‘Experience Economy’ is one of the key drivers in the fast moving consumer goods (FMCG) consumption in the Asia-Pacific (APAC) region. Therefore, brands are making efforts to upscale their products and create ‘consumption experiences’ to engage new consumers, says GlobalData, a leading data and analytics company.
GlobalData’s 2018 Q4 Consumer Survey reveals that 39% consumers in APAC are influenced by the ‘uniqueness’ of a product.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “In a scenario of evolving consumer behavior and information-driven environment, brands need to focus on such key themes to quickly respond and realign their strategies to ride the next wave of growth.”
According to GlobalData’s report, ‘TrendSights Analysis 2019: Experience Economy – Meeting demand for immersive experiences beyond material product consumption’, experience economy is in the growth stage of its trend lifecycle in APAC and offers significant growth opportunities for most FMCG brands.
Categories such as non-alcoholic drinks are emerging as a growth area based on the appeal of such beverages as socially acceptable and credible alcohol alternatives. Unusual ingredients and refined packaging are drawing consumer attention in new consumption settings.
Sachdeva continues: “The experience-driven consumers are often motivated by curiosity and experimentation, and they prioritize experiences rather than basic material. ‘Experience Economy’ is shaped by a number of factors ranging from one-dimensional shopping experience, shift in consumer attitude and premiumization for the rise of social media.”
The concept of consuming experiences is becoming a more universal demand at all price points, reflecting an evolution in what consumers want and expect, what gives them satisfaction, and how they see their relationship with brands and products.
GlobalData reveals that APAC millennials are the main drivers of experience-consumption as they place a heavy emphasis on experience and sharing, and are less inclined to spend money on things that possess no real value. However, boomers and the silent generation tend to be less driven by enjoyment or uniqueness in categories such as food, personal, and household care.
Sachdeva concludes: “In APAC, experience economy reflects the shift away from standardized shopping experiences and towards personalization and immersion. Some products such as artisanal food and alcoholic beverages are underpinned by a heavy premium element that rests on the quality of service and expertise supplied by specialist shops. Consumers, particularly those with fewer constraints on their income, are willing to spend more for an immersive consumption experience.”