The trade bloc’s sizeable consumer base is underscored by a young workforce, some 60% of whom are aged below 35. With this favourable demographic structure, together with positive economic trends, it is expected that the average ASEAN disposable income and consumer expenditure are set to further increase in coming years.

Notably, the widespread use of the internet and social media is also having a more influential role in re-shaping the retail landscape in the ASEAN, sometimes blurring the lines between physical and virtual buying channels.

This article provides a summary of major findings of the Survey, allowing companies to have a better understanding of their potential target customers in Thailand, Malaysia, the Philippines, Indonesia and Vietnam.

ASEAN Consumer Spending On the Rise

According to Euromonitor International, annual consumer expenditure in the ASEAN will rise to US$1.92 trillion by 2020, 30% above the 2016 level of US$1.47 trillion, and this is equivalent to a healthy average annual growth of 6.8%.

Hong Kong and ASEAN countries enjoy a close trade relationship. In 2016, the ASEAN was Hong Kong’s second largest trading partner and fourth largest export market.

Among the major export destinations within the ASEAN, Thailand, Malaysia, the Philippines, Indonesia and Vietnam have caught the eyes of many Hong Kong exporters and retailers, thanks to their economic vigour, strong purchasing power, and in particular a fast expanding middle class.

To better understand the spending patterns of the middle class consumers in these five countries, including their shopping motivations and channels, as well as their receptiveness of Hong Kong’s brand products and services, HKTDC Research carried out a consumer survey (the Survey) in the second quarter of 2017 to gather first-hand information.

The Survey was conducted in the five ASEAN countries stated above, covering seven cities, namely Bangkok, Kuala Lumpur (KL), Manila, Jakarta, Surabaya, Ho Chi Minh City (HCMC) and Hanoi.

A total of 1,406 completed questionnaires were collected through face-to-face interviews. To qualify as middle-income class consumers in respective countries, all respondents had to be aged 21-60, with monthly household income no less than US$1,000, and have lived in the surveyed city for at least two years.

This article offers an overview of Survey findings, with forthcoming articles focussed on characteristics and attitudes of ASEAN consumers, their spending preferences as well as e-commerce opportunities.

ASEAN Middle Class Consumers Are Sensible Spenders

First and foremost, the Survey revealed that the ASEAN middle class allocated some 40% of their monthly income on discretionary items. In general, respondents…

Source link : 8 points to understand ASEAN 630 million Consumers Survey by Hong Kong Trade Development Council

Thailand’s first quarter growth has expanded by 5 year high of 4.8 percent, according to the country’s economic monitoring agency.

Deputy Secretary-General of the National Economic and Social Development Board, Wichayayuth Boonchit revealed that the high growth was attributed to a 3.6 percent boost in private sector consumption as a result of the government’s assistance plan for low income citizens.

Low inflation and interest rates, coupled with continued private sector investment from last year’s 4th quarter, were also contributing factors. reports Thailand’s news agency NNT

Most notably, applications for investment assistance in the Eastern Economic Corridor (EEC) have reached 165 billion baht while government investment has seen positive growth for the first time in four quarters.

Meanwhile, exports have continued to expand at a rate of 9.9 percent, approaching 61.9 billion US dollars. Increased demand due to growth in exports and private sector consumption has resulted in a 3.7 percent growth in the industrial sector due to increased demand.

The agricultural sector has also benefited from favorable weather conditions and sufficient water supply, expanding at a rate of 6.5. In addition, the tourism sector has garnered up to 573 billion baht from foreign visitors and 267 billion from domestic tourists.

The board has therefore adjusted its growth forecast for this year to 4.5 percent, up from the previous figure of 4.1, with a range of between 4.2 and 4.7 percent.

The post Thailand’s Q1 growth reaches 4.8 percent to Five-Year High appeared first on Thailand Business News.

Source link : Thailand’s Q1 growth reaches 4.8 percent to Five-Year High by Thai News ข่าวไทย

The Notification, which is effective immediately, allows 100% foreign owned, as well as foreign and local joint-venture, companies to carry out wholesale and retail trading throughout Myanmar.

This marks a significant step in the Ministry of Commerce’s efforts to open Myanmar’s economy to greater levels of foreign investment and activity and builds upon liberalization efforts that began in 2017.

Foreign companies previously faced major restrictions on trading in Myanmar. It was only in 2017 that liberalization began to occur, and foreign companies were allowed to trade in specific classes of goods that included:

• Chemical fertilizers;
• Seeds;
• Pesticides;
• Hospital equipment; and
• Construction materials.

Notification 25/2018 brings much greater liberalization for trading, although restrictions do remain. To engage in wholesale and retail trading, a 100% foreign owned company must meet the following criteria:

• If wholesale, the initial investment of goods must be a minimum of US$ 5 million
• If retail, the initial investment of goods must be a minimum of US$ 3 million

A local and foreign joint venture company must also meet investment criteria to carry out wholesale and retail trading. For joint ventures, the companies local share percentage must be a minimum of 20%.

If the local share percentage is less than 20%, than the company would be considered a foreign owned company and therefore must adhere to the rules listed above. In addition to having a minimum of 20% local ownership, joint ventures must also meet the following criteria:

• If wholesale trading, the initial investment of goods must be a minimum of US$ 2 million
• If retail trading, the initial investment of goods must be a minimum of US$ 700,000

All investment amounts exclude land rent. If a company meets these criteria, it can then apply for a Retail and Wholesale Registration Certificate.  Existing restrictions on trading prohibited goods established in laws, notifications and regulations remain in place.

The announcement of Notification 25/2018 will have profound effects on Myanmar’s economy. Foreign companies will now be able to engage freely in trade allowing for more products to enter the market and reducing the cost of goods to customers.

The ability of foreign companies to import directly will also allow companies to retain inventory in Myanmar, and reduce costs and delays previously associated with importing products for manufacturing and distribution.

There does remain questions as to how the notification will be implemented, including if the government may still use its authority to impose ad hoc restrictions on foreign trade and how companies will navigate the bureaucratic system of Retail and Wholesale Registration…

Source link : Myanmar Allows Wholesale and Retail Trading for Foreign Companies by Akanksha Singh

Companies today are seeking to find a good balance between employee engagement and organizational strategies that work together to achieve smart goals and objectives.

A significant factor for success is a company culture that aligns with business strategies.

Culture, in this sense, is not just about congenial work environments, but also an organizational structure which incorporates the right harmony between employees and company mindset.

Recent studies have shown that company leadership that feels its culture and business goals are aligned also has higher profit margins.

Reporting participants indicated profit margins more than double, from 4.8% to 11.5%, when culture lines up with strategy.

Organizational Structure Takes A Variety of Forms

The first step in coordinating culture with business objectives is deciding what type of environment a company wants to build. Depending on the goal, companies can then put strategies into place that support the cultural ideal. Each type attracts its own adherents among leadership and staff, and a company can certainly have overlaps.

Innovation

An company striving for a culture of innovation needs to include a business strategy that uses new ideas to keep ahead of the competition.

Meanwhile, the overall culture should aim to encourage diversity in approach and support risk-taking. Leadership should keep its eye on future priorities and encourage its staff to explore.

Efficiency

The business strategy for a brand focused on efficiency should strive to be a well-oiled business machine that focuses on delivering quality services and products. It’s often data-driven, with clear lines of responsibilities.

The culture aspirations should be to make staff training a priority. Workload and assignments are optimized for definitive performance measurement.

Custom Service

• Business Strategy: A customer-focused firm that produces high levels of satisfaction in products, services, and customer response among clients.
• Culture: Team building and information sharing to achieve satisfied customers. Provide deep understanding of products and services to address client desires and goals.

Quality

• Business Strategy: A company that centers on best practices, services, and materials to produce in-demand products and services.
• Culture: Localized decision-making that improves products and processes. Keen attention to data-driven analytics in order to refine and deliver best products and services to clients.

Branding

• Business Strategy: A firm that has a strong brand identity and takes that into consideration with all its strategies.
• Culture: Reputational awareness that drives pride in products and services. How the company is perceived is as important as the products and…

Source link : Double Your Profit Margins by Aligning Culture and Strategy by Rae Steinbach

Thailand’s economy has recovered strongly in the first quarter of 2018 supported by healthy growths in the export and tourism sector.

Exports in the first three months have jumped up 11.3 percent year on year, representing a seven-year high and it remains a driving force of the economy this year, said Pornpen Sodsrichai, director of macro economy department of Bank of Thailand.

The merchandise exports reached 22.363 billion U.S. dollars for March 2018, said Pornpen, adding that despite a high 2017 base, the value of March exports was driven by steady economic growth seen in Thailand’s trade partners.

According to a Press Release on the Economic and Monetary Conditions for March and the first quarter of 2018

Overall economic activity in the first quarter of 2018 continued to expand from the previous quarter, driven mainly by the solid growth momentum of merchandise exports and tourism sector. Private consumption continued to improve from spending in all categories, consistent with the expansion of manufacturing production in both domestic and export-related.

Details of the economic conditions are as follows:

Exports expand 6.3%

The value of merchandise exports continued to expand with a growth of 6.3 percent compared
to the same period last year.

Excluding gold, the value of merchandise export grew by 6.7 percent, and expanded in most product groups. The expansion was on the back of:

(1) continued improvement in external demands for products such as chemical and petrochemical products, automotive and parts,electronic products especially air conditioners, mobile phones, and integrated circuit (IC);
(2) continued increase in crude oil prices which contributed to the increase in exports of petroleum related
products
(3) increase in exports from industries which recently expanded their production capacity contributed to the increase in exports of hard disk drives (HDD).

However, export value of agricultural products contracted, due mainly to the decline in rubber prices and production, as a result of the high base effect from last year’s flood in the Southern provinces, coupled with the measures from the International Tripartite Rubber Council (ITRC) restricting export quota

Tourists arrivals up 16.3%

The number of foreign tourist arrivals registered a 16.3 percent annual growth and continued to expand for almost all nationalities, especially Chinese tourists, consistent with the opening of new airline routes from China’s secondary cities to Thailand.

Private consumption indicators expanded from the same period last year in almost all categories, except semi-durable goods which slightly contracted after having accelerated growth in earlier periods.

Public spending, excluding transfers,…

Source link : Thailand’s economy remained strong in Q1 2018 by Olivier Languepin

According to the latest survey by the University of the Thai Chamber of Commerce (UTCC) based on 1,194 respondents whose income is lower than 15,000 baht per month, 96% of them were in debt.

The survey estimated average debt per household at 137,988 baht, the highest level in 10 years, up by almost 5% from 2017.

Default rate up to 85%

Some 85.4% of respondents have defaulted on debt repayments in the past 12 months, mostly because of lower income, higher expenses, rising product prices, and a higher debt burden and interest rates.

According to an infographic published by the Bangkok Post, up to 34% of the current household debt of poor families is still managed by the informal sector (known as loan sharks) with interest rates as high as 20% per month.

Laborers with wages under 15,000 baht a month are showing the highest rate of debt in 10 years according to a survey conducted by The University of the Thai Chamber of Commerce’s Economic and Business Forecasting Center.

Average debt of 138,000 baht up 5%

Of the 1,194 people questioned, as many as 96 percent said they have debts, the highest figure in 10 years. The average household debt for respondents was gauged at 137,988 baht, up 4.9 percent on-year with most having to make a monthly payment on average of 5,326 baht.

The post Thai workers debt hits 10 years high appeared first on Thailand Business News.

Source link : Thai workers debt hits 10 years high by Changyong Rhee

A quick glance at Thailand news and the online publication “Thailand Business News” tells the tale of the growth taking place in the Thai economy.

The World Bank projects that growth prospects for 2017 and 2018 remain positive for developing east Asia and the Pacific

Favourable external factors include stronger growth in advanced economies, a moderate recovery in commodity prices, and a strengthening of global trade growth.

In Thailand Business News we get a picture of the financial trends and forecasts taking place in Asia. Currently, healthcare challenges are expected due to demographics shifts and lifestyle changes.

Thailand and Malaysia are expected to grow more rapidly than expected, due to stronger exports and tourism for the former, and increased investment in the latter.

Disparity in gender pay schedules is under the microscope and on a more positive note, the e-sports market is rising quickly.

Asian sports betting

With the rise of e-sports, comes an entire thriving industry of sports betting. Popular online betting companies such as Betway, are helping to boost the economy through a give and take system that puts funding back into the community.

Most online e-sports betting companies make an effort to revitalize sports clubs and support them with generous donations when business is up.

Gender pay differences

The media reports that there is a lack of gender parity when it comes to leadership positions in Asia. A random survey showed that most of the general public believe that this is unintentional.

Asia is seeing a movement of men who are jumping on the bandwagon to tailor programs to combat the issue of gender inequality. This is a positive step that could offer far reaching benefits for women in the workplace.

Asia facing potential financial crisis over healthcare

“Thailand Business News” reports that there is an emerging shift in demographics and lifestyle that could necessitate a $320 billion healthcare challenge by the year 2025. Projections are based on a growing trend in obesity rates.

Poor eating habits pose a significant threat to the health of the people in Thailand, Singapore, Indonesia, Philippines, Vietnam and Malaysia. The estimated cost increase is expected to total $740 billion in USD, up from the current cost of $420 billion.

Thailand news is a mixed bag of financial ups and downs

The picture we’re getting is not totally bleak. Although the eight nations of Asia will face some serious challenges in funding healthcare for a higher population that has a rising trend in unhealthy lifestyle choices, there are more positive things happening that could help avert a crisis.

On a…

Source link : Analysing Thailand News With a Business Perspective by Pr News

Just a few years ago competitive gaming was the kind of hobby that gaming purists kept very much to themselves, often conducted locally and with next to no media exposure.

The rise of e-sports – led by East and Southern Asian countries – has completely turned that on its head, with a global turnover rapidly nearing $1bn.

Compared to more traditional sports that may sound comparative pennies, but the fact is that nobody can deny the near certain probability that e-sports is going to continue to grow in value enormously.

With Betway88 now available in Thailand and rumored to be looking to enhance their e-sports betting options, let’s take a look at why this phenomenon is here to stay.

An Enormous Audience Willing To Spend

As mentioned above, e-sports has only been on the scene for at best a few years and already it has attracted a huge following.

Thanks to a combination of widespread internet streaming and gaming becoming an ever more mainstream hobby, it is estimated that Asia has somewhere between 20-25 million active fans watching competitive online gaming, with around 150 million active participants (those who play for kicks, not professionally).

Assuming current trends continue, that figure is only going to keep growing. Currently, the annual growth rate is an astonishing 38%!

Interestingly, and especially appealing for advertisers and broadcasting companies, the demographic isn’t what many people would assume.

Studies have suggested a strong female following, and that these aren’t just bored teenagers watching for tips on how to get better at popular games such as League of Legends or Overwatch.

A good proportion is in the 18-30-year-old bracket, with disposable incomes that they are willing to spend towards following their e-sports hobby.

E-sports Is Going Mainstream

Key to maintaining this staggering growth in revenue is of course media exposure. Asia is setting an example of how e-sports is becoming ever more integrated with what we may term the ‘established’ sporting scene.

One notable and much-quoted example is that across the region 20.4 million people tuned in to the NBA finals, whereas 33 million watched the 2017 League of Legends World Cup.

Asian sports networks have already launched regular coverage of the big name competitions because of these audience figures, which of course are also supported by an enormous amount of user-generated online content.

The 2020 Hangzhou Asian Games are going to set a landmark by including E-sports competitors among the list of competitors.

In 2022, e-sports is scheduled to be included in that year’s games. Thailand is so determined to make e-sports work that they’re building a dedicated e-sports Arena, which is set to be a world-leading venue for…

Source link : E-sports Is Here To Stay In Asia by Pr News