Asia's Affluent Earn, Spend and Borrow More
October 5 2005
The latest results from Synovate's PAX survey reveal that Asia's wealthiest consumers are spending more on high-end products than last year, funded by a big increase in income and an even bigger rise in borrowing on cards.
The PAX survey brings together information about the media use, product purchases, and future purchase intentions of most affluent 20% of the population of 14 Asian cities. It is based on 250,000 interviews across Hong Kong, Singapore, Korea, Japan, Taiwan, Malaysia, Philippines, Thailand, Indonesia, India and Australia.
Spending and lifestyle
Monthly household income among the affluent group increased by 5.9% from US$4,773 to US$5,054 between 2004 and 2005, and monthly billing on charge and credit cards rose by 15%. Over the last year, more respondents have visited cultural events or sites, and membership of gyms, golf clubs, and social clubs has risen.
Ownership
Ownership of many high-tech items is on the rise, with particularly high levels of consumption in Hong Kong. Findings include the following.
- Notebook computer ownership grew from 25% in 2004 to 31%
- 46% own a mobile phone with Internet access (up 11%). In Hong Kong, the figure stands at 56%
- More than one in three owns an MP3 player
- Digital still camera ownership rose from 42% to 53%, while video camera ownership increased 9 points to 40%. In Hong Kong, the figures are 82% and 60% respectively
- 11% now own an LCD or plasma TV (22% in HK, 13% in Singapore).
Purchase intentions for all major product categories increased or remained the same as 2004.
According to Synovate's Media Director for Asia Pacific, Steve Garton, the area's economic growth and stability are 'reflected in a willingness by those with the highest disposable incomes to open their wallets and enjoy the rewards of their efforts'.
Media consumptionGarton says the survey shows that 'regional media reach Asia's most affluent consumers in a cost-efficient fashion'. Typically, Asia's affluent consumers say they turn to regional media for news, insights and entertainment not available from local media.
He believes this means 'the time is ripe for marketers to get the message out there', especially as 30% of Synovate PAX respondents agree that they have great trust in what they have seen advertised, and more than a quarter buy products they have seen advertised. Both these proportions have risen since this time last year.
The PAX survey focuses on three principal audiences.
- Affluent Adults - those aged 25-64 years with a household income substantially above the average for that city. This group represents 9 million people, excluding those who are also Business Decision Makers (BDMs).
- BDM - executives, management and knowledge workers aged 25-64 in charge of a department, working full-time in companies with 10 or more staff, who earn a personal income significantly above the average for that city. This group represents 3 million individuals.
- Top Management - often the final decision makers in their organisation, with significant purchasing power and influence at work, this group represents around 670,000 managers.
More details about PAX are online at
www.synovate.com/pax.
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.
