AISA PACIFIC TREND REPORT

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This PDF is just a very small sample of our Asia Pacific Trend Report.
Released 28 March 2013, available to pre-order NOW!

Remember: this sample contains short extracts from just three featured themes, there are 10 themes and 40+ trends in the 100+ page report!
For more information please go here: www.trendwatchingreports.com And if you have any questions, please contact Paul Backman at paul@trendwatching.com.

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LUXYOURY
Luxury is in the eye of the beholder

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Luxury from Louis Vuitton to Shanghai Tang (we know, the list is endless) has played a central role in the recent Asian consumption story. But the dance of success, status and material display so visible in many Asian societies and so fundamental to luxury consumption is evolving. In 2013, the luxury slowdown affecting some* is only a staging post in a wider, more momentous shift: as Asian consumers mature, so too are the ways in which they display wealth, differentiate themselves from the pack, and mark status. From ultra-opulence, to customized, to affordable mass-chic, ideas of what constitutes luxury are in transformation.
*One example: luxury conglomerate Richemont reported flat sales in China during Q4 2012, after several years of exceptional growth.

Driving this theme: A special relationship While worldwide luxury goods revenues grew by an estimated 10% in 2012 (down from 11% in 2011), in AsiaPacific that figure was 18% (Luxury Goods Worldwide, Bain, October 2012). The takeaway? Asian consumerism is intertwined with luxury consumerism: as the first grows and matures, so does the second. Accelerating affluence Huge growth and rising affluence amid the Asian middle classes has put entry level luxury within reach of many more people. And that growth is set to continue: around 85% of the anticipated growth of the global middle class from 1.8 billion in 2012 to 3.2 billion in 2020 will come from Asia, except Japan (OECD, July 2012). That means High Net Worth Individuals and other traditional luxury consumers must push the boundaries of luxury ever harder or rethink their conception of it to mark themselves out as special. Diversification of luxury Meanwhile, the rapidly rising middle classes are as eager to embrace luxury as their HNWI peers. Globally, one in four purchases of personal luxury goods now comes from a Chinese consumer (Luxury Goods Worldwide, Bain, October 2012). But for millions of these mass-lux consumers, creativity, uniqueness and self-expression are key. The result? A shift in the popular idea of what luxury constitutes, and what a luxury product or service must deliver.

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LUXYOURY

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WHITE COLLAR CHIC

Lux for less
While millions of Asian, newly affluent middle class consumers aspire to international luxury brands, most remain out of their price range. So, now more than ever, these consumers are hungry for exciting yet affordable luxury choices. Are you ready for the rise of Asian mass luxury consumption?

Burger King
WHY
Middle Class Spending Yes, its those ballooning Asian middle classes again. Another sign: the proportion of middle class people in India is set to rise from 28% in 2010 to 45% in 2020 (Boston Consulting Group, Oct 2012). Millions of new Asian middle class consumers want affordable luxury options that serve their lifestyles. quick fixes Saving enough to afford high-end luxury may take years for many among the Asian middle class, if its possible at all. Meanwhile, mass chic and affordable luxury can be bought on impulse. And as we all know when it comes to human nature, impulse often wins ;-)

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Everyday chic Put a luxury twist on mass market, offthe-shelf buys, by tweaking anything from ingredients to design to packaging. Look at what Burger King did with its Angus Beef and Truffle Burger. MID-MARKET LUX Launch a new product line, pitched squarely at mass affluent consumers lusting after affordable luxury. Take inspiration from Shiseidos ZA cosmetics range. Just be careful not to dilute your brand with too many sub-brands or product ranges. local mass lux Local luxury brands such as Indian leather accessories brand Hidesign are producing affordable luxury lines that resonate with local tastes. Learn from, or partner with, similar examples in your sector.

Gourmet burger range in Hong Kong

In May 2012, US fast food chainBurger King added the USD 5 Black Truffle Angus XT burger to its Hong Kong menus. The limited edition burger was part of a month-long promotion of the restaurants premium food line, which aims to boost sales in the Chinese market by offering the public upscale menu options.

Shiseido
Masstige makeup enters Japan
September 2012 saw the Japanese launch of ZA, a new product line by Japanese cosmetics brand Shiseido tailored for Asian women. Marketed as a masstige brand across eight Asian countries, the ZA range in Japan features 19 cosmetic products priced between JPY 630 and 1260 (USD 7 and 14).

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LUXYOURY

white collar chic

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Mass lux lingerie

La Miu and Amante
Chinas leading womens lingerie brand and e-tailer La Miu offers consumers a luxury shopping experience at an affordable price. In July 2012, the brand announced a partnership with popular Hong Kong model Zhou Xiuna. Lingerie pieces start from CNY 150 to 220 (USD 25 to 35). Meanwhile In October 2012, Sri Lankas first homegrown premium lingerie brand Amante was relaunched in its home country, after enjoying years of success in India. Amante offers premium satin and lace apparel. Its lingerie sets retail for approximately LKR 2,500 (USD 24).

Hidesign
Homegrown Indian brand expands its affordable luxury offerings
In March 2012, Indian leather accessories brand Hidesign debuted its collection of womens handbags under its new sub-brand, Alberto Ciaschini, Handcrafted by Hidesign. Priced between INR 8,000 (USD 145) and 25,000 (USD 456), the range of limited edition accessories targets Indias burgeoning luxury market. Italian designer Alberto Ciaschini leads the design department at Hidesign.

Furla
Furla opens first Indian store
In October 2012 in Mumbai, Italian leather accessories brand Furla launched its flagship boutique in India, aimed at Indias emerging affordable luxury market. The brand offers a range of mid-market handbags, shoes, scarves and quality leather products, generally priced at INR 3,500 to 50,000 (USD 64 to 916.50).

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SHIFTING STATUS

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STATUS STORIES
Stand out experiences = stories worth sharing
Amazing experiences are becoming a central part of the evolving Asian STATUSPHERE. Now, as Asian consumers push the bar ever higher when it comes to prized experiences, expect rising numbers to dive into the opulent, the rare, the edifying and even the downright bizarre all in search of the ultimate STATUS STORY.

Baker & Cook

Celebrity chef teaches New World baking techniques
During October and November 2012, celebrity chefDean Brettschneider held a range of baking classes at his cafBaker & Cookin Singapore. Priced at SGD 120 (USD 99), each workshop gave participants the opportunity to learn basic or advanced bread-making or pastry skills with the awardwinning New Zealand baker.

WHY
Evolution As traditional markers of affluence (the Gucci handbag et al) edge closer to ubiquity, middle class consumers are turning instead to experiences that tell others they are tasteful, cool and connected. Connection Experiences generate currency to spend in the STATUSPHERE, in form of STATUS STORIES. With more Asian consumers online, those stories are becoming more shareable, and so more potent than ever. Connoisseurs In an evolving status arena, STATUS STORIES are increasingly linked to STATUS SKILLS. Cue experiences that allow consumers to develop and flaunt abilities that others aspire to.

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WOW Factor Maybe you think your service already has the wow factor. But is it as eye opening as the floating cinema created in Thailand by the Film on the Rocks Yao Noi Festival? Hands on Challenge your consumers with hands on experiences that earn them STATUS SKILLS, as Singapores Baker & Cook do with their New World baking classes. Artificial scarcity: Keep your offering exclusive hard to access, rare, or secret to help Asian consumers feel special. Prohibition-themed bar The Library in Singapore requires a word of mouth password to enter.

Hullett House
Hong Kong hotel recreates the Titanics last supper
In April and May 2012, Hong Kong-based and Michelinstarred Hullett House held a series of dinners recreating the Titanics last supper, to mark the centenary of the sinking of that ship. Replicating the original ten course menu available in the Titanics First Class Dining saloon, Hullett House even offered the same vintage 1907 Heidsieck & Co. Monopole champagne that the Titanics passengers enjoyed. Tickets cost HKD 15,000 per head (USD 1,935).

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SHIFTING STATUS STATUS STORIES

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Lin Biaos Cave

Ex-Communist leaders bunker turned into bar
In July 2012, the former hideout of exChinese Communist General Lin Biao was converted intoa military-themed bar. Located atop a mountain in the Beijing suburbs, customers enter the clandestine bar through anold aircraft fuselage and can enjoy drinks surrounded by military memorabilia.

The Library
Hidden bar requires password
Opened in November 2012 in Singapore, The Library is a Prohibition-themed bar that requires a password to enter. Patrons enquire at neighboring cafs for the changing password, which will be a book title, and enter the bar by knocking on a storefront wall that resembles a bookshelf and asking to borrow the book.

Archipelago Cinema
Floating Cinema in lagoon
In March 2012 in Thailand, Film on the Rocks Yao Noi Festival created a floating cinema in Nai Pi Lae lagoon off Thailands Kudu Island. Made from recycled materials, the Archipelago Cinema consisted of a floating screen and raft-like auditorium situated in the middle of the lagoon; guests were taken there by boat.

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TRIBES & LIVES

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FESTIVAL FEVER
Fuel the festival
As with faith, festivals and the rituals, clothes, and foods that accompany them are being updated and reimagined for contemporary Asia. The result? A thirst for curated or convenient products and services that facilitate, inspire and amplify the many kinds of Asian FESTIVAL FEVER.
WHY
Spending spikes As disposable incomes increase across the region, festivals are time for even more guilt free, feel-good purchasing. Consumer spending spikes around Lunar New Year, Diwali, Eid and other key festivals. Chinas Ministry of Commerce reported Lunar New Year 2012 retail sales of CNY 470 billion (USD 75 billion). Curation Kudos With ever more consumers now making discretionary festival purchases, consumers want the kudos that comes from having found festival goodies that no one else has.

Alipay
Chinese e-payment portal lets users gift red packets via QR Codes
During Lunar New Year in January 2012, Chinas largest e-payment platform Alipay created a virtual red packet: a digital version of the traditional festival gift of a red envelope containing money. Users set up a cash transfer of up to CNY 2,000 (USD 317) on their Alipay account, then generated a QR code that was shared via email or Weibo. To complete the transfer, the recipient scanned this code using the Alipay smartphone app.

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Convenience Culture How can you make a festival custom a truly seamless experience for Asian consumers? See how Chinese e-payment platform Alipay reinvented the Chinese festival custom of the red packet gift. Status Buys Turn your festival offering into a STATUS STORY by offering limited editions, as Italian accessories brand Tods did with a limited edition Diwalithemed bag. See SHIFTING STATUS for more on STATUS STORIES. Festival foods Are you in the food and drink sector? Innovate around an Asian festival! In 2013, Australia-based Rubicon Reserve Wines issued Lunar New Year editions of their Shiraz.

Rubicon Reserve Wines

Abundance range of Shiraz wines for Chinese New Year
In January 2013, and in celebration of the Chinese New Year, Australia-based Rubicon Reserve Wines unveiled its Abundance range of Shiraz wines, including Gong Xi Fa Cai Shiraz (Gong Xi Fa Cai is the traditional new year greeting). Intended to resonate with Chinese New Year drinking and gifting customs, the wine bottles featured a snake emblem and embossed double prosperity seal. Gift packaged to resemble a gold bar, each bottle retailed for SGD 50 (around USD 40).

Tods
Exclusive Tods bags celebrate Diwali
In November 2012, Italian accessories brand Tods unveiled its limited edition Diwali D Bag, of which only two were made. Available to buy at the brands boutique in New Delhi and made in printed silk and either orange or purple crocodile leather the bags were produced to celebrate the Hindu festival of Diwali, popularly known as the festival of lights.

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