Located in the heart of mainland Southeast Asia, Thailand —officially called The Kingdom of Thailand —and formerly known as Siam, shares its borders with Liam and Combodia in the east, the Gulf of Thailand and Malaysia in the south, the Andaman Sea and Myanmar in the west; and Laos and Myanmar in the north.

The country is positioned for international market entry geographically and economically. Thailand ranks 21st out of 190 countries in the Word Bank’s 2020 Ease of Doing Business report and ranked number three according to the U.S. News & World Report on the best countries to start a business in 2022. This U.S. news and world report rankings are derived from a global survey of more than 17,000 people. They are based on respondents’ association of various countries with five particular attributes: affordable, bureaucratic, cheap manufacturing costs, connected to the rest of the world and providing easy access to capital.

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A Business-friendly economy

Thailand has a population of 69 million people with business-friendly policies and a growing economy. 

Thailand is well-known globally for stable economic growth, friendly international business relations, excellent incentives for foreign corporations, and a cost-effective local workforce. Owing to its proximity to some of the fastest-growing economies, like China and India, the country offers several lucrative trade opportunities with these two countries and many Asian nations. 

The standard corporate tax rate in Thailand is 20 percent —however, for companies and partnerships where paid-in capital is less than THB 5 million and income of less than THB 30 million, the first THB 300,000 in net profit is tax-free. The THB 300,000 to 3 million net profit is subject to 15 percent corporate tax. Any net profit over THB 3 million is subject to 20 percent corporate tax.

While foreigners generally can own no more than 49 percent of the shares in a Thai company, there are specific sectors where the government allows foreign companies to hold a more significant portion of the business.

Setting up a company in Thailand

Depending on your business activities, setting up a business in Thailand may require acquiring a license or permit. Certain business activities are more regulated by the Thai government, such as tourism, school, childcare, liquor, medical, and food and beverage industries. Setting up a company in these industries can be lengthy and complex. It is always a good idea to find a legal firm in Thailand to help with setting up a company in Thailand. 

Thailand is particularly suitable for manufacturing sectors. Foreign automobile brands, such as the Japan-based Toyota, Honda and Nissan and U.S.-based Ford Motors, have set up manufacturing plants in the country. These automobile brands have established their production base for exports to neighbouring countries and the rest of the world. Nissan manufactures under the Siam Motors Nissan Company, and Isuzu has two plants making pick-up trucks in Thailand. These companies have set up their export operations in Thailand. Many other brands, like the U.K.-based Marks and Spencer and Bodyshop, have also expanded into Thailand due to the lucrative market and lower start-up costs it offers, along with sound trade policies and the country’s strategic location providing access to other Asian countries. 

Many new entrants enjoy access to the Greater Mekong sub-region, where emerging markets offer the tremendous prospect of setting up a company in Thailand.

Most recently, according to the Global COVID-19 Index (GCI) report, Thailand was ranked number one in the world among countries with the highest COVID-19 recovery rate.  

What do Thai consumers want from brands?

Consumers in Thailand are price-conscious and show a preference for local brands and low-priced imported goods from the west. There is a market for brands bringing in higher-priced items, but they need a different market strategy and should work with a local partner. 

About half of Thailand’s Most-Favored-Nation (MFN) tariff schedule comprises less than five percent of duties, and nearly 30 percent of tariff lines are free. In 2020, Thailand’s average MFN applied tariff rate was 10.2 percent. However, the tariff was significantly higher for agricultural products at 29.3 percent.

Like most other foreign markets, doing business in Thailand has its share of challenges, although when you look at the big picture, these are minuscule. One crucial challenge is the language barrier. While most middle and top management can communicate fluently in English, lower-tier workers are more likely comfortable speaking Thai. 

Many Thai retailers digitised their stores to enable online shopping using data analytics to understand better the latest trends and the shift in consumer behaviour. 

The digitisation began before the pandemic but accelerated during the lockdown as it imposed restrictions in 2020. This, along with increased internet and mobile phone use, improved logistics and online payment systems, resulted in spikes in B2C and B2B eCommerce. 

According to reports, revenue in Thailand’s eCommerce market is expected to show a Compound Annual Growth Rate (CAGR 2022-2027) of 14.99 percent, resulting in a projected market volume of USD 38.72 billion by 2027.

Rising smartphone penetration (about 40 percent) has led to the growth of M-commerce —online shopping using a smartphone. The mobile commerce market is expected to grow at a CAGR of 12 percent to reach USD 25 billion by 2023. 

The Thai government’s Thailand 4.0 policy aims at allocating a specific budget for constructing a broadband network in rural areas to help bridge the digital divide, giving an impetus to the already flourishing eCommerce market. 

According to JP Morgan, using debit or credit cards is still a popular method of e-commerce payments in Thailand, and most Thai people prefer debit over credit. While cash on delivery is widely available on Thai e-commerce platforms, it is on its way to declining. 

International or cross-border e-commerce comprises almost 30 percent of the overall e-commerce market in the country. The top five e-commerce platforms are Shopee, Lazada, Kaidee, AliExpress, and Amazon. 

Want to expand to Thailand? We are consistently recognized as one of the top market research agencies globally. To learn more, go to https://kadence.com/en-us/office/thailand/ and download our agency credentials.

Indonesia is the largest economy in Southeast Asia and the third-largest democracy in the world, offering opportunities in almost every sector of the economy. With rising disposable incomes, the country’s 261 million people make it the fourth most populous country in the world. Indonesia is the seventh-largest economy by purchasing power, and a leader in ASEAN, with a growing middle class, showing an increased interest in products and services imported from abroad.

As the world’s largest Muslim-majority nation, Indonesia is culturally diverse. It has more ethnic populations, languages, and cultures than other countries. It has several ethnic groups, including Javanese, Sundanese, and others, with more than 700 recognised regional languages.

Indonesia has an important place in the world’s economy as the 24th largest goods trading partner. Goods exports totalled USD 7.4 billion, and goods imports totalled USD 20.2 billion.

The Indonesian government’s policy, abundant natural resources, and young labour force have shaped the country’s economic performance.

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Indonesia is the largest economy in Southeast Asia and the third-largest democracy in the world, offering opportunities in almost every sector of the economy. With rising disposable incomes, the country’s 261 million people make it the fourth most populous country in the world. Indonesia is the seventh-largest economy by purchasing power, and a leader in ASEAN, with a growing middle class, showing an increased interest in products and services imported from abroad. 

As the world’s third-largest Muslim-majority nation, Indonesia is culturally diverse. It has more ethnic populations, languages, and cultures than other countries. It has several ethnic groups, including Javanese, Sundanese, and others, with more than 700 recognised regional languages. 

Indonesia has an important place in the world’s economy as the 24th largest goods trading partner. Goods exports totalled USD 7.4 billion, and goods imports totalled USD 20.2 billion. 

The Indonesian government’s policy, abundant natural resources, and young labour force have shaped the country’s economic performance. 

The country has also been increasingly open to international trade openness over the past half-century.

For foreign companies selling directly to the government and state-owned companies, it is critical to utilise the services of local agents or distributors. At times, companies are required to use their services by law. 

In 2021, the country’s President officially launched the Online Single Submission (OSS) System, a web-based platform for issuing business licenses to facilitate micro to large entrepreneurs. The goal was to adjust the business licensing process to the level of risk and improve the ease of doing business in Indonesia. 

The government said they would continue to cut regulations that potentially hamper business and investment licensing and called for transparency between government officials and entrepreneurs for obtaining business permits. They also put memorandums in place to increase investment and national revenue and ease the flow of investment into the country. 

For foreign companies entering the country, Indonesia is a lucrative market, and these companies need to understand Indonesian culture and local consumer preferences. 

Essential factors affecting purchase decisions in Indonesia are pricing, financing, technical skills, and after-sales service. Brands entering the market should invest in training their local staff for varying levels of seniority within the company. 

Market Opportunities in Indonesia

The Indonesian consumer has been ranked the most confident in the world, and it’s a young nation with nearly 43 percent of Indonesia’s 277 million citizens under 25 years old. 

Consumer-related market opportunities continue to lead expansion in the world’s fourth-most populated country, and growth in the retail, health, education, telecom, and financial services sectors has been booming.

Indonesia’s aviation market is the second-fastest growing in the world, and a competitive and expanding banking market offers significant opportunities for IT and banking equipment, software, and technology providers. There are opportunities for telecommunication infrastructure and aircraft replacement parts and services. Telecommunications equipment, services, and satellites remain excellent areas for products and services from western markets with a relative technological advantage.

Indonesia’s under-developed public infrastructure presents opportunities in aviation, rail, ports, land transport and public utilities infrastructure projects such as water supply, wastewater systems, and waste management establishments. Emerging opportunities include palm oil, biofuel processing, clean energy, energy efficiency, and technology to improve local production capacity, dams, and waste-to-energy projects. There are opportunities for U.S. defense manufacturers to sell a range of military aircraft, vehicles, communications systems, spare parts, and maintenance services.

Education and professional training, medical equipment, and high-quality U.S. agricultural commodities maintain their edge even with higher prices.

Challenges of doing business in Indonesia

Significant challenges revolve around labour relations, intellectual property protection, and transparent rules in setting and implementing standards and certification. The Government of Indonesia has introduced plans to reduce the bureaucratic red tape to facilitate investment.

Protecting intellectual property is a crucial concern for foreign brands in Indonesia. However, in a positive development, Indonesia established a new Intellectual Property Enforcement Task Force to improve IP enforcement coordination. 

Foreign companies entering Indonesia should be mindful of additional requirements for testing and certification imposed on a range of products. 

Another issue many exporters that target public tenders find is an opaque pricing environment and local content requirements. 

Manufacturers selling goods or services through e-commerce platforms with a significant presence in the country are assessed a 10 percent value-added tax on all transactions in Indonesia. A “significant presence” is determined based on gross sales or the number of customer transactions.

Significant challenges of doing business in Indonesia are:

  • Bureaucratic inefficiency
  • Delays in land acquisition for infrastructure projects
  • Weak enforcement of contracts
  • Delays in receiving refunds for advance corporate tax overpayments

The energy and mining sectors still face significant foreign investment barriers, and all sectors need more effective IP protection and enforcement.

Despite some of these challenges, Indonesia continues to attract substantial foreign investment. According to the 2020 IMF Coordinated Direct Investment Survey, the top foreign investment sources for the country came from Singapore, the United States, the Netherlands, Japan, and China.

Private consumption drives the largest economy in ASEAN, making Indonesia a favourable destination for a wide range of brands and industries. 

Want to take your brand to Indonesia? We are consistently recognised as one of the top market research agencies globally. To learn more, go to https://kadence.com/en-us/office/indonesia/ and download our agency credentials.

Brand trust is one of the most valuable intangible assets of a company. Brand trust is meeting or exceeding consumer expectations by how well a brand delivers on its promises with its products and services. When a product fails to launch successfully, it can be costly and erode brand trust, which can take years to rebuild.

While product innovation is essential to building market share and customer satisfaction, products that fail to launch successfully can have the opposite effect, eroding market share, creating dissatisfaction, and sometimes bad press. 

For example, the US Food and Drug Administration (FDA) recently reviewed claims that pulse oximeters, the medical device that clamps onto a patient’s fingertip to measure their blood oxygen levels, can yield less accurate readings in people with darker skin tones. Medical professionals use these devices in ambulances, surgeries, emergency rooms, and hospitals worldwide, so it is alarming that these commonplace devices could be inaccurate. Thorough product testing with a diverse sample could have potentially detected this problem before launch and helped avoid the erosion of trust for these products. 

Recalling faulty, dangerous, or flawed products can cost a company millions and cost much more in lost brand trust. The most costly product recall to date is the Takata Airbag which is said to have cost USD 24 billion.

While safety, functionality, and accuracy are reasons to conduct product testing, it also analyzes a product concept or feature to determine how existing or potential customers will use or react to a product. 

Product testing is a research methodology that allows brands to collect qualitative and quantitative data about consumers’ potential consumption and usage behaviour, preferences, and reactions to a product.

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Product testing helps development team members measure a product’s market potential. Brands can use product testing research to determine whether a product functions as expected or whether a target audience will find value in a new product feature. Specifically, product testing helps research, marketing, product managers, and developers:

  • Gain insights: Discover valuable insights about customers’ needs and preferences, which can provide direction during development.
  • Improve products: By gathering and reviewing feedback during development, product development teams can use this information to improve products to meet customers’ expectations.
  • Save time: Product testing can help teams save time during development by identifying potential problems or risks early in the development process before launching the product to consumers.
  • Achieve business goals: Product testing helps product development teams prioritise so they can achieve key business goals, such as attracting more customers or increasing revenue.

Six common types of product testing

The type of product testing deployed can vary based on the project. Here are six common types of product testing. 

1. Concept testing

Commonly used to explore the feasibility of a product idea or concept, concept testing evaluates how the product may perform in the marketplace when launched. 

Depending on the product, concept testing often involves presentations, customer surveys, or wireframes. Concept testing can help product developers and engineers determine whether to progress to the next stage of development by evaluating responses to the idea. It can also clarify the features or functionality customers want from the product.

2. QA testing

Quality assurance (QA) testing is commonly conducted in a staged environment, where product developers test the features or functionality of a product before its public release. QA testing research teams evaluate the product using different scenarios to imitate a customer’s use. QA testing can test product updates or new features before releasing the changes to a broader audience. This type of research ensures the product works as expected and helps teams identify problems before launching the product.

3.A/B testing

With this type of product testing, product developers create two versions of a product’s feature or component and ask a research sample of customers which version they prefer. The differences in the versions may be slight, such as two different colour schemes on a product label, or they may be considerable, such as two distinct brand names. A/B testing helps product developers and engineers make design choices based on customers’ preferences. 

4. Market testing

Market testing introduces a product to customers to assess the market potential. Market testing is finding the optimal landscape, at what price point to sell, and which types of customers fit best. The product and research teams typically release the product to customers in different geographic areas and/or demographic groups, such as Gen-Z. Market testing can help product development teams measure the potential success of a product in the market. Market testing is often used to forecast product sales, plan advertising campaigns and determine effective distribution strategies.

5. User testing

User testing is research after the development team has built the product. Product development and research teams perform user studies by observing how customers interact with their products. They gather data and information based on customers’ experiences with the product to determine whether to make changes in future product releases. 

6. Regression testing

Regression testing occurs after customers have begun using the product. During regression testing, teams test the current features of a product to help them determine the features they want to add or update. While some existing features may remain, regression testing helps product development teams determine if newly added features impact the current product’s functionality.

Product testing best practices

There is rarely a one-size-fits-all when it comes to product testing. To get the most from your next (or first) product test, it is always best practice to speak with experts in the field. 

  • Use different methods: It’s helpful to use different product testing methods to provide clear direction throughout all phases of development. For example, your product development team may use concept testing to determine the viability of a product idea, A/B testing to assess its design, and QA testing to ensure the product functions as expected.
  • Refrain from making assumptions: Though it’s helpful to develop a hypothesis before product testing, refrain from making assumptions about how customers may use or react to a product. This mindset allows you to evaluate data objectively.
  • Test successful products: While it’s important to conduct product testing to identify potential problems or risks, it’s also helpful to test successful products to learn what’s already working well. Collect this data through product testing and use that information when developing future products for continued success.

Launching a new product into an existing market, releasing new features, or launching a current product to a new audience is an exciting time for a brand. Product launches come with a certain amount of risk. With the right product testing research, you can swing the pendulum in your favour, make sound strategic decisions and maximise optimal returns. 

The Philippines is an archipelago in the western Pacific Ocean, consisting of around 7,641 islands. The country shares maritime borders with Taiwan to the north, Japan to the northeast, Palau to the east and southeast, Indonesia to the south, Malaysia to the southwest, Vietnam to the west, and China to the northwest. Its proximity to major Asian cities offers it a strategic point of entry into the ASEAN market and a gateway to international shipping for European and American companies. 

Economic development and Foreign Direct Investment

The Philippines is liberalising foreign investment laws to enable international companies to invest in the country’s robust economy and leverage its highly skilled labour market.

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The country’s economy grew by 5.7 percent in 2021, surpassing the government’s 5-5.5 percent target range, bringing the Philippines closer to its pre-pandemic 6.6 percent GDP from 2012-2019. 

The Philippines’ gross national income per capita was estimated at around USD 3,500 in 2021, below the World Bank’s upper middle-income range of $4,096 to $12,695.

According to reports, Philippine officials expect the country to achieve an upper middle-income status by 2023. 

Ease of restrictions increased consumption and improved employment. 

Net foreign direct investment (FDI) inflows rebounded after declining for three consecutive years and rose by 54 percent year-on-year to USD 10.5 billion in 2021. The U.S. is among the top investors in the Philippines. 

The top two import sources of the Philippines are China and Japan, with 22.7 percent and 9.4 percent import shares, respectively. The United States is the largest export market of the Philippines, with 15.9 percent of the total export value in 2021. It was followed by China, a very close second, which accounted for 15.5 percent.  

The Philippines has been named one of the most lucrative markets for foreign direct investment (FDI). 

With the twelfth largest population in the world, Filipinos are substantial consumers. Consumer spending in the Philippines reached its all-time high in the fourth quarter of 2018, and spending is predicted to keep increasing. The country has been named the 43rd biggest economy in the world and is a land of promise for domestic and international brands to invest.

A skilled workforce that is fluent in English 

The Philippines is known for its high proficiency in English and occupies the second spot for English proficiency in Asia. It ranked 18 out of 99 countries analyzed in the Index as of 2020. 

This is a great advantage for international companies entering the market and using local labour. 

The Philippines is considered a lucrative host for Foreign Direct Investment. Between 2016 and 2022, the Philippines Central Bank data showed that firms from China and Hong Kong invested USD 1.7 billion in the Philippines, trailing only Japan at USD 2.8 billion but ahead of the USA (USD 1.3 billion). 

The country is developing at a healthy growth rate and presents an immense opportunity for entrepreneurs, investors, and Filipino employees.

Many investment opportunities are available for entering the Philippines market, and now may be the best time for foreign brands to explore this emerging market. 

Some of the most lucrative industries for FDI in the Philippines include agriculture, manufacturing, tourism, business process outsourcing, energy, and infrastructure development.

There are various entry modes to choose from when investing in the Philippines. Companies entering the country can choose the most suitable one based on their business model and the laws governing each structure. 

1. Corporations 

A foreign company can establish itself as a corporation by registering a new legal entity with the Securities and Exchange Commission (SEC). In this structure, the owner’s individual assets are separate from the company’s. Corporations can be formed in two ways, a Filipino corporation with a minimum of 60 percent Filipino equity ownership or a foreign-owned domestic corporation with a foreign equity ownership greater than 40 percent. There are important distinctions between the two concerning land ownership and tax-incentive programs. Foreign-owned domestic corporations face the exact tax requirements as local corporations.

The process of setting up a corporation may be a complex one taking an average of 28 days. 

2. Branch Office

A branch office is a subsidiary of a foreign company that engages in the activities of its parent company in the Philippines. This is a profit-oriented structure used for business process outsourcing, such as call centres or back offices for multinational firms in the Philippines. These firms are popular in the Philippines due to low wages and many fluent English speakers. Setting up a branch office typically takes three to four weeks from the time of filing with the SEC.

3. Representative Office

A representative office is a liaison between the parent company and clients or partners in the Philippines and is not legally allowed to derive income. On average, setting up a representative office takes about three to four weeks from the date of application.

4. Regional H.Q.

Regional or Area Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) are two types of regional headquarters. 

RHQs are non-income generating offices of a foreign enterprise, while ROHQ is an office of a multinational commonly used for back-office operations. The primary purpose of RHQs is to be a communication centre for subsidiaries, affiliates, and branches in the Asia Pacific region. 

The good news is that growth is seen in Manila’s metro city and other smaller provinces. The country’s improved infrastructure and growing population of consumers are attracting investments, both domestic and foreign, and creating better job opportunities. 

The Philippines’ economy is poised for growth, and the investment market is rife with opportunities, which makes it an excellent time to enter the country. 

Kadence International helps leading brands make game-changing decisions. From our base in Manila, we can conduct market research across the country. This means we can also be fieldwork partners, helping organisations reach respondents across the Philippines. Also, learn more about how to conduct market research in the Philippines.

If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Big data and advanced analytics are hot. Voluminous sets of data can be processed automatically using technology. But the data becomes useful only when it is converted into meaningful information. While Big Data has become the buzzword today, it is of little use if it’s not profitably analysed.

The global Big Data and Analytics market is worth USD 274 billion. Around 2.5 quintillion bytes worth of data is generated each day. There are currently over 44 zettabytes of data in the entire digital universe.

So what is big data exactly, and how does it impact companies?

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Big data refers to large sets of data obtained from multiple sources, like medical records, government records, customer databases, mobile applications, search engines, business transactions, social networks, and other massive data sources. Big data may be structured or unstructured, allowing brands to manage large amounts of data more efficiently. Many organizations are moving away from legacy systems and consolidating data to make the research process seamless, cost-effective, and efficient. 

Technologies like text analytics help market researchers examine large amounts of information and data in real-time to track consumers’ sentiments and detect potential brand reputation issues before they become serious. 

Big data market research is invaluable for brands as it combines consumer and behavioural data with advanced analytics to enable faster decision-making that yields improved business outcomes. When big data and market research converge, everyone wins because it results in better, more relevant products and services for the consumer and a competitive advantage for the brand.

Big data and market research convergence allow brands to dig into data to uncover the “why” behind the numbers. Let’s say, for instance, a brand uses data mining to discover a sudden decline in the market share for a high-end product in a specific market. Using market research methodologies, it studies a sample of consumers that have exhibited a change in buying behaviour to unearth what led to the change. Was it a new product that entered the market, or did they reduce spending due to the economic climate?

These reasons are not presented in the data, and market research can help uncover the “why” behind a data set. 

Today, the digital consumption of information, products, and media makes everything measurable on a large scale. Social media analytics is an example of big data used on a massive scale globally. 

How does big data impact business?

A 2020 study showed that around 94 percent of organizations believe data and analytics are essential to growing their brand and supporting digital transformation. The study also found that the financial, hospitality, telecoms, and retail industries invest the most in big data and analytics. 

Big data in the Banking and Financial Services sector

The application of big data analytics has allowed financial services companies and banks to become more efficient, customer-centric, and competitive. This industry utilises big data to make transactions, trading, and financial activities seamless for their employees and customers.

Retail and eCommerce

The eCommerce and retail industries collect data through their Point of Sale (POS) systems, loyalty programs, and website browsing behaviour. It also helps with inventory replenishments. 

In the eCommerce industry, knowing your customers can unlock conversions and profits. Big data on real-time consumer behaviour, purchase history, and consumer preferences can help online stores recommend the most relevant products and offer them to consumers at the right time. Big data enables e-stores to conduct competitive analyses and pricing to lure consumers. Above all, technology allows online retailers to offer personalization, superior customer service, and experience.

While these industries invest heavily in big data, they are not the only ones. Many sectors like manufacturing, logistics, media, oil and gas, and healthcare are investing large sums of money in adopting this technology to manage their data efficiently. 

Big Data analytics for the healthcare industry is expected to reach USD79.23 billion by 2028. 

For most companies, data is fragmented, and brands are looking for people who can analyze and use data to optimise all business processes and functions. 

Big data impacts not only the private sector but also the public sector. For governments, big data has many applications, including health-related research, financial markets research, fraud detection, public safety, transportation, and environmental protection, to name a few. 

Advantages of Big Data 

Massive organizations like Google, Facebook, and Amazon have proved how big data can build big brands. These organizations have capitalised on big data mining and analytics to grow their brands and boost market valuations. 

One of the most significant advantages of big data is the ability to make informed decisions based on hard data and facts. 

Big data is valuable for consumers too. In the information age, the consumer can access ratings, product reviews, and an easier means of providing instant real-time feedback. This allows consumers to make informed choices. 

What are the challenges with big data and analytics?

As recently as last year, Facebook’s Mark Zuckerberg, Google’s Sundar Pichai, and Jack Dorsey of Twitter had to testify before Congress about the steps they have taken to deal with data privacy. 

Consumers have become more data savvy and are concerned with privacy issues and breaches. <add stats on #s ready to share data for more relevant messaging)

Business outcomes are only as good as the data; high-quality data (link) is of utmost importance. Researchers and brands must be cautious about the data sources and methodologies to obtain the most accurate, reliable, and relevant data. 

The big data market is poised for phenomenal growth in the coming years. With the development of technology penetration across all areas of life, digitization, and the widespread use of smartphones globally, large amounts of data are produced every second. This has led to the need for data analysis and big data. 

As brands apply big data, they make data-driven decisions faster and can respond quickly to market changes. This has a direct impact on their bottom line. But data is not enough; there has to be a fusion of data science with marketing science to help market research become more effective.

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

According to the Global Research Business Network (GRBN), confidence in the market research industry has remained stable, and trust in data analytics has increased in 2022 compared with 2020. 

Still, market research as an industry needs to constantly work to improve the perceived value of research. The way to ensure this happens is by addressing the main challenges of obtaining high-quality data. 

The importance of data collection in market research cannot be emphasised enough. This blog post will analyze the main obstacles brands face in this area and provide guidance on how market researchers can tackle these challenges with the help of technology. 

The methods you use to collect and analyze data will significantly impact the quality of your market research report and its value in decision-making. The five best data collection tools for market research are surveys, interviews, focus groups, observation, and secondary sources. 

Understanding the best methodology to get the most accurate, error-free, and reliable data is essential. 

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What is data quality?

Data quality is a complex, multi-faceted construct. Quality data is data that is fit for its purpose and closely relates to the construct they are intended to measure. 

Let’s take the example of a brand like Amazon’s Audible and try to predict what type of books a person would be interested in based on his previous listening history. The data is likely high quality because the books subscribers have listened to in the past are a good predictor of what they would like to consume in the future. The books they have listened to in the past also have a close relationship with what you are trying to measure, in this case, book preferences, which makes the data high quality. 

Reliable data requires a high-quality sample with enough information to make conclusions that inform business decisions. For instance, in the same example of Audible, if a subscriber uses it only once in a while and has only listened to one book in six months, it fails to present a complete picture of the user’s preferences due to limited data or information available. 

In the example used above, the data is available in the app and is much easier to collect. However, this is not always the case. Many instances of market research involve collecting data from people taking surveys, user testing, or recollecting past experiences and feedback, which are much more challenging to measure. 

So how do you ensure you collect high-quality data that informs decision-making at every step of the organization? 

Utilise technology 

As the world has moved online, so have many market research methodologies. Many companies have been forced to move online quickly, which has been a blessing in disguise for them. Technologies like automation and Artificial Intelligence (A.I.) have allowed brands to obtain transparent, reliable, and accurate data more efficiently.

Technology can also be beneficial in identifying bad data. Automation helps select the best pool of candidates for a study and helps achieve a more balanced view of the respondents. It can help reduce subjectivity and bias, scale costs, and improve project speed and efficiency. 

Advanced profiling

To yield high-quality data, you must obtain a 360-degree view of the user or consumer. A good data scientist will study the consumer using all critical data points, like browsing history, purchase history, online behaviour, cart abandonment, geolocation, and other relevant data.

Proper Planning

Excellent outcomes need proper planning, which is valid for everything, including market research. The entire team must understand the research study’s objectives before doing anything else, including all the early actions, like identifying the right participants for the study. Researchers can then create a sample plan based on key objectives and participants. This will become the basis of the methodologies used and the survey designs. A good market research study also employs a screener to ensure they only include participants relevant to the study. 

Recruit the right people

At Kadence, we firmly believe your research is only as good as the people participating in your study. When carrying out a virtual study or focus group, it is vital to make sure people doing the testing or surveys are genuine and suitable for the particular study. Researchers must hunt down even the most difficult-to-reach audiences, as you need the right people for the research to yield unvarnished results. 

Ensure complete and active participation

Making surveys more engaging will always lead to higher participation in online surveys. A well-designed survey with clear instructions will ensure higher participation and more honest responses.

Throughout the survey, researchers can include questions to ensure participants are paying attention and potentially weed out those who are off-track and disengaged.

Screening dishonest participants

Researchers can go a step ahead to eliminate dishonest survey participants. Online surveys can identify potential red flags where people provide false demographic information so they can qualify for studies with high rewards. 

Researchers can selectively target participants who have been profiled in the past to avoid participants with false demographic information. 

Develop a system of efficient, consistent data quality checks throughout the process

Market researchers should always have an effective and efficient plan for weeding out bad data throughout the study. Automating and utilizing suitable technology can ensure you safely streamline the quality check process in real time.

A critical challenge with market research is the ethical collection and use of data. Discover why ethics are vital in data collection and how to ensure your data collection is always on the right side of law and ethics here:

The ultimate goal of market research is to obtain high-quality data that is accurate, relevant, and reliable. While well-planned and thoughtfully designed studies can yield effective results to inform decision-making, poorly planned and designed ones can lead to poor business outcomes.

The stakes are always high, so it is crucial for brands and researchers to constantly improve data quality and reliability to save time, money, effort, and resources and lead to better, more informed business decisions. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

Clean eating profoundly impacts food production as consumers worldwide gravitate toward healthier, cleaner foods.

In 2022, the global health and wellness food market was valued at USD 841 billion and is projected to increase to one trillion U.S. dollars by 2026.

What is clean eating?

Clean eating might have various interpretations for consumers, but it generally refers to eating whole foods as close to their natural state. Consumers that opt for clean eating usually prefer making their meals from scratch. For food and beverage companies, this means using suppliers who cultivate high-quality ingredients and organic farming. These typically come from smaller productions, which means higher prices for consumers.

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Consumers want to eat healthily, but the price is an obstacle.

The pandemic has put health at the forefront and changed our relationship with food. Consumers want to eat healthier, and this has been the most significant lifestyle change in recent years, followed by working out more often.

With the impending recession and high inflation rates, spending less money is also a priority. 

Consumers are looking for “farm-to-table” foods, and the buzzwords are healthy foods that are accessible. These consumers want to know what is in their food and where it comes from. 

Health and wellness factor heavily in purchasing decisions, and food production brands adapt to the trend. Protein-rich foods and superfoods with high antioxidant values are foods that more health-conscious consumers prefer today.

Superfoods refer to nutritionally dense foods or foods that are exceptionally high in vital nutrients. Some commonly regarded superfoods are salmon, kale, blueberries, chia seeds, acai, and quinoa. 

Statista states that between 2016 and 2017, retail sales of quinoa grew by 15.6 percent in the United States as its health benefits became more well-known. Chia seeds witnessed a 14.7 percent increase in retail sales during the same time. 

Consumers are discerning what foods they put in their bodies with increasing awareness about the harmful effects of preservatives and rampant chronic diseases. While there was already a slow rise in this awareness, the pandemic accelerated the shift. For today’s consumers, it is also essential to trace where the product is from. In terms of dairy, vegetables, meat, and fruits, “locally grown or sourced” is gaining significance. 

According to a survey, in 2022, 52 percent of respondents surveyed reported following a specific diet, a sharp increase from 39 percent in the previous year. Amongst those who followed a diet or plan, clean eating (16 percent) was the most popular, followed closely by mindful eating (being intentional and aware when eating) and calorie counting. 

Superior quality, organic foods, and ethical farming practices

From farm-raised over wild-caught seafood to cage-free eggs and non-GMO grass-fed beef, consumers are looking for high-quality ingredients and slowly moving away from pesticide-ridden, low-quality GMO foods. 

The global sales of organic food have risen between 2000 and 2020. In 2020, organic food sales amounted to about USD 120.65 billion, up from nearly USD 18 billion in 2000.

Organic food can vary wildly depending on the nation and certifying agency, but it frequently means crops grown without genetic modifications, artificial pesticides, or harmful fertilizers. Organic meat, dairy, and eggs require animals to be provided organic feed, given sufficient time outdoors, and not be fed growth hormones or fillers. 

In 2019, organic food sales amounted to USD 106 billion, up from nearly USD 15 billion in 1999. The United States accounts for over 40 percent of the retail sales of organic food worldwide, followed by Germany. 

According to the same report, in 2019, there were approximately 72 million hectares of organic farmland worldwide. There were more than one million organic food producers in India, which amounts to at least five times more producers than in any other country.

Ethical farming, manufacturing/ production, and distribution practices are essential to purchase considerations for many buyers. Slave trade, animal cruelty, and environmentally safe farming practices are encouraged. Many consumers won’t buy products that they know follow these inhumane and anti-environment practices.

All this comes at a high cost, and most consumers won’t pay the higher prices for organic foods, even though they would like to. 

Plant-based foods

While veganism, a diet that eliminates all meat and animal-derived foods, is still a lifestyle followed by very few consumers, there is continued demand for plant-based foods worldwide. 

Plant-based meat alternatives include food products from vegetarian or vegan sources, such as soy, vegetables, seitan, tempeh, or pea proteins. 

The percentage of vegans differs by country. With a 9 percent vegan population, India is the leading nation by share of vegans. In the U.K., their percentage is less than 2 percent, but in the U.S., it is closer to 6 percent.

In 2021, Beyond Meat was the leading company producing alternative protein products, such as plant-based meat, with an estimated market value of USD 9 billion. The company offers burger patties, among other alternative meat products. Impossible Foods, which ranks second, is a direct competitor in this market. Brands with plant proteins, dairy alternatives, and meat and seafood substitutes attract Venture Capitalists and are amongst the most funded start-ups in many markets. 

According to a report, in 2020, the global market value of plant-based meat was estimated to be around USD 6.7 billion. The market is expected to continue its growth and will reach about USD 16.7 billion in 2026. With a share of 44 percent, North America, has the largest market share in the plant-based meat market, followed by Europe, at about 34 percent. 

Vegan and plant-based foods are becoming popular with the meat-eating population as well. Non-vegans regularly consume many types of meat and dairy substitutes. Impossible Foods is one of the world’s most prominent alternative protein companies. The global vegan market is valued at USD 15.8 billion, and the global plant-based food market is valued at USD 35.6 billion. The milk substitute market alone is valued at USD 19.5 billion. China and the U.S. are the largest milk alternatives markets and together account for USD 12 billion of the total global revenue. 

The global plant-based food market will reach USD 77.8 billion in 2025, and the forecast projects that by 2030 the market will have more than doubled. 

Contribution to a greener, more sustainable world

Consumers are looking to make more significant contributions toward a sustainable and green future, especially for younger generations, like Millennials and Zoomers. 

Today’s consumers are more conscious of how they consume products and are more aware of enterprises’ impact on the ecosystem. Many consumers will stop using brands that are not environmentally friendly and will favour those that are and move their loyalty toward them. Sustainability is not restricted to just the environment and includes ethical practices and humane conditions. Packaging and reducing carbon emissions are a huge part of sustainability. 

Numerous big brands have incorporated sustainability into their corporate social responsibility frameworks. Many large fast-food chains have joined the climate movement, and Chipotle Mexican Grill, a US-based fast-casual chain, is an excellent example. Besides introducing eco-friendly packaging and measures to reduce waste, the brand went a step ahead. It launched a ‘sustainability tracker’ to provide data on the environmental impact of all its ingredients. Chipotle diners now receive data on five environmental metrics on their order confirmation screen, showing carbon in the atmosphere, gallons of water saved, improved soil health, organic land supported, and antibiotics avoided. 

For sustainability to happen, technology is a critical piece that can allow companies to forecast, monitor quality, and improve processes and packaging, to name a few. Factors like natural resources, labour, climate, and air quality are also important. 

With this new wave of the conscious shopper, many brands need to rethink their business operations for a complete rehaul. 

It is worth noting that it is a challenging change as brands grapple with offering better, cleaner foods at affordable prices.  

While consumers are more aware now, can they eat as healthy as they would like, given the inflation rate and higher prices for organic, clean foods?

With the current inflation rates, consumers find even regular food choices expensive. So everything comes down to value for the consumers. If your brand fails to show the consumer enough value, they will move to a less expensive option. So brands must be proactive in delivering value to the consumers to retain them. The good news is that even though we are in a supply-driven inflationary market, employment levels remain healthy. Currently, consumers absorb rising prices by reallocating their budgets toward priority areas. However, the imminent recession will impact purchasing power, so brands need to think ahead.  

For a more in-depth look at the Food and Beverage industry, download our report, “Food and Beverage Trends to Watch in 2022.”

At Kadence, we pride ourselves on being at the forefront of research innovation. We identify and explore how emerging technologies will reshape the research landscape- and share findings with the industry.

Our primary focus is identifying developments that will enhance the richness and depth of insights we deliver to our clients.

In recent years we have partnered with clients to pilot a range of new methodologies:

● Artificial Intelligence in qualitative research with Starbucks
● Blockchain survey sampling with Unilever
● Augmented Reality pack-testing with Asahi

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In late 2021 it was hard to avoid talk of the Metaverse, including Facebook’s repositioning to focus on virtual reality and augmented reality and the change of company name to ‘Meta’. Alongside Meta, there were vast inflows of investment into the metaverse infrastructure from tech giants such as Microsoft, Apple, and NVIDIA. At the same time, the falling cost of VR headsets made these accessible to many consumers (an Oculus Quest 2 VR headset fell to around £300).

As opportunities for customisation grew, our focus turned to the Metaverse and, specifically, a curiosity to understand whether the exciting developments present an opportunity for the research industry. To explore this, we partnered with a major US media brand.

Over the past few months, we have undertaken a comprehensive program of qualitative exercises in the Metaverse, an industry-first. Our pilot included focus groups, triads, and depth interviews.

All respondents and moderators participated using VR headsets. We tested a range of qualitative exercises (including co-creation), seeking to make the most of the tools available within the metaverse environment.

As well as assessing the quality and depth of insights gathered, we also examined the nature and quality of interactions between participants. Additionally, we investigated respondents’ ease of use and technical challenges that could inform future use.

The pilot has now concluded, and we are excited to share and discuss our groundbreaking learnings with the industry over the coming months at various conferences. 

 We will be sharing our conclusions on the following topics:

● Can we successfully harness this infrastructure to conduct qualitative research?

● What benefits does this offer over face-to-face and online methods?

● What opportunities exist for market research in the short-term and medium term?

● Will the Metaverse reshape our industry?

Please get in touch to learn more about our work in the Metaverse.

Contact Name: Rupert Sinclair, Head of Insight, UK

Email: [email protected] 

A Summary of our latest report —Feeling Good: Powering the Next Generation of Fitness and Medtech.

Today’s consumer is spending less on acquiring things and more on doing things, and this trend is making its way into the fitness and medical industries.

Research shows that when consumers feel good about their fitness regimen, they are more likely to continue the program. In short, the outcome consumers are looking for is not just looking good; but also feeling good.

So what do consumers want from their fitness routines? And what do they want from their gym experience? 

Download our complete report, “Feeling Good: Powering the Next Generation of Fitness and Medtech”, to find out now.

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This report examines the top technology trends in the health, fitness, and medical industries. Download the complete report here.

Trend 1: Wearing your heart on your sleeve

You will see wearable fitness devices on professional marathon runners, casual gym-goers, and even those attempting to become more active.

The simple steps tracker has evolved into our trusted health advisor, dietician, and fitness trainer.

It is no wonder, then, that worldwide shipments of wearable devices from 2020-2021 showed an increase of 27.2 percent. 

The increased use of the Internet, 5G technologies, and constant innovations have made North America the dominant market, with a 38.6 percent market share. The Asia Pacific is the fastest-growing market.

Consumers are taking charge of their well-being with wearable technology.

Rising health awareness, a sedentary and hectic lifestyle, increasing healthcare costs, the growing prevalence of chronic diseases like diabetes and obesity, and the increasing popularity of the Internet of Things (IoT) are driving the market. As health and fitness took centre stage during the pandemic, it accelerated the adoption of wearable fitness trackers. 

Trend 2: The growing application of wearable technology in the medical device Industry

The healthcare industry has seen the growing popularity of wearables significantly impacting the prevention and treatment of many chronic diseases.

The pandemic has changed our relationship with sleep and its therapeutic benefits. Consumers are more aware of the health benefits of quality sleep and are using sleep-tracking technology to understand their sleep patterns better.

Download the complete report to discover Oura ring’s foray into Health and Medtech

The Future of Holistic Healthcare Smart Wearable Devices. 

Wearables have many life-altering benefits that make them invaluable in the medical field.

Download our complete report to learn the various use cases of wearable devices in diagnosing, monitoring, and treating chronic diseases. 

Initially, North America led the world with the highest share of wearable device sales; however, the Asia Pacific region has recently grown leaps and bounds, becoming the fastest-growing region.

Download our complete report to learn more about the leading countries in the sector. 

Trend 3: Taking the gym home 

The trend of bringing home the gym with smart home equipment took off during the lockdown as gyms had to shut down worldwide.

Download the complete report to find out what happened to the at-home gym equipment market after the lockdown as people returned to in-person fitness centres.

Also, read an in-depth analysis of why 1.4 million users are paying a premium for the Peloton bike. 

Trend 4: Fitness apps and AI-powered personal trainers

The lockdown forced people to shift from physical gyms and fitness studios to virtual fitness classes, which led to a considerable number of apps being downloaded, giving an impetus to the fitness app market.

The increased prevalence of chronic diseases or diseases that prevail over the long term, like diabetes and obstructive pulmonary disease, is driving the growth of fitness and nutrition apps.

Download the complete report to see how these apps are proven to help people better manage their symptoms and conditions.

Trend 5: Mental health goes digital 

In 2020, we saw an uptick in downloads of mental wellness apps, as the pandemic and its repercussions propelled this growth. Developers of apps are delivering on market demand, as 20,000 mental apps are available for download today.

Many of these apps emphasise mindfulness and meditation and go beyond providing support from a traditional therapist. Mental health apps also offer professional online therapy sessions on the go.

While the number of app downloads is a good metric, returning users is the fundamental metric for an app’s success. 

Download the report to discover how the UK-based mindfulness and meditation app, Headspace increased users and retention rates using a data-driven approach. 

Trend 6: Entering the fitness metaverse

Companies are creating immersive fitness experiences by partnering with premium gaming and fitness brands.

This is bringing about a trend in fitness gamification, a new generation of immersive exercises and workouts using music, visuals, wearables, and instructors to offer users an exciting, immersive experience.

Download the full report to learn how Hong Kong-based brand, OliveX incentivises users by rewarding them for their workouts using blockchain technology.

Putting our bodies (and data) out there 

Data security risks are one of the biggest challenges we face as we move mountains in the fitness tech industry. These trackers can allow hackers to intercept personal data, and if the data is not adequately protected, it can make us vulnerable to unauthorised users accessing our information.

}The future of wearable technologies is in the health and medical sectors. Although some companies, like Apple, have tight privacy controls for users, there is not enough research on wearable tech for digital health technologies’ security, data rights, and ethics.

The ubiquitous use of the Internet and smartphones and the shifting tendency toward healthier lifestyles and increased wellbeing have sparked significant growth in the global fitness and medical device technologies market. 

Download the complete report to discover the biggest trends in the Fitness, Health, and Medtech industries.