Demographic insight: Participants at the Hakuhodo event. Research presented at the event describes the ‘emerging affluent’ as a significant group in Asean.
PETALING JAYA: A collaboration between advertising company Hakuhodo International Malaysia and the Hakuhodo Institute of Life and Living Asean (HILL Asean) think tank says companies and brands should dedicate their efforts to cater towards the Asean “emerging affluent” segment.
The segment is expected to be an important economic powerhouse which will drive the consumer market in Asean.
HILL Asean institute director Devi Attamimi said the Asean emerging affluent category serves as a role model for the middle class, becoming a source of inspiration to aim higher.
This is alongside influencing the middle class’ lifestyle, brand preferences as well as consumer behaviour.
“Growing our understanding of this segment and targeting this consumer class above and beyond existing legacy marketing initiatives will provide the most efficient economic case for businesses seeking to capture and retain the broader middle-class market,” she said.
The collaboration is calling out to companies and brands to reach out to Asean emerging affluent individuals through the keywords “Low-key”, “Love-tribution” and “Longevity”.
The first keyword represents observations on how the emerging affluent prefer to fly under the radar as they are willing to buy premium items based on the functionality of an item.
Love-tribution relates to how much the demographic shares great convenience and experiences from their purchases with their loved ones.
A strong desire to make life easier for their family then showcases that longevity creates opportunities for brands to become life planners or consultants for the Asean emerging affluents and their entire families.
“Brands must do more than just sell them a product or service. They need to serve as trustworthy consultants who listen sympathetically and advise the emerging affluent on all aspects in their lives,” it said.
The emerging affluent class of consumers, a term coined by HILL Asean, is defined as a segment between the upper class and the middle class, or more commonly referred to as the upper middle class.
Based on the research conducted through the collaboration, the majority of Asean emerging affluent individuals can be considered self made, with over 60% coming from a middle-class socio-economic background.
Driven by financial hardships growing up, emerging affluent individuals are said to be logical, strategic and self motivated to keep advancing, which results in a strong determination to avoid reliving such experiences.
This year’s findings were shared at the Asean Sei-katsu-sha Forum 2023, with the theme being “Emerging Affluent: Discovering the Invisible Class in Asean”.
