3 key consumer trends to watch in Asia for 2021
The economic recovery from the coronavirus, continued adoption of technology and increased demand for health products are three trends that are expected to dominate consumer behavior in Asia in 2021.
That’s according to new information from consumer-focused private equity firm L Catterton, which has seen a surge in consumer confidence since the start of the year.
“Consumer sentiment is better now than it was in January,” Chinta Bhagat, managing partner for Asia at the company, told CNBC. “Street signs in Asia“Wednesday.” Although it’s not over yet. “
In his last consumer information report, who surveyed more than 15,000 people in 16 countries around the world, L Catterton found that Asian consumers are the most optimistic about the prospect of an economic recovery. The survey was conducted in February, ahead of the recent resurgence of cases in India and some others parts of Southeast Asia.
More than one in 10 respondents (11%) in Asia said life had already returned to normal, compared to just 3% in the rest of the world. This figure was highest in China at 20%. Meanwhile, 43% said they believe the worst of the pandemic is over, compared to 23% in the rest of the world.
Bhagat said continuing the road to recovery would be the main factor dominating consumer behavior in the coming year. However, he noted that two related trends are likely to continue. The first is digitization and the switch to the Internet.
A staff member wearing a face mask works at a pharmacy in Tonekabon, Iran, April 26, 2021.
Xinhua News Agency | Getty Images
“We think it’s more of a transformation than a transition,” Bhagat said. “Some of the habits we thought people would adopt during the Covid crisis are starting to persist. There is more going to be done more online than not.”
Meanwhile, health has become a “really big deal,” he said, highlighting the increased demand for vitamins and supplements as a key indicator.
“Almost across the region, city by city, this is the one thing that stood out as people are consuming more and are likely to continue consuming more,” he said.
Bhagat’s comments come as L Catterton announced his first strategic investment in Indonesia.
The company led a $ 56 million funding round in Social Bella, an omni-platform beauty startup also backed by Singapore state-owned Temasek and venture capital firm Jungle Ventures.
Bhagat said the deal reflects the company’s belief in Asia’s continued consumption and demand for multi-channel options.
“Our own point of view is that in 10 years you are not going to have a single product company, everything will be an experience, a product, a service all in one,” Bhagat said.
“We are not alone. I think a lot of other investors see the same things as us.”