Step into the world of Karlo Angelo Lazaro, the dynamic Project Manager at Kadence International’s Philippines office. With a career marked by evolution and resilience, Karlo brings a unique blend of experience and passion to market research. 

From navigating the intricacies of data analysis to leading groundbreaking projects, his journey shows the transformative power of dedication and curiosity in the ever-evolving field of market research. 

Join us as we delve into his insights, challenges, aspirations, and what’s shaping the future of market research in the Philippines.

Can you share what inspired you to pursue a market research career and what has motivated you in this field?

I was working as a Reconciliation Specialist for J.P. Morgan Chase, which was not working well for me. The work was repetitive and not stimulating enough to sustain my interest. 

Some of my University friends already worked in different Market Research agencies, such as Millward Brown and TNS, so I asked for referrals. I’ve always been interested when they talk about their work, how interesting the industry is, and how different it is from banking. 

I secured a position in TNS as a Research Associate, which started my Market Research journey. The sheer variety of clients and research methodologies are enough to keep me in the industry. 

Before Kadence International, you worked in various roles, including Research Executive and Reconciliation Specialist. How did these experiences shape your approach as a Project Manager in market research?

One thing I appreciate about having worked as a Reconciliation Specialist is that it developed my keen eye for detail. There’s no place for mistakes when you’re balancing salary accounts, so there was a real impetus for me to hone my eye. This has served me well as a Project Manager as I have been able to spot if something is amiss in whatever I’m checking, be it a client deliverable or a simple email.

Rising through the Market Research ranks has made me more empathetic to my Analysts and Researchers. Since I have been in their position before, it has helped me manage them better because I know how long tasks take and possible bottlenecks they may encounter. 

The roles I’ve had before ultimately led me to be a better Market Researcher. I always give my team grace and try to be as understanding as possible, so long as there are no deliberate or egregious mistakes. 

What unique challenges and rewards have you encountered while working at Kadence International?

I joined Kadence back in March 2021. Lockdowns were still common, and all research had moved online or via CATI. So, that was quite a unique moment in Market Research, but across all industries.

Upon joining Kadence, I was assigned World Poll PH 2021. It was the first large-scale CATI tracking study I’ve ever handled. It was four waves of N=1000 each, with two waves running concurrently. 

We had problems with the output quality of the contracted CATI supplier, so we had to do the calls in-house, meaning we recruited our callers to finish the study! That was quite the challenge for my first CATI project, but I made it work and was rewarded with the client’s continued trust in us for this tracking project.

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Could you discuss a particularly memorable or challenging project you managed at Kadence International?

Aside from World Poll, another critical project that I will always remember would be my first political survey. The project was called Pundit, and it had several iterations throughout 2021. Initially, it was a one-off set of FGDs, but it developed into multiple qualitative and quantitative projects leading up to a few months before the 2022 Philippine National Elections.

We started this when possible candidates were just floated around, and no official candidacy was announced yet, so we indeed saw how the populace reacted and how their sentiments changed throughout the different iterations of Pundit. 

One thing to note was that Pundit results were not released publicly, so I’m very proud of this project as our results closely resemble those of publicly released political surveys at the time, which shows that we are capturing the true sentiment of the public.

Another remarkable thing about the project was the fact that this is where Kadence PH saw a return to F2F TAPI interviewing, which brought about a different set of challenges like interviewers falling ill due to COVID and local government units refusing to have us conduct surveys in their area due to COVID fears. 

We also had to respond quickly to sudden government announcements that may impact our people on the ground, such as possible lockdowns in areas where COVID numbers are up. Pundit was a whirlwind of different issues, but I wouldn’t have traded it for anything else because it was such a fun project to run.

You possess skills in data visualization, critical thinking, and communication. How do these skills play a role in your daily responsibilities?

I find it helpful when training my team members. When we craft proposals or have reports to send out, I get to share my knowledge and experiences with the junior team members. What would be the best way to present the findings, what charts to use, and the like?

We’ve also had coaching sessions on proper client communications and how we can influence clients to see things our way. It fills me with joy when my team members can confidently talk with clients and accomplish tasks with little to no supervision on my end.

How has the market research industry evolved, particularly in the Philippines, during your tenure?

When I started, we were still in the thick of the PAPI era, with interviewers lugging multiple printed questionnaires house-to-house to do F2F surveys. I remember accompanying an interviewer for a tobacco study where we had a printed showcard of choices. The project was Discrete Choice Modelling for a cigarette brand, so we had several choice tasks printed on A3 paper! However, today, one can run a DCM or Conjoint project using tablets or even online.

The Philippines is now in its TAPI and Online Survey era. Gone are the days when researchers and field personnel sifted through sheets of paper to collate a questionnaire. 

Then, there is the rise of boutique agencies in the Philippines. As significant research entities buy out and combine into one or the other, boutique agencies introduce new thinking and approaches because they’re more tied down than the major players are in terms of targets. They can afford to explore more and create their own niche in the industry.

How have technological advancements influenced your work in market research?

It has vastly made work faster and slightly more accessible. From the introduction of tablets to interviewing, to automatic encoding, to faster data processing, tech advances in Market Research have greatly helped add time to analyse the results of the studies comprehensively.

It gave more time for brainstorming sessions and more in-depth analysis to make our reports holistic and not rushed. Clients appreciate when we, as Researchers, are conscientious, and a big part of that is achieved through the various advances we’ve had in the industry.

What advice would you give someone just starting their career in market research?

For those starting their Market Research journey, here is some advice for navigating the field.

  1. Start building on your skills.
    1. Develop your eye for details. Attention to detail and precision are crucial skills to be a market researcher.
    2. Learn how to analyse data and develop strong analytical skills. Know which charts are best to use for your data type.
    3. Improve your written and oral communication. It’s imperative for you to develop your communication skills so that you can express study findings confidently and accurately.
  2. Keep an open and curious mind.
    1. Always ask questions and be proactive in learning about the industry. Don’t limit your understanding by being afraid of asking questions. 
    2. Cultivate a curious mind and be someone who’s always searching for new ideas.
  3. Develop expertise, but don’t put yourself in a box.
    1. Fully grasp the intricacies of a methodology, be it qualitative or quantitative, but don’t be defined by it. Don’t be afraid to branch out of your expertise so that you can become a holistic researcher.
    2. Volunteer for challenging tasks, as it will only be to your advantage when it’s time to venture out to greater things.

Success comes from a combination of different factors, so one should be adaptable and constantly seeking opportunities for improvement.

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What are your professional aspirations or goals in the market research field?

There’s still a lot I haven’t experienced in Market Research, but in the next 5-8 years, I’d like to head the Insights department of some company. I don’t know what industry yet, but that’s the direction I want to head toward. 

I would also like to work outside the confines of the Philippines. Be it a secondment or in a different capacity.

How would you describe the culture at Kadence International, and how does it align with your personal values?

Of the research agencies I have been a part of, Kadence is the chill and relaxed one. The culture is very open, and the people are friendly and helpful. Plus, we’re still on a hybrid work schedule, which adds brownie points to Kadence. 

I’m very laid back, so the company culture suits me quite nicely. I’m able to express my thoughts without fear of retaliation or not being taken seriously. There is a good fit with how I want to work and the Kadence ethos.

In what ways do you believe Kadence International’s approach to market research makes a difference for clients and the broader community?

Our approach fosters a sense of kinship with our clients where they feel the trust that we will do right by them. We’ve had successful relationships with clients because we care about their needs. We meet them halfway when it comes to costs and suggest the proper methodologies to answer their business issues.

We don’t shy away from telling them what will work and what won’t; we’re upfront and honest with them about our strengths and limitations. Clients appreciate always appreciate honesty.

How do you maintain a healthy work-life balance, especially in a demanding field like market research?

I am not shy about taking a break now and then. Having a long weekend where I laze around and catch up on my reading is essential to maintain my sanity.

I do not mind working long, especially if we’re on fieldwork, but there should always be time for play. I carve out time after stressful projects so I’m refreshed and ready to face different challenges. 

Outside of work, what are some hobbies or activities you enjoy?

I may not look it, but I like to walk to clear my mind, and it’s my sole form of physical activity. I’m an avid reader of mangas and manhwas and some web novels. I’m trying to rekindle my book-reading habit, which will be another escape source. 

I also watch a lot of reality TV and other shows that are light and where I don’t have to spend much thinking power to follow the story. Lastly, I listen to pop and OPM music to soothe my mind.

Anything else you’d like to add?

I’ll leave you with a quote that stayed with me when I considered applying to graduate school. I don’t know its provenance, but it is attributed to Jennifer Ritchie Payette. 

“Your career is like a garden. It can hold an assortment of life’s energy that yields a bounty for you. You do not need to grow just one thing in your garden. You do not need to do just one thing in your career.”

There is a new kid on the financial block. Neobanks are brand new players challenging traditional banking models that have dominated for decades. Defined as digital-only, mobile-first financial institutions, neobanks are disrupting the banking scene with their innovative approaches to financial services. 

Understanding Neobanks

Neobanks, challenger banks, or digital banks are financial institutions that operate exclusively online without physical branches. Unlike traditional banks, which rely heavily on brick-and-mortar locations, neobanks leverage technology to offer various financial services, including savings accounts, checking accounts, loans, and investments, all accessible through mobile apps or web platforms.

One of the defining characteristics of neobanks is their focus on providing a seamless and user-friendly banking experience. By eliminating the need for physical branches, neobanks can reduce overhead costs and pass savings to their customers through lower fees and higher interest rates.

Neobanks represent a major shift in banking, offering fully digital services without physical branches. By leveraging technology, neobanks streamline processes, reduce operational costs, and provide a seamless user experience through mobile apps or web platforms. These digital-only banks cater to a tech-savvy audience seeking convenience, accessibility, and transparency in their banking relationships.

Understanding the Neobank Movement: Who’s Who?

The world of digital banking is booming, thanks to neobanks. These online-only banks are making waves by offering services that traditional banks don’t, all without the hassle of physical branches.

Who Are the Big Players?

Revolut (Since 2015): A big name in Europe, Revolut offers everything from currency exchange and crypto trading to stock trading, catering to a wide financial spectrum.

Chime (Since 2013): Popular in the U.S., Chime stands out for ditching fees and giving users early access to their paychecks.

N26 (Based in Germany): With a footprint in Europe and the U.S., N26 delivers a range of user-friendly banking products for today’s consumer.

WeBank is a private Chinese neobank, founded by Tencent, Baiyeyuan, Liye Group, and other companies. Tencent is the largest shareholder, with an estimated 30% ownership share.

Tonik is the first digital-only Neobank in the Philippines, providing loan, deposit, and payment products to consumers on a highly secure digital banking platform.

Each of these neobanks has its special flavour, targeting different customers with unique offers.

The Disruptive Force of Neobanks

Neobanks are transforming banking as we know it, and here’s how they’re doing it:

Easy Entry, Big Impact

Neobanks are tearing down traditional banking barriers, making it simpler for new and innovative players to enter the market. This shift has sparked a wave of competition and fresh ideas, changing the banking landscape for the better.

Putting Customers First

Gone are the days when banks would put profits before people. Neobanks are all about giving their customers what they want: personalised service, easy-to-use platforms, and support anytime, anywhere. This approach is winning hearts and changing minds about what banking should be.

Tech to the Rescue

With the latest in artificial intelligence, machine learning, and secure biometric checks, neobanks offer a banking experience that’s smooth and safe. Imagine opening an account in moments or getting smart money tips from an AI chatbot. Or logging in with just a smile or a fingerprint, saying goodbye to forgotten passwords. Neobanks use these tech tools to make banking more efficient and user-friendly.

Why It Matters

While traditional banks are often slow to change, weighed down by old systems, neobanks are nimble and quick to embrace new tech and trends. This agility lets them roll out cool new features and keep improving the banking experience, setting new standards for customer happiness and leading the way in innovation.

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Navigating the Neobank Wave: A Roadmap for Traditional Banks

The rise of neobanks is shaking up the banking sector, bringing both headaches and opportunities for the old guard:

Keeping Up with Customers

Traditional banks can’t afford to lag as customers flock to digital banking. Adapting to this digital-first mindset means not just following trends but anticipating what customers want next.

The Neobank Challenge

Traditional banks are in a tough spot, with neobanks offering better deals and slick experiences. But it’s also a chance to step up their game, rethink pricing, and polish up the customer journey.

Joining Forces

There’s a silver lining, though: partnerships. By teaming up with fintech startups and tech giants, traditional banks can bring in cool tech like mobile payments, automated financial advice, and even blockchain innovations without starting from scratch. It’s a way to stay in the race, combining the agility and fresh ideas of fintechs with the trust, regulatory know-how, and scale of established banks.

Tech Upgrades

Collaborations can also speed up digital transformation, helping banks beef up their tech and offer smoother, more intuitive services across all channels. It’s about making banking as easy and pleasant as scrolling through your favorite app.

The Regulatory Maze

Traditional banks carry a heavier regulatory load, which can slow innovation. But this challenge is also a strength—deep experience with compliance can be a selling point in a world wary of digital mishaps. The trick is balancing innovation with the need to stay on the right side of the rules.

Traditional banks have a path to not just survive but thrive. It’s about embracing change, finding the right partners, and always keeping the customer at the heart of every decision.

How Neobanks Are Changing Banking Forever

Neobanks are making waves in the banking world, transforming how we think about managing money:

Raising Expectations

Neobanks are setting new standards for what banking should feel like. They’re pushing traditional banks to step up, offering fast, personalised, and available 24/7 services. This shift is making all banks rethink how they interact with customers, leading to big investments in digital services to keep up with the demand for a sleek, hassle-free banking experience.

Banking Evolves

In response to the neobank challenge, old-school banks are getting a digital makeover. They’re not just about branches and paperwork anymore; they’re moving online and to mobile apps, making everything from opening an account to customer service smoother and more engaging. It’s all about meeting customers where they are, with services tailored just for them.

A Global Shake-Up

The neobank revolution isn’t just a local affair—it’s happening worldwide. In places like the US and Europe, neobanks are giving the traditional giants a run for their money with their innovative approaches. Meanwhile, in parts of Asia and Africa, they’re opening up banking to people who’ve never had access, changing lives and economies.

Banking Without Borders

Neobanks are leading the charge in bringing banking to the unbanked. They use digital technology to reach people in remote areas or those left out of the traditional banking system. This means offering basic banking services through mobile apps, making it easier for everyone to save, send, and spend money without needing a brick-and-mortar bank.

For instance, in places like Indonesia and the Philippines, where many people don’t use traditional banks, neobanks are a game-changer. They’re using mobile tech to provide essential services like savings accounts and remittances. And in India, they’re even helping people without a credit history get loans by using alternative data for credit assessments.

The Big Picture

Neobanks are not just new players in the banking field; they’re pioneers in making financial services more inclusive and accessible. By harnessing the power of technology and innovative thinking, they’re breaking down the barriers that have kept people from fully participating in the financial system. This is a major step forward in making sure everyone, no matter where they live or what their background is, has the opportunity to manage their money effectively and pursue financial stability.

Winning Strategies for Banks in the Digital Age

In the new era of neobanks, traditional banks need a game plan that focuses on tech-savvy solutions, outstanding customer service, and a willingness to evolve:

Go Digital or Go Home

It’s time for traditional banks to embrace the digital revolution fully. This means more than just a website overhaul; it involves modernising from the inside out. Key steps are upgrading old systems, moving to the cloud, and using data analytics to understand what customers really want. It’s about making banking as easy as checking your phone.

Innovate and Adapt

Staying relevant means staying agile. Banks should cultivate a culture where new ideas flourish, teams work together seamlessly, and innovation leads the way. It’s about being quick to try new things and adapt to what customers are looking for, whether new products or better ways to bank.

Make Customer Experience King

Customers expect banking to be easy, personalised, and available anytime. Investing in sleek design, smart recommendations, and smooth digital experiences across all devices is crucial. Banks that stand out will make their customers feel valued and understood.

Forge the Right Partnerships

Teaming up with the right partners can supercharge a bank’s digital journey. This could mean working with fintech startups for their cutting-edge tech and fresh perspectives or tech giants for their powerful platforms and tools. These collaborations can help banks expand their services, improve security, and offer something truly unique to their customers.

For instance, partnering with a fintech brand could bring new AI-driven insights into customer spending habits or blockchain solutions for safer transactions. Teaming up with big tech companies like Amazon or Microsoft could revamp a bank’s infrastructure, making it more flexible and scalable.

Don’t overlook potential alliances outside the traditional banking sphere, either. Joining forces with e-commerce sites, telecom companies, or retail chains could open up new avenues for reaching customers and offering combined services that meet a wider range of needs.

The key to thriving in the digital banking era is a blend of embracing technology, focusing on customer needs, and being open to collaboration. By doing so, traditional banks can navigate the challenges posed by neobanks and carve out a successful path forward.

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Banking’s Next Chapter: Blending or Branching Out?

In the banking world, fueled by the rise of sleek, tech-driven neobanks, the big question is: What’s next? 

Here are a few ways the future could unfold:

Merging Paths

Imagine a future where the old meets the new. Traditional banks might start thinking and acting more like their digital-first rivals, blending the boundaries between the classic branch experience and the convenience of digital banking. This could see big, established banks using their vast resources and customer trust to stay in the game, combining their strengths with the agility and innovation of neobanks.

Choosing Different Lanes

Or, we might see the banking world split into distinct lanes. Traditional banks could double down on serving those who value face-to-face service and personalised advice, while neobanks keep focusing on digital-savvy folks who want their banking fast, flexible, and online. This scenario would reshape the banking landscape into specialised niches, each serving different customer needs and preferences.

Hybrid Horizons

Then there’s the middle road—a hybrid model that picks and mixes the best bits of both worlds. Traditional banks might team up with fintech startups or spin-off digital-only branches to capture the hearts (and wallets) of those who crave innovative banking solutions but still appreciate the security and familiarity of established banks.

Imagine a traditional bank launching a digital platform that feels as nimble and user-friendly as any neobank app, offering instant account setup, smart money tips, and tools that make saving a breeze—all while keeping the personal touch and expertise that customers have come to trust.

By collaborating with fintech wizards, traditional banks could supercharge their tech game, bringing in smart algorithms, blockchain security, and more to make banking safer, more insightful and tailored to individual needs.

The Big Picture

Whether it’s blending together, branching out into distinct segments, or building bridges between the old and the new, the future of banking is anything but boring. Hybrid models, in particular, offer a promising path forward, letting traditional banks reinvent themselves for the digital age without losing their identity. As the landscape evolves, the winners will be those who listen to their customers and are brave enough to adapt, innovate, and maybe even disrupt themselves.

Gen Z and Alphas, born between the mid-1990s and the early 2010s, are wielding unprecedented influence over market trends, challenging legacy beauty brands to rethink their strategies and embrace a new era of authenticity and purpose.

Latest findings spotlight Gen Z as a powerhouse in the US economy, pouring a whopping $143 billion into the market. What sets this generation apart? Their strong preference for brands that resonate with their core values. A striking 62% of Gen Zers are willing to open their wallets wider for products from brands dedicated to making a positive impact on the environment and society. This generation isn’t just shopping; they’re voting for change with every purchase.

Legacy beauty brands are riding the wave of change, shifting gears from old-school marketing to crafting stories with purpose that click with the younger crowd. It’s all about what makes Gen Z tick: a deep sense of purpose and championing causes that matter to them. This isn’t just a change in strategy; it’s a whole new marketing playbook designed to capture the hearts of Gen Z and Alpha consumers, who crave fresh, innovative approaches. These brands are not just selling beauty anymore; they’re selling a vision that resonates with the values and aspirations of a new generation.

With Gen Z’s projected spending power set to surpass millennials by 2031, the beauty industry has witnessed a surge in spending among younger consumers, particularly in makeup, which grew 32% year-over-year. 

E.l.f. Cosmetics is leading the pack with Gen Z, winning them over with high-quality, wallet-friendly products and catchy marketing. Their rise to the top shows how being genuine and engaging with customers at the right moment pays off, especially when teaming up with popular TikTok stars and launching creative online series.

Maybelline is also hitting the mark with younger audiences by making social media its battlefield, especially on TikTok, where its Sky High mascara line has become a sensation thanks to clever promotions and a mix of different online activities.

Clinique is also getting in on the action, focusing on both online and in-person experiences to draw in Gen Z. Their “Protect Your Glow” campaign, and the virtual Clinique Lab are perfect examples of mixing tech and real-world connections to keep up with what younger customers want.

Source: Clinique

The lesson from these brands? Being authentic and truly connecting with Gen Z and Alphas is key. As beauty brands navigate the shifting sands of the industry, staying genuine and engaging meaningfully with the younger crowd is essential for success.

Understanding the Preferences of Gen Z and Alphas

Characteristics and Values of Gen Z and Alphas:

Digital Natives:

Gen Z and Alphas are born into a digital world where technology is seamlessly integrated into every aspect of their lives. They are adept at navigating online platforms and consume a significant portion of their content through digital channels such as social media, streaming services, and e-commerce platforms.

Authenticity:

Authenticity reigns supreme for Gen Z and Alphas. They value genuine connections and transparency from brands, seeking authenticity in the products they purchase and the companies they support. This generation is quick to discern between sincere efforts and mere marketing ploys, gravitating toward brands that demonstrate sincerity and integrity in their actions.

For instance, Fenty Beauty, celebrated for its inclusive shade range and bold marketing campaigns, has resonated with consumers seeking diversity and representation in the beauty industry. Similarly, R.e.m. Beauty’s recent funding success highlights the allure of celebrity endorsements and the potential for these brands to captivate younger audiences.

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Socially Conscious:

Gen Z and Alphas are socially conscious consumers prioritising ethical and sustainable practices. They are deeply concerned about climate change, social justice, and diversity and expect the brands they engage with to share and uphold their values. 

Rare Beauty, founded by Selena Gomez, has emerged as a trailblazer in capturing the attention of Gen Z and Alphas. Rare Beauty’s emphasis on inclusivity and mental health advocacy resonates deeply with younger consumers, reflecting their desire for brands that champion authenticity and social responsibility. 

According to a study by Deloitte, 63% of Gen Z consumers prefer to buy from sustainable brands.

Individuality and Self-Expression:

Individuality and self-expression are core values for Gen Z and Alphas. They celebrate diversity and seek products and brands that empower them to express their unique identities. This generation is drawn to brands that embrace inclusivity and champion diversity, allowing them to see themselves represented in advertising and marketing campaigns.

Glossier, known for its minimalist aesthetic and community-driven approach, has cultivated a loyal following among Gen Z and Alphas through its relatable marketing and product offerings tailored to their preferences. These brands’ success underscores the importance of understanding and engaging with the values and aspirations of younger consumers.

Purpose-Driven:

Gen Z and Alphas are drawn to brands with a clear purpose and mission. They are more likely to support companies that stand for something meaningful and actively contribute to societal or environmental causes. 

As indicated in our report, “The Definitive Guide to Gen Z,” globally, 74% of Gen Zers believe they have the power to influence a brand’s actions for the better. In Asia-Pacific, this is held by 89% of respondents. Singapore and Indonesia top the list at 91% and 95%, respectively.”

To learn more about how Gen Z’s are similar and different across ten countries, download our full report here.

The growing demand for sustainability in the Beauty Industry and how brands can tap into it. 

Understanding Gen Z and Alphas’ key characteristics and values is paramount for legacy beauty brands seeking to engage and resonate with this influential demographic. By aligning their strategies and messaging with these preferences, brands can position themselves as authentic, socially responsible, and purpose-driven, thereby forging meaningful connections with younger consumers and securing their loyalty in the long term.

Consumer Awareness:

There has been a significant rise in consumer awareness regarding environmental and social issues, prompting a shift toward sustainability in the beauty industry. Consumers, especially Gen Z and Alphas, are increasingly mindful of the environmental impact of their purchasing decisions and seek out products and brands that align with their values.

Market Demand:

The demand for sustainable beauty products is rising, with consumers seeking brands prioritising eco-friendly ingredients, packaging, and manufacturing processes. 

According to a recent report, the global market for sustainable cosmetics is projected to reach $9.75 billion by 2025, driven by growing consumer consciousness and demand for natural and organic products.

Regulatory Pressures:

Regulatory pressures and government initiatives to promote sustainability and reduce environmental impact drive change within the beauty industry. Legislation such as bans on single-use plastics and microplastics and regulations governing ingredient transparency and animal testing are pushing brands to adopt more sustainable practices.

Brand Differentiation:

Sustainability has become a key differentiator for beauty brands, offering a competitive edge in an increasingly crowded market. Brands that prioritise sustainability appeal to environmentally conscious consumers and position themselves as ethical and socially responsible, fostering stronger brand loyalty and trust among consumers.

Beauty brands recognise the importance of corporate responsibility, take proactive steps to reduce their environmental footprint, and promote ethical practices throughout their supply chains. Initiatives such as sourcing ethically sourced ingredients, reducing waste, and investing in renewable energy are becoming standard practices for forward-thinking beauty companies.

In light of these trends, sustainability has emerged as a critical consideration for legacy beauty brands seeking to remain relevant and competitive in today’s market. 

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How Brands Can Communicate Their Commitment to Ethical Sourcing and Environmental Responsibility:

Transparency and Traceability:

Brands can communicate their commitment to ethical sourcing and environmental responsibility by providing transparent information about their supply chain practices. This includes detailing where ingredients are sourced, how they are harvested or produced, and the steps taken to ensure fair labour practices and environmental sustainability throughout the supply chain. By offering traceability and transparency, brands can build trust with consumers who value ethical sourcing.

Certifications and Labels:

Brands can demonstrate their commitment to ethical sourcing and environmental responsibility by obtaining certifications and labels that verify their sustainability credentials. Certifications such as Fair Trade, Cruelty-Free, Organic, and Vegan assure consumers that products meet specific standards for ethical and sustainable production. Incorporating these certifications into product packaging and marketing materials can signal to consumers that the brand prioritises ethical and environmentally friendly practices.

For information about sustainability and eco-labels in ten countries, including the US, UK, Singapore, Indonesia, Japan, India, China, Thailand, Vietnam, and the Philippines, download our report: “The Green Brand — – A Comprehensive Report for Sustainable Trends Reshaping Brands.”

Storytelling and Brand Narratives:

Brands can use storytelling and brand narratives to communicate their commitment to ethical sourcing and environmental responsibility in a compelling and relatable way. By sharing stories about the people behind the products, the communities they support, and the environmental initiatives they champion, brands can humanise their sustainability efforts and create emotional connections with consumers. Authentic storytelling that highlights the brand’s values and mission can resonate with consumers on a deeper level, fostering loyalty and advocacy.

The Body Shop has long been a pioneer in ethical and sustainable beauty. Since its inception, the brand has been committed to cruelty-free products and sustainable sourcing. The Body Shop’s brand narrative emphasises its dedication to environmental activism, fair trade practices, and community empowerment. Through initiatives such as the Community Trade program, which sources ingredients from marginalised communities worldwide, and campaigns advocating for biodiversity protection and against animal testing, The Body Shop seamlessly integrates sustainability into its brand narrative.

Corporate Social Responsibility (CSR) Initiatives:

Brands can showcase their commitment to ethical sourcing and environmental responsibility through corporate social responsibility (CSR) initiatives. This includes philanthropic efforts, community engagement programs, and sustainability projects that align with the brand’s values and contribute to positive social and environmental impact. By actively participating in CSR initiatives and communicating these efforts to consumers, brands can demonstrate their dedication to making a difference beyond profit-driven motives.

L’Oréal Paris has incorporated environmental and social responsibility into its brand narrative. The brand’s “Sharing Beauty with All” sustainability program outlines ambitious goals to reduce its environmental footprint, improve the sustainability of its products, and empower communities. L’Oréal Paris communicates its commitment to sustainability through transparent reporting, partnerships with sustainability organisations, and initiatives such as the L’Oréal Foundation’s “For Women in Science” program, which supports women in STEM fields.

Collaboration and Partnerships:

Brands can collaborate with like-minded organisations, NGOs, and industry partners to amplify their commitment to ethical sourcing and environmental responsibility. Collaborative projects and partnerships can leverage collective expertise and resources to drive positive change across the industry. By aligning with reputable organisations and engaging in collaborative initiatives, brands can strengthen their credibility and impact on sustainability and ethical sourcing.

Digital Adaptation Strategies to Reach and Engage with Gen Z

Legacy beauty brands are swiftly adapting their digital strategies to effectively engage with Gen Z, leveraging various platforms and technologies to meet this generation where they are most active.

Social Media Engagement

TikTok Dominance: Gen Z’s affinity for TikTok has propelled it to the forefront of digital marketing strategies for beauty brands. By creating engaging and authentic content that resonates with TikTok’s user base, brands can cultivate a loyal following and drive product awareness. For example, brands like Fenty Beauty and Maybelline have capitalised on TikTok trends and challenges to showcase their products in creative and relatable ways, resulting in viral campaigns and increased brand visibility.

Instagram Relevance: Instagram remains a powerhouse platform for beauty brands to showcase their products and connect with Gen Z consumers. Using features like Stories and Reels, brands can deliver visually compelling content and immersive experiences that captivate younger audiences. By collaborating with influencers and micro-influencers with a strong presence on Instagram, brands can amplify their reach and credibility within the Gen Z community.

E-Commerce Innovation

Direct-to-Consumer Channels: Legacy beauty brands increasingly invest in direct-to-consumer (DTC) channels to streamline the shopping experience for Gen Z consumers. By offering seamless online platforms and mobile apps, brands can provide personalised product recommendations, virtual try-on experiences, and easy checkout options, catering to the digital-first preferences of Gen Z shoppers.

Augmented Reality (AR) Integration: AR technology has become a game-changer for beauty brands looking to enhance the online shopping experience. By implementing AR try-on tools and virtual makeup simulations, brands can empower Gen Z consumers to experiment with different products and ‘looks’ before making a purchase decision. This interactive and immersive approach drives engagement and reduces the barrier to online shopping for beauty products.

Influencer Collaboration

Micro-Influencer Partnerships: Recognising the influence of micro-influencers within niche communities, legacy beauty brands are forging partnerships with these content creators to reach Gen Z audiences authentically. Micro-influencers often have a highly engaged and loyal following, making them valuable brand advocates for driving product awareness and user-generated content.

User-Generated Content (UGC): Encouraging user-generated content through branded hashtags and challenges is another effective strategy for engaging Gen Z consumers. By empowering users to share their experiences and beauty routines, brands can foster a sense of community and authenticity that resonates with younger audiences.

Is your beauty brand trending?

A quest for authenticity and value characterises Gen Z’s consumption and purchasing habits on platforms like TikTok. 

Trends such as the “no makeup makeup look,” boasting over 200 million views, showcase the generation’s preference for minimalist beauty routines and honest content. This trend emphasises the importance of authenticity in both appearance and approach, highlighting the value Gen Z places on transparency. 

The pursuit of dupes, with the hashtag #Dupes amassing 3.5 billion views, is another example of Gen Z’s desire for quality products at affordable prices. Brands can capitalise on these trends by offering value-driven propositions and authentic messaging, resonating with Gen Z’s priorities and preferences in content consumption and product purchases.

The beauty industry’s future hinges on brands’ ability to embrace change, authenticity, and purpose-driven storytelling. Those prioritising sustainability, authenticity, and inclusivity are poised to thrive as they connect with the values and aspirations of Gen Z and Alphas. Ultimately, beauty brands adapting to evolving consumer preferences and embracing purpose-driven messaging will secure long-term success.

Southeast Asia has emerged as a global frontrunner in fintech adoption, setting the stage for a transformative shift in the region’s financial services. 

The trend can be attributed to various factors, including a sizable, tech-savvy population, burgeoning e-commerce and digital payments ecosystems, widespread mobile internet connectivity, and proactive government support. These elements have propelled Southeast Asia into one of the fastest-growing fintech markets globally, heralding a new era of innovation and opportunity.

The potential of Southeast Asia’s fintech sector is underscored by the rise of fintech “unicorns,” which rank among the world’s most well-funded digital startups. 

The region’s fintech industry is projected to generate over $38 billion in annual revenue by 2025, a staggering increase from the $11 billion recorded in 2019.

Fintech Revolution: Southeast Asia’s Leap Toward Financial Empowerment and Innovation

The fintech scene in Southeast Asia is booming like never before, with investments pouring in at record levels. This region is now a hub for financial innovation, especially in digital payments and lending.

While tech firms worldwide face a funding drought, Southeast Asia’s fintech stars are shining bright, pulling in big bucks thanks to their unique approach to finance. A whopping 70% of the region’s population doesn’t use traditional banks much, if at all. This includes a vast number of informal workers. Traditional banks haven’t really met their needs, but fintech is changing the game by offering services designed just for them.

Think mobile money and community-based savings schemes—these have been lifelines for the unbanked. Now, fintech is taking these ideas digital, and opening up new avenues for financial services that were previously out of reach.

The digital payment revolution, led by e-wallets, makes cashless transactions the norm here. With almost everyone using smartphones, e-wallets are the go-to for shopping and paying bills. Local fintech companies, knowing the ins and outs of their markets, are leading the charge, leaving global giants playing catch-up.

E-commerce is also getting in on the fintech action. Giants like Shopee and Lazada are not just places to shop; they’re also becoming fintech platforms, offering digital wallets and loans. This blend of shopping and fintech is creating exciting new opportunities for growth and innovation.

Looking forward, the aim is to go beyond borders. With plans to make payments seamless across countries and to bring more small businesses into the fold with digital loans, the future is bright. Sure, there are hurdles like making the numbers work and navigating regulations, but the fintech wave in Southeast Asia is just getting started. It’s all about using tech to bring financial services to everyone, change lives, and empower the region like never before.

Key Trends Shaping the Southeast Asian Fintech Ecosystem

SuperApp Domination in E-Commerce

Digital ecosystems, epitomised by integrated mega apps such as Grab, Gojek, and Lazada, are becoming ubiquitous in Southeast Asia. These super apps offer a one-stop solution for many services, including payments, transportation, and shopping. Fintech integration within these platforms facilitates seamless payment processing and the rollout of digital wallets, expanding financial inclusion and driving the growth of the digital economy.

Cashless Transactions Surge

Governments across Southeast Asia are spearheading initiatives to modernise payment infrastructure and promote digital payment adoption. Nearly 90% of consumers in the region actively engage in digital banking, signalling a significant shift towards cashless transactions. The burgeoning e-commerce market is projected to exceed 3 billion users by 2025, further driving the digital payments revolution.

Favourable Government Policies

Southeast Asian governments have traditionally adopted a supportive regulatory stance toward fintech, fostering a conducive environment for industry growth. However, the exponential expansion of the fintech sector has prompted calls for increased regulatory oversight to ensure market stability and consumer protection. Regulatory sandboxes have been instrumental in fostering innovation, but regulators are now faced with balancing promoting innovation and safeguarding against potential risks.

The Green Brand Sustainability Study

Fintech Goes Green

With the escalating demand for sustainable finance and responsible investing, environmental, social, and governance (ESG) considerations are gaining prominence in Southeast Asia. Governments champion sustainability initiatives, while financial regulators implement frameworks to support green finance. 

Singapore, in particular, has emerged as a leading hub for green finance, spearheading initiatives to promote ESG disclosure and incentivise green fintech projects.

Tech-Driven Fintech Transformation

The region’s fintech landscape is being reshaped by IoT, artificial intelligence, machine learning, and augmented reality technologies. These innovations are driving the proliferation of smart devices, enhancing data analytics capabilities, and revolutionising user interfaces. As digital connectivity improves, these technologies are poised to fuel further innovation and redefine the fintech paradigm in Southeast Asia.

Southeast Asia Witnesses a Striking 3588% Surge in Fintech Ventures Since 2000: RoboCash Group Report.

A recent analysis by Robocash Group titled the ‘State of SEA Fintech 2022 Report’ unveils a remarkable surge in the number of fintech enterprises operating in payments, alternative lending, e-wallets, and digital banking sectors across Southeast Asia, witnessing a staggering growth of 3588% since 2000.

Conducted to comprehend the evolution of fintech in emerging Southeast Asian nations, the study delved into countries such as India, Indonesia, Singapore, the Philippines, Vietnam, Malaysia, Bangladesh, Pakistan, and Sri Lanka.

Among these nations, India boasts the largest fintech firms, housing 541 enterprises, constituting 43.1% of the region’s fintech landscape. 

Following India, Indonesia ranks second with 165 fintech entities (13.2%), trailed by Singapore with 162 (12.9%), the Philippines with 125 (10%), Malaysia with 84 (6.7%), Vietnam with 78 (6.2%), Pakistan with 51 (4.1%), Sri Lanka with 27 (2.2%), and Bangladesh with 21 (1.7%).

The Southeast Asian Fintech Revolution: Unleashing Innovation and Inclusion

Fintech in Southeast Asia is transforming how people bank, shop, and do business, thanks to a perfect storm of tech-savvy consumers, e-commerce booms, and smartphones everywhere. Before we even heard of COVID-19, fintech was on the rise in the region. But the pandemic? That was the spark that lit the fire, bringing 60 million new users into the digital finance fold.

The ASEAN region is now a hotbed of fintech creativity, touching everything from online payments to insurtech. With the world watching, it’s knitting closer ties with places like Australia to push the boundaries of what fintech can do.

For those who’ve felt left out by traditional banks, fintech’s rise is a beacon of hope. Imagine getting loans or sending money without setting foot in a bank. That’s the promise of decentralised finance, with cryptocurrencies lighting the way for those on the fringes of the financial system.

This could be fintech’s golden era in Southeast Asia, where the landscape is as diverse as its countries. From Singapore’s digital banking breakthroughs to Indonesia’s booming digital payments scene, there’s innovation at every turn. Take Xendit, Indonesia’s own fintech unicorn, making waves with its payment solutions for the digital age.

The real game-changer? Fintech’s power to bring financial services to everyone, everywhere. It’s more than just tech—it’s about levelling the playing field, opening doors for small businesses, and empowering communities with tools for digital literacy.

What’s next is as exciting as it is crucial: diving deeper into how fintech can reshape economies, from rural villages to bustling cities. It’s about collaboration—across borders, sectors, and societies—to ensure this fintech wave lifts all boats, making financial inclusion not just a goal but a reality.

As we stand on the brink of a fintech revolution, it’s clear that Southeast Asia isn’t just participating; it’s leading the charge toward a future where financial empowerment and innovation go hand in hand. The journey is just beginning, and the possibilities are endless.

Thailand, a key player in the global automotive industry and the 10th largest auto manufacturing economy, is making significant strides in its electric vehicle (EV) sector. 

Thailand’s EV market is expected to experience an annual growth rate (CAGR 2024-2028) of 5.06%, resulting in a projected market volume of US$1,344.0m by 2028.

Based on a Reuters report, Chinese automakers dominated Southeast Asia’s fast-growing electric vehicle market, selling three out of every four EVs in the first quarter of 2023. Thailand, recognised as the primary automotive hub in the region, has been driving this growth, contributing to nearly 79% of the total EV sales in Southeast Asia during the same period, making it a regional leader in EV adoption. 

In terms of international comparisons, China is projected to generate the most revenue in the Electric Vehicles market, amounting to US$319 billion in 2024. However, Thailand is rapidly emerging as a significant player in the electric vehicle market, with government incentives and a growing charging infrastructure driving significant adoption.

What’s driving this growth?

Governmental support has catalysed significant growth in Thailand’s EV industry. The country has seen a dramatic increase in EV adoption over the past three years, partly thanks to these subsidies. The growing consciousness among Thai consumers toward eco-friendly transportation options has also significantly propelled the expansion of the market.

Most recently, in November 2023, the National Electric Vehicle Policy Committee approved a new subsidy package, signalling the government’s commitment to sustaining the burgeoning EV market while balancing budgetary considerations.

The newly announced package, effective from this year through 2027, includes a subsidy of up to 100,000 baht ($2,764) per EV car. Additionally, the scheme encompasses reduced import duty and excise taxes, further bolstering the EV market’s attractiveness.

Looking toward the future, Thailand has set ambitious goals. By 2030, the nation aims to transform 30% of its annual production of 2.5 million vehicles into EVs. This target is part of a broader government plan to position Thailand as the region’s top production base for EVs.

The total number of 100% electric vehicle registrations in Thailand in 2023 was 75,049, accounting for 11.82% of the total 634,948 vehicle registrations nationwide.

Tax incentives and subsidies have already attracted significant investments from Chinese carmakers, including BYD and Great Wall Motor, who have committed to investing $1.44 billion in Southeast Asia’s second-largest economy. 

The Kingdom is also focused on becoming a hub for EV research and development (R&D), offering incentives and tax breaks to carmakers establishing R&D centres. This multifaceted approach highlights Thailand’s vision to promote the EV industry and maintain and accelerate the growth momentum, solidifying its status as a regional leader in the EV market.

With these developments, Thailand is poised to play a pivotal role in shaping the future of sustainable transportation regionally and globally.

Six decades to unprecedented growth in the automotive sector.  

The Thai automotive sector, primarily driven by Japanese firms like Toyota Motor Corp and Honda Motor Co, has used the country as a major export base for decades. The shift toward EVs represents a new chapter in Thailand’s automotive market.

Beginning in the early 1960s, the sector saw its genesis with establishment of Toyota and Nissan plants near Bangkok. By the late seventies, European giants like Mercedes-Benz entered the market, followed by other major players, including Honda, BMW, and Suzuki. Today, Thailand hosts nearly every leading global car maker, forming an expansive network of 21 major vehicle assemblers and 12 motorcycle assemblers, supported by over 2,200 auto parts suppliers.

Thailand is the fastest-growing EV market in Southeast Asia. Toyota will help Thailand develop the local EV industry. Chinese EVs are currently the most popular in Thailand.

Factors Contributing to Thailand’s EV Market Success

There are many factors responsible for the surge of Electric Vehicles in Thailand:

Supportive EV Ecosystem and Government Support:

Amidst global sustainability trends and Thailand’s commitment to achieving carbon neutrality by 2050, the nation’s automotive sector is now pivoting toward electric vehicles (EVs). 

This transition is supported by a robust infrastructure for imports and exports and a skilled automotive labor force. The government has been crucial, offering incentives across the EV value chain, including tax exemptions and subsidies, to make Thailand the region’s EV production hub. Incentives and policies include financial subsidies for EV purchases, investment in EV manufacturing, and ambitious targets for EV adoption.

Growing Investment in EVs: Thailand’s robust automotive ecosystem and government backing have attracted significant investments from global EV automakers. Chinese, Japanese, and European car manufacturers are establishing a substantial presence, with companies like BYD and Great Wall Motor planning significant investments in the country. Mitsubishi Motors and Mercedes have already made significant strides in EV and battery production in Thailand.

Strategic Location and Manufacturing Base: Thailand’s strategic location in Southeast Asia and its well-established automotive manufacturing base provide a solid foundation for the growth of the EV market. This advantage is being leveraged to attract global EV manufacturers and investors.

Consumer Demand and Market Dynamics: An increasing awareness and demand for environmentally friendly transportation solutions among Thai consumers have further fueled the market’s growth. Additionally, the competitive pricing and variety of EV models available, especially from Chinese manufacturers, have made EVs more accessible to a broader demographic.

Comparison with Other Southeast Asian Countries

The rise of the EV market in Thailand also reflects a broader trend in the region, where different countries are at varying stages of EV adoption. While nations like Singapore are rapidly building EV infrastructure, others are gradually increasing their market share. This regional diversity showcases the growing relevance of EVs in Southeast Asia’s economic and environmental future. Automobile brands must pay attention to some important developments in the region. 

  • Singapore boasts the most connected EV ecosystem, with an extensive network of public charging points and ambitious expansion plans.
  • Indonesia and Malaysia are also taking significant steps toward EV adoption, with government incentives and plans to attract major EV manufacturers.
  • Though still in the early stages of EV adoption, Vietnam is showing potential, with local manufacturers like VinFast impacting the international market.

The Role of Chinese EV Brands in Thailand and its Vision for the Future 

Chinese EV brands play a crucial role in Thailand’s EV market. These brands dominate the market, offering a range of affordable and technologically advanced vehicles. The popularity of Chinese EVs in Thailand shows China’s global leadership in EV technology and manufacturing. It also reflects the broader trend of China’s increasing influence in Southeast Asia’s automotive sector.

The influence of Chinese EV brands is significant, with these vehicles dominating the Thai market.

With a clear strategic vision, supportive government policies, and an increasingly EV-friendly consumer base, Thailand is well on its way to achieving its ambitious goals for the EV sector. 

Ambitious targets, innovative policies, and a commitment to sustainable development characterise the country’s strategic vision. Let’s explore the key elements of Thailand’s strategy in the EV market, supported by the latest statistics, policies, and developments.

Ambitious Targets and Government Initiatives

  • EV Production Goals: Thailand aims to transform a significant portion of its automotive production into electric vehicles. The target is to convert half the country’s total car production to EVs by 2030, signalling a significant shift in its automotive industry.
  • Subsidy and Incentive Programs: The Thai government has introduced various incentives to promote EV adoption. These include subsidies for consumers and manufacturers to make EVs more affordable and encourage local production. A new subsidy package was recently approved, although it offers a lower subsidy than the current scheme.
  • Investment in Infrastructure: Recognising the importance of infrastructure in supporting EV growth, the government plans to enhance the EV charging network. This includes scaling up public charging stations across the country.

Collaboration with Global Automakers

  • Partnership with Toyota: A significant development in Thailand’s EV market is the collaboration with Toyota. The Japanese automaker, known for its expertise in hybrid and electric vehicles, is expected to play a crucial role in developing Thailand’s local EV industry. This includes the development of eco-cars and electric pickup trucks, underlining a broadening of the EV range. 

Toyota’s decision to conduct trials of its first electric pickup truck in Thailand aligns with its strategy to boost EV sales and address the growing competition from Chinese manufacturers in the Thai market.

  • Attracting International Investments: Thailand is working with Toyota and attracting other global players in the EV industry. These collaborations are vital for bringing advanced technology and expertise to the local market.

Focusing on Local Capabilities

  • Supporting Local Manufacturers: The Thai government’s strategy also includes nurturing local manufacturers. Thailand aims to develop EV brands that can compete globally by offering incentives and creating a favourable business environment.
  • Research and Development (R&D): Investment in R&D is a key part of Thailand’s vision. This involves developing local expertise in EV technology, battery production, and other related areas.

Addressing Challenges and Sustainability

  • Building a Robust Charging Infrastructure: One of the biggest challenges for EV adoption is the availability of charging stations. Thailand is addressing this by expanding its network of charging points, which is essential for the convenience of EV users.
  • Environmental Considerations: Thailand focuses on EVs’ ecological impact as part of its sustainability commitment. This includes considerations around battery production and recycling, as well as reducing the carbon footprint of the automotive sector.

Economic and Environmental Implications

  • Boosting the Economy: The shift toward EVs is expected to have a positive impact on Thailand’s economy, creating new jobs, attracting foreign investments, and promoting technological advancements.
  • Reducing Carbon Emissions: By embracing EVs, Thailand aims to significantly reduce its carbon emissions, contributing to global efforts against climate change.

Market Dynamics and Growth Factors in Thailand’s EV Market

Thailand’s electric vehicle (EV) market is experiencing remarkable growth, propelled by various factors ranging from technological innovations to shifting consumer preferences and supportive government policies. 

marketing-personas-automotive-buyers

Technological Advancements for Growth

  • Innovation in Battery Technology: Advances in battery technology are central to the growth of the EV market. Improvements in battery efficiency, lifespan, and charging speed are making EVs more practical and appealing to consumers.
  • Integration of Smart Technologies: Incorporating smart technologies like advanced driver-assistance systems (ADAS) and connectivity features enhances the EV driving experience, attracting tech-savvy consumers.
  • Localised Manufacturing and R&D: Thailand is increasingly focusing on local manufacturing of EV components, including batteries and electric motors. This not only reduces costs but also fosters innovation within the country.

Shifting Consumer Preferences and a Move Toward Sustainability

  • Environmental Awareness: Growing environmental awareness drives consumers toward greener transportation options. With their lower carbon footprint, EVs are becoming a preferred choice for environmentally conscious buyers.
  • Economic Considerations: As the cost of owning and operating EVs decreases, they become a more economically viable option for a broader range of consumers. Government subsidies and incentives further enhance their appeal.

Supportive Regulatory Environment: Facilitating Growth

  • Government Policies and Incentives: Thailand’s government has implemented a range of policies to promote the adoption of EVs. These include tax breaks, subsidies for EV purchases, and incentives for local manufacturing of EVs.
  • Infrastructure Development: Policies aimed at developing EV infrastructure, such as expanding charging networks and updating power grids, are critical for supporting the growing number of EVs on the road.

Influence of Regional Market Leaders

  • China’s Impact: China’s dominance in the EV market significantly influences Thailand. Chinese EV manufacturers are major suppliers in the Thai market, offering a range of affordable and technologically advanced vehicles.
  • Learning from Japan and South Korea: Japan and South Korea, known for their battery and vehicle technology advancements, serve as models for Thailand. Collaborations and technology transfers from these countries are helping Thailand enhance its own EV capabilities.

The Role of Major Players in Thailand’s EV Market

Navigating the Influence of Automotive Giants and Emerging Powers

Thailand’s electric vehicle (EV) market is not just focused on technological innovation and policy initiatives; it’s also about the significant roles played by major automotive players. Let’s examine the impact of these key players, particularly Toyota and Chinese EV manufacturers, on the Thai EV market, highlighting how their involvement shapes the market’s landscape.

Toyota: Pioneering Development in Thailand’s EV Sector

  • Strategic Collaboration with the Thai Government: Toyota’s partnership with the Thai government is a cornerstone of Thailand’s EV development strategy. This collaboration focuses on developing local EV manufacturing capabilities and introducing new EV models suited to the Thai market.
  • Investment in Local Manufacturing and R&D: Toyota has made substantial investments in Thailand, one of its key global R&D centres. This includes developing and testing new EV models, such as eco-friendly cars and electric pickup trucks, tailored to the local and regional markets.
  • Promoting EV Adoption Through Market Presence: As a well-established brand in Thailand, Toyota’s foray into the EV market significantly influences consumer preferences. Their commitment to producing EVs in Thailand helps normalise their presence and encourages other manufacturers to follow suit.

The Dominance of Chinese EV Brands

  • Market Penetration and Affordability: Chinese EV manufacturers have made a notable entry into the Thai market, offering a range of affordable and technology-rich vehicles. Their aggressive market strategies and competitive pricing have allowed them to capture a significant market share.
  • Technological Leadership and Innovation: The technical prowess of Chinese EVs, with advanced features and efficient battery systems, appeals to tech-savvy and environmentally conscious Thai consumers. This has set a benchmark for innovation in the region.
  • Investments and Expansion: Chinese EV manufacturers are selling their vehicles in Thailand and investing in local manufacturing and assembly plants. This move has boosted the Thai EV industry, created jobs, and fostered technology transfer.

The Impact of These Players on Thailand’s EV Sector

  • Creating a Competitive and Diverse Market: Major players like Toyota and various Chinese brands have created a diverse and competitive EV market in Thailand. This competition drives innovation, improves quality, and offers more choices to consumers.
  • Influencing Consumer Preferences and Trends: These players significantly influence consumer trends and preferences in the EV market. Their branding, marketing strategies, and product offerings are key in shaping public perception and adoption of EVs.
  • Driving Technological Advancements: The technological contributions of these major players are crucial in advancing the overall EV technology in Thailand. They bring global expertise and innovation to the local market, setting new standards and pushing the boundaries of what’s possible in EV technology.

Challenges in Thailand’s EV Market

Thailand’s burgeoning electric vehicle (EV) market, while promising, is resistant to challenges. These obstacles, however, also present significant opportunities for growth and innovation. 

Here are some challenges facing Thailand’s EV Market:

Developing EV Charging Infrastructure

  • One of the biggest challenges is the inadequate EV charging infrastructure. As the number of EVs on the road increases, the demand for more charging stations becomes critical.
  • A comprehensive charging network is necessary for the growth of the EV market. Range anxiety, or the fear of running out of battery without access to a charging station, remains a significant concern for potential EV buyers.

Balancing Demand and Supply

  • The global supply chain disruptions, especially in the semiconductor industry, impact the production and cost of EVs. This could hinder the availability and affordability of EVs in the Thai market.
  • As consumer interest in EVs rises, ensuring that the supply of EVs meets this demand is crucial. This includes various models catering to different consumer needs and preferences.

Technological Advancements and Adaptation

    • Staying abreast of rapid technological advancements in EVs globally is challenging for Thailand. This includes battery technology, vehicle efficiency, and smart features.
    • Adapting these global innovations to suit local conditions and preferences is necessary for the success of EVs in Thailand.

While there are challenges, we also see many opportunities stemming from the abovementioned challenges. 

Investment in Infrastructure Development

  • Public-Private Partnerships: Developing a robust EV charging infrastructure opens opportunities for public-private partnerships, inviting investments and expertise from various stakeholders.
  • Innovation in Charging Solutions: This need also drives innovation in charging technologies, including fast-charging stations, wireless charging, and battery-swapping models.

Boosting Local Manufacturing and Supply Chain

  • Building a Local EV Ecosystem: Challenges in the supply chain can prompt increased investment in local manufacturing of EVs and their components, reducing reliance on global suppliers.
  • Enhancing Local R&D Capabilities: This scenario presents an opportunity for Thailand to develop its R&D capabilities, focusing on EV technologies and sustainable manufacturing practices.

Advancing Technological Frontiers

  • Becoming a Regional Tech Hub: By embracing and developing new EV technologies, Thailand has the potential to become a hub for EV innovation in Southeast Asia.
  • Collaboration and Knowledge Exchange: Collaborations with global tech leaders can facilitate the transfer of knowledge and technology, fostering a climate of innovation and learning.
Consumers-are-taking-control-of-their-well-being-with-wearable-tech

Future Outlook for Thailand’s EV Market

The electric vehicle (EV) market in Thailand is at a pivotal juncture, poised for significant growth and evolution in the coming years. So, what is the future outlook for Thailand’s EV market, considering the interplay of consumer behaviour, government policies, and technological advancements?

Continued Expansion of the EV Market:

  • Market Projections: Analysts predict a sustained upward trajectory for Thailand’s EV market, with increasing sales and broader adoption across various vehicle segments. Thailand’s electric vehicle market is expected to experience an annual growth rate (CAGR 2024-2028) of 5.06%, resulting in a projected market volume of US$1,344.0m by 2028.
  • Diversification of Offerings: The market is expected to see a wider range of EV models, including more affordable options, high-performance vehicles, and specialised commercial vehicles.

Increasing Market Penetration:

  • Greater Consumer Acceptance: As EVs become more mainstream, consumer hesitations, particularly around range anxiety and charging infrastructure, will likely diminish.
  • Expansion into New Demographics: EVs will increasingly appeal to a broader demographic, moving beyond early adopters to the general populace.

Continued Support and Incentives:

  • Policy Evolution: The Thai government is expected to continue and enhance its support for the EV sector, possibly introducing new incentives and regulations to encourage EV adoption and local manufacturing further.
  • Focus on Sustainability: Policies will likely emphasise sustainability, including responsible battery disposal and recycling measures. By 2025, Thailand aims to have 30% of its vehicles operating as zero-emission vehicles (ZEVs) and 50% by 2030. The ultimate aspiration is to achieve full ZEV adoption by 2035.

Infrastructure Development:

  • Scaling Up Charging Networks: A key focus for the government will be the continued expansion of the EV charging infrastructure to support the growing number of EVs. Thailand is developing its charging station network, with approximately 1,482 public charging stations from 12 developers nationwide as of May 2023.

Advances in EV Technology:

  • Battery Improvements: Continued advancements in battery technology will likely lead to longer ranges, shorter charging times, and lower costs.
  • Integration with Renewable Energy: The integration of EVs with renewable energy sources, like solar power, is anticipated to become more prevalent.

Digitalisation and Smart Mobility:

  • Connected and Autonomous Vehicles: The future of Thailand’s EV market will likely intersect with trends in connected vehicles and, eventually, autonomous driving technologies.
  • Smart City Integration: EVs are expected to play a crucial role in developing smart cities, with seamless integration into urban transportation ecosystems.

Responding to Global Market Shifts:

  • Adaptation to Global Trends: Thailand’s EV market must adapt to global shifts, including supply chain changes and international regulatory developments.
  • Collaboration and Competition: Increased collaboration efforts with global players and competition from emerging EV markets will influence Thailand’s strategic positioning in the EV sector.

Final Thoughts

Thailand’s growth in the EV market shows the shifting focus of the global automotive industry toward Asia, particularly for EV innovation and manufacturing.

As we look at the comprehensive picture of Thailand’s electric vehicle (EV) market, it’s clear that the country is on the cusp of a transformative journey. The steady growth of Thailand’s EV sector shows the power of strategic vision combined with pragmatic action. 

Thailand’s rising EV market inspires emerging markets, aiding global carbon emission reduction efforts and setting new standards in affordable, advanced EV technology. This progress promotes sustainable transportation and attracts global investment in the EV sector.

For an in-depth analysis of trends in the automotive industry, download our trend report, “Speed Bumps on the Road to Change.”

Regional Comparison and Global Impact of Thailand’s EV Market

Thailand’s electric vehicle (EV) market, burgeoning with potential, is not an isolated phenomenon. When contextualised within Southeast Asia’s EV market and the global stage, Thailand’s market dynamics offer insightful trends and impacts. This section explores how Thailand’s EV market compares regionally and the implications of its growth on a global scale.

  • Fastest Growing Market in ASEAN: Thailand stands out as the fastest-growing EV market in Southeast Asia, leading the charge in adoption and infrastructure development.
  • Contrast with Neighboring Countries: While countries like Singapore are advanced in EV infrastructure, others in the region, such as Vietnam and Indonesia, are still in nascent stages, highlighting the varied pace of EV adoption across ASEAN.
  • A Model for Incentive Programs: Thailand’s mix of subsidies, tax breaks, and support for local manufacturing is a model for other ASEAN countries looking to stimulate their own EV markets.
  • Regional Policy Variances: Each country in the region has its unique policy approach to EVs, with Thailand’s strategies being among the most proactive.
  • Advancing Beyond Neighbors: Thailand’s focus on developing a comprehensive EV charging infrastructure sets it apart from other Southeast Asian countries, many of which are still grappling with this challenge.
  • Setting Standards for Affordability and Technology: The trends set by Thailand, especially in making EVs affordable and technologically advanced, can influence global market expectations and standards.
  • Encouraging Global Investments: The success of Thailand’s EV market can attract more global investments in the EV sector, especially in emerging markets.

Download our “Speed Bumps on the Road to Change” report for more insights into global EV trends.

Our latest market research study, The Green Brand, offers key insights into how eco-conscious adults view and respond to sustainability across major global regions. This research is a must-read for brands looking to tap into the growing interest in environmental responsibility.

Who We Studied

We focused on adults aged 18 and up in key areas: the United States, the United Kingdom, and eight countries in Asia (China, Japan, Singapore, India, Thailand, Indonesia, the Philippines, and Vietnam). All respondents were aware of sustainability and believed Climate Change was a real phenomenon.

What We Explored

  • Public and Consumer Efforts: How do people perceive efforts by governments and consumers to tackle environmental issues?
  • Environmental Priorities: What ecological concerns top the list for individuals?
  • Behaviour Changes: Are people altering their lifestyles because of environmental worries?
  • Corporate Impact: How do consumers view the role of businesses in addressing environmental challenges?
  • Eco-Friendly Products: Is there a growing interest in products that are kind to the planet?

Why It Matters

For brands operating in these regions, understanding consumer attitudes toward sustainability is crucial. This report not only sheds light on these attitudes but also offers a roadmap for creating a Corporate Social Responsibility (CSR) program or tailoring growth strategies to meet regional expectations.

Key Findings:

  • Growing Concern and Prioritisation: Across all surveyed regions, there is a notable trend toward prioritising environmentally friendly products and brands. Consumers are increasingly concerned about environmental issues such as climate change, pollution, and deforestation.

To access these statistics, please download the complete report here.

  • Regional Variations: While sustainability is universally valued, priorities vary across regions. The report shows the differences in emerging markets like India and the Philippines, where consumers prioritize affordability alongside sustainability, in contrast with developed economies such as the United Kingdom.
  • Influence of Brand Reputation: The reputation of brands plays a significant role in shaping consumer perceptions of sustainability. Consumers view companies with established track records of environmental stewardship more favourably.
  • Impact of Information Accessibility: The proliferation of social media and increased access to information has empowered consumers to make more informed purchasing decisions. Brands are under greater scrutiny, necessitating greater transparency and accountability in their sustainability practices.
  • Role of Government Regulations: Government policies and regulations shape consumer behaviour toward sustainability. Countries with stringent environmental laws tend to have more conscientious populations about sustainable consumption practices.

Global Attitudes Toward Sustainability:

  • Environmental Concerns: Consumers across all surveyed regions express growing concerns about environmental issues such as climate change, pollution, and deforestation.
  • Desire for Sustainable Solutions: There is a growing demand for products and services that minimise environmental impact while delivering performance and value across various industries.
  • Willingness to Pay a Premium: Despite the perception of higher costs, consumers in some countries are willing to pay more for environmentally friendly alternatives, viewing sustainability as a value proposition.

Download the complete report to discover which countries prioritise sustainable products. 

  • Influence on Brand Loyalty: Sustainability initiatives directly impact brand loyalty, with consumers more likely to support companies demonstrating a commitment to environmental responsibility.
  • Call for Corporate Accountability: Consumers expect greater accountability from corporations in addressing sustainability challenges, emphasising the importance of transparent reporting and tangible actions towards reducing carbon footprint.
The Green Brand Sustainability Study

Additional Resources:

In addition to global and specific country statistics, the Green Brand includes ten country fact sheets providing comprehensive information on the sustainability standards of each country. 

These fact sheets serve as invaluable resources for brands entering or doing business in these ten countries, offering insights into local sustainability practices, regulations, and consumer behaviours. 

Download the report to access these fact sheets.

The report also features case studies of global and regional brands leading the way in sustainability, showcasing innovative strategies and best practices for incorporating environmental responsibility into business models. 

Learn how Marina Bay Sands, an iconic integrated resort in Singapore renowned for its luxury and distinctive architecture, has seamlessly woven sustainability into its operations while maintaining its status as a key player in the hospitality and tourism sector. 

You can download the report to delve into this and other informative and insightful brand case studies.

We also offer a step-by-step guide on implementing CSR programs for companies new to this area. For brands with existing CSR policies and programs, we provide strategies to measure and enhance their impact and tips for expanding these initiatives throughout the organisation.

Access the full report here.

The concept of sustainability has gone beyond being merely a trendy term and has become a critical component of any successful brand. By embracing sustainable practices that take into account environmental, social, and economic factors, brands can revamp their brand image, meet consumer expectations, and increase their profits. 

Our comprehensive report delves deep into the world of sustainability and highlights how it’s not just the right thing to do, but it’s also a smart business decision. “The Green Brand” is your ultimate guide to leading the charge in the eco-revolution, showcasing how top brands have integrated sustainability into their business models and become synonymous with eco-friendliness.

You can access the complete report here.

Vietnam is experiencing the peak of its demographic dividend, boasting a sizable youthful population —the driving force behind its consumer class. McKinsey & Company forecasts an additional 36 million individuals joining the consuming class by 2030, signalling a surge in disposable income and purchasing power.

Projections indicate that more than half of Vietnam’s population will join the global middle class by 2035, which promises to stimulate consumer spending.

In recent times, Vietnamese consumers have demonstrated an acute sense of value and a deepening connection to digital platforms. Various factors propel this shift, notably the nation’s robust economic growth, mounting income levels, and escalating urbanisation rates. And what stands out is the discernible rise in sophistication among Vietnamese consumers.

However, as Vietnam experiences economic growth, it is also grappling with challenges that may affect its population’s spending capacity. Decreased demand from key markets such as the United States and the European Union, coupled with inflation hovering around 3.8%, presents hurdles to Vietnam’s economic stability. Despite these challenges, Vietnamese consumers remain optimistic about their economic prospects, with more than 70% planning to maintain or increase their spending in various categories.

Despite the economic disruptions, consumer confidence remains resilient, as many national survey results indicate optimism regarding the country’s economic rebound. However, amidst this optimism lies a growing sense of financial consciousness, with most consumers anticipating financial strains due to inflationary pressures and rising costs. This heightened awareness drives a shift toward more discerning shopping behaviours, emphasising value and frugality in consumer choices.

Vietnamese Consumers: A Snapshot

The socioeconomic fabric of Vietnam is undergoing profound shifts. Urban migration and declining birth rates have fueled the rise of a burgeoning middle class characterised by smaller yet wealthier households. 

The widespread adoption of smartphones and internet access, with 97% of adults owning a smartphone and 79% having internet connectivity, has ushered in a new era of digital transformation and innovation. This digital revolution can be seen in the internet economy’s substantial contribution of 5.7% of GDP in 2022. 

Vietnam is forging its way as one of Southeast Asia’s fastest-growing e-commerce hotspots. Online shopping has exploded in just a few years, grabbing a bigger slice of the retail pie. E-commerce giants Shopee and Lazada are leading the charge, but don’t count out local shops. They’re making a name for themselves, especially in consumer electronics and tech gadgets. And there’s a new player in town: social commerce. It’s quickly becoming the next big thing, with Vietnamese shoppers eager to click, share, and buy their favourite social platforms. The future of shopping in Vietnam? It’s online, social, and more exciting than ever.

Vietnam’s e-commerce scene recently saw its highest spending in the electronics category, hitting a peak of $4.52 billion. Fashion purchases weren’t far behind, with spending crossing the $2 billion mark, while toys also made a significant splash at $1.78 billion. Interestingly, the food sector outpaced them all in growth, with e-commerce spending on groceries surging by over 18%.

Four Key Consumer Trends

Vietnam’s consumers are undergoing a transformation marked by four key trends.

Trend 1: Value-conscious Consumption
Value-conscious consumers are prioritising some goods while being frugal with others. Inflation and the shift to premium brands drive higher spending in specific categories while lower spending is observed in others.

Brands can adapt to these shifts by doing the following:

  • Offer value bundles: Provide bundled deals with savings on essential items and premium products. For example, a grocery store can offer a package deal with necessities like rice and cooking oil alongside premium sauces or spices.
  • Introduce affordable luxury options: Create premium products priced competitively to cater to the desire for quality without breaking the bank. For instance, a skincare brand can develop a line of high-quality facial creams at a reasonable price point.
  • Implement loyalty programs: Reward customers for their purchases to encourage repeat business. For instance, a coffee shop brand can offer a loyalty card where every 5th cup of coffee is free, incentivising customers to return regularly.

Trend 2: Omnichannel Shopping
Omnichannel shopping is thriving, with consumers using alternatives to in-store shopping. Technology is contributing to the prevalence of omnichannel platforms.

Here are some strategies brands can employ to reach their audiences:

  • Invest in e-commerce platforms: Develop user-friendly websites and mobile apps to facilitate online shopping. Ensure seamless integration with brick-and-mortar stores for click-and-collect options. For example, a fashion retailer can offer online shopping with in-store pickup options for added convenience.
  • Collaborate with tech companies: Partner with technology firms to enhance the online shopping experience through features like virtual try-ons or personalised recommendations. For instance, a furniture store can collaborate with augmented reality companies to allow customers to visualise how furniture will look in their homes before purchasing.
  • Utilise social media channels: Leverage popular social media platforms for advertising and selling products directly. Engage with customers through interactive content and influencer partnerships. For example, a cosmetics brand can collaborate with beauty influencers to showcase products and offer exclusive discounts to their followers.
9-fashion-buyer-personas

Trend 3: Low Brand Loyalty
Vietnamese consumers exhibit little brand or store loyalty, with most switching stores or brands, making them among the least loyal in the Asia-Pacific region.

Brands can retain customers and boost loyalty by doing the following:

  • Focus on product differentiation: Offer unique features or benefits that set your brand apart. Highlight these differences in marketing campaigns to attract new customers. For example, a snack company can emphasise its use of locally sourced ingredients or unique flavour combinations.
  • Provide exceptional customer service: Prioritise customer satisfaction by offering responsive customer support and hassle-free return policies. Build trust and loyalty by addressing customer concerns promptly and effectively.
  • Foster emotional connections: Create memorable brand experiences that resonate with consumers on a personal level. For instance, a clothing brand can sponsor community events or initiatives that align with its values, fostering a sense of belonging among customers.

Trend 4: Sustainable, purpose-driven purchases
Vietnamese consumers seek purpose in their purchases and make healthier, more sustainable, and local choices, although environmental concerns rank lower in priority.

According to our latest study, 46% in Vietnam strongly agree they will select a product or service based on its environmental credentials.
– The Green Brand – A Comprehensive Report for Sustainable Trends Reshaping Brands by Kadence International

To sway purpose-driven consumers, brands must show their commitment to sustainability by:

  • Emphasising sustainability: Showcase environmentally-friendly practices such as using recycled materials or supporting ethical sourcing. For example, a skincare brand can promote its commitment to cruelty-free testing and eco-friendly packaging.
  • Support local communities: Partner with local artisans or producers to offer products that celebrate Vietnamese culture and heritage. For instance, a food company can collaborate with local farmers to source ingredients for speciality dishes.
  • Align with social causes: Demonstrate commitment to social responsibility by donating a portion of sales to charitable organisations or supporting community initiatives. For example, a clothing brand can launch a collection where proceeds go towards education programs for underprivileged children.

Other Strategies for Brands Entering the Vietnamese Market

As Vietnamese consumers evolve, companies must adapt their strategies to stay competitive and meet changing demands. Some critical factors for brands must build capabilities in when entering the Vietnamese market are:

Leverage the Working Age Population and High Labor Participation:

The working population is 62% of the total in 2022. Half of the working population is aged 20 to 39 years.  

  • Focus on workforce-related products and services such as workwear, office supplies, and professional development tools.
  • Offer flexible employment options and benefits to cater to the workforce’s diverse needs, including remote work solutions and family-friendly policies.

Tap into Vietnam’s Consistent GDP Growth:

The Vietnamese economy grew 8% in 2022, attracting a healthy trade surplus, a continued rise in foreign direct investment disbursements, and 1.7 million new jobs. 

  • Invest in industries that align with the country’s economic growth trajectory, such as technology, manufacturing, and infrastructure development.
  • Tailor product offerings to match the evolving needs and purchasing power of consumers as the economy expands.

Utilise Vietnam’s Manufacturing Gains:

Free trade agreements abound for Vietnam. Vietnam leads the charts on global trade interconnectivity. 

  • Establish partnerships with local manufacturers to streamline production processes and ensure product quality.
  • Invest in research and development to stay ahead of technological advancements and meet increasing consumer demands for innovative products.

Cater to Rising Retail Goods and Services Consumption:

Retail sales in the country grew by US$1 billion in 2022. 

  • Enhance the shopping experience by offering convenient and personalised services like home delivery, virtual shopping assistants, and loyalty programs.
  • Invest in sustainable practices to appeal to environmentally-conscious consumers and differentiate your brand in a crowded marketplace.

Target the Domestic Tourism Market:

Domestic tourism has replenished the international void since the pandemic.  Only 3% of tourists were international in 2022. 

  • Develop tourism-related products and experiences highlighting Vietnam’s cultural heritage and natural beauty.
  • Collaborate with local travel agencies and influencers to promote domestic tourism destinations and activities.

Harness the Power of the Internet Economy:

There were 77.93 million internet users in Vietnam at the start of 2023, when internet penetration stood at 79.1%. Vietnam was home to 70 million social media users in January 2023, 71% of the total population.

  • Expand digital marketing efforts to reach the growing online consumer base, including social media advertising, influencer partnerships, and targeted email campaigns.
  • Develop e-commerce platforms optimised for mobile devices to capitalise on the widespread smartphone usage in Vietnam.

Address the Needs of Rising Household Affluence:

  • Offer premium products and services tailored to the preferences of affluent consumers, including luxury goods, gourmet foods, and personalised experiences.
  • Provide financial planning and investment services to help households manage and grow their wealth effectively.
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Capitalise on Financial Ecosystems for E-commerce and Entrepreneurship:

  • Partner with fintech companies to offer innovative payment solutions and financial services tailored to the needs of online shoppers and entrepreneurs.
  • Develop user-friendly digital banking platforms to facilitate seamless transactions and empower customers to manage their finances effectively.

Navigate Vietnam’s Political Stability and Geopolitical Management:

  • Build strong relationships with local government officials and regulatory bodies to ensure compliance and minimise risks associated with political instability.
  • Monitor geopolitical developments and adapt business strategies accordingly to maintain resilience and competitiveness in the market.

Final Thoughts

Vietnam’s vibrant consumer markets have enjoyed robust momentum for some time and are currently undergoing increased complexity. The consumer base is expanding across various geographical, social, demographic, and technological dimensions. With consumers becoming more diverse and discerning, brands aiming to cater to them must fine-tune their strategies to consider income levels, emerging channels, marketing approaches, and shifting behaviours within their existing customer segments.

Here are some critical capabilities for foreign brands entering the Vietnamese market:

  • Localise global products innovatively, tapping into local preferences and subsegments while optimising hero SKUs.
  • Master revenue growth management, balancing affordability and “premiumisation” to maximise revenue growth.
  • Invest in conscious spending areas, especially in an inflationary context.
  • Adjust the operating model, striking the right balance between ownership and agility to produce innovative products.

Suggested reading: What makes Vietnam an attractive destination for foreign investment?

Contact Kadence International, which is equipped with an office in Vietnam, to capitalise on this lucrative market. Our expertise and local presence empower brands to navigate the complexities and unlock the full potential of Vietnam’s dynamic consumer market. Reach out today and embark on your journey toward success in one of Southeast Asia’s most promising markets.

Leverage new business models like retail-media-network capabilities or digital ecosystems to create additional value in a demanding and connected consumer market.

Consider this: A recent study revealed that marketing leaders utilise only 58% of their available data when making decisions. This statistic highlights the abundance of data and underscores a critical conundrum – the gap between data collection and data utilisation. In a world awash with information, the real challenge lies not in acquiring more data but in harnessing it effectively.

The appeal of market research is undeniable. It promises a roadmap to consumer preferences, market trends, and competitive insights. However, this pursuit can lead to a paradoxical situation. When inundated with data, decision-makers often find themselves at the crossroads of ‘analysis paralysis’ – a state where abundant information impedes rather than informs strategy.

The Importance of Market Research in Strategy Development

Market research is a cornerstone, influencing every thread of strategic planning and execution. Its value in informing decision-making cannot be overstated, as it equips leaders with the insights necessary to navigate markets with precision and foresight.

A survey by ESOMAR reveals that 72% of businesses leveraging advanced analytics, including market research, report a significant improvement in their decision-making process. This statistic is a testament to the transformative power of well-executed market research. It underscores a fundamental truth: knowledge is power, especially when it’s about understanding the market and consumer behaviour.

Consider the case of Netflix, a titan in the streaming industry. Their meteoric rise can be attributed in part to their masterful use of market research. By harnessing viewer data, Netflix personalises recommendations and informs its content creation strategy. This approach led to producing hit series like ‘House of Cards’, tailored to viewer preferences identified through meticulous research. The result? A surge in subscriptions and a strengthened market position.

Similarly, Airbnb’s strategic pivot during the COVID-19 pandemic showcases the pivotal role of market research. When travel restrictions hit, Airbnb swiftly adapted by shifting its focus to ‘local experiences’ and ‘staycations,’ guided by real-time market data. This nimbleness, rooted in a deep understanding of changing consumer preferences, helped Airbnb not only survive but thrive amidst global turbulence.

These examples underscore a critical point: market research is more than a tool for gauging consumer sentiment; it’s a compass for navigating the ever-evolving market landscape. Whether it’s identifying new opportunities, personalising customer experiences, or anticipating shifts in consumer behaviour, market research offers a window into the future, allowing businesses to act with confidence and clarity.

Recognising the Signs of Analysis Paralysis

In strategic decision-making, analysis paralysis emerges as a formidable adversary, often lurking in the shadows of abundant data. This phenomenon, characterised by an overabundance of information leading to decision-making gridlock, poses a significant challenge in today’s data-driven business environment.

Analysis paralysis is not merely a buzzword; it’s a tangible barrier to agility and progress. It manifests when teams become so entangled in the minutiae of data and possibilities that they lose sight of the bigger picture. The decision-making process stalls, opportunities are missed, and ironically, the very data meant to empower becomes an impediment.

A study by the Harvard Business Review highlights that companies that rely heavily on data are three times more likely to report significant improvements in decision-making. However, this reliance can be a double-edged sword. When data becomes overwhelming, it can lead to indecision and conservative risk aversion, stifling innovation and growth.

The common pitfalls that often lead to over-analysis include:

  1. Data Overload: In the quest to cover all bases, businesses sometimes collect more data than they can realistically analyse or interpret. This deluge of data can obscure rather than clarify key strategic insights.
  2. Perfectionism in Decision-Making: Aiming for the ‘perfect’ decision based on data can create unrealistic expectations. Pursuing absolute certainty often leads to endless analysis cycles, delaying timely and effective decision-making.
  3. Fear of Making the Wrong Decision: Often, the abundance of data heightens the fear of failure. When the stakes are high, decision-makers may become overly cautious, preferring inaction to the risk of a misstep.
  4. Lack of Clear Objectives: Without well-defined goals, market research can become aimless, leading to an accumulation of irrelevant data that clouds judgment and direction.
  5. Echo Chamber Effect: An over-reliance on data that confirms pre-existing beliefs or hypotheses can lead to a narrow view, disregarding crucial market signals or alternative perspectives.
global-dining-trends

Practical Do’s and Don’ts in Market Research

As brands strive to transform data into strategic insights, understanding the practical do’s and don’ts becomes crucial. This section offers guidance to help steer clear of common pitfalls while maximising the value of market research.

Do’s in Market Research:

  1. Set Clear Objectives: Begin with the end in mind. Define what you want to achieve with your research. Clear objectives guide your methodology and ensure the data collected is relevant and actionable.
  2. Focus on Quality over Quantity: Collect data pertinent to your objectives. More data does not necessarily translate to better insights. Prioritise high-quality data that directly informs your strategic questions.
  3. Embrace a Mixed-Methods Approach: Combine quantitative data (like surveys and market statistics) with qualitative insights (such as focus groups and interviews). This approach offers a holistic view of the market, capturing the magnitude of trends and the nuanced motivations behind consumer behaviour.
  4. Stay Agile and Adaptable: Market conditions change rapidly. Be prepared to pivot your research focus in response to new trends, technologies, and consumer behaviours. Agility in research allows for more relevant and timely insights.
  5. Utilise Advanced Analytics and Tools: Leverage the latest tools and technologies for data analysis. Advanced analytics can uncover patterns and insights that might be missed in manual analysis, leading to more informed decisions.

Don’ts in Market Research:

  1. Avoid Information Silos: Don’t isolate market research from other business functions. Share insights across departments to ensure a cohesive and comprehensive understanding of the market.
  2. Don’t Overlook Context: Data without context can be misleading. Always analyse data within the broader market and organisational context to avoid misinterpreting trends and figures.
  3. Resist the Urge to Confirm Biases: Confirmation bias can skew research outcomes. Approach data with an open mind, ready to challenge preconceived notions and explore new perspectives.
  4. Don’t Neglect the Human Element: Data tells a story beyond numbers. Pay attention to the human elements—emotions, experiences, and values—that influence consumer behaviour.
  5. Avoid Paralysis by Analysis: Be wary of falling into the trap of over-analyzing data. Set deadlines for decision-making to ensure that research leads to timely and decisive action.

Incorporating these practical do’s and don’ts into your market research approach can transform data into a dynamic asset. It’s about balancing the rigour of data collection with the art of interpretation and application. 

Using Research Findings Constructively

The true litmus test of effective market research lies in its translation into actionable insights and strategies. Data, in its raw form, holds potential; it is the alchemy of interpretation and application that turns it into gold. 

Translating Data into Actionable Insights:

  1. Synthesise Data into Understandable Narratives: Data can be overwhelming in its complexity. To make it actionable, synthesise it into clear, concise narratives highlighting key findings and implications. Storytelling with data not only makes it more accessible but also more compelling, enabling easier communication across different levels of the organisation.
  2. Link Insights to Specific Business Goals: Each piece of data should be evaluated in the context of how it can advance specific business objectives. Whether it’s entering a new market, launching a product, or refining customer service, align insights directly with these goals to ensure they have practical applications.
  3. Identify Key Performance Indicators (KPIs): Establish KPIs that measure the impact of insights gained from the research. These indicators should be directly related to the objectives of the study and should provide a clear benchmark for measuring success.
  4. Develop Action Plans Based on Insights: Convert insights into detailed action plans. This involves identifying the steps needed to leverage the research findings, assigning responsibilities, and setting timelines. This structured approach ensures that insights lead to concrete strategies and actions.
  5. Foster a Culture of Data-Driven Decision Making: Encourage a company-wide culture where data-driven insights are valued and acted upon. This cultural shift ensures that decisions at all levels are informed by research findings, maximising the overall impact of market research on the organisation.

The Importance of Clear Objectives and Focused Research Questions

The effectiveness of market research is significantly enhanced by the clarity of its objectives and the focus of its questions. Clear objectives ensure that the research is purpose-driven, targeted, and relevant. They act as a guiding light, keeping the research on track and ensuring that the findings directly apply to specific business challenges or opportunities.

Focused research questions, on the other hand, provide a framework for collecting and analyzing data. They help filter out extraneous information and zero in on what is most pertinent to the business’s needs. Well-crafted questions not only streamline the research process but also sharpen the insights derived from it.

Constructive use of research findings hinges on the ability to distil data into actionable insights, align them with business objectives, and embed them into the strategic fabric of the organisation. 

Building Speculative Models Based on Market Research

In strategic planning, anticipating and preparing for future market trends is invaluable. Here, speculative models based on market research data play a pivotal role, acting as crystal balls that offer glimpses into potential futures. 

Crafting Predictive Models with Market Research Data:

  1. Gather and Analyse Historical Data: Begin by collecting historical market research data. This data provides a foundation, revealing trends, patterns, and cycles that have occurred over time. Analyzing this data helps in understanding the factors that have influenced market changes in the past.
  2. Identify Key Variables and Correlations: Pinpoint key variables significantly impacting your market. This could include consumer behaviour trends, economic indicators, or competitive actions. Look for correlations between these variables and market outcomes to understand the drivers of change.
  3. Incorporate Current Market Trends: Integrate current market research data to add context and relevance. This contemporary data offers insights into ongoing shifts in consumer preferences, emerging technologies, or new market entrants, providing a more accurate picture of the current market landscape.
  4. Develop Predictive Algorithms: Use historical and current data to develop algorithms to predict future market trends. These algorithms analyse patterns in the data to forecast potential outcomes, providing a probabilistic view of the future.
  5. Test and Refine the Models: Validate your models by testing them against known data and refine them based on their predictive accuracy. This iterative process enhances the reliability of the models, ensuring they are robust and applicable.

Hypothetical Scenarios Illustrating the Process:

Scenario 1: A Fashion Retailer Anticipating Trends

Imagine a fashion retailer looking to anticipate the next season’s trends. By analyzing historical sales data, social media trends, and current fashion week reports, they identify key patterns in consumer preferences. The retailer then builds a model that predicts upcoming fashion trends, helping them make informed decisions about inventory and marketing strategies.

Scenario 2: A Tech Company Forecasting Market Demand

Consider a tech company aiming to predict the demand for a new smart home device. They analyse past sales data of similar products, current market trends in smart home technology, and consumer lifestyle changes. Using this data, they create a model that forecasts market demand, guiding their production, pricing, and launch strategies.

In both scenarios, the speculative models provide a strategic advantage. They enable businesses to anticipate market changes and position themselves proactively rather than reactively. This forward-thinking approach is crucial in today’s fast-paced and ever-evolving market landscape.

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Testing vs. Immediate Implementation: Finding the Sweet Spot

In strategy execution, one of the most nuanced steps is deciding whether to leap forward with the immediate implementation of insights or to engage in the measured rhythm of testing findings. This section examines the merits and considerations of both approaches, offering guidance on navigating this strategic crossroads.

The Case for Immediate Implementation:

  1. Speed to Market: In fast-paced industries, the velocity of decision-making can be a competitive advantage. Immediate implementation allows businesses to capitalise on current market conditions, staying ahead of competitors.
  2. Leveraging First-Mover Advantage: Being the first to introduce a new product, service, or strategy can capture market share and establish brand leadership. This approach is particularly effective when introducing innovative solutions or tapping into emerging market trends.
  3. Responding to Urgent Market Needs: In scenarios where market conditions are rapidly evolving, such as crisis situations, immediate action may be necessary to address urgent needs or pivot swiftly in response to significant market shifts.

The Case for Testing Findings:

  1. Risk Mitigation: Testing allows businesses to assess the efficacy of their strategies in a controlled environment, reducing the risk of large-scale failures. It provides valuable feedback and insights, enabling refinements before full-scale implementation.
  2. Data Validation: Testing findings validate the assumptions made during the market research and predictive modelling phases. This step ensures that the strategies are grounded in reality and have a higher likelihood of success.
  3. Consumer Feedback Incorporation: Pilot tests or market trials offer an opportunity to gather direct consumer feedback. This input can be crucial in fine-tuning the product or strategy to better meet consumer needs and preferences.

Guidance on Deciding Between the Two Approaches:

  1. Assess the Market Dynamics: Consider the speed and volatility of your industry. Fast-moving sectors may necessitate quicker implementation, while more stable markets may allow the luxury of testing.
  2. Evaluate the Level of Risk: Analyse the potential risks associated with immediate implementation. High-stakes decisions, especially those involving significant investment or brand reputation, may warrant a more cautious approach with thorough testing.
  3. Consider the Resource Implications: Weigh the resource requirements of both approaches. Immediate implementation can be resource-intensive, while testing requires time and may delay market entry.
  4. Align with Business Objectives: Ensure the chosen approach aligns with overall business objectives and strategic goals. The decision should support the broader vision and long-term plans of the company.

Finding the sweet spot between testing and immediate implementation is a delicate balancing act. It requires a deep understanding of market dynamics, risk tolerance, resource availability, and strategic objectives. By carefully weighing these factors, businesses can make informed decisions that blend the agility of swift action with the prudence of informed testing, paving the way for strategic success in an ever-changing market landscape.

Charting the Future: Embracing Market Research as a Strategic Compass

The overarching message is clear: Market research is not just a tool in the strategist’s toolkit; it is the compass that guides brands through the uncharted territories of the market landscape. Its role in illuminating the path for informed decision-making and strategic development is undeniable and indispensable.

When executed with precision and insight, market research provides a foundation for robust strategy development. It offers clarity in a world brimming with data, insights in an uncertain environment, and direction when the way forward seems obscured. This transformative power of market research is the linchpin in crafting strategies that are reactive to current market dynamics and proactive in anticipating future trends.

However, as with any powerful tool, the key lies in its balanced and judicious use. The journey from data collection to strategy implementation should be navigated with a keen awareness of the pitfalls of over-analysis and the perils of hasty decisions. It’s about striking a harmonious balance – leveraging the depth and breadth of market research to inform decisions while remaining agile and responsive to the ever-evolving market narrative.

Looking ahead, the future of market research in strategy building is not just promising; it is pivotal. As markets evolve at a breakneck pace, the demand for insightful, data-driven strategies will only intensify. The ability to harness the full potential of market research will distinguish leaders from followers, innovators from imitators, and pioneers from the pack.

Around the world, few cultural celebrations hold as much sway as the Chinese New Year. This time-honoured festival, celebrated by billions around the globe, has transcended its origins as a traditional Chinese holiday to become an international phenomenon with far-reaching implications for businesses worldwide. As we look ahead to 2024, brands would be wise to take heed, for the Chinese New Year, which falls on February 10th, ushers in the Year of the Dragon under the auspices of the Wood element.

The significance of Chinese New Year globally cannot be overstated. The festival has evolved from a local observance into a truly global celebration, representing a unique opportunity for brands to connect with a vast and culturally diverse audience. According to recent data, the influence of the Chinese New Year extends well beyond Asia, with 2 billion individuals from various cultural backgrounds partaking in the festivities. In 2023, for instance, the annual expenditure during the holiday reached a staggering $1.5 trillion worldwide, a figure that has steadily increased over the years.

In 2024, we find ourselves at the threshold of the Year of the Dragon, a symbol of power, strength, and good fortune in Chinese astrology. This celestial occurrence, combined with the prevailing Wood element, carries profound implications not only for individual destinies but also for the strategies of businesses seeking to capitalise on this auspicious year. Understanding the traditions and predictions associated with Chinese New Year is not merely an exercise in cultural awareness; it is a strategic imperative for brands aiming to navigate the global market successfully.

In this article, we delve into the transformative journey of Chinese New Year, from its roots as a local celebration to its current status as a global trendsetter. By examining the significance of the Year of the Dragon and the Wood element alongside the rich tapestry of Chinese New Year traditions, this article will equip brands with invaluable insights into how to harness the global influence of Chinese New Year in 2024 and beyond. 

The Global Reach of Chinese New Year

The global footprint of Chinese New Year is staggering, and the numbers speak volumes. In 2023, the festival reached its zenith with more than 2 billion people participating worldwide, making it one of the most widely observed holidays on the planet. Notably, Chinese New Year transcends ethnic and cultural boundaries, uniting individuals from diverse backgrounds in the spirit of celebration. This phenomenon extends beyond China’s borders, with vibrant festivities in Malaysia, Singapore, Thailand, and Indonesia, showcasing the holiday’s widespread appeal.

The evolution of Chinese New Year from a traditional festival to a global cultural phenomenon is a testament to its adaptability and resonance. No longer confined to ancestral customs, it has embraced modernity while retaining its core values. The holiday now encompasses many traditions, from the iconic dragon and lion dances to the giving of red envelopes (hongbao) and family reunions. Brands that grasp this evolution can leverage it to forge authentic connections with their target audiences.

Yet, its economic significance makes Chinese New Year an unmissable opportunity for brands. According to market research, consumer spending soars to unprecedented heights during the Chinese New Year season. In 2023, consumers worldwide spent an estimated $1.5 trillion, with most of this expenditure occurring in Asia. This astronomical figure underscores the immense purchasing power that Chinese New Year commands and the vast potential for brands to tap into this lucrative market.

For brands, Chinese New Year offers a window of opportunity beyond mere celebration. It provides a platform to engage with consumers on a deeper cultural level, foster brand loyalty, and drive sales. Savvy marketers have recognised the immense brand opportunities embedded in this tradition, crafting campaigns that resonate with the festival’s spirit while aligning with their brand identity.

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The Year of the Dragon and Wood Element

In Chinese astrology, each year is woven with symbolism and significance. For 2024, the celestial spotlight falls upon the majestic and mythical creature—the Dragon. Understanding the symbolism and attributes of the Year of the Dragon, in conjunction with the prevailing Wood element, is essential for brands seeking to align their strategies with the overall cosmic forces.

The Dragon, in Chinese astrology, holds a preeminent position. It is regarded as a symbol of power, strength, and good fortune. Those born under the sign of the Dragon are believed to be charismatic, assertive, and natural leaders. Historically, Dragons have been associated with emperors, signifying their divine right to rule. This symbolic potency translates into consumer behaviour. During the Year of the Dragon, individuals often seek to embrace these qualities, aspiring to achieve personal growth and success. Brands can capitalise on this aspiration by crafting campaigns that resonate with the Dragon’s traits of leadership and ambition.

Complementing the Year of the Dragon is the Wood element, which rotates cyclically with other elements in Chinese astrology. Wood is associated with growth, renewal, and expansion. Just as a tree flourishes, Wood signifies the potential for growth, both personally and economically. Individuals born in a Wood year are believed to possess qualities such as adaptability and creativity, making them open to new ideas and experiences.

The intersection of the Year of the Dragon and the Wood element in 2024 offers a unique set of circumstances that can significantly influence consumer behaviour and brand strategies. As individuals look to harness the Dragon’s strength and Wood’s growth potential, they may be more inclined to invest in personal development, education, and career advancement. Brands that align their products and messaging with these aspirations stand to benefit greatly.

Statistics reveal the economic implications of such astrological phenomena. During previous Dragon years, consumer spending often witnessed a substantial increase. For instance, in the last Year of the Dragon in 2012, consumer spending during the Chinese New Year season surged by approximately 16.2% compared to the previous year. This data underscores the correlation between astrological symbolism and consumer behaviour, offering brands valuable insights into the potential growth and prosperity associated with the Year of the Dragon.

Chinese New Year Traditions and Predictions

These age-old customs are not merely rituals; they are woven into the very fabric of Chinese culture, symbolising a collective desire for luck, wealth, and health in the year ahead.

Key Traditions and Their Symbolic Meanings

At the heart of Chinese New Year celebrations lies the practice of setting off firecrackers and fireworks. These explosive displays are believed to ward off evil spirits and bring good fortune for the upcoming year. The resounding explosions, coupled with vibrant red and gold colors, create a sensory experience that brands can draw upon to evoke feelings of excitement and anticipation.

Another integral tradition is giving red envelopes, known as “hongbao.” These envelopes, typically containing money, represent blessings and are exchanged between family members, friends, and colleagues. Gifting hongbao is steeped in symbolism, signifying the transfer of good luck and prosperity. Brands can emulate this gesture by offering special promotions or discounts, effectively sharing the spirit of generosity associated with hongbao.

The dragon and lion dances are vibrant performances that captivate audiences worldwide. 

These traditional dances are not mere spectacles; they are deeply symbolic. The dragon dance represents the powerful Dragon sign, and the lion dance is believed to ward off evil spirits and bring good fortune. Brands can harness the energy and symbolism of these dances in their marketing campaigns, symbolising their commitment to warding off negativity and inviting prosperity.

Influence on Year’s Prospects

These Chinese New Year traditions hold more than just cultural significance—they are believed to influence the prospects of the year. The rituals surrounding the holiday are steeped in auspicious symbolism. For example, fireworks are thought to dispel negative energies, allowing positive forces to flourish. Similarly, the exchange of hongbao is believed to ensure financial well-being throughout the year.

Incorporating these traditions into brand strategies can foster a strong emotional connection with consumers. Brands that embrace these customs acknowledge their cultural significance and actively participate in the collective aspiration for good fortune. It’s not merely a matter of superficial marketing; it’s about becoming a part of the auspicious narrative.

Incorporating Traditions into Marketing Strategies

Brands can take inspiration from these traditions to craft campaigns that resonate with consumers on a profound level. Red and gold color schemes can be incorporated into product packaging or promotional materials, symbolising luck and wealth. Special discounts or promotions can be framed as a form of hongbao, aligning the brand with the spirit of giving and prosperity.

Additionally, the idea of dispelling negativity and inviting positivity can be woven into messaging. Brands can convey their commitment to a fresh start and the pursuit of success in the Year of the Dragon. By aligning marketing efforts with these traditions and their underlying symbolism, brands can authentically connect with consumers and stand out in a crowded market.

guide-to-gen-z

Successful Brand Campaigns

Let’s turn our attention to some noteworthy case studies of brands that have successfully tapped into this dynamic market. By combining strategic insight and cultural sensitivity, these brands achieved remarkable results.

1. Burberry’s Lunar New Year Campaign (2020)

In 2020, Burberry embarked on an innovative Lunar New Year campaign that left a lasting impression on consumers. The brand introduced a dedicated WeChat mini-program, which allowed users to embark on a digital journey through their hometowns, sharing festive greetings and exploring Chinese culture. The mini-program cleverly engaged users and fostered a sense of connection.

However, the true brilliance of Burberry’s campaign lay in its limited-edition collection, adorned with Chinese New Year motifs. This move demonstrated cultural sensitivity and catered to the desire for exclusive, festive attire during the holiday season. The strategy paid off handsomely, with sales soaring, underscoring the immense potential for brands to leverage the allure of Chinese New Year to boost revenue.

2. Nike’s “Year of the Rat” Collection (2020)

Nike, renowned for its innovative marketing strategies, scored big with its “Year of the Rat” collection in 2020. The brand consistently releases special Chinese New Year-themed products, but this collection was exceptionally well-received. Nike expertly fused traditional Chinese symbols with contemporary design elements, creating a product range that appealed to a wide-ranging audience.

By celebrating the Year of the Rat in style, Nike tapped into the consumer desire to embrace the astrological sign of the year. The collection resonated with Chinese consumers and those who appreciated the aesthetics and cultural significance, exemplifying Nike’s ability to bridge tradition and trend seamlessly.

Pitfalls to Avoid

While successful Chinese New Year campaigns can yield immense rewards, it is equally crucial to heed the cautionary tales of brands that have faltered in their attempts to tap into this celebrated tradition. 

1. Pepsi’s “Fails” Campaign (2018)

In 2018, Pepsi ignited a controversy with an ad that exhibited a lack of cultural sensitivity. The ad featured Kendall Jenner seemingly resolving a protest by offering a police officer a can of Pepsi, implying that a soft drink could heal societal divisions. The commercial’s oversimplification of complex social issues and its trivialisation of protests were immediately met with public outrage.

The campaign’s failure can be attributed to a profound misunderstanding of the cultural and social nuances surrounding such sensitive topics. Pepsi’s attempt to capitalise on a festive occasion came across as tone-deaf, rendering its message culturally insensitive and deeply inappropriate.

2. Dolce & Gabbana’s Controversial Campaign (2018)

The same year, Dolce & Gabbana faced a monumental public relations crisis during the Chinese New Year season. The brand’s ill-conceived campaign featured a Chinese model attempting to eat Italian food with chopsticks, a portrayal that many deemed offensive and culturally insensitive. The controversy deepened when offensive messages allegedly sent by one of the brand’s co-founders surfaced online.

This debacle illustrates the potential repercussions of cultural insensitivity and the power of social media to amplify consumer outrage. Dolce & Gabbana’s failure to understand and respect Chinese culture damaged their brand reputation and resulted in canceled events and a significant loss of sales in the Chinese market.

These instances serve as stark reminders of the pitfalls that brands must avoid when participating in Chinese New Year marketing. Cultural awareness, research, and sensitivity are paramount. Brands that fail to appreciate the intricacies of the holiday’s customs, symbolism, and values risk alienating their target audience and facing public backlash.

Strategies for Brand Success

As brands seek to capitalise on the global influence of Chinese New Year, it is essential to approach this vibrant market with careful consideration and strategic intent. To ensure success, here is a checklist of practical tips and strategies that emphasise the significance of cultural sensitivity, authenticity, and local market knowledge:

1. Cultural Sensitivity and Respect

  • Prioritise cultural awareness and sensitivity throughout the campaign planning process.
  • Invest in cross-cultural training for your team members to foster a deep understanding of Chinese traditions and values.
  • Conduct thorough research to avoid any inadvertent cultural insensitivity in your messaging, imagery, or symbolism.

2. Authenticity and Storytelling

  • Craft authentic narratives that resonate with the spirit of Chinese New Year. Share meaningful stories that reflect the values and aspirations of the holiday.
  • Showcase your brand’s commitment to cultural understanding and appreciation in a genuine and transparent manner.
  • Highlight the cultural significance of your products or services in a way that feels authentic rather than forced.

3. Local Market Knowledge

  • Recognise that Chinese New Year traditions can vary across regions and communities. Tailor your campaign to specific local customs and preferences.
  • Leverage local partnerships and collaborations to gain insights into the nuances of your target markets.
  • Stay informed about market trends and consumer behavior in the lead-up to Chinese New Year, adapting your strategies as needed.

4. Integrating Chinese New Year Themes

  • Incorporate traditional colors such as red and gold, which symbolise luck and wealth, into your product packaging, marketing materials, and store decorations.
  • Feature Chinese New Year motifs, zodiac animals, and auspicious symbols in your designs to resonate with consumers’ cultural sensibilities.
  • Develop special limited-edition products or collections that align with the Year of the Dragon and the Wood element, reflecting themes of strength and growth.

5. Personalisation and Gifting

  • Consider offering personalised or customisable products and services, echoing the tradition of gifting hongbao (red envelopes).
  • Create unique and memorable customer experiences, such as personalised messages or exclusive gifting options.
  • Encourage consumers to share their Chinese New Year experiences with your brand through user-generated content, promoting a sense of community and connection.

6. Digital Engagement

  • Harness the power of digital platforms, especially social media and e-commerce, to engage with consumers during Chinese New Year.
  • Develop interactive campaigns, games, and challenges that encourage user participation and generate buzz.
  • Utilise Chinese social media platforms such as WeChat, Weibo, and Douyin to reach a wider audience and engage in real-time conversations.

By adhering to these strategies and ensuring cultural sensitivity, authenticity, and local market knowledge, brands can navigate the complexities of Chinese New Year successfully. The Year of the Dragon and the Wood element provide a unique backdrop for creating meaningful connections with consumers and driving brand growth. Remember that the global influence of Chinese New Year is not just an opportunity for sales but also a chance to foster long-lasting relationships and brand loyalty.

Unleash Prosperity: The Power of Chinese New Year Marketing

Chinese New Year is more than a holiday; it is an unparalleled opportunity for brands to bridge tradition and trend, uniting the profound significance of culture with the dynamic forces of global commerce. It is a time to celebrate the harmony of tradition while daring to innovate and create trends that resonate with consumers.

As we look ahead to the Year of the Dragon and the Wood element in 2024, let us remember that Chinese New Year is not merely a festival; it is a canvas on which brands can paint stories of prosperity, connection, and growth. It is a time when tradition and trend converge, offering a transformative journey for brands and consumers.

The streets of Milan during Fashion Week echo the vibrancy of an industry that never ceases to evolve. The fashion industry, constantly on the move, shapes and reshapes the way we perceive style, leaving an indelible mark with each new trend. It’s a world where the bold lead and the rest follow, where what was en vogue yesterday may be passé today.

The rapid change in fashion trends can be exemplified by the resurgence of 90s aesthetics in recent years. What was once considered outdated —the oversized jackets, mom jeans, and vibrant neon colours have found their way back to the runway, embraced by a new generation. Similarly, the rise of sustainable fashion marks a significant shift in consumer consciousness, influencing major brands to rethink their strategies and designs.

Understanding these shifts is critical to creating fashion personas that resonate with the current trends that change at dizzying speeds. As we navigate the fashion runways, we must understand the many fashion buyers and their personas based on their purchasing habits, preferences, lifestyles, and motivations.

In this guide, we will explore how to harness the power of evolving trends to craft a fashion identity that is both unique and relevant. From the runways of Paris to the high street fashion in New York, let’s unravel the secrets behind creating a fashion persona that stands out in the fashion world today.

You can also download our guide here for a detailed look at 9 Types of Fashion Buyers in 2024 and beyond.

The global fashion industry is valued at $1.7 trillion, with the US alone accounting for $343.70 billion. 

Fashion has moved online.

The shopping cart has increasingly shifted online. With retail e-commerce sales hitting trillions worldwide, the fashion world has unmistakably woven into daily life’s fabric. 

In 2023, the global fashion e-commerce sector is set to be valued at more than 820 billion US dollars, potentially crossing the 1.2 trillion US dollar mark by 2027. 

While apparel dominates online purchases, accessories and footwear also claim substantial shares of the global online fashion revenue. 

Brands today are marketing sustainability, as highlighted by 66% of global millennials opting for sustainable brands even at premium prices.

However, despite its glitz and glamour, the fashion industry grapples with challenges —from the sustainability of fast fashion to ethical manufacturing and more. 

The State of the Fashion Industry: Resilience, Challenges, and Emerging Trends

In 2022, the fashion industry demonstrated remarkable resilience, echoing its previous year’s performance. According to the McKinsey Global Fashion Index, the industry nearly matched its record economic profit from 2021. 

The luxury sector led this robust performance, which saw a significant 36% rise in economic profit, counterbalancing softer segments. Even non-luxury sectors outperformed their long-term averages. The fashion industry in 2022 accrued more than double the financial profit of any year between 2011 and 2020, barring one indicative of solid margin performance.

2023: A Year of Persistent Challenges

2023 presented persistent and deepening challenges for the fashion industry. Europe and the United States experienced sluggish growth, while China’s initially strong performance diminished in the year’s second half. The luxury segment, initially resilient, began to feel the impact of weakened demand, leading to slowing sales and uneven performance.

The ever-evolving fashion buyer 

The fashion industry has always been dynamic, reflecting cultural shifts, societal values, and individual identities. Yet, one of its most profound evolutions hasn’t been just in the clothes we wear but in how we buy them. As the fashion world has spun forward, the way we engage with it has transformed, primarily influenced by the rapid growth of technology. To fully grasp this metamorphosis, let’s journey through time, from the intimate boutiques of yesteryears to today’s digital storefronts.

Imagine it’s the early 1970s. Meet Eleanor, a fashionable woman in her mid-20s. Shopping for Eleanor was a tactile, almost ceremonial experience. She’d stroll down to her local boutique or department store when she needed a new dress. She’d greet the store owner, perhaps even by first name. She’d touch the fabrics, try on various outfits, and often chat with other shoppers, making it a social experience. Personal recommendations, trust in local shopkeepers, and word-of-mouth drove her buying decisions. 

Catalogues played a role, too, especially for those living further from urban centres. This was an era where shopping was as much about community as it was about consumption.

Fast forward to the 1990s, and meet Eleanor’s daughter, Lisa. While local stores still held their charm, shopping malls became the new house of fashion. Lisa would spend hours with her friends, hopping from one brand to another under one roof. Advertisements on TV, magazines, and billboards influenced her choices. The rise of chain stores meant she had access to global brands, allowing her to tap into broader trends. Yet, the most significant change was looming on the horizon: the dawn of the internet.

Now, step into the present and meet Zoe, Lisa’s tech-savvy daughter. For Zoe, shopping is literally at her fingertips. Through her smartphone, she can access any brand, anywhere in the world, at any time. Influences come from social media content, online reviews, and digital advertising. Algorithms curate personalised shopping experiences for her, and Augmented Reality lets her ‘try on’ clothes without ever stepping into a physical store. While she might still enjoy a day out shopping with friends, many of her buying decisions are shaped online, emphasising the power and reach of digital platforms in today’s retail world.

This evolution from Eleanor to Zoe isn’t just about changing shopping venues; it’s about shifting mindsets, influences, and expectations. Fashion buying has been interwoven with technological advancement and cultural change, making understanding the consumer more critical than ever.

In the following sections, we’ll dive deeper into the role of consumer personas, like Eleanor, Lisa, and Zoe, and explore how they help the fashion industry navigate this intricate landscape.

Brands face the dual challenge of sustainability awareness and the urgency to reduce landfill waste.

In crafting effective fashion personas, it’s essential first to comprehend the many challenges the fashion industry encounters. This understanding is pivotal for grasping the evolving ecosystem in which these personas operate and interact. 

Much like character studies in a novel, fashion personas are deeply influenced by the industry’s dynamics —from sustainability efforts to digital transformations. Recognising these challenges helps marketers appreciate the context in which fashion personas evolve, adapt, and thrive. 

The sustainable fashion industry is valued at over $6.5 billion and is expected to reach $15 billion by 2030.

The fashion industry is undergoing significant transformations due to challenges encompassing a range of environmental, economic, and social issues.

Major Challenges Facing Fashion Brands

Environmental Impact and Sustainability Challenges

Transition to Eco-Friendly Materials: Transitioning to sustainable materials like organic cotton, recycled polyester, and Tencel is imperative but expensive and demands new manufacturing processes. Reducing harmful chemicals in textile production is also a priority​​.

Supply Chain Transparency: Achieving transparency and traceability in the supply chain is challenging. Consumers increasingly demand information about product origins, working conditions, and environmental impacts​​.

Textile Waste and Circular Fashion Model: The industry must address textile waste through recycling and reuse. Adopting a circular fashion model, which involves designing easily disassembled and recycled products, is essential to reduce waste​​.

Reducing Carbon Emissions: The fashion industry, contributing around 10% of global carbon emissions, is under pressure to reduce its carbon footprint across the supply chain, from raw material production to garment manufacturing and transportation​​.

Eliminating Toxic Chemicals and Microplastics: Addressing toxic chemicals and microplastics in clothing production is crucial for human health and environmental protection​​.

Developing Climate Change Resilience Plans: Adapting to the impacts of climate change requires a comprehensive approach across the entire supply chain​​.

Economic and Market Challenges

Economic Uncertainty: The industry faces macroeconomic tensions and a potential global recession, with inflation causing rising costs and potential consumer spending decreases​​.

Inventory and Returns Management: Efficiently managing inventory and returns is crucial to address changing consumer habits and minimise waste and decreased profitability​​.

Competition from Fast Fashion: Fast fashion and off-price retailers, offering trendy and affordable clothing, challenge traditional brands. Competing requires a focus on quality, sustainability, and innovation​​.

Rethinking Sales Strategies: Rethinking discounting and sales strategies is necessary to maintain profitability and manage inventory effectively​​.

Growth in Rental and Resale Models: The growing rental and resale markets offer opportunities for brands to invest in and promote sustainability​​.

Social and Labor Challenges

Labor Rights and Fair Wages: Ensuring fair wages and improving labour rights and workplace conditions are essential. This includes addressing long hours, unsafe conditions, and harassment​​.

Advancing Diversity and Inclusion: Promoting diversity, equity, and inclusion in the workforce is necessary to provide equitable employment opportunities​​.

Talent Shortage and Skills Gap: The industry faces a talent shortage and skills gap, affecting innovation and competitiveness. Attracting and retaining talent, reskilling for digital transformation, and investing in upskilling are crucial​​.

Challenges arising from Digital Transformation

Adopting E-Commerce and Omnichannel Models: E-commerce growth and the need for omnichannel retail models are reshaping the industry. Brands must meet the increasing demand for seamlessly integrating offline and online shopping experiences​​.

Leveraging Digital Marketing: Utilising digital marketing and social media influencers is becoming increasingly vital for brand awareness and sales​​.

Exploring Innovations: Innovations like virtual try-ons and the metaverse are emerging as influential factors in the fashion industry​​.

How Fashion Personas Help Brands Understand What Their Customers Want

As brands jostle for attention in an oversaturated market, the key to success is resonating with the right audience. This is where fashion personas, like Eleanor, Lisa, and Zoe, from our example, come into play. 

But what exactly are these personas, and how do they steer a brand’s strategy?

1. Defining Fashion Personas:

A fashion persona is a detailed representation of a specific segment of a brand’s target audience. More than just a demographic breakdown, it encapsulates preferences, shopping behaviours, values, challenges, and even aspirations. These personas are like fictional characters, crafted using market research, data analytics, and, sometimes, a dash of intuition.

2. A Mirror to Consumer Desires:

Fashion personas act as mirrors, reflecting what consumers seek. By understanding the likes and dislikes of ‘Athleisure Annie’ or the values and challenges of ‘Sustainable Sam,’ brands can curate collections, marketing campaigns, and even in-store experiences that cater to these needs. It eliminates the guesswork, ensuring every decision, from the fabric chosen to the style promoted, and the message resonates with the intended audience.

3. Crafting Tailored Narratives:

With personas, brands can craft narratives that speak directly to their audience. For example, knowing that “Retro Rita” values nostalgia and the history of fashion allows brands to weave stories that tug at these sentiments. This results in advertising campaigns, social media content, and even runway themes that feel personal and engaging.

4. Predicting and Adapting to Trends:

Fashion is notorious for its ever-changing trends. However, brands can stay ahead with a keen understanding of their consumer personas. By monitoring the evolving preferences of their key personas, brands can predict emerging trends, ensuring they’re not just keeping pace with the industry but leading it.

5. Enhancing Customer Loyalty:

When consumers feel seen and understood, their loyalty to a brand deepens. Brands build trust by consistently delivering products and experiences that align with their personas’ desires. Over time, this translates into a dedicated customer base that doesn’t just buy but also advocates for the brand.

6. Optimising Resource Allocation:

Understanding where to invest is crucial for brands, especially those with limited resources. Fashion personas offer clarity. If a brand knows that a significant segment of its audience mirrors “Budget Brenda,” they can prioritise affordable yet trendy collections and forgo high-end materials that might not appeal to this group.

9 Core Fashion Personas Shaping the Fabric of Retail 

Let’s look at nine fashion personas that serve as your brand’s North Star, guiding you through consumer expectations, preferences, and behaviours. They are about creating fictional characters and embedding the consumer’s voice within the brand’s strategy. In a world where personalisation is paramount, and consumers crave authentic connections, these personas are the bridge between brands and their audiences.

Segment 1: Trendsetters

Overview

As their moniker suggests, trendsetters stand at the vanguard of fashion, defining and reshaping the fashion norms of the era. These individuals are not fashion followers but architects, blending their personal style with a foresight of where the industry is headed. Living in an age where boundaries between private and public lives are blurred, trendsetters wield their fashion choices as an extension of their identity. 

For them, fashion is more than aesthetics—it’s a mode of communication, a means to convey their perspective, values, and individuality.

Their influence isn’t contained within the realm of apparel alone. It stretches across various domains like technology, music, art, and food. The quintessential trait of a trendsetter is their ability to spot the developing, to discern what will capture people’s attention next. They are early adopters, fearless in their choices, and often become the touchstone for others seeking direction.

While their choices might seem eclectic and unpredictable, there’s a method to the madness. Trendsetters are adept at coherently weaving diverse inspirations from high fashion runways, street styles, or global cultures.

Current Trends and Impact of Trendsetters on the Fashion Industry:

  • Digital First: Trendsetters are invariably digital natives. They discover the latest styles on social media platforms, from TikTok’s quick-paced style challenges to Instagram’s curated fashion shoots.
  • Sustainability and Ethical Fashion: Unlike ‘fast fashion,’ many trendsetters now advocate for sustainable fashion. It’s chic to be sustainable, and brands that promote ethical sourcing and production are gaining traction.
  • Cultural Fusion: There’s a blend of global cultures in their wardrobe. Whether it’s the Japanese kimono-inspired jackets or African print dresses, it’s about blending borders seamlessly.

The impact of trendsetters on the fashion industry is significant. Their choices can make or break brands. Their endorsement brings legitimacy, and their critique can push brands to re-evaluate their offerings.

Segment 2: Classic Traditionalists

Overview

As fashion trends come and go with blinding speed, the Classic Traditionalists stand as pillars of timeless style. These individuals resonate with fashion that transcends seasons and fleeting trends. They embody the adage, “Fashion fades, style is eternal.” Drawing inspiration from eras where every garment was a statement of elegance and poise, Classic Traditionalists often gravitate toward attire that has withstood the test of time.

They are often seen as the antidote to today’s frenzied fashion cycles, preferring quality over quantity. Their choices are a harmonious blend of the past and the present, creating a style that feels both familiar and fresh. By interweaving contemporary nuances with classic elements, they create looks that exude sophistication and self-assuredness.

While they may appear resistant to change, it’s not about aversion but discernment. They meticulously select pieces that complement their curated wardrobe, ensuring every addition has a sense of purpose and longevity.

Current Trends and Impact of Classic Traditionalists on the Fashion Industry:

  • Tailored Fit: The importance of a well-fitted garment cannot be overstated for Classic Traditionalists. Precision is vital because there’s a noticeable move toward bespoke and tailored clothing.
  • Neutral and Earth Tones: While bold colours have their moments, Classic Traditionalists often lean toward neutral palettes – beige, navy, white, and grey- that offer versatility.
  • Quality Fabrics: Silk, wool, and organic cotton are materials of choice, emphasising durability and comfort.

Their preferences are pivotal in ensuring the fashion industry keeps in touch with its roots. The sustained demand for classic pieces ensures that brands balance innovation and tradition.

classic traditionalists fashion persona

Segment 3: Eco-Conscious Shoppers

Overview

Eco-conscious shoppers emerge from an intersection of style and sustainability. This segment believes that fashion should not come at the planet’s or its inhabitants’ expense. While their predecessors might have prioritised the look and feel of garments, these individuals weigh their purchases’ ethical and environmental implications just as heavily. Their commitment goes beyond mere labels; it’s about tracing the entire journey of a garment, from the raw material sourcing to the conditions under which it was produced.

This segment does not view sustainability as a passing trend or a niche; instead, it’s an indispensable facet of their purchasing philosophy. In an age where the environmental impact of industries is exposed, these shoppers make informed, intentional choices in harmony with their values. Their wardrobe reflects the world they envision —one where style and sustainability coexist seamlessly.

Current Trends and Impact on the Fashion Industry:

  • Transparency: Eco-conscious shoppers seek brands that offer complete transparency about their supply chains and manufacturing processes.
  • Upcycling and Circular Fashion: This segment shows a keen interest in brands repurposing materials, thereby reducing waste.
  • Plant-Based Materials: Materials like hemp, bamboo, and organic cotton are in demand due to their low environmental impact.

Their purchasing behaviour has nudged the industry toward a more sustainable course. Brands are now investing in eco-friendly materials, ethical labour practices, and sustainable packaging in response to the demands of this segment.

eco-conscious fashion buyer

Segment 4: Luxury Enthusiasts

Overview

Luxury Enthusiasts are connoisseurs of exclusivity, craftsmanship, and heritage. For them, fashion is an art form, an experience, a reflection of a legacy often spanning centuries. Their choices aren’t driven by necessity but by a deep appreciation for the meticulous craftsmanship, unique designs, and the stories embedded in each piece. Luxury is a profoundly personal journey of aligning with brands that echo their values and aspirations.

Positioned at the apex of the fashion hierarchy, Luxury Enthusiasts are pivotal in setting broader industry directions. Their preferences often trickle down, influencing mass-market designs and trends. They are constantly curating and refining their style, which is often bespoke, personalised, and tailored to perfection.

Current Trends and Impact of Luxury Enthusiasts on the Fashion Industry:

  • Bespoke Experiences: Luxury Enthusiasts seek personalised shopping experiences beyond just clothing, from private viewings to custom fittings.
  • Digital Integration: Luxury shopping is increasingly moving online, with augmented reality fittings and virtual consultations becoming standard.
  • Heritage and Storytelling: Brands with a rich history and can weave compelling stories around their products find favour with this segment.

The choices of Luxury Enthusiasts set the gold standard in the fashion industry. 

Their patronage can elevate a brand to iconic status, and their critique can be a call for introspection.

luxury fashion shoppers

Segment 5: Athletic and Sporty

Overview

This segment of Athletic and Sporty fashion enthusiasts prioritise comfort, functionality, and performance in their wardrobe choices, but not at the expense of style. This intersection of fashion-forward designs and technologically advanced materials has propelled sportswear from the confines of gyms to mainstream streets, workplaces, and social settings. “Athleisure,” a term now ubiquitously used, epitomises this merger of athletic apparel with everyday wear, highlighting the evolution of sportswear into a lifestyle.

The rise of this segment spotlights a broader societal shift toward health, fitness, and overall well-being. This demographic is not solely composed of athletes or fitness enthusiasts but is increasingly embraced by individuals seeking versatile attire that aligns with their active, on-the-go lifestyles. This fusion of comfort and style underpins the segment’s universal appeal.

Current Trends and Impact of Athletic and Sporty Personas on the Fashion Industry:

  • Tech-infused Apparel: Clothing integrated with tech features, like moisture-wicking, breathable fabrics, and even embedded sensors for tracking physical metrics, is gaining traction.
  • Versatility: Multipurpose clothing that can transition from a workout session to a casual outing is in high demand.
  • Sustainable Sportswear: Eco-friendly materials and ethical manufacturing in the sportswear segment attract this group’s eco-conscious subset.

The Athletic and Sporty trend has democratised sportswear, making it a staple for diverse demographics. Brands traditionally not in the sportswear domain are collaborating or launching their athleisure lines, reflecting the segment’s industry-wide influence.

Segment 6: Bohemian Romantics

Overview

The Bohemian Romantics are a breed apart in the fashion world, exuding an eclectic blend of vintage, ethnic, and uninhibited style. They aren’t just donning garments but curating stories, drawing from global influences, eras, and personal experiences. Their wardrobe choices are less about fitting into a mould and more about self-expression, liberation, and embracing the unconventional.

This segment’s fashion is characterised by its free-spirited aesthetic, harmonising rich textures, layered garments, earthy tones, and artisanal details. It’s a rebellion against the structured and the mainstream, a nostalgic nod to the days of Woodstock, and a tribute to artisan communities worldwide.

Current Trends and Impact of Bohemian Romantics on the Fashion Industry:

  • Global Fusion: A blend of cultures and traditions, often showcased through embroidery, prints, and jewellery.
  • Sustainable and Artisanal: A tilt toward slow fashion, with handmade, upcycled, and ethically sourced pieces in the spotlight.
  • Mix and Match: A juxtaposition of vintage finds with contemporary pieces, creating a unique style language.

The influence of the Bohemian Romantics has led to the resurgence of craft-based techniques, emphasising the narrative and the hands behind the piece rather than mass-produced fashion. Their impact is evident in seasonal collections where boho-chic elements often find prominence, reflecting the segment’s influence even in mainstream fashion.

boho-chic-fashion buyer

Segment 7: Minimalists

Overview

Minimalists stand out as a refreshing voice of simplicity and intentionality. This segment seeks purity in design, valuing function as much as form. A Minimalist’s wardrobe is characterised by its neutral palette, clean lines, and timeless pieces that effortlessly blend, representing a conscious departure from the frenetic cycle of fast fashion.

For Minimalists, less is indeed more. They prioritise quality over quantity, investing in versatile pieces that serve multiple purposes rather than fleeting seasonal trends. Their clothing choices reflect a holistic lifestyle that appreciates subtlety embraces sustainability, and rejects the noise of overconsumption.

Current Trends and Impact of Minimalists on the Fashion Industry:

  • Capsule Wardrobes: Curating a limited set of interchangeable garments that can create multiple outfits, emphasising doing more with less.
  • Sustainable Fabrics: A gravitation toward organic, sustainable, and long-lasting materials that align with the Minimalist ethos.
  • Neutral and Earthy Tones: Dominance of monochromatic shades, beige, white, black, navy, and muted earthy hues.

The Minimalist approach has steered the fashion industry toward sustainable practices, highlighting the need for quality, longevity, and ethical production. 

It’s a pushback against the disposability culture, prompting brands to re-evaluate their production practices and design philosophies.

minimalists

Segment 8: Budget-Savvy Shoppers

Overview

Amid the dazzling allure of luxury labels and high-end boutiques, Budget Savvy shoppers navigate the fashion industry with a sharp eye for value. Driven by fiscal prudence, they seek style without compromising their wallets. These consumers excel in balancing aesthetics with affordability, ensuring they remain stylish without breaking the bank.

Their shopping habits are characterised by strategic planning: waiting for seasonal sales, leveraging loyalty programs, and hunting for the best deals online and offline. This doesn’t mean they compromise on quality; instead, they are adept at discovering underrated brands or items that offer great value for the price. They challenge the stereotype that fashion needs to be a load on the wallet. 

Current Trends and Impact of Budget-Savvy Shoppers on the Fashion Industry:

  • Flash Sale Platforms: Websites and apps dedicated to limited-time offers and steep discounts on branded fashion items.
  • Loyalty Programs: Brands offering points, rewards, and exclusive discounts to frequent shoppers.
  • Thrift Shopping: Embracing pre-loved items from thrift stores or online platforms, further emphasising value for money.

Budget Savvy shoppers have significantly shaped retail strategies, compelling brands to offer competitive pricing, regular promotions, and value-added services. 

Their behaviour has also fostered the growth of discount platforms and second-hand marketplaces, diversifying how fashion is consumed.

budget-savvy-fashion-buyers

Segment 9: Edgy and Alternative

Overview

The Edgy and Alternative persona is a testament to the spirit of rebellion, self-expression, and defiance of the norm. This group is not content with blending into the crowd; instead, they make bold statements with their sartorial choices. 

Defined by their unique tastes, they gravitate toward unconventional designs, striking patterns, and a palette that often leans into dark or vibrant hues.

Their fashion lexicon includes punk, grunge, goth, streetwear, and other subcultures, epitomising an unapologetic departure from mainstream fashion. 

While they might embrace specific trends, their primary motivation is to be authentic to their style, even if it means swimming against the popular tide.

Current Trends and Impact of the Edgy and Alternative Persona on the Fashion Industry:

  • Alternative Prints and Patterns: Motifs like skulls, chains, or graffiti are becoming part of mainstream collections.
  • Diverse Materials: Using leather, mesh, or PVC to create edgy silhouettes.
  • Unique Accessorising: Chokers, spiked bracelets, and platform shoes appear recurrently.

The presence of this segment has enriched the fashion industry by challenging the conventional definitions of beauty and style. It has prompted designers to experiment, take risks, and incorporate subcultural aesthetics into their collections.

edgy-alternative-fashion-persona

The Future Outlook for Fashion Brands in 2024

An overall theme of uncertainty mirrors broader economic concerns, including subdued growth prospects, persistent inflation, and weakened consumer confidence. Fashion brands face the challenge of identifying new performance drivers amidst these conditions.

Global Economic Challenges and Consumer Shifts

Geopolitical Concerns: Geopolitics remains a top concern for fashion industry executives, influencing growth prospects and operational strategies.

Economic Volatility and Inflation: Economic instability and inflation continue to challenge the fashion industry, requiring strategic responses from brands.

Consumer Confidence and Regional Variations: Consumer spending patterns show notable regional differences, with countries like India displaying higher consumer confidence than Western nations.

Key Themes for 2024

Global Economy: The industry must navigate an unsettled global economic climate, requiring enhanced contingency planning and management for uncertainty.

Climate Urgency: Increasing extreme weather events make climate change an urgent priority, demanding immediate action in emissions reduction and supply chain resilience.

Consumer Shifts: Expectations around travel and lifestyle changes will necessitate refreshed brand distribution and category strategies.

Influencer Marketing Evolution: Brand partnerships with influencers will require new strategies, focusing on video content and creative collaborations.

Outdoor and Lifestyle Fusion: As consumers embrace healthy lifestyles, the line between outdoor functionality and lifestyle fashion will continue to blur.

Generative AI in Creativity: Gen AI’s role in enhancing human creativity will be pivotal in the fashion industry, extending beyond automation.

Fast Fashion Dynamics: The competitiveness of fast fashion is evolving, with new players challenging traditional approaches to pricing, customer experience, and speed.

Focus on Brand Marketing: Emotional connections and long-term brand building will become crucial as the industry shifts focus from performance marketing.

Sustainability Regulations: With increasing regulatory interventions, brands and manufacturers must adapt their business models to comply with new sustainability standards.

Supply Chain Volatility: The bullwhip effect in supply chains will pressure suppliers, emphasising the need for transparency and strategic partnerships.

The fashion industry is navigating a complex landscape marked by economic headwinds, consumer shifts, and the urgent need for sustainable practices. As it adapts to these challenges, the industry’s agility and innovative capacity will be critical to its continued resilience and growth. 

Download our guide here for a detailed look at 9 Types of Fashion Buyers in 2024 and beyond.