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MASSCLUSIVITY From masstige to MASSCLUSIVE: middle-class premium consumption evolves in Asia. ASIA TREND BULLETIN SEPTEMBER 2014

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

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

ASIA TREND BULLETIN

SEptEMbEr 2014

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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 Asia’s 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.

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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

3.22 billion GLOBAL

516 million

2009 2030

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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 Pond’s 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 Spade’s lifestyle

(read: more accessible) line recently opened a third store in

Singapore’s 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.

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So if masstige is the norm, what’s 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”.

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MASSCLUSIVITY | A form of affordable premium consumption that combines the mass with the truly exclusive: tasteful, rare, experiential, compellingly storied, and more!

DEFINITION

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1. Overcrowding

WHY NOW?

From Jakarta to Mumbai, walk down any supermarket aisle and

you’ll 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, Asia’s 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…

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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

2009 2030

32.9 trillion GLOBAL

4.9 trillion

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2. Evolving tastes

WHY NOW?

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

Asia’s middle-class consumers.

Middle-class status is moving beyond product upgrade and wealth display.

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We obviously offer much more

than monthly Trend Bulletins...

Your complete trend and innovation solution.

Our Premium Service

Find out more

2015 Trend Report

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Industry Updates Apply Toolkit

Monthly Updates 1-page Trend Handouts

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FEATURED INNOVATIONS

Take a look inside Asia’s MASSCLUSIVE consumption sphere!

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FEATURED INNOVATIONS: MASSCLUSIVITY

Chef Creations by 7-Eleven7-Eleven philippines partners with local chef Claude tayag on gourmet ready meals

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FEATURED INNOVATIONS: MASSCLUSIVITY

A Festival About CoffeeJakarta event caters to emerging gourmet coffee culture

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FEATURED INNOVATIONS: MASSCLUSIVITY

Jeans by Kamine ZooLimited-edition jeans ‘made’ by zoo animals

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FEATURED INNOVATIONS: MASSCLUSIVITY

Hotel Chains in IndiaHotel chains improve services for Indian consumers

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We’re doing something different for October’s Bulletin and featuring the region’s 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 we’ll be in touch with more information.

Do you want to be featured in the next Asia Bulletin?

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FEATURED INNOVATIONS: MASSCLUSIVITY

Burger King Japanburgers with black cheese and black everything else

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FEATURED INNOVATIONS: MASSCLUSIVITY

The Inspired ChefCelebrity chef ice cream available in Singaporean supermarkets

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Tmall.comFresh New Zealand seafood shipped for Chinese consumers

FEATURED INNOVATIONS: MASSCLUSIVITY

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FEATURED INNOVATIONS: MASSCLUSIVITY

Vogmaskpollution masks launched at Hong Kong Fashion Week

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FEATURED INNOVATIONS: MASSCLUSIVITY

Colgate SlimSoft CharcoalOral hygiene brand launch black charcoal toothbrush in India

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FEATURED INNOVATIONS: MASSCLUSIVITY

Harlem ShakersHarlem inspired gourmet sandwich eatery in bangkok

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FEATURED INNOVATIONS: MASSCLUSIVITY

Suntory HibikiJapanese whisky brand creates world’s first interactive glass

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FEATURED INNOVATIONS: MASSCLUSIVITY

Suzhou VillageChinese integrated affordable luxury shopping compound

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FEATURED INNOVATIONS: BONUS EXAMPLE

IKEA SingaporeFurniture brand launches spoof-premium catalogue

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SO WHAT’S NEXT?

Turn DRAB products into FAB innovations for the Asian MASSCLUSIVE sphere!

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MASSCLUSIVE innovations are all about moving beyond product ‘upgrades’ and thinking more broadly about premium. How can you offer something truly different that will mark your customers out from the (ever growing) middle-class crowd? To start, read on!

Go from drab to FAB

NEXT

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NEXT

A premium consumer experience can often be created via attention to details. Extravagant service design, such as recreating a Silk Road village from the Middle Ages down to the very last detail, is one way to do it. But even the smallest individual detail can pay dividends if you pay it attention: just look at how Suntory Hibiki innovated around whisky glasses.

1. DETAILS are FAB

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NEXT

Surprising, compelling, unique. And Instagrammable :) These always turn drab into FAB. Especially when they provide an outlet for self-expression and let consumers shout about it to their peers. Jeans ‘made’ by zoo animals that also let consumers contribute to the WWF? Definitely a shareable story.

2. STORIES are FAB

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NEXT

In the sea of dime-a-dozen masstige offerings, one-of-a-kind experiences are spelled P-R-E-M-I-U-M. A two-day festival celebrating speciality coffee? A unique drinking experience beyond the usual ‘premium’ bar and sake? Definitely FAB.

3. EXPERIENCES are FAB

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»Use our free CONSUMER TREND CANVAS to

start innovating around this trend - instantly

Consumer Trend Canvas

»

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PAUL BACKMANChief Client [email protected]

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