, APAC

These 3 consumer classes will drive APAC’s experience economy

The women, Gen Zs, and empowered 50s will have the biggest impact to the marketplace.

Poised to have the fastest growing digital economy and the biggest consumer market, the Asia-Pacific marketplace is seen to lead the rise of the experience economy, which will largely be driven by the female economy, Generation Z and the silver generation.

According to Appnovation’s APAC, The Future Consumer white paper, APAC will be home to the largest consumer class by 2030 with 65% of the global middle class staying in the region. It will also contain 3 out of the four largest economies, such as China, India, Japan.

“In the coming decade, the Asia-Pacific region is set to see dramatic changes in demographics and consumer values. The region is also going to have the most relative growth in its consumer base,” Chandni Motwani, Strategy Director, Asia Pacific at Appnovation, said.

“Over the next 10 years, three key rising classes will drive different demands in the way consumers live, play, work, learn and consume that will ultimately impact the marketplace.”

Motwani added it is imperative for brands to understand these consumers—the female economy, Generation Z, and the silver generation--and build the foundation for a digital roadmap to close the experience gap.

The Female Economy

According to Appnovation, women control 32% of the world’s wealth and spending by women in China and India will closely follow the spending by women in the United States, if not overtake it by 2030.

By 2030, women in China is projected to spend $17b, whilst those in the US and India are seen to spend a total of $17b and $13b, respectively.

“Women seek authentically different experiences than men. They save a more significant percentage of their income and are more price-conscious shoppers,” the report noted.

“They may spend more on clothes, but they spend less in general. They tend to scan product info and leverage social media for deals. They also seek lower-risk, long-term investments.”

 The report also observed that more women today are seeking higher education and are less concerned about marriage.

The Rise of the Zoomers

In ten years, Gen Z, or Zoomers, will have entered the workforce, estimated to make up 40% of global consumers.

“They are a generation of digital natives who live online as much as offline. They are more environmentally and socially conscious – and see consumption as a method of self-expression,” the report also read.

“They care about mental health a great deal more than the previous generations and are value-driven buyers. They are also more willing to share their personal information online.”

Appnovation added that companies that are ethical, or those that prioritise wellness and mental health, create sustainable products, as well as support social causes will likely see faster sales.  

The Empowered Silver Generation

The Silver Generation, or those aged 50+ in ten years, who will have the higher spending power, are also seen to lead the beginning of a massive cultural shift around aging.

“This generation will make up only 32% of the population but will contribute 52% of the total consumer expenditure. They want to feel more capable and stronger, and they expect brands to deliver experiences that empower them and give them more independence,” Appnovation found.

It added that this generation is willing to spend more on learning, and are getting savvier with technology. They also have a greater concern for data security and privacy

 

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