Affluence in Asia
October 1 2003
Synovate have released full year results for Synovate PAX - a survey that tracks 'media, prosperity and influence across Asia Pacific'. Coverage includes purchase of high-end products, business and leisure travel and purchase of financial products, amongst elite consumers.
The survey covers 'the movers and shakers of Asia - the top 20 per cent of society' - who are defined as those with the highest disposable income to spend on discretionary items, in eleven countries. The eleven are: Hong Kong, Singapore, Korea, Japan, Taiwan, Malaysia, Philippines, Thailand, Indonesia, India and Australia. More than 220,000 interviews were conducted across the region.
Synovate PAX, whose clients are the major upscale regional broadcasters, media specialists and key regional publications, moved to continuous tracking a year ago and now offers a full annual database, updated quarterly, showing trends over time. A selection of topline statistics has been released, of which the following is a summary.
- Overall, the number of affluent Asians taking business trips has declined following the 11 September 2001 terrorist attacks in the United States, but the decline appears to come from the ranks of infrequent business travellers. The percentage of the PAX population taking one or more flights for business reasons declined from 18.2% in 2001, to 16.5% in 2002 and 15.3% to mid-2003. The percentage taking three or more trips remained steady from 2002-3 at 6.3% after falling from 7.4% in 2001, showing no reaction to SARS.
- 9/11 also appears to have affected leisure travel among affluent Asians much more than SARS did. The proportion of respondents who take more than three trips for reasons of leisure dipped from 5.3% in 2001 to 4.9% in 2002 but recovered slightly to 5% to mid-2003.
- Affluent Asians rapidly acquire new products and services and therefore the ownership of high-end personal items quickly reaches saturation, according to Synovate, so the emphasis for marketers is on stimulating upgrades and replacements across well-off consumers - rather than first purchases.
- Ownership of a mobile phone with an internet function throughout Asia Pacific has grown from 22.5% in 2001, to 28.9% in 2002 and 30.7% as of mid-2003. Penetration varies from 67.2% of PAX respondents in Tokyo and 58.5% in Seoul to 32.2% in Hong Kong and only 18.3% in Singapore, where only 5% intend to purchase one in the next twelve months. Singapore in 1997 declared its aim to be Asia 'most wired society' by 2007 [maybe that's why they aren't going for wireless? - Ed.].
- Affluent Asians have a high degree of ownership of high-end household items, which include items like digital still cameras, digital video cameras, DVDs, VCDs and televisions. Ownership of a digital video camera has grown from 22.1% in 2001 to 25.0% in mid-2003, and of digital still cameras from 23.6% in 2001 to 34.0% by mid-2003 and 11% intending to purchase one in the next twelve months.
- Hong Kong is among the leaders in these categories with 37.6% owning a digital video camera and 56% a digital still camera. There are even many - 11.1% of respondents - with LCD or plasma televisions, while a huge 56% now own flat screen televisions.
- 83.7% of affluent Asians own at least one personal financial product, but there have been many shifts in types owned during the last two volatile years. Stocks, foreign currencies and unit trusts have lost out while life insurance is the least susceptible to changes, with a steady level of 68.6% ownership over the 3 years.
Trends are from nine countries and exclude Japan and Australia, which have only been measured since 2002.
According to Steve Garton, Media Director at Synovate Hong Kong, the survey is not only 'a powerful piece of marketing intelligence to know who's reading and watching what across the region' but 'talks to the innovators and the early adopters of products' to help gauge future demand.
'Any new product or service must sell immediately for it to be viable as product life cycles are becoming increasingly compressed' says Garton. 'There is only a small window of opportunity in which to become commercially successful - before competitors emulate new features... Synovate PAX helps marketers answer a fundamental question - what are Asia's most influential consumers going to do next? Without media and product consumption data, the answer remains elusive'.
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
