Buying Power of Emerging Markets: Asian Consumer

News, in the recent past of the “Demise of the Emerging Markets” may be premature. Despite slowdown in China and other Emerging Markets, we had a couple of unique indicators that can signal a broader shift in buying power of China and Middle Class in India. No longer merely the low-cost labor or production hubs, China and India are leading the Asian Buying power. Say hello to a new emerging giant, the “Asian Consumer”.

Blockbuster movie “Furious 7” as on April 27th 2015 has a collection of $321 Million in the US but more than a Billion from Non-US Markets – more importantly China accounts for $323 Million (reported till April 26th 2015). This week, Apple also announced that for the first time, iPhone Units sold in Chinese Region (around 18-20 Million) outnumbered the Units sold in the US (around 15 Million). Apple has much higher revenue from the Chinese Region than from the entire European Market. China is already world’s biggest Car Market - Number of New Cars sold/registered in China (1.75 Million in March vs 1.53 Million in the US and 1.65 Million for the entire European Market). Alibaba has been showing much better performance than Amazon and is worth $211.6 Billion + vs $199.4+ Billion for Amazon (Market Cap). India, China and the US are the world’s three biggest economies in terms of GDP. Chinese GDP is now a shade higher than the US. Developing Asia account for almost one third of the global population.

So far everything was designed, built and pitched with US Consumption in mind and US Consumer in focus. With increase in Buying Power of China and India’s Middle Class, Focus of Global Organization will continue to shift towards Asian Consumer. Big Data, Analytics, Social Media focus, Products, Features, Pricing, Support Services, Apps/IT Systems, Products, Features, Customer Personalization and User Experience will have to adapt to this changing trend. All trends indicate that it’s already happening.

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