Asean: retail’s new frontier?

Asean’s middle-class population is now estimated at 150 million – and still growing fast.

According to Daniel Poon, principal economist at Hong Kong Trade Development Council, the region’s middle class will be a driving force in the development of consumer markets and organised retail channels.

Southeast Asia’s biggest economy is Indonesia. It has an expanding middle-income class and a young population, together with increasing domestic consumption.

Dickson Ho, also a principal economist at Hong Kong Trade Development Council, said Indonesian consumer spending on non-food items has been fast expanding in recent years.

“Particularly for such non-essential items as home appliances, jewellery and timepieces, the rates of spending growth are much higher than Asean averages,” he said.

Meanwhile, the rise of Malaysia’s middle class has expanded the country’s domestic retail market. Demand is strongest for mid-to-upmarket products, including clothing, gifts, jewellery and timepieces, as well as electronics and personal-care products.

Both Poon and Ho encourage Hong Kong companies to target Indonesia and Malaysia as both countries offers considerable opportunities.

They believe Hong Kong’s well-designed products and excellent services are a natural fit with Indonesia’s and Malaysia’s mid-to-high income class and its booming retail industries.

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