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LIVE THE GROWTH DREAM IN ASIA

Go digital to unleash $4 trillion in new consumer goods spending.

OVERVIEW

Multinational consumer packaged goods (CPG) companies are eyeing emerging markets in China, India, Indonesia, the Philippines, Vietnam and Thailand. These markets are both attractive and difficult to penetrate. Advertising reaches only half of target audiences, traditional trade dominates retail and distribution networks outside major cities are underdeveloped.

The company that reaches and engages these missed consumers, and gets their products on more shelves, will capture disproportionate growth. To succeed, CPG companies will need to rebuild their value chains based on Asian characteristics and pursue the power of digital.

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KEY FINDINGS

CPG companies need digital mindsets and approaches to turn the growth dream in emerging Asian markets into reality:

  • From mass marketing to digital. The money saved on television ad buys can be redirected to innovative digital marketing tactics such as social media marketing, gamification and augmented reality that engage consumers digitally.

  • Getting into mom and pops. While e-commerce is growing fast, most new consumer spending in Asia’s emerging markets is still with mom-and-pop outlets. To capture enough scale for sustainable growth from new consumers, a two to fivefold increase in coverage of these small stores is needed.

  • Last mile distribution ecosystem. CPG companies need to build ecosystems that reflect the unique qualities of the existing distribution systems in the country, and the area, that they are entering.

CPG companies still spend 70% or more of their media budget in Asia on television advertising.

HIGHLIGHTS

$4T in new spending and 400M first-time and upgrading consumers are up for grabs in Asia’s emerging economies

RECOMMENDATIONS

Amp up smart digital

Amp up smart digital. Get creative about using digital to put products in front of consumers. Engage in social listening, create social communities, and start consumer dialogues.

Experiment and refine constantly

Experiment and refine constantly. Analytics tools give decision makers the consumer, retailer and sales force insight for test-learn-tweak approaches, from marketing messaging to sales force evaluation and route planning.

Elevate in-house digital

Elevate in-house digital. In too many CPG companies, digital customer and retail in markets is a nights-and-weekends job. Delivering the digital transformation needed in emerging Asian markets requires much more.

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AUTHORS

CONTRIBUTORS

Harini Mohan       Connect with Harini Mohan's Profile on LinkedIn. This opens a new window.


Tim Yoon       Connect with Tim Yoon's Profile/s on LinkedIn. This opens a new window.




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