While economic inflation in Asia has been less severe compared to Europe and the US – and is currently showing signs of a slowdown – it’s forecast to track at a higher baseline level over the short-to-medium term. 

After APAC economies saw their highest rate of inflation in over a decade in 2022, its pace has somewhat decelerated in 2023. Albeit perils of a global recession are unlikely, the possibility of 'mild recessions' in some parts of the world cannot be fully dismissed.  

Factors contributing to this slump include rising interest rates and cost of living, inflation, and geopolitical turbulences, among others. The resultant effect of this economic turmoil will be felt by a broad range of marketers, brands, and categories. Consumer spending is predicted to be affected across the board. 

Marketers need to ask themselves these key questions: How are they making use of this ongoing shift? What will these economic changes mean for their brand strategy?  

The cutback on spending is estimated to impact historically resilient market categories viz., private health, general insurance, gifting, technology, hospitality, streaming subscriptions, travel, and groceries. As consumers tread the spending tightrope in a volatile economy, it is imperative for marketers to secure a soft landing on either side.  

How can brands achieve this feat? We think that the smart marketer can do it by thinking of their product or service in the context of the consumers’ home budget. According to our Read the Room report, fewer people have surplus funds left after bills and necessities are taken care of, even lesser than the worst times during the COVID pandemic.  

Some staggering statistics from our survey reveal that the average weekly grocery shop cost has risen by 23% (compared to July 2022) and 12.8% of the surveyed country's residents have recently cancelled a health, home, or car insurance policy.    

We surveyed more than 4,000 respondents and derived five core audience segments that represent varying financial realities. The segments are: The Rich & Ready, The Wealthy & Unwise, The Living for Today, The Bet Hedgers, and The Suffering & Scared.  

By truly understanding these segments and economic variables, brands have a higher chance at ensuring they better understand, relate to, and drive a stronger market proposition with their consumers.   

Make sure you don’t miss out on our Read the Room insights as a marketer. Check out how you can help your brand adapt to consumers' needs and spending by downloading our 2023 proprietary whitepaper Read the Room.

Or complete the form below to speak to on of our experts about having a roadmap to resilience.