending mindset is evident in their increased focus on health, wellness, and sustainable choices.”
NIQ has noted a continued shift towards the more financially secure end of the scale, where 33% of surveyed consumers are either unaffected or thriving financially, compared to 25% in the same period in 2023. In contrast, 31% identify as strugglers and rebounders – a decrease from 41% in the same period last year.
The consumers who identify as cautious is the highest at 36%, a slight increase from 35% in June 2023, data showed.
Intentional spending was in evidence when respondents were asked about how they will manage their spending on grocery and household items in the next 12 months, with many planning to prioritise fresh produce, health and wellness products, fresh meat, dairy products, home essentials, and personal and beauty care items.
“Discounts have evolved beyond mere price reductions," said Houliston. "Consumers now demand value propositions that address their growing concerns about health, sustainability, and natural ingredients.”
AI And Retail
Interestingly, consumers in the region seem to be ahead of the trend when it comes to AI tools. Fifty percent of shoppers in Asia Pacific express willingness to use AI to expedite their shopping experience, while 49% say they would accept recommendations from AI.
In addition, social commerce has 'surged' in Asia Pacific, according to NIQ, with consumers increasingly relying on social media for product discovery and purchase.
Sixty percent of consumers surveyed in the MYCO report said social media influences their product discovery, while 59% claimed that they are more likely to seek out products in-store or online after seeing them featured on social media platforms.
Fifty four percent of consumers will search on social media before using a traditional search engine to get more information about products.
Livestream shopping and shoppable pins are also popular, with 46% and 45% of consumers, respectively, making purchases through these features, data showed.
NIQ noted that while social media is the dominant platform, video games and online games are also gaining traction and may represent a 'niche market' worth exploring.
Future Trends
NIQ has made a number of predictions in its report about what retail may look like in the coming months in the Asia Pacific region.
Perhaps due to the economic downturn, stress management will be a key concern for consumers with 57% of APAC consumers seeking products and services to help manage stress and promote relaxation, this can range from health supplements and food and beverages to tech wearables.
Additionally, GLP-1 medications are poised to drive new spending in categories like conscious snacking, fibre and protein, digestive health, supplements, and vitamins.
Weight Loss
In the age of Ozempic, it is no surprise that dieting and weight loss will be a big trend for 2024, with 34% of APAC consumers saying they are likely to use a medication or drug to support their weight loss.
A less obvious trend that NIQ has discovered will be a focus on gut health awareness with consumers becoming more aware of the connection between gut health and overall well-being, including brain health.
Finally, the demand for protein-rich products, a staple for gym lovers, is expected to continue growing as consumers recognise the importance of protein for overall health and nutrition.
