Orient Magazine Issue 88 - August 2022 - Page 43

43 availability have come under threat . Lockdowns in China during the first half of 2022 further exacerbated this situation as the manufacturing and freight movement were challenged .
On the other hand , as social occasions and discretionary spending starts to return , consumers are looking to indulge in spending on non-essentials . However , as availability remains challenged , consumers struggle to secure their go-to product . Backup Planners then look for creative ways to procure the items they need . One such approach is embracing technology and alternative business models , such as subscription services or D2C brands , to secure products / services .
According to Euromonitor ' s Lifestyle survey , when asked about the motivation behind subscription services , global respondents indicated that convenience was a leading factor . This desire for convenience and the local availability of such services can help businesses meet consumers where they are . Subscription services are also penetrating Southeast Asia , as exhibited by Treatos by Joey and BarksJOY – both Filipino companies offering subscription boxes within the pet care space .
Product availability drives profit , while supply shortage can weaken consumer loyalty . Even as supply chain constraints stabilize over time , evolved shopping habits will dictate how backup planners discover and shop for products . In such a scenario , businesses that can pivot and provide solutions for customers to access products and services are likely to benefit from this consumer cohort .
Climate Changers are increasingly aware of how their choices impact the planet
There has been a growing awareness among consumers of their contributions to climate change . This awareness is driving environmental activism and influencing purchasing decisions . The Climate Changer is looking for products / services that help them make more sustainable choices while also demanding more transparency and better labelling from brands .
When we look at what consumers across different Southeast Asian markets are doing regarding sustainable choices , we observe that reducing the use of plastic is one of the more popular green activities undertaken .
Source : Euromonitor International / Voice of the Consumer – Lifestyles Survey , fielded in January and February 2021
Businesses in the region are also responding to these evolving preferences . They are adjusting their portfolios to meet consumer demand by offering more eco-friendly products and services . IKEA , for instance , transformed its Bang Yai store into a circular shop where consumers can sell pre-owned home furnishings , buy second-hand IKEA furniture at a discount and drop off the recyclable waste in exchange for IKEA Family Points . Through this effort , IKEA is encouraging extending the use of materials and products through sharing , reusing , refurbishing and recycling .
An observable development in sustainable packaging initiatives has been the rise of refill stations . From Body Shop in Singapore to IP One Company Ltd in Thailand , brands are introducing refill stations in retail locations as part of their sustainability efforts .
The launch of such initiatives in the region indicates how global and local players are responding to the growing sustainability narrative . As more offerings align with the expectations of Climate Changers , more brands will see their products and services resonate .
Democratized money management for Financial Aficionados
The pandemic bought with it a shift in consumers ' approach to money management and financial security . An uncertain and unstable economic environment has led Financial Aficionados to take better control over their money . From improving their financial literacy to using apps / services that enable them to become financially savvier , consumers are finding ways to feel more financially empowered .
Businesses are also responding with resources that give consumers more control and
UNDERSTANDING THE SOUTHEAST ASIAN CONSUMER 2022