Business Daily Media

Men's Weekly

.

Report: Southeast Asia consumer confidence on track for rebound as value-seekers embrace new "needs"

SINGAPORE - Media OutReach - 10 October 2023 - Meta, Bain & Company, DSG Consumer Partners, launched its annual SYNC Southeast Asia report 'Bold Moves: Leading Southeast Asia's next wave of consumer growth' today.

The report revealed insights into the evolving landscape of Southeast Asian consumers and how this diversity presents significant opportunities for businesses in the region both in the near and long term.

A new hierarchy of needs vs wants emerges

39% of consumers we surveyed in Southeast Asia indicated a reduction in average spend in the past year, citing top concerns around economic stability (63%) and cost of living (58%). The largest drop in spend was observed in alcohol and electronics, while food, personal care and wellness categories remained resilient.

However, the report observed that despite reduced spending, consumers are reprioritising what they perceive to be needs vs wants. Previously cited luxuries like eating out every week, branded apparel, and latest gadgets have moved into what consumers perceive as new "needs". Across income levels, social media was cited as the top essential category, and streaming emerged as a rising essential category.

Caption

Gen Zs and solo economy are important cohorts to engage

According to the report, Southeast Asia's working population is set to increase by 24 million people by 2030. With rising incomes as well as the growing middle and upper middle class, the region is moving closer to a consumption inflection point which will accelerate the trajectory of consumption growth. Two consumer segments in particular drive this growth - Gen Zs and single households.

Gen Zs currently make up 23% of the total Southeast Asia population, while the solo economy, comprising single households, is growing and driven by three key demographic groups - older singles, young professionals and young urban migrants. Shifts in household sizes are expected to be most pronounced in Philippines, Singapore and Thailand, which are expected to see a 20% increase in single households by 2030.

"Southeast Asia as a region has demonstrated resilience amidst the global slowdown and consumer sentiment is rebounding in most markets. This is a great opportunity for businesses to address the needs of approximately 700 million consumers in a USD $4T economy that is forecasted to grow at 4.6% to 2030 (vs 2.7% globally). SEA has repeatedly shown its importance as part of investors' portfolios with significant global valuation and profit and loss impact. To take the region to full potential, bold moves are required: relooking at your SEA ambition by prioritizing, sequencing and most importantly funding them. Companies should also form an obsession with local consumers and evolve operating models to be locally responsive - balancing the incumbent scale advantage and the disruptive insurgent mindset," said Praneeth Yendamuri, Partner at Bain & Company.

According to the report, Gen Zs value individuality, authenticity, and identity more than other generations. Gen Zs are also not just digital-centric, but highly engaged in the digital community, messaging businesses an average of eight times a month, and 82% of those surveyed saying they are part of an online community.

AI is powering personalization across generations

While Gen Zs are at the forefront of digital-first behavior in Southeast Asia, older generations are quickly catching up and are not far behind in experimenting with new technology. The fact that all generations in the region are spending more time online and experimenting with new technologies such as AI, VR and healthtech will affect how Southeast Asian businesses can successfully engage with consumers.

This report identified how businesses in Southeast Asia are beginning to use AI for marketing purposes and to address region-specific issues, such as diverse languages, cultures, and preferences. "AI is powering better experiences for people and it's powering better outcomes for businesses. At Meta, we're combining our AI-powered discovery engine with the social connection that has always been the core of our platforms to deliver more relevant, entertaining, and locally attuned experiences. With new tools capable of big impact, it's no surprise that marketers across Southeast Asia are already starting to lean into AI to drive more impactful engagement and performance," said Benjamin Joe, Vice President, Southeast Asia and Emerging Markets at Meta.

On what's to come, the report found that 73% of business leaders surveyed recognized the opportunities from AI but also admitted that they were not prepared to seize them. The report suggested that the focus on personalized marketing and the investment in AI-powered and AI-enabled tools to facilitate personalization on a large scale, will enable businesses to effectively reach Southeast Asian consumers and drive strong ROI. "Embracing AI is now more crucial than ever for businesses aiming to thrive in the ever-evolving digital landscape of Southeast Asia," Mr. Joe said.

The dawn of the insurgent disruptor

Defined as brands that are new to the market and are growing five times quicker in revenue vs their category growth rate, insurgent disruptors are now responsible for US$52B revenue in Southeast Asia alone and accounted for 23% market share in 2022. Top categories where insurgent disruptors have successfully gained market share include beauty and personal care and packaged food.

"Insurgent disruptors are new brands less than 10 years old that have demonstrated strong market share growth. With 'wants' transitioning into 'needs' and dissatisfaction with what the incumbent brands provide, it is no surprise that Southeast Asian consumers are choosing insurgent disruptors to satisfy their unmet needs and evolving expectations​," said Mr. Sameer Mehta, Head of Southeast Asia at DSG Consumer Partners.

For more information, read the full report online here: https://www.facebook.com/business/m/sync-southeast-asia

Hashtag: #Meta #Bain&Company #DSGConsumerPartners

The issuer is solely responsible for the content of this announcement.

About Meta

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.

About Bain & Company

Bain & Company is a global consultancy that helps the world's most ambitious change makers define the future. Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a gold rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 2% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

DSG Consumer Partners

Since its inception in 2012, DSG Consumer Partners has been one of a few venture capital firms to focus exclusively on the Asian consumer segment, investing along emerging consumer themes and behaviors. Consumer investing requires a differentiated approach to business building, one that is sharply focused on business and brand fundamentals to drive sustainable growth. DSGCP's approach is rooted in first principles, capital efficient scaling, and prioritizing long-term profitability over short-term growth. In the last decade, DSG Consumer Partners has partnered with >80 companies and over 100 exceptional founders across India & Southeast Asia, building the next generation of insurgent consumer brands like Oyo, Veeba, Epigamia, Sula, Saladstop!, RedMart, Saturdays and many more.

News from Asia

Highbrow Unveils Its New Beauty Salon at The Adelphi

SINGAPORE - Media OutReach Newswire - 27 June 2025 - HighBrow, one of Singapore’s most trusted names in brow, lash, and nail care, is thrilled to announce the launch of its new beauty salon at The...

Cyberport 5 as Hong Kong's New I&T Landmark

Driving Emerging Strategic Industries Development Heralding a New Chapter in Integration of I&T and the Community HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - The Cyberport ...

VinFast signs dealer financing cooperation agreement with BCA

JAKARTA, INDONESIA - Media OutReach Newswire - 27 June 2025 - VinFast has officially entered into a pivotal financial partnership with PT Bank Central Asia Tbk. (BCA), one of Indonesia's leading p...

Food Expo PRO and Hong Kong International Tea Fair Return in August with New Coffee Zone and Expanded Halal Sector

HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - Organised by the Hong Kong Trade Development Council (HKTDC), the Food Expo PRO and Hong Kong International Tea Fair will be staged concurr...

Food Expo PRO and Hong Kong International Tea Fair: One-Stop F&B Platform Returns in August

Spotlighting Food Science & Tech HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - Organised by the Hong Kong Trade Development Council (HKTDC), the Food Expo PRO and Hong Kong Internat...

The best CFD broker 2025': Octa receives yet another award

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 27 June 2025 - Octa, a globally regulated and trusted broker since 2011, was recently named 'The best CFD broker 2025' by the AllForexRating.com...

DHL Express completes the modernization of its Air Hong Kong-operated fleet to boost Asia Pacific network capacity and fuel efficiency

14 A330 freighters in total have been added to the regional network, retiring the previous A300-600F fleet This is part of DHL Express's ongoing investment to enhance its network ...

Rethinking Obesity: Novo Nordisk’s Latest Initiative Urges Singaporeans to Treat, Not Blame

“Beyond the Scale” focuses on obesity as a chronic disease — urging empathy, early intervention, and evidence-based care. SINGAPORE - Media OutReach Newswire - 27 June 2025 - Imagine a chronic dis...

Trend Micro to Deliver AI Factory with Dell and NVIDIA for Secure Infrastructure at Scale

Platforms to accelerate secure AI adoption for modern IT environments HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecur...

HKICPA renews its Mutual Recognition Agreement with ACCA

HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - The Hong Kong Institute of Certified Public Accountants (HKICPA) is delighted to announce its renewal of Mutual Recognition Agreement (MRA)...

Demand for Home Batteries surges as Federal Rebate Kicks In

A leading provider of energy solutions VoltX Energy has seen a 400% increase in demand for home batteries in the past three weeks as people put d...

Why Sport Remains the Safest Bet in an Uncertain World

When Rome was in crisis, its leaders did not retreat to the Senate. They went to the circus. To the chariot races. To the gladiators. Sport was no...

THE FINE LINE WITHIN HILARIOUS SIGNAGE DESIGN FAILS

It seems like design failures still occur in today’s modern branding era, despite rigorous rounds of approvals behind the scenes. One signage show...

Deputy Announces Exclusive Global Partnership with Predelo to Bring AI to Shift-Based Businesses

Deputy, the global people platform for shift-based businesses, has announced an exclusive partnership with Predelo, an AI Decision Agent-as-a-Serv...

Leftover Budget? The Last-Minute EOFY Tip to Drive Business Success in FY25/26

The countdown is on. With just days left until EOFY, now’s the time to make your remaining 2024–2025 budget work harder and smarter. After workin...

pay.com.au appoints new CEO and Managing Director

The former COO will lead the company’s next growth phase, with ex-CEO Edward Alder transitioning into the role of Managing Director AUSTRALIA, 25...

Sell by LayBy