With consumption totaling $4 trillion, ASEAN will be one of the fastest-growing regions in the next decade. Praneeth Yendamuri, a partner with Bain's Consumer Products practice, shares several trends for brands to watch, from the expansion of digital technologies to more discerning consumers.
Read the transcript below.
PRANEETH YENDAMURI: I'm here at the World Economic Forum collaborating on the topic of Future of Consumption in ASEAN 2030. As we know, ASEAN is going to be a very important economic bloc all the way to 2030. With $4 trillion worth of consumption, it's going to be one of the fastest-growing regions in the world. One out of six consuming class in the world will come from ASEAN. Having said that, ASEAN is not one homogeneous market.
We also talked about eight consumption themes. And if I were to narrow it down to two or three consumption themes that are important, one would be that digital and technology will really tear down socioeconomic barriers. The underbanked or unbanked will have access to digital wallets and e-payments and will enter into the financial economy. You will have a wide range of products and services of high quality be available to the masses. You will have edtech and healthtech take care of the needy and reach tier-two cities, tier-three cities, as well as the villages to try and serve this population.
The other important trend is the consumers are getting very discerning. They want value for their money. At the same time, they want premium, they want personalization, and they also want to work with companies, or consume goods from companies, who they believe are doing good. What this means for MNCs is that they have to really up their game. They have to rethink how they spend their marketing dollars to follow the consumer—the fast-evolving, omnichannel consumer journey. They'll have to think about their route to markets. They'll have to think about how to re-skill their talent. They'll have to think about what is the right ambition they want to set for a region like ASEAN.