01_singapore_2024_MONDAY_ISSUE_DIGITAL

I n today’s TFWA Asia Pacific Conference, Keyu Jin, Author, Economist and Professor, London School of Economics, is speaking in a segment titled ‘Asia Pacific: Takes Off’. “The Asian economy is characterised by high resilience and large economic potential,” Jin shares. “Consumption upgrading, lifestyle consumption is the next big thing, and a new generation of savvy consumers will redefine the economic and political landscape, particularly in China. Even if China slows down, its absolute contribution to the global economy is still enormous.” The top three countries with the fastest growth this and next year are all in Asia. Asia as a whole contributes to about two-thirds of global growth. “50% of the global consumer class are in Asia, and half of its population are middle class,” Jin explains. “It has become one of the most connected components for the global supply chain and technology network.” “A new generat ion of savvy consumers wi l l redef ine the economic and pol i t ical landscape” “India is an attract ive market and st i l l re lat ive ly under-penetrated by global chains” Keyu Jin, Author, Economist and Professor, London School of Economics: “The Asian economy is characterised by high resilience and large economic potential. Consumption upgrading, lifestyle consumption is the next big thing, and a newgeneration of savvy consumers will redefine the economic and political landscape, particularly in China. Even if China slows down, its absolute contribution to the global economy is still enormous.” Meanwhile, digital connectivity and rapid growth in technology will accelerate trade in goods and services, and provide financial inclusion that accelerates growth. “China’s aim to climb up the value chain through smart manufacturing and the triangle of communications, Artificial Intelligence (AI), and data is a full manifestation of the fourth industrial revolution,” says Jin. “Regional trade will be more important than ever. Businesses will see opportunity in sectors ranging from the digital economy to the green economy, AI, and new consumerism.” W ith a population of 1.4 billion people, India is one of the largest consumer markets in the world. India’s positive economic trajectory has paved the way to a burgeoning middle class with disposable income and desire to travel. Today, India is also home to Asia’s biggest airport development and expansion projects. More than ever, the time is ripe to explore the opportunities in detail and determine how to tap into this vibrant market. In today’s TFWA Asia Pacific Conference, Nirmalya Kumar, Author and Professor, Singapore Management University, is speaking in a segment titled ‘All Eyes On India’. “India is an attractive market and still relatively under- penetrated by global chains (e.g. IKEA, Zara, Starbucks) relative to its potential,” says Kumar. “Multinational companies like Colgate Palmolive, Nestlé, or Unilever that invested early in making a success in India have seen disproportionate market cap for their India subsidiaries. For example, the Indian subsidiary of Unilever is 70% of Unilever’s overall global market cap.” The Indian market, while large, does require localisation for success given the idiosyncratic consumption patterns and consumer behaviour. “There are also constraints that must be overcome,” Kumar explains. “Uber and Amazon had to learn how to accept cash on delivery given only 1-2% of Indians had credit cards.” Kumar adds that, while some consumers perceive duty free is cheaper, the data demonstrates that this is true only for some highly taxed products. “Furthermore, Indian duty free prices are among the highest. Increasingly, the need to tap into buyer motivations other than price will become critical for success.” Nirmalya Kumar, Author and Professor, Singapore Management University: “India is an attractive market and still relatively under- penetrated by global chains (e.g. IKEA, Zara, Starbucks) relative to its potential. Multinational companies like Colgate Palmolive, Nestlé, or Unilever that invested early in making a success in India have seen disproportionate market cap for their India subsidiaries. For example, the Indian subsidiary of Unilever is 70% of Unilever’s overall global market cap.” Monday 1 3 May 2024 10 T F W A D A I L Y