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From masstige to MASSCLUSIVE: middle class premium consumption evolves in Asia.


  • 1. september 2014 ASIA TREND BULLETIN MASSCLUSIVITY From masstige to MASSCLUSIVE: middle-class premium consumption evolves in Asia.
  • 2. Middle-class premium consumption in Asia is all about masstige ... right? Any observer of the Asian consumer arena is familiar with masstige: Masstige = mass-market products infused with prestige elements (think smartly packaged USD 20 shampoo sold in supermarkets), catering to emerging middle classes with an appetite for premium, but budgets that do not stretch to true luxury. But as millions more consumers join Asias emerging middle classes, masstige consumption is becoming more commonplace. The result? Masstige consumption is not the status marker it once was. Now, more affluent and sophisticated Asian middle-class consumers are demanding new, innovative and surprising forms of premium. Says the Asian caveman. www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 2
  • 3. 2009 2030 3.22 billion GLOBAL The APAC middle-class population is estimated to grow from 516 million people in 2009 to 3.22 billion in 2030, when it will comprise 66% of the global middle-class population. WORLD ECONOMIC FORUM, 2013 516 million www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 3
  • 4. Of course, conventional masstige is still going strong. One conventional masstige tactic? Mass market products going premium. 2014 saw Unilever launch Magnum, its premium ice cream brand, in India. The FMCG company also launched Ponds Men, its premium skincare line for men, in both India and the Philippines earlier this year. Another standard masstige play? Luxury products go mass market. Japanese premium cosmetic brand Shiseido is expanding its business in the Indonesian market with its masstige line Za. And Saturday, Kate Spades lifestyle (read: more accessible) line recently opened a third store in Singapores Takashimaya Department Store after its first launch in October 2013. The takeaway? Yes, there will still be opportunities to delight the new Asian middle class with traditional masstige offerings. www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 4
  • 5. So if masstige is the norm, whats the innovation camp doing? Just as happened with traditional high-end luxury (first in the West and now increasingly in Asia), middle-class premium consumption is becoming more fragmented. No longer just about products and services with a little better quality, more polished packaging, and slightly higher price points, instead it is now about displays of taste and sensibility, artisan and local offerings, exclusive locations, rare and unusual experiences, and more. The middle-class premium consumer is moving from masstige to MASSCLUSIVE. Affordable premium is evolving beyond mass goes premium, luxury goes mass. www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 5
  • 6. DEFINITION MASSCLUSIVITY | A form of affordable premium consumption that combines the mass with the truly exclusive: tasteful, rare, experiential, compellingly storied, and more! www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 6
  • 7. WHY NOW? 1. Overcrowding From Jakarta to Mumbai, walk down any supermarket aisle and youll see masstige products crowding the shelves. A million mass-market brands are employing premiumization strategies to cater to the demands of the exploding middle class. Meanwhile, Asias middle classes are getting larger and richer. That means even MORE people who can afford middle-class premium. The result? Conventional masstige is now becoming a little too mass, and no longer delivering the excitement and status boost it once did. The masstige space is too crowded www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 7
  • 8. 2009 2030 32.9 trillion GLOBAL The total middle-class spending in APAC is estimated to grow from USD 4.9 trillion in 2009 to USD 32.9 trillion in 2030, when it is projected to comprise 59% of global middle-class spending. WORLD ECONOMIC FORUM, 2013 4.9 trillion www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 8
  • 9. WHY NOW? 2. Evolving tastes While the masstige space becomes more overcrowded by the day, Asian middle classes are also becoming more sophisticated and demanding. They want products and services that go beyond a higher price point and upgraded quality, and that truly mark them out from the crowd. As a result, witness the emergence of new kinds of premium offerings novel experiences, storied products, artisanal goods, new mass/premium partnerships, and more aimed at Asias middle-class consumers. Middle-class status is moving beyond product upgrade and wealth display. www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 9
  • 10. We obviously offer much more than monthly Trend Bulletins... Our Premium Service Your complete trend and innovation solution. Find out more 2015 Trend Report 1 Trend Framework Innovation Database 2 3 Industry Updates Apply Toolkit 4 5 Monthly Updates 1-page Trend Handouts 6 7
  • 11. FEATURED INNOVATIONS Take a look inside Asias MASSCLUSIVE consumption sphere! www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 11
  • 12. FEATURED INNOVATIONS: MASSCLUSIVITY Chef Creations by 7-Eleven 7-Eleven Philippines partners with local chef Claude Tayag on gourmet ready meals www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 12
  • 13. FEATURED INNOVATIONS: MASSCLUSIVITY A Festival About Coffee Jakarta event caters to emerging gourmet coffee culture www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 13
  • 14. FEATURED INNOVATIONS: MASSCLUSIVITY Jeans by Kamine Zoo Limited-edition jeans made by zoo animals www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 14
  • 15. FEATURED INNOVATIONS: MASSCLUSIVITY Hotel Chains in India Hotel chains improve services for Indian consumers www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 15
  • 16. Do you want to be featured in the next Asia Bulletin? Were doing something different for Octobers Bulletin and featuring the regions best innovations with local insights, directly from our Happy Spotting network. These examples and insights will be read by thousands of our subscribers around the world and could feature you! Interested? Sign up to our Happy Spotting network and well be in touch with more information. www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 16
  • 17. FEATURED INNOVATIONS: MASSCLUSIVITY Burger King Japan Burgers with black cheese and black everything else www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 17
  • 18. FEATURED INNOVATIONS: MASSCLUSIVITY The Inspired Chef Celebrity chef ice cream available in Singaporean supermarkets www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 18
  • 19. FEATURED INNOVATIONS: MASSCLUSIVITY Tmall.com Fresh New Zealand seafood shipped for Chinese consumers www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 19
  • 20. FEATURED INNOVATIONS: MASSCLUSIVITY Vogmask Pollution masks launched at Hong Kong Fashion Week www.trendwatching.co