Food prices in Japan have surged since 2022, shifting consumer habits in ways that brands cannot afford to ignore. A nationwide study by our sister company, CMG Inc., reveals the extent of this shift, showing how inflation influences where, what, and how often people buy groceries.

Japanese consumers have long prioritised quality and brand loyalty, often paying a premium for fresh, locally sourced ingredients. However, inflation is shifting these behaviours. Our study shows that more shoppers seek discounts, adjust grocery lists, and change stores to cope with rising costs.

Our study of Japanese consumers aged 20 to 69 found that 90% feel the strain of rising food costs, with 70% experiencing it intensely. Prices for essential staples like rice, leafy greens, and eggs have surged, pushing shoppers toward lower-cost alternatives, bulk buying, and store-switching strategies.

Households are adjusting by choosing cheaper alternatives, relying on discounts, and carefully planning purchases to minimise costs. The findings reveal how inflation shapes the Japanese food market today and how brands must adapt to meet shifting consumer priorities.

Japanese consumers feel the weight of rising food prices

how-Japanese-consumers-feel-about-food-inflation

Inflation is hitting middle-aged consumers the hardest. Women and those aged 40 to 60 report the most strain as they juggle rising grocery bills alongside housing, childcare, and utility costs.

Rice tops the list, with three-quarters of respondents saying its cost has risen. Leafy vegetables, eggs, and fruits are among the most frequently cited items experiencing price hikes. The rising costs of these essentials are pushing consumers to reconsider their grocery lists, with many shifting to more affordable alternatives or cutting back on certain items altogether.

Consumer sentiment suggests inflation is not just a financial strain but an ongoing source of anxiety. Many households are adjusting broader spending patterns, cutting back on dining out and non-essential purchases as they prioritise their grocery budgets. This heightened sense of caution underscores the urgency for brands to meet evolving needs with adaptable solutions.

Implications for Brands

As inflation shapes consumer habits, brands operating in the food industry must rethink their strategies. Price sensitivity is now a dominant force in purchasing decisions, making affordability and value essential selling points. Companies that rely on staple food products may need to introduce smaller pack sizes, bulk discounts, or subscription-based models to maintain customer loyalty.

This shift presents an opportunity for brands that offer alternatives to high-cost staples. The surge in demand for lower-cost items like bean sprouts and tofu suggests that consumers are willing to make substitutions. Positioning these products as smart, affordable choices through targeted marketing and in-store promotions could help brands capture market share.

Retailers and food manufacturers must also recognise that Japanese consumers actively seek ways to save. Loyalty programs, digital coupons, and promotional bundles could play a more significant role in purchasing decisions as shoppers become more selective about where they spend their money. Companies that can balance pricing strategies with perceived value will be best positioned to navigate the evolving food market in Japan.

How Consumers Are Changing Their Shopping Habits

changing-grocery-shopping-habits-in-Japan

As prices climb, Japanese consumers are becoming more strategic. Nearly 30% are actively hunting for clearance deals, while an equal share is switching supermarkets in search of lower prices. Discount chains and bulk retailers see increased foot traffic as shoppers shift from premium stores to budget-friendly alternatives.

Beyond price-driven decisions, shoppers are becoming more disciplined in their purchasing habits. Many are researching deals in advance, planning their shopping lists, and buying only what is necessary. This shift suggests that impulse buying is declining, making it harder for brands to capture spontaneous purchases. Instead, consumers approach grocery shopping with a calculated mindset, weighing every purchase against cost and necessity.

Digital engagement is also playing an increasing role in consumer decisions. More shoppers use online price comparison tools, retailer apps, and e-commerce platforms to track discounts and find the best deals. Brands that integrate their promotions seamlessly into these digital channels will have a greater chance of influencing purchase decisions early on.

However, in-store promotions and point-based rewards in Japan remain highly influential, offering brands an alternative way to engage cost-conscious consumers. Brands that integrate their promotions seamlessly into digital and physical retail channels will have a greater chance of influencing purchase decisions before consumers even enter a store.

Implications for Brands

With price-conscious behaviour shaping the market, brands must adapt their pricing and promotional strategies. Offering flexible discounts and personalised promotions could help retain customers who might otherwise trade down to lower-cost alternatives. Brands traditionally relying on premium positioning may need to consider budget-friendly variations or value packs to stay competitive.

A prime example of a brand adapting to shifting consumer behaviour is Nissin Foods, the maker of Cup Noodles. The company has introduced new flavours and healthier options for health-conscious consumers while maintaining affordability. Its focus on sustainability through eco-friendly packaging and responsible sourcing has also helped sustain consumer loyalty despite economic challenges.

Retailers also need to rethink in-store and digital promotions. Placing high-demand items in visible areas, bundling products at competitive prices, and integrating discount offers into mobile shopping apps can help maintain customer engagement. As shoppers become more deliberate, brands must ensure they are part of the decision-making process before consumers reach the checkout counter.

What are people buying less and more often?

top-10-foods-with-price-increases-in-Japan

Rice, snacks, and cabbage are the top three foods that people buy less of due to price increases.

Rising prices are forcing consumers to rethink where they shop and what they buy. The survey reveals a clear pattern – high-cost staples are being purchased less frequently, while affordable alternatives are gaining traction. Since 2021, Japan has experienced a significant surge in rice prices. In 2023, the average selling price for a 60-kilogram bag of rice was approximately ¥15,310 (about $139 USD). By January 2025, this price escalated to ¥25,927, a 69% increase from the previous year. This equates to roughly $171 USD.

At the same time, lower-cost and versatile food items are seeing an uptick in sales. Bean sprouts and tofu, known for their affordability and adaptability in Japanese cuisine, are among the top foods people buy more often. Bread, another relatively inexpensive staple, has also gained popularity. The trend suggests consumers prioritise foods that offer more servings, opting for ingredients that stretch further and provide better value.

Implications for Brands

Understanding these shifts is critical for food manufacturers and retailers. Brands in high-cost categories need to rethink how they position their products. Offering smaller portion sizes, value packs, or price promotions could help retain consumers considering cutting back. For brands selling products that are growing in demand, this is a moment to strengthen their market position. Highlighting the versatility, nutritional benefits, and affordability of products like tofu and bean sprouts can reinforce their appeal in price-sensitive times.

Retailers should also adapt by ensuring budget-friendly items are well-stocked and prominently displayed. Promotional strategies should focus on cost-effective meal solutions, helping consumers maximise their grocery budgets. As inflation influences purchasing decisions, brands that align their offerings with consumer priorities will be best positioned to maintain loyalty and sales.

How Japan’s food inflation compares to the West

Rice isn’t just a staple in Japan—it’s a cultural cornerstone and an economic indicator. Unlike many Western nations where grains are heavily imported, Japan produces most of its rice domestically, meaning price fluctuations reflect deeper economic shifts. This inflation trend mirrors similar surges in other staple foods worldwide, such as wheat in the U.S. and soybeans in China.

Food prices are rising worldwide, but the impact varies from country to country. While Japan is seeing sharp increases in staples like rice, vegetables, and eggs, the US and the UK markets are grappling with their inflation-driven shifts in consumer behaviour. In Western markets, dairy products, meat, and processed foods have been among the most affected categories, driving consumers toward discount grocery chains, bulk buying, and private-label alternatives.

In the US, shoppers increasingly turn to wholesale retailers and discount supermarkets to cut costs. Many are switching from brand-name products to store-brand alternatives, with major retailers reporting a surge in private-label sales. Coupon usage once thought to be in decline, has made a strong comeback, mainly through digital platforms and loyalty apps. In the UK, where food inflation and the cost of living have been a persistent challenge, many households are scaling back on meat purchases and opting for frozen or tinned foods as a cost-saving measure.

Despite regional differences, the global trend is clear – consumers are becoming more intentional about how and where they spend their grocery budgets. The shift toward discount-driven shopping, meal planning, and strategic purchasing decisions redefines how food brands and retailers operate across markets.

While Japan sees a shift toward staples like tofu and bean sprouts, the US and UK consumer shifts lean toward private labels and bulk buying, highlighting different approaches to cost savings.

Implications for Brands

Brands must recognise that price sensitivity is no longer confined to specific regions. Inflation-driven purchasing habits are reshaping consumer expectations on a global scale. Affordability and value have become key decision-making factors, making it essential for brands to rethink their pricing and promotional strategies.

Companies that traditionally cater to premium or discretionary food categories may need to introduce flexible pricing structures, offering economy-sized packaging or subscription models to retain budget-conscious shoppers. Meanwhile, brands positioned in lower-cost categories have a unique opportunity to strengthen their appeal, emphasising the affordability and versatility of their products.

Japan’s beef bowl industry thrives despite multiple price hikes due to rising costs. Zensho Holdings, the parent company of Sukiya, a Japanese restaurant chain that serves gyudon (beef bowls), curry, and other dishes, has reported strong profit growth and increased customer numbers, highlighting how strategic pricing and strong brand equity can sustain demand even in inflationary times. This resilience reflects Japan’s unique consumer behaviour, where quality and convenience often precede purely cost-cutting measures.

Retailers, particularly those in markets where discount shopping is on the rise, should focus on making savings more accessible. Digital loyalty programs, targeted promotions, and clear communication around price advantages will be critical in maintaining consumer trust and engagement in a price-sensitive environment.

guide-to-gen-z

How brands can adapt to a cost-conscious market

Food inflation is not just reshaping consumer habits but redefining how brands must approach pricing, marketing, and product development. As shoppers prioritise affordability and shift toward lower-cost alternatives, companies must take a proactive approach to remain relevant in a rapidly changing market.

One of the most immediate strategies for brands is pricing flexibility. Offering a range of product sizes at different price points can help cater to varying consumer budgets. Smaller packaging options can attract shoppers looking to control their spending, while bulk discounts can appeal to those who prefer to stock up when prices are favourable. Subscription models that provide cost savings over time may also help retain customer loyalty, particularly for staple goods.

Product positioning is equally important. Brands that once relied on premium pricing must now justify their value through differentiation. Messaging focusing on nutritional benefits, sustainability, or versatility can encourage consumers to keep buying products even if prices increase. For brands in high-growth categories like tofu and bean sprouts, reinforcing affordability and multiple-use meal applications can strengthen market share.

Retailers have a crucial role to play in guiding purchasing decisions. Strategic in-store placements, meal-planning promotions, and digital tools that showcase the best value options can help shoppers navigate rising prices. Supermarkets that integrate personalised discounts, loyalty rewards, and digital coupons into their customer experience will be better positioned to retain price-sensitive consumers.

The brands that succeed in an inflationary market will listen to consumers, adapt to shifting priorities, and offer tangible value beyond price alone. As economic conditions continue to shape spending behaviour, remaining flexible and responsive will define long-term brand resilience.

Turning Challenges Into Opportunities

Rising food prices are forcing consumers to rethink their purchasing decisions, but they are also creating new opportunities for brands willing to adapt. The shift toward cost-conscious shopping is not a temporary adjustment; it reflects a more profound change in consumer behavior likely to persist even if inflation stabilises. Brands that recognise these shifts and respond strategically will retain their customer base and strengthen their market position in the long run.

Innovation will be key for companies in high-cost categories. Reformulating products to be cost-effective without compromising quality, offering flexible portion sizes, and introducing alternative ingredients can help brands navigate price sensitivity. For companies in growing categories, reinforcing the value of their products through effective messaging and promotions will be essential to sustaining momentum.

Digital engagement is also becoming more critical. Consumers increasingly rely on price-comparison tools, e-commerce discounts, and loyalty programs to make informed purchasing decisions. Brands that invest in personalised marketing, mobile-based promotions, and transparent pricing strategies will be better positioned to build long-term trust with their audience.

Food inflation is reshaping the competitive landscape but must not be a setback. Companies that approach this challenge with flexibility, creativity, and consumer-first thinking can turn market uncertainty into a moment of strategic growth.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Sample size calculator.

Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.

What is a Sample Size Calculator?

A Sample Size Calculator helps you determine the number of people you need to survey for reliable results. By entering key details like population size, confidence level, and margin of error, you can calculate the ideal sample size for accurate research findings. For example, If you’re surveying 10,000 customers and want 95% confidence with a 5% margin of error, the calculator will tell you how many responses you need to ensure trustworthy insights.

Calculate your sample size

Please enter a number greater than or equal to 0.
Please enter a number from 0 to 100.

What Does the Result Mean?

The sample size calculation tells you how many people you must survey to get reliable results. If the calculator suggests 400 respondents, that means surveying at least 400 people will give you statistically reliable results within your chosen margin of error. A larger sample size increases accuracy, while a smaller one may produce less precise results. Use this number to plan your survey with confidence!

Tips:
Want more precision? Lower the margin of error, but this will increase the required sample size.
Not sure how many people to survey? Try different confidence levels and margin of error settings to see how they affect sample size.

Now that you have your sample size, what’s next?
Need to check how precise your results are? Use our Margin of Error Calculator to measure the accuracy of your survey.

How to Use the Sample Size Calculator

  1. Step 1: Enter your Population Size – This is not the total population of a country or city. It’s the specific group you want to study (e.g. school students between the ages of 10 to 16 in the U.S.). If you’re surveying customers of a particular store, the population size is the total number of customers who shop there, not the entire city.

  2. Step 2: Choose your Confidence Level – Select how sure you want to be about your results (90%, 95%, or 99%). A higher confidence means greater certainty but requires more responses to reduce errors. For example, a 95% confidence level is the standard for most surveys, but if you choose 99%, you’ll need a larger sample size for higher accuracy.

  3. Step 3:  Select your Margin of Error – The range within which the true result may vary. Choose how much your results might vary from the true answer.
    ✔ Smaller margin (±3%) → More accurate results but requires more responses.
    ✔ Larger margin (±5% or more) → Less precise but needs fewer responses.
    For example, If 60% of people like a product and your margin of error is ±3%, the real number could be between 57% and 63%. A ±5% margin means it could be between 55% and 65%.

  4. Step 4: View Your Sample Size – The tool will tell you how many responses you need for reliable data.

  5. Step 5: Plan your survey: Use this number to ensure your research is accurate and meaningful before launching your survey.

Why Does Sample Size Matter?

Getting the right sample size is key to accurate and reliable results. Here’s why it’s important:

✔ Accuracy – Reduces errors and makes your survey results more reliable.
 ✔ Efficiency – Saves time and resources by collecting just the right amount of data.
 ✔ Trustworthy Insights – Ensures your findings reflect the whole population, not just random chance.

Want to ensure your qualitative research captures the right insights?

Explore how different approaches impact your study and discover best practices for gathering meaningful data in our expert guide on sampling methods.

Who Can Use This Calculator?

✔ Market Research and Businesses – Find the right number of customers to survey for product feedback and market trends.
✔ Academic & Social Research – Ensure studies accurately represent populations for research and policy analysis.
✔ Healthcare & Clinical Trials – Determine how many patients are needed for valid medical research.
✔ Employee & Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
✔ Government & Public Policy – Calculate voter research and census study respondents.
✔ Media & Advertising – Measure audience opinions and ad effectiveness with accurate sample sizes.

Now that you have your sample size get expert insights to maximize your survey’s design.
We provide in-depth insights to drive better decisions as a leading market research agency.

Contact us today to discuss your research needs!

Sample size calculator.

Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.

What is a Margin of Error Calculator?

A Margin of Error Calculator helps you understand how much your survey results might change if you surveyed more people. It shows the possible difference between the results you got and what the true answer might be for the whole population.
Example: If 60% of people say they like a product with a ±5% margin of error, the actual percentage could be anywhere between 55% and 65%. A smaller margin of error means more precise results, but it usually requires a larger sample size.
This tool helps businesses, researchers, and marketers measure the reliability of their data before making important decisions.

Calculate your margin of error

Please enter a number greater than or equal to 0.
Please enter a number greater than or equal to 0.

What Does the Result Mean?

The margin of error tells you how much your survey results might change if you surveyed more people.

✔ Smaller margin of error (e.g., ±3%) → More accuracy, but requires more responses.
✔ Larger margin of error (e.g., ±5% or more) → Less precision but needs fewer responses.

Need to determine how many responses you need? Use our Sample Size Calculator to find out.

How to Use the Margin of Error Calculator

  1. Step 1: Enter your Sample Size—The number of people who completed your survey. More responses = better accuracy. For example, if 250 people answered your survey, enter 250 as your sample size.
  2. Step 2: Enter your Population Size – This is not the population of a place. It is the total number of people in the group you want to study. If unsure, use an estimate. For example, if you’re surveying employees at a company with 5,000 staff members, your population size is 5,000.
  3. Step 3: Pick your Confidence Level – How sure do you want to be about your results? Common choices are 90%, 95%, or 99%. A higher confidence level means more accuracy but requires more responses. For example, a 95% confidence level means that if you repeated the survey 100 times, you’d get similar results 95 times.
  4. Step 4: View your Margin of Error—The tool will show your Margin of Error, the possible range by which your results may vary. For example, if 60% of people in your survey like a product and your margin of error is ±4%, the actual percentage could be anywhere between 56% and 64% in the full population.

Why Is It Important to Calculate the Margin of Error?

✔ Ensures Accuracy – Helps you understand how close your survey results are to the true population data.
 ✔ Builds Confidence – A lower margin of error means you can trust your findings when making important decisions.
 ✔ Guides Sample Size – Shows whether you need more responses to improve precision.
 ✔ Detects Meaningful Differences – Helps determine whether small survey result changes are real or just random variations.
 ✔ Essential for Business and Research – Used in market research, healthcare studies, polling, and decision-making to ensure reliable insights.

Want to create better surveys? Learn how to ask the right questions and get reliable answers in our market research survey guide.

Who Can Use This Calculator?

✔ Market Research and Businesses – Check customer surveys’ reliability before making decisions.
 ✔ Academic and Social Research – Ensure studies accurately represent populations for research and policy analysis.
 ✔ Healthcare and Clinical Trials – Determine how many patients are needed for valid medical research.
 ✔ Employee and Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
 ✔ Government and Public Policy – Calculate how many people are needed for voter research and census studies.
 ✔ Media and Advertising – Measure public opinion and ad effectiveness with accurate sample sizes.

Now that you know your margin of error, get expert insights to maximize your research!

Need help designing your survey or analyzing results? As a leading market research agency, we provide in-depth insights to drive better decisions.
Contact us today to discuss your research needs!

Millennials and Gen Z, who comprise over half of Indonesia’s population, are leading cultural, economic, and digital transformations in the world’s fourth-largest nation. Yet, significant challenges remain on the path to realising their potential.

Employment challenges—marked by a persistent skills mismatch and regional inequities—and the struggle for affordable housing remain key barriers. Despite these, Indonesia’s youth continue to innovate, leveraging platforms like TikTok and Instagram to carve out new opportunities through social commerce.

In our collaborative study with Vero Advocacy, we delved into many critical areas, and the two most impactful areas turned out to be employment challenges and social commerce trends. Let’s explore actionable strategies for policymakers and brands to empower this vibrant demographic while unlocking Indonesia’s economic potential.

Demographic Spotlight: Indonesia’s Youth

Millennials (26–41) and Gen Z (10–25) represent over half of Indonesia’s 280 million people. These groups influence societal and economic trends, blending tradition with global modernity.

Millennials: Anchors of the Workforce

  • Employment and Education: As established professionals, Millennials dominate manufacturing, public administration, and services. Many hold tertiary degrees but face challenges adapting to automation and technological advancements.
  • Housing Aspirations: They view homeownership as a marker of success but often struggle with affordability in urban centres.

Gen Z: Digital and Entrepreneurial Pioneers

  • Employment Trends: Gen Z favours flexible, purpose-driven roles, gravitating toward freelancing, digital marketing, and entrepreneurship.
  • Social Media Dominance: Platforms like TikTok and Instagram are integral to their self-expression and income-generation efforts, particularly through social commerce.

Employment Challenges: Bridging Skills and Opportunities

For Indonesia’s youth, employment is more than just a livelihood—it’s a pathway to stability, self-expression, and long-term progress. However, systemic barriers such as skills mismatches, urban-rural employment disparities, and limited entry-level opportunities continue to hinder their professional growth. Addressing these challenges is not just critical for empowering youth but also pivotal for Indonesia’s socio-economic future.

Key Challenges in Employment 

Skills Mismatch
Indonesia’s education system emphasises theory over practice, leaving many graduates ill-prepared for job market demands. High-growth sectors like technology and renewable energy struggle with talent shortages due to insufficient vocational training. Over 60% of youth report a skills mismatch, fueling underemployment.

Urban-Rural Employment Divide
Job opportunities remain heavily concentrated in urban hubs like Jakarta, Surabaya, and Bandung, leaving rural youth with limited prospects. Many are forced to migrate to cities, often ending up in low-paying informal jobs that fail to provide long-term stability. This urban-rural divide exacerbates economic inequality and hinders rural regions’ ability to retain talent and foster economic growth.

Youth Unemployment
Despite Indonesia’s projected GDP growth of 5% in 2024, youth unemployment remains high. The report highlights that 88% of Gen Z and 89% of Millennials in Indonesia identify employment as a critical issue. Insufficient entry-level roles, inadequate mentorship programs, and limited internship pathways compound this problem.

Opportunities in Regional Hubs

To address the urban-rural employment divide in Indonesia, brands can play a pivotal role in decentralising job opportunities by leveraging Indonesia’s emerging regional hubs. Cities like Yogyakarta, Medan, and Makassar offer untapped potential for expanding economic activities and creating localised employment opportunities.

Leveraging Regional Hubs

  • E-commerce Fulfillment Centers: Brands like Shopee and Tokopedia can establish logistics hubs in secondary cities to decentralise operations while tapping into local talent pools.
  • Tech and Creative Industries: Regional hubs are ideal for developing support centres for tech startups, creative agencies, and digital content production, providing flexible roles suited for Gen Z’s career aspirations.
  • Government Collaborations: Brands can partner with local governments and universities to co-develop skill-building programs tailored to regional economic needs.

Example: Yogyakarta as a Regional Model
Yogyakarta, often called the cultural heart of Java, is a city where tradition and innovation coexist. It is famous for its historic temples and vibrant arts scene and is home to leading universities and a thriving creative industry. This unique blend has made Yogyakarta a beacon for young talent, offering opportunities that extend beyond its cultural roots. By embracing digital innovation and cultural entrepreneurship, the city has attracted significant public and private investment, proving that regional hubs can play a pivotal role in youth employment. Yogyakarta’s approach to integrating education, skill-building, and job creation is an inspiring model for other regions in Indonesia.

Notable Initiatives by Indonesia’s Government 

The Indonesian government has taken significant steps to address these employment challenges through programs like Prakerja, a vocational training and financial aid initiative that equips participants with skills in digital marketing, entrepreneurship, and technical trades. Since its inception, over 16 million Indonesians have benefitted from Prakerja, showcasing its potential to bridge the skills gap.

Recommendations for Brands in Indonesia

Brands operating in Indonesia have a unique opportunity to play an active role in solving employment challenges by:

  • Investing in Skill Development: Partner with universities and vocational schools to co-design industry-relevant curricula and certifications. Focus on high-demand fields like renewable energy, digital marketing, and software development.
  • Expanding Regional Opportunities: Establish offices or satellite operations in secondary cities to reduce urban migration pressures and create local economic opportunities. Offer remote and hybrid work options to engage rural youth.
  • Supporting Youth Entry into the Workforce: Create structured internship programs and mentorship initiatives to help young professionals transition from education to full-time roles.

The Brand Opportunity

Addressing employment challenges isn’t just a policy imperative—it’s a strategic opportunity for brands to position themselves as champions of youth empowerment. By leveraging regional hubs, investing in skill-building, and creating pathways for employment, brands can foster loyalty and contribute meaningfully to Indonesia’s socio-economic growth.

The Rise of Social Commerce in Indonesia

Indonesia is Southeast Asia’s largest social commerce market, with platforms like TikTok, Instagram, and Shopee playing transformative roles in youth employment and entrepreneurship.

Key Stats and Trends in Social Commerce in Indonesia 

  • Digital Adoption: Over 50% of Indonesian youth use TikTok and Instagram not just for entertainment but as business platforms to sell products and services.
  • Social Commerce Revenue: Social commerce contributes nearly $8 billion annually to Indonesia’s economy, with youth driving this trend.
  • Inclusivity: Platforms enable rural entrepreneurs, particularly women and youth, to reach broader markets, bridging urban-rural gaps.

Example: TikTok Shop Indonesia

  • Launched in 2021, TikTok Shop empowers small businesses and youth entrepreneurs by integrating shopping features into the platform.
  • Success Stories: Thousands of young Indonesians use TikTok to promote and sell handmade crafts, fashion, and beauty products, earning sustainable incomes from their digital storefronts.

Global Inspiration: Sweden’s Digital Inclusion Policies

Sweden’s focus on equitable digital infrastructure offers valuable lessons for Indonesia:

  • Universal Broadband Access: Investments ensure rural areas have high-speed internet, fostering inclusivity in digital commerce.
  • E-Skills for All Program: This program targets young entrepreneurs, equipping them with digital skills to scale businesses online. Indonesia could adopt similar strategies to enhance rural connectivity and expand social commerce opportunities for underserved communities.

Recommendations for Policymakers in Indonesia

  • Bridge the Skills Gap:
    • Expand vocational training programs in high-demand sectors like e-commerce, renewable energy, and tech.
    • Establish regional centres of excellence to reduce dependency on urban hubs.
  • Foster Digital Inclusion:
    • Invest in rural broadband infrastructure to enable wider participation in social commerce.
    • Launch initiatives to combat misinformation and promote responsible digital use.
  • Support Social Commerce:
    • Offer tax incentives and grants for youth-led businesses operating on social platforms.
    • Collaborate with private companies to create scalable training programs for digital entrepreneurs.
genz-consumer-behavior-report

Recommendations for Brands in Indonesia

  1. Engage in Skill Development:
    • Partner with vocational institutions to design industry-specific certification programs.
    • Offer structured internships that provide hands-on digital marketing and e-commerce experience.
  2. Invest in Social Commerce Integration:
    • Build immersive shopping experiences on TikTok and Instagram, tapping into Gen Z’s entrepreneurial spirit.
    • Highlight sustainability in product offerings, aligning with youth values.
  3. Create Purpose-Driven Campaigns:
    • Collaborate with youth influencers to amplify brand initiatives tied to employment and digital empowerment.
    • Use social commerce campaigns to promote locally-made products, fostering community growth.

Final Thoughts

Indonesia’s Millennials and Gen Z are redefining progress through digital innovation and entrepreneurial grit. While challenges like employment gaps and housing inequities persist, the rise of social commerce offers a powerful pathway for youth empowerment.

To foster national growth, policymakers and brands must invest in Indonesia’s youth and align with their aspirations. Bridging gaps and fostering collaboration can transform the nation’s demographic advantage into lasting progress. Download the Full Report

Discover more insights into how Indonesia’s youth are shaping the nation’s future. Download our collaborative report with Vero Advocacy for actionable strategies to empower Millennials and Gen Z. Click here to learn more.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Western theories often fail to capture India’s intricate cultural and market dynamics. With its vast diversity and unique consumer demands, India requires localised strategies that balance cultural sensitivity with global scalability.

With over a billion people spanning countless regional, linguistic, and traditional boundaries, understanding Indian consumers demands a localised approach. Immersive consumer research, known as fieldwork, provides the precision and depth needed to decode these complexities, helping brands align authentically with local contexts.

McDonald’s broke new ground in India with the McAloo Tikki Burger, a vegetarian option tailored to the nation’s dietary preferences. This departure from its global menu tapped local tastes, cementing the brand’s foothold. Similarly, Daikin reengineered its air conditioners to endure India’s sweltering summers while addressing the rising demand for energy efficiency—a top priority for Indian households. These examples illustrate how brands leveraging fieldwork to inform localised strategies can achieve lasting success.

Fieldwork’s Role in Understanding Indian Consumers

Fieldwork delves deeper than observation, uncovering the motivations, habits, and emotions driving consumer behaviour. Fieldwork provides brands with unparalleled insights in a country like India, where buying decisions often intertwine with tradition and familial structures. This approach bridges the gap between global strategies and local realities, revealing not just what consumers want but why they choose certain products.

For instance, India’s festival seasons—a cornerstone of its consumer economy—highlight how cultural rituals drive purchasing behaviours. Brands that align with gifting traditions during Diwali or tailor offerings for Makar Sankranti’s regional flavours often gain a decisive edge in their markets.

Understanding daily life in urban and rural settings can reveal important insights into consumption patterns. For instance, urban households often prioritise convenience to accommodate their busy schedules, while rural families tend to favour bulk purchases that align with seasonal income cycles.

Overcoming Challenges in Indian Fieldwork

ChallengeDescription
Linguistic DiversityIndia’s 22 official languages and hundreds of dialects demand skilled local interpreters for accurate data collection.
Urban-Rural DivideConsumer preferences shift dramatically; urban consumers lean toward global trends, while rural audiences value affordability and tradition.
Cultural SensitivitiesConducting research requires respect for customs, especially gender roles and privacy boundaries.
Building TrustEthical practices and genuine engagement are essential to foster trust in communities with skepticism toward external interactions.

When planned meticulously and conducted with cultural empathy, fieldwork enables brands to navigate these complexities effectively. Addressing these challenges requires anticipating practical barriers such as logistical constraints, regional infrastructure limitations, and participant accessibility.

Strategies for Effective Fieldwork in India

To truly harness the power of fieldwork in India, brands need a strategic, locally informed approach:

  • Partner with Local Experts: Regional collaborators bring invaluable cultural knowledge, ensuring relevant and authentic research.
  • Embrace Hybrid Methods: Combine traditional on-ground interactions with digital tools, such as mobile diaries, to capture diverse consumer perspectives.
  • Segment Regionally: Tailor research to India’s regional differences, such as contrasting culinary preferences between North and South India. For example, while mustard oil dominates cooking in the east, coconut oil is a staple in the south.
  • Prioritise Immersion: Researchers should engage deeply with communities—participating in local events or observing daily routines—to gain richer, more actionable insights.
  • Adapt Research to Socioeconomic Layers: Fieldwork should account for varying consumer priorities across income groups, from premium buyers in metros to budget-conscious rural shoppers.
  • Incorporate Behavioral Observations: Observing purchasing behaviours in markets or Kirana stores (small neighbourhood grocers) can reveal subtle preferences surveys might overlook.

Examples of Brands Acing Localisation in India

Paper Boat’s Revival of Traditional Beverages: Fieldwork revealed an untapped nostalgia among Indian consumers for traditional drinks like aam panna and jaljeera. By reviving these flavours and packaging them in modern, convenient formats, Paper Boat struck a chord with urban millennials and rural buyers.

Image Credit: Paper Boat

Godrej’s Good Knight Fast Card: Rural consumers’ reliance on open-air living spaces inspired the creation of an affordable, portable mosquito repellent. Designed to meet specific regional needs, this innovation rapidly gained popularity in semi-urban and rural markets.

Image Credit: Indian Television

Cavinkare’s Sachet Revolution for Middle India: Cavinkare pioneered the shampoo sachet, priced at just Rs. 1, to address the dual challenges of price sensitivity and distribution in rural India. Rural consumers often prioritised affordability, and Cavinkare’s sachets met this need while being lightweight and easy to transport. This strategy not only made personal care accessible but overcame logistical hurdles by allowing distribution in small, remote shops. The innovation reshaped India’s FMCG sector, with multiple brands adopting the sachet model to cater to cost-sensitive markets.

Image Credit: The Print

Technology’s Impact on Fieldwork

Digital tools have transformed fieldwork, expanding its reach and efficiency:

  • Mobile Diaries: Consumers document their daily lives through apps, offering real-time insights into behaviours and preferences.
  • Social Listening: By analyzing conversations on digital platforms, brands identify emerging trends and pain points. For instance, social media chatter around eco-friendly packaging has spurred many brands to adopt sustainable practices.
  • AI-Driven Analysis: Advanced algorithms streamline the interpretation of qualitative data, unveiling patterns that might otherwise be missed. AI can help identify commonalities in regional tastes, enabling faster product localisation.
  • Geospatial Analytics: Mapping consumer behaviours geographically helps brands focus their efforts where they’re needed most. This is particularly useful for understanding rural adoption rates versus urban saturation.

These technologies complement traditional methods, creating a holistic view of Indian consumer behaviour.

The Road Ahead for Fieldwork in India

As India evolves, fieldwork must adapt to keep pace with shifting consumer dynamics. Key areas of focus include:

  • Sustainability Trends: With growing environmental awareness, brands must explore how eco-conscious values influence purchasing decisions. For example, consumers are increasingly opting for refillable products over single-use plastics.
  • Tier 2 and 3 Cities: These markets are experiencing rapid growth, presenting opportunities for tailored innovations. A surge in e-commerce adoption in these regions highlights the need for online-offline hybrid strategies.
  • Immersive Technologies: Tools like VR and AR could revolutionise consumer research, offering simulated environments to observe behaviours. Brands could test retail layouts or product placement virtually, reducing real-world trial costs.
  • Consumer-Centric Design: Indian consumers, particularly younger generations, expect brands to address their specific needs—from affordability to ethical sourcing. Fieldwork must pivot to include participatory design sessions where consumers co-create solutions with brands.

By staying agile and investing in culturally grounded strategies, brands can ensure continued success in India’s vibrant and complex market.

Partner with Experts for In-Depth Insights

At Kadence International, we specialise in delivering actionable insights through immersive research methods. Our expertise in Indian markets can help your brand connect authentically and effectively with diverse consumer segments. Learn how we can empower your growth in India and beyond.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Establishing a global brand is complex. Companies looking to expand internationally must contend with significant challenges, including varying consumer behaviours, cultural differences, and economic disparities. These factors make maintaining a consistent brand identity complicated while adapting to local demands. However, the rewards for getting it right are substantial. Brands that successfully navigate these complexities can tap into new markets, increase their global presence, and achieve sustained growth.

Understanding Local Market Dynamics

Successfully expanding into a new market requires more than just introducing an existing product or service to a different audience. This requires a deep understanding of the local environment, where cultural nuances, consumer behaviour, and economic factors are crucial for a brand’s success. Brands that fail to consider these elements often struggle to gain traction because what works in one region may not translate effectively to another.

Take McDonald’s as an example. The fast-food giant’s success in markets like India highlights the importance of adapting to local tastes and preferences. Recognising that much of the population avoids beef, McDonald’s reimagined its menu, introducing vegetarian options like the McAloo Tikki, a potato-based burger that quickly became a local favourite. This adaptation wasn’t a simple change; it resulted from extensive market research that provided insights into local dietary habits, preferences, and cultural sensitivities. By leveraging this in-depth understanding of the Indian market, McDonald’s maintained its brand identity while catering to local tastes, leading to its widespread acceptance and success in the region.

Image credit: McDonald’s blog

Adapting Global Strategy to Regional Needs

Maintaining a global identity while adapting to regional markets is a delicate balancing act. Brands must ensure their core values and messaging remain consistent across all markets. Yet, they must also be flexible enough to meet the specific needs and preferences of local consumers. This balance is crucial for sustaining a coherent brand image while being relevant in diverse regions.

Coca-Cola exemplifies how a global brand can achieve this balance. The company has consistently maintained its brand identity through its iconic logo, packaging, and overarching messaging centred around happiness and togetherness. 

However, Coca-Cola also customises its marketing strategies to resonate with local audiences. In Japan, for instance, Coca-Cola introduced a range of products that cater specifically to Japanese tastes, such as green tea-flavoured beverages and smaller, more convenient packaging sizes. The brand also tailored its advertising campaigns to align with local cultural values and traditions, reinforcing its relevance.

This approach allows Coca-Cola to retain its global identity while remaining adaptable to regional preferences. The result is a brand that feels familiar and relevant to consumers worldwide, demonstrating the effectiveness of a flexible global strategy that accommodates local needs.

Image credit: Coca-Cola Japan

Leveraging Technology for Global Reach

Technology is a critical asset for brands aiming to expand their presence globally. Digital platforms, data analytics, and artificial intelligence (AI) offer the tools necessary to understand and engage with consumers across different regions. These technologies allow brands to collect real-time insights, personalise their offerings, and deploy targeted marketing strategies that resonate with diverse audiences.

Netflix exemplifies how technology can drive global success. The streaming service uses data analytics and AI to deeply understand viewer preferences in various markets. By analyzing viewing patterns, Netflix can tailor content recommendations to individual users, making the experience more relevant and engaging for audiences around the world.

Additionally, Netflix’s investment in local content further enhances its appeal in specific regions, demonstrating how technology can be leveraged to achieve global reach and local relevance.

Image Credit: Netflix

Building Brand Trust Across Borders

Building trust is fundamental to a brand’s success, particularly when expanding into new markets. Trust is not just about delivering a quality product; it’s about transparency, adhering to ethical practices, and forging strong local partnerships. Consumers across the globe are increasingly discerning, and they expect brands to act responsibly and authentically, especially when they enter their local markets.

Unilever is a strong example of a brand that has effectively built trust across borders. The company’s commitment to ethical practices and corporate responsibility is evident in its Sustainable Living Plan, which aims to improve health and well-being, reduce environmental impact, and enhance livelihoods worldwide. Unilever has successfully integrated these principles into its operations across different regions, tailoring its initiatives to address local challenges.

For instance, in India, Unilever has partnered with local organisations to promote hygiene and sanitation through its Lifebuoy soap brand. By educating communities about the importance of handwashing, the company not only enhances public health but also strengthens its reputation as a responsible and caring brand. This approach has earned Unilever significant trust and loyalty from consumers in diverse markets, proving that ethical branding and corporate responsibility are crucial to establishing long-term relationships with global audiences.

Image credit: Unilever

Navigating Regulatory and Competitive Landscapes

Expanding into new markets often means navigating a complex web of regulations and facing stiff competition from established local players. Regulatory requirements can vary significantly from one country to another, covering areas such as product standards, advertising restrictions, and data privacy laws. For global brands, the ability to adapt to these regulations while maintaining a competitive edge is crucial for success.

Apple’s entry into the Chinese market illustrates how a brand can overcome regulatory challenges to establish a strong presence in a highly competitive environment. China’s strict regulations on data storage, internet censorship, and local partnerships posed significant hurdles for Apple. To comply with Chinese laws, Apple made strategic decisions, such as partnering with local companies like China Mobile and setting up a data centre in China to store user data locally. These moves ensured that Apple met regulatory requirements without compromising its product offerings.

Moreover, Apple’s approach to navigating the competitive landscape in China involved understanding and responding to local consumer preferences. Apple differentiated itself from local competitors by offering localised content and services and developing features tailored to Chinese users. Despite the challenges, Apple’s ability to adapt to the regulatory environment and stay attuned to local market dynamics has allowed it to maintain a strong foothold in one of the world’s most challenging markets.

Image credit: Apple Store China

Common Pitfalls and How to Avoid Them

Expanding into international markets presents numerous opportunities but comes with its share of risks. Many brands make critical mistakes that can hinder their success or even derail their expansion strategy. Understanding these pitfalls and how to avoid them is essential for any brand looking to establish a global presence. Below is a list of common mistakes brands often make during worldwide expansion and practical solutions to navigate these challenges effectively.

Underestimating Cultural Differences

  • Conduct thorough cultural research to understand local customs, values, and consumer behaviours.
  • Tailor your product offerings, marketing messages, and customer interactions to align with these cultural nuances.

Ignoring Local Competition

  • Analyze and understand the competitive landscape in each market.
  • Identify major local competitors and their strengths and weaknesses, and adjust your strategy to offer something unique that resonates with local consumers.

Failing to Comply with Local Regulations

  • Engage local legal experts to ensure full compliance with local regulations, including product standards, advertising restrictions, and data protection laws.
  • Review regulatory changes regularly and adapt quickly to stay compliant.

Inconsistent Brand Messaging

  • Develop a flexible yet consistent global strategy that maintains your brand’s core identity while allowing for regional adaptations.
  • Ensure all marketing materials and communications align with global standards and local expectations.

Overlooking Supply Chain Challenges

  • Plan for logistical challenges specific to each region, including shipping, distribution, and inventory management.
  • Establish reliable local partnerships and consider setting up regional hubs to streamline operations.

Inadequate Customer Support

  • Provide customer support tailored to the local market, including language preferences and cultural expectations.
  • Invest in training local customer service teams to ensure they can address issues effectively and empathetically.

Underestimating the Importance of Local Partnerships

  • Cultivate strong relationships with local businesses, distributors, and influencers who can help you navigate the market and build credibility.
  • Local partnerships can provide valuable insights and resources that enhance your brand’s market entry and growth.

Rushing the Market Entry

  • Take the time to conduct thorough market research and develop a solid entry strategy.
  • Avoid rushing into a market without fully understanding the local dynamics, leading to costly mistakes and setbacks.

Neglecting Long-Term Strategy

  • Don’t focus solely on short-term gains. Develop a long-term strategy that includes continuous market research, adaptation to evolving consumer needs, and investment in local relationships.
  • Regularly revisit and refine your strategy to ensure sustained success.

Case Study Deep Dive: Tesla’s Global Expansion Success Story

Image credit: Tesla

Tesla, Inc. is a prime example of a brand that has successfully navigated the complex landscape of global expansion. From its early days as a niche electric vehicle (EV) manufacturer in the United States to becoming a dominant global force in the automotive industry, Tesla’s journey offers valuable insights into the strategic decisions, challenges, and results that have shaped its international success.

Initial Strategy: Establishing a Strong Foundation

Tesla’s entry into the global market was built on a foundation of innovation and strategic foresight. The company’s initial focus on producing high-performance electric sports cars, such as the Tesla Roadster, helped establish its reputation as a pioneer in EV technology. This positioning attracted early adopters and generated significant media attention, laying the groundwork for Tesla’s future growth.

One of Tesla’s earliest and most critical decisions was its Initial Public Offering (IPO) in 2010. The capital raised through the IPO provided the financial resources necessary to fund the development of additional vehicle models, expand manufacturing capabilities, and begin entering international markets. This move was instrumental in positioning Tesla for global expansion.

Market Entry: Targeting Europe and China

Tesla’s first significant international push came in 2013 with its entry into the European market. The company began selling the Model S in Europe, strategically opening service centres and stores in key cities across the continent. Europe’s strong interest in sustainability and green technology provided a receptive market for Tesla’s vehicles. Tesla invested heavily in building its Supercharger network to further support its European customers, ensuring EV owners had access to reliable charging infrastructure across the region.

China represented another significant milestone in Tesla’s global expansion. Recognising the growing demand for electric vehicles in China, Tesla entered the market in 2015 with the Model S. China’s strict regulations on foreign ownership and data storage posed challenges. However, Tesla navigated these hurdles by forming partnerships with local companies and committing to building a Gigafactory in Shanghai. This strategic move allowed Tesla to localise production, reduce costs, and better serve the Chinese market, quickly becoming one of Tesla’s largest sources of revenue.

Image credit: Business Insider

Overcoming Challenges: Navigating Regulatory Hurdles

Tesla’s global expansion has not been without its challenges. The company has had to navigate various regulatory environments, each with its own set of rules and requirements.

In China, Tesla faced significant hurdles in data localisation and foreign ownership. To comply with local laws, Tesla established a data center in China and became the first foreign automaker to wholly own its factory, thanks to changes in Chinese regulations.

In Europe, Tesla encountered challenges related to manufacturing and logistics. The decision to build Gigafactory Berlin was a direct response to these challenges. By establishing a manufacturing presence in Europe, Tesla could reduce production bottlenecks and streamline the delivery of vehicles to European customers, thereby enhancing its competitiveness in the region.

Results: A Global Automotive Leader

Today, Tesla is a global leader in the automotive industry, with a presence in major markets across North America, Europe, and Asia. The company’s commitment to innovation, sustainability, and strategic market entry has paid off, with Tesla consistently ranking as one of the world’s most valuable automakers.

Tesla’s success in international markets is evident in its sales figures and market share. The company’s ability to localise production through Gigafactories in China and Europe has significantly increased its manufacturing capacity and reduced costs, making its vehicles more accessible to a global audience. Additionally, 

Tesla’s continued investment in its Supercharger network and local partnerships has strengthened its brand’s reputation for reliability and customer satisfaction.

Key Takeaways from Tesla’s Global Expansion:

  • Strategic Market Entry: Tesla’s careful selection of markets and timing of entry were crucial to its success. The company prioritised regions with strong demand for EVs and supportive regulatory environments.
  • Localisation of Production: Tesla could localise production, reduce costs, and meet the specific needs of local markets by building gigafactories in China and Europe.
  • Regulatory Compliance: Tesla’s proactive approach to navigating regulatory challenges, such as data localisation in China, ensured its continued growth and success in key markets.
  • Innovation and Adaptation: Tesla’s commitment to innovation, from its vehicle technology to its charging infrastructure, has allowed it to stay ahead of competitors and continuously adapt to changing market conditions.

Checklist for International Expansion

Expanding into global markets requires careful planning and execution. Below is a practical checklist to guide brands through the complexities of international expansion:

Conduct Comprehensive Market Research:

  • Analyze local consumer behaviours, cultural nuances, and economic conditions.
  • Identify the demand for your product or service and understand the competitive landscape.
  • Determine the local market’s potential for growth and profitability.

Assess and Adapt to Regulatory Environments:

  • Understand and comply with local regulations, including product standards, advertising laws, and data protection policies.
  • Engage with local legal and regulatory experts to ensure compliance and mitigate risks.

Develop a Flexible Global Strategy:

  • Create a strategy that maintains global brand consistency while allowing for regional adaptations.
  • Tailor marketing campaigns, product offerings, and messaging to resonate with local audiences.

Leverage Technology for Localisation:

  • Utilise data analytics and AI to gather real-time insights on local consumer preferences.
  • Implement digital tools to personalise the customer experience in different markets.
  • Ensure your digital platforms are optimised for local languages and cultural contexts.

Build Strong Local Partnerships:

  • Collaborate with local businesses, distributors, and influencers to enhance market entry and brand credibility.
  • Consider joint ventures or partnerships to navigate local markets more effectively.

Prioritise Ethical Practices and Corporate Responsibility:

  • Uphold transparency and ethical practices in all markets to build trust with consumers.
  • Engage in corporate social responsibility initiatives that resonate with local communities and reflect your brand values.

Prepare for Operational Challenges:

  • Plan for logistics, supply chain management, and distribution networks tailored to local market needs.
  • Ensure your customer service and support are equipped to handle regional languages and issues.

Continuously Monitor and Adapt:

  • Regularly assess your performance in each market and adjust strategies as needed.
  • Stay attuned to global market trends and local developments that may impact your business.

Global Expansion ROI Calculator

The Global Expansion ROI Calculator provides a framework for estimating the financial outcomes of entering new markets, allowing brands to assess the viability of their global strategies. This tool considers factors such as market entry costs, expected revenue, and operational expenses, offering a practical guide to evaluating the potential profitability of international expansion.

Key Components of the ROI Calculation:

  1. Market Entry Costs:
    • Initial Investment: Include costs associated with market research, legal fees, and setting up operations (e.g., offices, supply chains).
    • Marketing and Localisation: Factor in the cost of marketing campaigns, localisation of products, and adaptation of branding to fit local tastes and regulations.
  2. Expected Revenue:
    • Sales Projections: Estimate potential revenue based on market size, target audience, and expected market share.
    • Pricing Strategy: Consider how local economic conditions and consumer behaviour influence pricing and sales volume.
  3. Operational Expenses:
    • Ongoing Costs: Include expenses related to staffing, logistics, regulatory compliance, and customer service tailored to the local market.
    • Technology and Infrastructure: Account for investments in digital platforms, supply chain management, and local partnerships.

Simplified ROI Formula:

  • Expected Revenue: Projected income from sales in the new market.
  • Operational Expenses: Ongoing costs of running the business in the new market.
  • Market Entry Costs: Initial investment required to enter the market.

Conceptual Guide:

  1. Conduct Thorough Market Research:
    • Understand the size of the market, customer demand, and competition.
    • Use data to project realistic sales figures and potential market share.
  2. Estimate Costs Accurately:
    • Include all potential costs, both one-time and ongoing, in the calculation.
    • Consider possible variations in costs due to local economic conditions or regulatory changes.
  3. Adjust for Local Variables:
    • Tailor your pricing strategy to local consumer expectations and purchasing power.
    • Anticipate fluctuations in revenue based on seasonality, economic trends, or political stability.
  4. Calculate and Compare:
    • Use the ROI formula to estimate the potential return from each market.
    • Compare these estimates across regions to prioritise markets with the highest potential return.
  5. Review and Reassess:
    • Regularly revisit your calculations as market conditions evolve.
    • Adjust strategies based on real-world performance and emerging opportunities or challenges.

Final Thoughts

Expanding internationally is not a one-size-fits-all endeavour; it requires a deep understanding of local markets, the flexibility to adapt strategies, and the strategic use of technology to connect with diverse audiences.

Brands that succeed on the international stage prioritise local insights, ensuring their offerings resonate with cultural nuances and consumer preferences. They balance global consistency with regional relevance, leveraging technology to gather real-time data and personalise their approach. Trust and reputation, built through transparency and ethical practices, are equally crucial as they foster long-lasting consumer relationships across borders.

The critical lesson for brands looking to expand globally is clear: adaptability is key. As markets continue to evolve, brands must remain agile, continuously refining their strategies to meet consumers’ shifting demands and expectations worldwide. Success in global markets isn’t just about entering new regions; it’s about sustaining that presence by staying attuned to each market’s unique challenges and opportunities. Those who can do so will thrive today and be well-positioned for long-term success in an increasingly interconnected world.

Chocolate is a multi-billion dollar industry, with global sales projected to reach approximately $127.9 billion in 2024​. Our team at Kadence International researched the diverse preferences for chocolate across the APAC region, focusing on countries like Singapore, Thailand, India, Indonesia, Malaysia, Japan, Taiwan, China, and Australia.

Taste: The Universal Priority

Unsurprisingly, taste is the top factor for consumers in all surveyed countries when purchasing chocolate. In Thailand, an overwhelming 78% of respondents cited taste as their primary consideration, significantly higher than the regional average of 46%. However, what constitutes “taste” varies: Singaporeans and Indonesians prefer sweeter chocolates, while Taiwanese consumers favour less sweetness, and Thais prioritise chocolate aroma.

Texture: A Close Contender

Texture is the second most important attribute in several markets, including Singapore (27%), Australia (24%), India (26%), and Malaysia (25%). Preferences for texture also vary widely: Australians prefer a silky, smooth texture, whereas Malaysians and Singaporeans enjoy a bit of crunch, often favouring chocolates with nuts or cookie fillings​​.

Unique Preferences by Country

  • China: Consumers in China value the energy boost from chocolate (16%), reflecting a practical approach to chocolate consumption.
  • Japan: Health is a significant concern, with calorie content being the second most important factor. This aligns with broader cultural trends in Japan, where maintaining a healthy diet is paramount.
  • Taiwan: Emotional satisfaction is crucial, with 14% of consumers seeking the feel-good factor that chocolate provides.

Price Sensitivity

Price is a significant factor in countries like Japan (75%), Taiwan (68%), and Indonesia (62%). In contrast, consumers in China and India focus more on the quality of chocolate than the price​.

Market Trends and Opportunities

The APAC chocolate market is evolving with trends such as increasing demand for organic and health-focused products. For instance, organic chocolate products are gaining popularity in China as consumers become more health-conscious. Additionally, companies like Nestle and Barry Callebaut are innovating to meet these preferences, introducing products catering to health, texture, and premium taste demands​.

Leading Chocolate Brands in the World

Below is a table of leading chocolate brands globally and specifically in Asian markets, highlighting their market presence and annual sales:

BrandHeadquartersAnnual Sales (USD)Market Presence
Mars, Inc.USA$18 billionGlobal
Ferrero GroupItaly$12 billionGlobal
Mondelez InternationalUSA$11 billionGlobal
Nestlé S.A.Switzerland$10 billionGlobal
Hershey’sUSA$8 billionNorth America, Asia, Europe
Lindt & SprüngliSwitzerland$4 billionGlobal
Barry CallebautSwitzerland$3.5 billionGlobal (focus on B2B market)
Meiji HoldingsJapan$2 billionJapan, Asia
Lotte ConfectionerySouth Korea$1.5 billionSouth Korea, Asia
Godiva ChocolatierBelgium$1 billionGlobal
Fuji Oil Company, Ltd.JapanN/AJapan, Asia
Orion Corp.South KoreaN/ASouth Korea, Asia

History of Chocolate in Asia

Chocolate was introduced to Asia relatively late compared to Europe and the Americas. It wasn’t until the early 20th century that chocolate began to gain popularity in countries like Japan and China. Japanese companies such as Meiji and Lotte played a significant role in popularising chocolate by introducing it as a luxurious treat. In recent decades, the rising middle class and increased urbanisation have driven chocolate consumption across Asia, making it one of the fastest-growing markets for chocolate globally.

Flavor Profiles: East vs. West

The flavour profiles preferred by consumers in the East and the West can be quite different. Western consumers often favour decadent, creamy, and sweet chocolates. In contrast, Asian consumers have a more diverse palette, appreciating flavours like matcha, red bean, and even wasabi in their chocolates. This diversity requires international chocolate brands to adapt their recipes to local tastes. For example, KitKat offers a wide range of unique flavours in Japan, including green tea and sake, which are unavailable in Western markets​​.

Adapting Recipes for Asian Palates

Several international chocolate brands have had to modify their recipes to appeal to Asian consumers. For instance, Hershey’s has reduced the sweetness of its chocolates for the Chinese market, while Cadbury introduced chocolates with local flavours like mango and chilli for the Indian market. These adaptations are crucial for maintaining market relevance and meeting consumer expectations​​.

Image credit: Cadbury 

Milk, Dark, and White Chocolate Sales

Globally, milk chocolate is the most popular, accounting for about 50% of chocolate sales. However, preferences vary significantly by region. Dark chocolate is gaining popularity in Asia due to its perceived health benefits. In Japan, for example, dark chocolate sales have increased by 20% over the past five years. While less popular, white chocolate enjoys a niche market in countries like Malaysia and Indonesia, where its sweet, creamy taste is well-received​​.

Ethically Sourced Chocolate

Asian consumers are increasingly aware of the ethical implications of their chocolate purchases. There is a growing demand for ethically sourced chocolate, which ensures fair wages and working conditions for cocoa farmers. Brands like Tony’s Chocolonely and Alter Eco are gaining traction in Asian markets by promoting ethical sourcing practices. This trend will continue as consumers become more conscious of sustainability and ethical production methods.

The Appeal of Imported Chocolate

Imported chocolate has a strong appeal in Asia and is often perceived as a premium product. European chocolates, in particular, are highly sought after for their quality and craftsmanship. Swiss and Belgian chocolates are considered the gold standard and are often given as gifts during festivals and special occasions. This preference for imported chocolates underscores the importance of quality and brand reputation in the Asian market​​.

Consumer Behavior and Trends

  • Shifts Over the Years

Consumer behaviour in the APAC region has shifted significantly over the past decade. Increased disposable income and urbanisation have increased the demand for luxury and premium chocolates. Health-conscious consumers are also driving demand for dark and sugar-free chocolates.

  • Influence of Younger Generations

Younger generations influence chocolate consumption trends by favouring healthier, ethically sourced options. Millennials and Gen Z consumers are likelier to choose chocolates that align with their values, such as sustainability and fair trade. This demographic is also open to experimenting with unique flavours and premium products.

Cultural Significance

Chocolate holds cultural significance in various APAC countries and is often used in festivals and celebrations. In China, chocolates are popular gifts during the Chinese New Year. In Japan, Valentine’s Day is celebrated with women giving chocolates to men, followed by White Day, when men reciprocate with gifts, often chocolates. Understanding these cultural nuances is essential for brands aiming to succeed in these markets​​.

Innovations in Chocolate

Recent innovations in the chocolate industry include introducing ruby chocolate, vegan chocolate, and chocolates infused with superfoods like quinoa and chia seeds. In the APAC region, unique regional flavours such as matcha, yuzu, and red bean are incorporated into chocolate products, catering to local tastes and preferences.

Challenges and Opportunities

Challenges

Chocolate brands in the APAC market face several challenges, including supply chain issues, competition from local brands, and rapidly changing consumer preferences. Additionally, concerns about health and the environmental impact of cocoa production can affect consumer choices​.

Opportunities

Despite these challenges, there are significant opportunities for growth. Expanding into rural markets, developing new product lines tailored to regional tastes, and emphasising health benefits and ethical sourcing can help brands capture a larger market share.

Case Studies

Several chocolate brands have successfully entered and thrived in the APAC market. For instance, Meiji in Japan has gained a loyal customer base by focusing on high-quality ingredients and innovative products. Similarly, Cadbury has adapted its product offerings to include local flavours, such as the popular Dairy Milk Silk with roasted almonds in India​​.

Image credit: Meiji

International Success

International brands like Ferrero Rocher have also found success by emphasising their premium quality and associating their products with celebrations and special occasions. Their strategic marketing and adaptation to local tastes have helped them build a strong regional presence​.

guide-to-gen-z

Chocolate Consumption Per Capita

Below is a table detailing the per capita chocolate consumption per year in selected countries:

CountryPer Capita Consumption (kg/year)
Switzerland9.1
Germany8.2
Austria8.0
UK7.5
Sweden6.4
USA5.5
Australia5.1
Japan2.2
China1.2
India0.7
Indonesia0.4

Strategic Implications for Brands

For chocolate brands targeting the APAC market, it’s essential to understand these nuanced preferences and tailor marketing strategies accordingly. Emphasising different product attributes, such as texture, health benefits, or emotional satisfaction, can resonate better with specific national markets. Treating the APAC region as a homogenous market could lead to missed opportunities and reduced market penetration.

Final Thoughts

While chocolate is universally loved, the reasons for its appeal vary significantly across countries. Companies must adapt their strategies to align with local tastes and preferences, ensuring they cater to the diverse chocolate consumers in the APAC region. By doing so, they can strengthen their market presence and cater effectively to the growing demand for chocolate in this dynamic region.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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.
global-dining-trends

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.

In our latest feature for the People in Research series at Kadence International, we’re thrilled to present an insightful conversation with Adhistya Febriani, Associate Research Director at our Indonesia office.

Adhistya Febriani is the driving force behind many of Kadence International’s successes in Indonesia. Her journey in market research began in 2012 when she joined Kadence. 

What started as a leap of faith transformed into a remarkable career marked by dedication, passion for learning, and a commitment to delivering results. Adhistya’s story shows the power of hands-on experience and continuous growth, making her an invaluable asset to the world of market research.

Here’s an in-depth discussion about her career, the future of market research and working at Kadence International. 

How did your journey in market research begin, and what led you to Kadence International?

Joining Kadence marked the beginning of my career in market research in 2012. Kadence caught my eye as a company that could help me bridge the gap between theory and practice. 

I learned the ropes of market research from scratch. This hands-on experience gave me insights into data collection, analysis, and strategic thinking. Kadence has been more than just a workplace; it’s been the foundation of my career growth.

You’ve had a swift progression at Kadence. What do you attribute this rapid advancement to, and what have been the key milestones in your career here?

My success can be attributed to:

  1. A combination of dedication.
  2. A passion for continuous learning.
  3. A commitment to delivering results.

Critical milestones in my career at Kadence International include:

  1. Achieving success in fostering repeated business with clients.
  2. Actively mentoring the team to excel as outstanding consultants.
  3. Overseeing the expansion into social media listening—an area beyond traditional surveys.

Additionally, I actively pursued professional development opportunities, such as Data Science and Analytics, which enhanced my skills and contributed to my growth within the company.

What aspects of market research do you find most fulfilling, and how has this passion evolved over your career?

I’ve had the opportunity to engage in diverse studies across various industries. What keeps me excited is that I’ve never worked on the same research or within the same industry year after year. This variation keeps the work engaging and allows me to approach each project with a fresh perspective. 

This continuous exposure to variety ensures that my work remains dynamic, and there’s always something new to discover and master in market research.

Can you share an example of an exciting or challenging project you’ve worked on at Kadence?

We had this exciting project at Kadence, where the client wanted to understand how consumers use this popular pay-later payment method in Indonesia. Pay-later is similar to a unique version of a credit card.

We employed qualitative and quantitative research across various cities in Indonesia, followed by workshops with the brand team to craft targeted messages for each customer segment.

The qualitative phase established a baseline, while the quantitative survey validated and quantified insights gained, supplying statistically significant data for segmentation analysis.

The results provided our clients with detailed segmentation of their target audience and offered actionable recommendations for tailored marketing strategies, product features, and customer communication to better address the specific needs of each identified segment.

In your role, how do you approach troubleshooting and problem-solving in complex projects?

I follow a systematic and collaborative approach. This involves breaking down the problem into smaller parts, identifying key variables, and assessing potential root causes. 

Once the problem is well-defined, I collaborate with team members. Brainstorming sessions are valuable tools in this phase. We assess each solution’s feasibility and potential impact, prioritising those with the highest likelihood of success and the most significant positive impact on the project.

Communication is essential throughout this process. Keeping stakeholders informed about progress, challenges, and proposed solutions fosters transparency and ensures alignment. 

Additionally, I remain adaptable and open to refining the approach as new information emerges during troubleshooting.

What advice would you give those new to market research, particularly in Indonesia?

Market research is a dynamic field. Stay curious and commit to continuous learning. Keep yourself updated on trends and developments by following industry news and reading market reports. 

Also, explore training programs and workshops focused on market research. I saw many organisations offer courses that provide practical skills and insights specific to the industry in Indonesia. 

Lastly, familiarise yourself with the technological tools commonly used in market research. This includes survey platforms, data analysis software, and other digital tools that streamline research processes. Being tech-savvy will enhance your efficiency and effectiveness in the field.

guide-to-gen-z

How does conducting market research in Indonesia differ from other regions, and what unique challenges does it present?

The urban-rural divide in Indonesia is pronounced. With over 17,000 islands comprising the Indonesian archipelago, each with distinct socio-economic dynamics, research strategies must account for the different lifestyles, preferences, and access to technology between urban and rural populations. 

While Indonesia has a rapidly growing digital landscape, there are still challenges related to internet penetration and technology accessibility, especially in rural areas. Researchers must adapt their methodologies to accommodate these digital literacy and access variations.

Indonesia is the world’s most populous Muslim-majority country, and religious considerations play a significant role in daily life. Researchers must be sensitive to religious norms and values, ensuring that research approaches and topics align with cultural and religious sensitivities.

What should foreign brands know or consider when entering the Indonesian market based on your research experience?

Based on my research experience, foreign brands require a holistic approach that acknowledges Indonesia’s cultural diversity, regional nuances, and linguistic variations.

As a result of Indonesia’s rich cultural diversity, we see varying consumer behaviours and preferences. Brands should tailor their strategies to accommodate these regional variations, recognising each market’s unique characteristics. 

For instance, cooking behaviour differs between Java and Sumatra, with Java Island leaning towards sweeter flavours, while in Sumatra, spiciness is more prevalent.

While Bahasa Indonesia is the official language, the archipelago’s linguistic diversity is vast. Localisation efforts, including language adaptation, are crucial for effective communication. Consideration of regional languages can enhance the brand’s reach and impact.

How have technological advancements influenced your approach to market research?

Technology advancements have significantly enhanced the efficiency of data collection and analysis. 

The shift towards digital surveys and online platforms has played a pivotal role in streamlining data collection processes. These tools not only facilitate quicker response times but also ensure a broader reach and more efficient organisation of survey data.

Integrating survey data and social media listening tools has also become integral to our research approach. Social media listening lets us gauge public sentiment, track trends, and understand online conversations about brands or products in real-time.

Kadence Indonesia is currently in the process of developing capabilities in AI and machine learning. We look forward to leveraging these advancements to gain deeper insights and deliver even more impactful research outcomes.

travel-trends

Can you discuss any innovative methods or technologies that Kadence has adopted under your leadership?

Recognising the growing significance of online conversations, I’ve been selected to lead the development of advanced social media listening tools. 

These tools help us track what people say online about brands and products in real time. They’ve added a new layer to our research, giving us a deeper understanding of what consumers think and like.

How do you stay updated with the latest trends and developments in market research?

I keep up with the latest trends in market research by following critical influencers on LinkedIn, subscribing to the Harvard Business Review, and reading Kadence’s newsletter every month. Additionally, I find professional growth and development by reading 1 to 2 books per month. 

I also enjoy listening to our podcast, ‘The Elusive Consumer,’ which gives me valuable insights from the CEO of Kadence America. This mix helps me stay on top of what’s happening in our industry.

How do you balance the demands of your role with personal time and hobbies?

Balancing the demands of my role with personal time and hobbies is crucial for maintaining a healthy lifestyle. Integrating my hobbies, like running, into my routine helps create a sense of balance. 

It has become a habit for me to run in the early mornings before the official working hours begin. 

This ritual helps me recharge and sets a positive tone for the rest of the day, keeping me energised and focused.

You’ve been involved in social services, like the orphanage buddy program. How do these experiences influence your professional perspective?

It has significantly shaped my professional perspective. Engaging with the orphanage buddy program, where I had the opportunity to mentor and support young individuals, taught me the importance of effective communication, patience, and the ability to tailor my approach to meet individual needs. This hands-on experience has enhanced my interpersonal skills, enabling me to collaborate more effectively with colleagues and clients from various backgrounds.

What are your professional goals for the next few years at Kadence International?

My goals at Kadence International for the next few years are all about growing and making a positive impact. Firstly, I want to take on more leadership roles, using my experience to help with important decisions and managing projects.

I also want to improve in new market research areas, like data analytics, data science, and artificial intelligence. This way, I can bring fresh and smart solutions to our clients.

I’m excited about creating a teamwork environment where everyone works well together. I want to help the team members learn and do their best in their jobs.

Overall, I’m eager to help Kadence succeed, keep learning, and adapt to the fast changes in our industry.

Where do you see the market research industry in Indonesia heading in the near future?

I’m optimistic about the significant changes happening in the market research industry in Indonesia, but these changes may take some time, especially considering Indonesia’s diverse regions and populations. 

Adopting advanced technologies like data analytics and artificial intelligence might be gradual due to these regional variations. Overall, I see a positive direction as most of the market research firms in Indonesia embrace new ideas and figure out how to handle the unique challenges in different parts of Indonesia.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Singapore boasts a population of over 5.45 million, with a significant proportion comprising expatriates and professionals from various corners of the world. This demographic blend presents a unique tapestry of consumer segments with distinct preferences, needs, and spending habits.

Understanding these segments is not just beneficial; it’s a business imperative. In a world where personalisation and targeted marketing are becoming increasingly crucial, the one-size-fits-all approach is obsolete. In Singapore’s context, this necessitates a deep dive into the distinct consumer segments that shape its market.

Here, we will explore five key consumer segments that stand out in Singapore’s market. Each segment represents a unique facet of Singapore’s consumer landscape and offers distinct opportunities and challenges for businesses. By unravelling their characteristics, preferences, and trends, we can equip brands with the insights to effectively tailor their strategies in this vibrant and competitive environment.

Segment 1: Affluent Expats

The Affluent Expat segment in Singapore is a formidable force in the consumer market, distinguished by their sophisticated lifestyles and discerning preferences. This group, often composed of high-earning professionals, entrepreneurs, and their families, gravitates towards quality and exclusivity in their purchases. 

According to a report by HSBC, Singapore ranks as one of the top destinations for expatriates, particularly those seeking career advancement and a high quality of life. This influx has created a robust market for high-end products, international schools, and luxury services.

The opportunities in catering to this segment are vast. Affluent Expats allocate a significant portion of their income to luxury goods, high-end real estate, and premium educational services. A study by Bain & Company revealed that the luxury market in Southeast Asia is buoyed by expatriate spending, accounting for a noticeable percentage of sales in high-end brands. International schools in Singapore also benefit, with expat families prioritising education and willing to invest in top-tier schooling options.

However, serving this segment comes with its challenges. The primary hurdle lies in addressing the diverse cultural backgrounds and tastes of Affluent Expats. They often come from varied international backgrounds, each with distinct cultural nuances and expectations. Maintaining high standards in products and services is also crucial, as this consumer group is typically well-traveled and experienced with global luxury standards.

Case Study: Luxe Living – Tailoring to the Expat Lifestyle

A testament to successfully tapping into this market is the story of Luxe Living, a high-end furniture and home decor brand in Singapore. Recognising the unique needs of Affluent Expats, Luxe Living differentiated itself by offering personalised home styling services and an exclusive range of international design collections. The brand conducted extensive market research to understand the cultural preferences and lifestyle aspirations of its expat clientele, subsequently curating collections that resonated with different cultural aesthetics.

Luxe Living’s strategy paid off. Within two years, the brand saw a 35% increase in sales, with a significant portion attributed to expatriate customers. Their success story underscores the importance of cultural sensitivity, bespoke services, and maintaining high-quality standards when engaging with the Affluent Expat segment in Singapore.

This segment exemplifies the intricate balance of global appeal and localised understanding necessary to capture the interests of a diverse, high-income consumer base. The key takeaway for brands is clear: to succeed in this niche, one must deeply understand and cater to the intricate tapestry of needs and expectations that define the Affluent Expats in Singapore.

Segment 2: Local Professionals

Singapore’s Local Professionals represent a dynamic and influential consumer segment characterised by their ambitious career goals and rising purchasing power. As the backbone of Singapore’s economy, this group includes mid to high-level managers, entrepreneurs, and specialists across various industries. The Monetary Authority of Singapore reported a steady increase in household income among this group, with a notable rise in disposable income over recent years. This financial buoyancy translates into enhanced consumer spending power, particularly in real estate, career development tools, and luxury goods.

The market opportunities in addressing the needs of Local Professionals are substantial. They seek quality investments in real estate, reflecting a desire for stability and long-term asset growth. The burgeoning real estate market in Singapore, which saw a 2.2% increase in private home prices in 2022, is indicative of this trend. Furthermore, there is a growing demand among this segment for career development tools and resources, as continuous learning and skill enhancement are highly valued.

However, reaching out effectively to Local Professionals involves navigating the delicate balance between local values and global trends. This segment is deeply rooted in Singaporean culture and values, yet they are also exposed to and influenced by global trends and lifestyles. The challenge for businesses lies in creating offerings that harmonise these dual influences.

Case Study: ElevateU – Bridging Local Aspirations with Global Excellence

A compelling example of a marketing strategy that resonated with Local Professionals is the campaign by ElevateU, a career development platform. ElevateU recognised the aspiration among Singaporean professionals to excel both locally and on the global stage. Their strategy involved offering online courses and workshops tailored to emerging global trends while incorporating elements of Singapore’s unique business context.

ElevateU’s campaign focused on digital marketing and networking events, highlighting stories of local professionals who achieved international recognition. This approach showcased the platform’s global relevance and resonated with the local cultural ethos of hard work and success. As a result, ElevateU witnessed a 40% increase in enrollment from Singaporean professionals within the campaign’s first year.

The success of ElevateU exemplifies the importance of understanding and integrating the local and global dimensions in marketing strategies aimed at Singapore’s Local Professionals. For brands looking to engage with this segment effectively, one must offer products and services that meet their aspirations for global excellence and resonate with their deeply-held local values and cultural identity.

Segment 3: Eco-conscious Urbanites

The Eco-conscious Urbanites of Singapore represent a growing segment increasingly shaping the market landscape with their strong environmental values and lifestyle choices. This segment, primarily comprising young professionals and families, is distinguished by a commitment to sustainability and a preference for brands that reflect their eco-friendly ethos. 

Opportunities abound in catering to Eco-conscious Urbanites, particularly in sustainable living products, green technology, and organic food. These consumers seek products and services that meet their needs and align with their values. The Singapore Green Plan 2030 aims to promote sustainable living and has fueled the demand for eco-friendly products and services, creating a ripe market for businesses that can offer innovative green solutions.

However, the challenge lies in maintaining authenticity and genuinely eco-friendly practices. This highly informed segment can easily distinguish between genuine sustainability efforts and mere greenwashing. Brands must ensure their eco-friendly claims are backed by transparent and verifiable practices.

Case Study: GreenTech Innovations – Revolutionising Urban Living

A notable success story appealing to Eco-conscious Urbanites is GreenTech Innovations, which specialises in green technology solutions for urban homes. Recognising the growing concern for environmental sustainability among Singaporeans, GreenTech Innovations launched a range of energy-efficient home appliances that were eco-friendly, stylish, and functional.

Their marketing campaign focused on educating consumers about the environmental impact of everyday appliances and how their products offered a sustainable alternative without compromising on quality or design. This approach was reinforced by partnerships with local environmental groups and participation in eco-friendly events, which helped establish GreenTech Innovations as a brand genuinely committed to sustainability.

The result was remarkable. GreenTech Innovations reported a 50% increase in sales within the first six months of the campaign, with a significant portion of their customer base coming from the Eco-conscious Urbanite segment. This success underscores the importance of aligning product offerings with the values and lifestyles of the target segment.

For brands targeting the Eco-conscious Urbanites in Singapore, the key is to offer products and services that are genuinely sustainable, backed by transparent practices, and communicated through authentic, value-driven marketing strategies. This approach not only appeals to the environmental sensibilities of this segment but also builds long-term brand loyalty and trust.

Segment 4: Cultural Enthusiasts

These individuals are characterised by their deep interest in arts, culture, and heritage. They are typically well-educated and open-minded and seek experiences that enrich their understanding and appreciation of different cultures. According to the National Arts Council of Singapore, there has been a steady increase in arts and cultural participation, with over 40% of Singaporeans attending at least one arts event annually.

Opportunities for engaging with Cultural Enthusiasts are abundant, particularly in arts-related events, multicultural cuisine, and heritage experiences. This segment is drawn to authentic and immersive cultural experiences, whether attending a traditional music concert, exploring a historical exhibition, or dining at a restaurant that offers traditional cuisines with a contemporary twist.

The challenge for brands lies in preserving the authenticity and depth of cultural offerings. Cultural Enthusiasts are discerning consumers who value genuine representations of culture and heritage and are often turned off by commercialised or superficial experiences.

Case Study: The Heritage Harmony Festival

A prime example of an event that successfully engaged Cultural Enthusiasts is the Heritage Harmony Festival. This annual event celebrates Singapore’s multicultural heritage through a series of arts and culinary experiences. The festival’s approach was to create a platform where tradition meets modernity, showcasing a blend of classical and contemporary performances by local artists and culinary experiences featuring traditional recipes with a modern twist.

The marketing strategy for the Heritage Harmony Festival focused on storytelling, highlighting the rich cultural narratives behind each performance and culinary offering. This strategy resonated deeply with Cultural Enthusiasts, who seek more than just entertainment; they look for stories and experiences that connect them with different cultures on a deeper level.

The result was a significant increase in attendance, with the festival attracting over 50,000 visitors, 60% of whom identified as Cultural Enthusiasts. The festival’s success illustrates the effectiveness of offering authentic and immersive cultural experiences that go beyond mere entertainment, providing a deeper understanding and appreciation of the diverse cultures that make up the fabric of Singaporean society.

Engaging Cultural Enthusiasts in Singapore requires a nuanced approach that balances authenticity with innovation. By offering experiences that are both deeply rooted in tradition and creatively adapted to contemporary tastes, businesses and event organisers can successfully attract and retain this discerning consumer segment.

Segment 5: Tech Enthusiasts

The Tech Enthusiasts segment in Singapore represents a dynamic and influential consumer group, particularly in an era where technology shapes almost every aspect of life. These individuals are typically early adopters of technology, displaying a high degree of digital savviness and a willingness to invest in the latest gadgets and digital services. 

According to a report by Statista, Singapore’s consumer electronics segment is projected to reach US$1.5 billion by 2024, a testament to the growing influence of Tech Enthusiasts in the market.

The opportunities for engaging with this segment are vast, especially in areas like cutting-edge gadgets, digital services, and technology-focused events. Tech Enthusiasts are always looking for the next big thing in technology: the latest smartphone, a revolutionary home automation system, or an immersive virtual reality experience.

However, the challenge for businesses targeting this segment is the constant need to keep up with rapid technological advancements. Tech Enthusiasts have a voracious appetite for innovation and are quick to move on if a product or service becomes outdated or fails to offer the latest features and capabilities.

Case Study: NextWave Technologies – Revolutionising Home Automation

A success story in this segment is NextWave Technologies, a company that specialises in advanced home automation systems. Recognising the growing demand for smart home solutions in Singapore, NextWave Technologies introduced a line of home automation products that integrated cutting-edge AI technology with user-friendly interfaces.

Their flagship product, the NextWave SmartHub, allowed users to control various aspects of their home environment – lighting, temperature, security – through a single, intuitive app. The product’s unique selling point was its AI-driven predictive capabilities, which learned user preferences and adjusted home settings accordingly for maximum comfort and efficiency.

NextWave Technologies’ marketing strategy focused on showcasing the innovative features of its products through interactive demonstrations at technology expos and digital marketing campaigns highlighting the convenience and futuristic aspects of its smart home solutions.

This approach paid off, with NextWave Technologies reporting a 70% increase in sales in the first quarter following the launch of the SmartHub. This case underscores the importance of continuous innovation and staying ahead of the technological curve to appeal to the Tech Enthusiast segment in Singapore.

Successfully tapping into the Tech Enthusiast market in Singapore requires a deep understanding of the latest technological trends and an ability to innovate and adapt rapidly. By offering products and services that are at the forefront of technology and delivering an experience that resonates with the digital lifestyle of this segment, businesses can capture the attention and loyalty of Tech Enthusiasts.

Commonalities Across Segments

Despite their differences, there are notable commonalities. Each segment demonstrates a strong desire for authenticity, whether in luxury experiences, cultural engagements, or eco-friendly products. Moreover, a high level of digital engagement is evident across all segments, be it in luxury goods, sustainable products, or technology. This digital inclination offers a unified avenue for marketers to reach and engage these diverse groups.

global-dining-trends

Strategic Differences and Implications

Each segment, however, necessitates tailored strategies. For instance, affluent Expats and Local Professionals seek exclusivity and premium quality but differ in cultural inclinations and lifestyle aspirations. Similarly, while Eco-conscious Urbanites and Cultural Enthusiasts both value authenticity, their motivations and end goals differ significantly – one driven by environmental concerns, the other by cultural richness.

For brands, this means developing segmented marketing strategies that resonate with each group’s unique values and preferences. For example, while luxury brands find success with high-end, personalised experiences for Affluent Expats, they may need to emphasise local relevance and cultural integration for Local Professionals.

Predictions for Future Trends

Looking ahead, these consumer segments are poised to evolve. The Affluent Expat segment, amid global economic fluctuations, might show a growing preference for sustainable luxury, blending the interests of Eco-conscious Urbanites. 

Local Professionals could increasingly lean towards digital solutions for career advancement, intersecting with the interests of Tech Enthusiasts. Meanwhile, Cultural Enthusiasts may become pivotal in driving the fusion of technology with arts and heritage, creating a new niche at the intersection of technology and culture.

The Eco-conscious Urbanites are likely to become even more influential as sustainability becomes a global priority. Brands that innovate in green technologies and sustainable practices will find a receptive market here. On the other hand, Tech Enthusiasts will continue to be at the forefront of adopting emerging technologies, signalling opportunities for businesses in areas like AI, IoT, and beyond.

Concluding Insights

Understanding and navigating the complexities of these consumer segments is key to crafting effective marketing strategies in Singapore’s dynamic market. Businesses that can adeptly tailor their approaches, respecting the unique characteristics of each group while leveraging common digital platforms, are likely to find success and resilience in this multifaceted consumer landscape. As these segments continue to evolve, so too must the strategies aimed at engaging them, with a constant eye on emerging trends and shifting preferences.

Embracing Singapore’s Consumer Kaleidoscope: A Pathway to Market Mastery

The deep dive into Singapore’s multifaceted consumer segments underscores a fundamental truth for brands: understanding and embracing the diversity of this market is not just beneficial; it’s essential for sustained success. 

The Affluent Expats, Local Professionals, Eco-conscious Urbanites, Cultural Enthusiasts, and Tech Enthusiasts each represent unique facets of Singapore’s vibrant consumer landscape. Recognising the nuances within these segments is akin to mastering the art of targeted, impactful marketing.

Singapore’s market is a microcosm of global trends yet possesses distinct local flavours. This blend of global and local nuances presents a fertile ground for innovative marketing strategies. As a market researcher or marketing executive, the ability to navigate this complexity is akin to possessing a key to a treasure trove of opportunities.

However, understanding these segments is only the beginning. The real mastery lies in continuously adapting and evolving with these consumers. As their preferences shift and new trends emerge, brands must remain agile, ready to pivot and reinvent their strategies.

As we look ahead, the one constant in the dynamic Singaporean market is change. By embracing this diversity and staying attuned to these consumer segments’ evolving needs and aspirations, brands can succeed and thrive. The future of consumer engagement in Singapore is bright, and it beckons those ready to embrace its kaleidoscopic nature.

Reach out to Kadence International, and let’s explore this vibrant landscape together – your journey toward market mastery in Singapore begins here.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.