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ASIA BRANDFOOTPRINT2019ArankingofthemostchosenconsumerbrandsBuilding a SustainableBrand

TABLE OFCONTENTS

What‟s inside

AsiaCEOForeword AsiaMarketFeatures

• LOCAL MARKET‟S TOP 10RANKINGS

• THE STORIES AND GROWTH LEVERSBEHIND

02

Recipe for Brand Growth inAsia

38 PHILIPPINES

ASIABRANDFOOTPRINT2019 4

ASIACEOFOREWORD

ASIACEOFOREWORD

Asiaistrulywithintheageofthemi l lennials,centennials,andageingsi lvergeneration,withcountriesl ikeChinaMainland,Korea,Indonesia,andVietnamproactivelycapital izingontherevenuepotential postedbytheconsumersinthesesegments.

Whi lediverseandfragmentedwithahotpotfordifferent These are what we deem as the recipe for growthcultures, growth rates, and demands, these regions and success for brands to achieve sustainabi l ity andare often brought together bya‟few commonthemes maintain consistent growth.centered around the consumers needs.The themesrelate to health and safet

Consumers are becoming more discernin

and demands to where making a purchase is notjust about a product, but what else the brand offers, With that, it is my hope that you enjoy the inauguralincluding a complete shopping experience for them as issue of our Asia Brand Footprint and that you find theaconsumer. shared insight interesting and impactful .

5

RECIPEFORBRANDGROWTHINASIA

02

RECIPE FORBRAND

GROWTHINASIA

EVOLVING NEEDS OF THECONSUMER

EVOLVING THE SHOPPINGEXPERIENCE

EVOLVING NEEDS OF THECONSUMER

InAsia,overthelastdecadeorso,consumertrendsandfocuseshaveshifted toreflect the fol lowing three needs around health and safety, convenience,andhappiness.

H EALTH&SAFETY

Asian consumers are becoming more cautious oftheir wel lbeingamidsttheissuesandcl imatechangesthatarepurchasing choices in terms of their health benefits occurringatanalarmingrate.Forinstance,thefragmentedand their role in either circumventing diseases or in region of Asia, due to the differences in geography,supporting current healthconditions. demographics, culture, landscape, and environmentalresources,toptierorurbancitiesversuslowertierorruralThisisrelatedtotheirplaceofliving,whethertheyaffect ‟ cities are usual ly at different stages of developmentenvironmental sustainabi l ity, pol lution,and theplanets intermsoftheirconcerns,mindset,andwayofl iving.ASIABRANDFOOTPRINT2019 6

Inthissense,theconceptofhealthandsafetyisevolving at to consume and digest (softer texture and easier tostages defined by consumers in accordance to chew), such as powder mi lk, ‟soy mi lk, rice porridge,theirl ifestyle and stage of l ifeneeds. etc. . For example, Dr. Chung s Foods came out with

Vegemi l5060Soymi lkforSeniorswhi leDaesangWel l ifeIn top tier Asian cities, consumers are usual lylooking offersNewcareorPulmuone,aswel lasothersoftmadefor non-additive, high qual ity, organic, or plant- products.basedingredients,beitinthefoodorbeveragestheyconsume,personalorbeautycare,andsometimeseven Inthebeautyandpersonalcareindustry,weobserved‟ athehouseholdproductsthattheyuse. vast range of products that protect consumers skinfrom pol lut‟ion–a smal l but growing sector alongsideFor example, in China Mainland ‟s market, there is a consumersgrowingawarenessofhealthandwel lness.new conceptof paper which is“ unbleac”hedand madefrom bamboo fiber.With its bamboo raw material, This is coupled with interest towards anti-aging andthe product is considered as an eco-friendly andnon- harmfulUV ray prevention, leading to the growingpol lution product that offers a functional benefit of popularity of deep cleansing‟ oi l and micel lar water foranti-bacterialand,thus,israpidlywinningoverChinese instance. Today, consumers skincare routine is gettingconsumers. more advanced and complex. Consumers includeanadditional step to deep clean their skin,which helps toAn increasing number of mi l lennial and centennial not only remove makeup, but to strip away pol lutionconsumersarealsolookingattheoriginsorsourceofthe particles.ingredientsandproductsfromeitheranenvironmental,sustainable,orpersonalanti-agingperspective. There“fore,wearebeginnin”gtoseemore“anti-pol lution”and natural ingredients being promoted upfrontThe si lver, or aging, population of people in their 50‟s as an additional benefit in beauty products such asand beyond is also a growing network of high potential sunscreens‟,masks, serums, and moisturizers for thespenderswhoarelookingatwhethertheseproductswi l l consumers growingneedsforefficacycare.helpwithl ifeandyouthpreservationortoboostimmunitytodiseasescommonlyassociatedwitholdage. Thisalsoexplainsthegrowingconcernsagainstplasticuse and the push for biodegradable packaging,Assuch,nutritionalanddietarysupplementsthatoffer which has witnessed the use of banana leaves byglucosamine, pro-biotics and col lagen ingredients, the supermarket retai lers in Indonesia,Thai land, andlow-sugar, low-fat, and high-calcium in their food Vietnam,suchasl ikeBigC,LotteMart,Saigon Co.op,and beverage products, including dairy products, are RimpingSupermarket,andBintangSupermarket.Theseatthetopoftheirshoppingl ist.Forexample,inChina retai lerspackagefruitsandvegetablesinbananaleavesMainland alone, the market size for these shoppersis insteadofcl ingwraporplastics,whichhasresultedinanticipated to grow from USD 305 mi l l ion in 2018 to positive brand coverage across both traditional andUSD405mi l l ionby2025. socialmediaplatforms.OtherAsiancountriesl ikeChina

Mainland,Korea,Malaysia,Phi l ippines,andTaiwanareInTaiwan,KuangChuanTeaTime,knownforitsfocus alsobeginningtobanorreducesingle-useplasticbags inonqual ityandsafeorigins,launchedanewReady-to- supermarkets andstores.

Drink(RTD)productl inethatconta“ins60%freshm”i lk andless additives to ride on the health trend in the Wecanclearlyseetheemergenceandmultipl icationoffoodmarket,whi leFreshDel ightlaunchedCalcium-plus differentconceptsbehindtheHealth&Safetyumbrel laand other vitamin-enhanced mi lk products to cater to intheregion,suchasfoodsafety,nutritionalbenefits,fami l ieswithyoungchi ldrenandtheagingsi lvers. sport and exercise, environmental sustainabi l ity,pol lution,originsoftheproduct,andthewel lbeingoftheIn Korea‟s food market, products targeted at aging enduser.Wenoticetheconceptsbecominglessgenericseniors are usual ly high in protein, nutritious, and easy and more functional and specific on the benefits thatconsumers canexperience.

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RECIPEFORBRANDGROWTHINASIA

CONVENIENCE

Consumers are increasingly strapped for time and Although the si lver generation‟s current onl inepatience,especial lyyoungerpeople,thusdemanding consumption issti l l modest in most markets,asfor easy-to-use, purposeful products and packaging comparedtothemi l lennialsandcentennials,thisissetthatcanaccommodate their needs,aswel l as tochangerapidlyinmarketsl ikeChinaMainland,wherechannelsthatgivethemthefastestandeasiestaccess to mobi ledeviceownershipinurbanseniorsover60hastheseproducts. reached86.7%andtotalonl ineshoppinghasreached

41.8%in2018versus6.9%acrosstotalchannels.Additional ly, they gradual ly become accustomed topaymoreforconvenientoptionsthtsimpl ifytheirl ives. Additional ly,businessesnowincreasinglyusedigitaltechThequestional lbusinessesshouldanswerishowthey inbothmarketinganddistribution,whichenablesustocanhelptheircustomerssavetimetoenjoyl ifemore provide a personal ized experience, create retargetingandl iveabetterl ife.Wefoundamonggrowingbrands campaigns,andprovidequickeraccesstoconsumers.thattheyalwaysfindwaystoofferconsumersgreater ‟

methods, includ ing Korea-Coupang, NaverStore,An example of a convenience-oriented product is the Market Kurly, China Mainland-Taobao, Alibaba,

productsthatwi l lcreatethedesireof“Iwantitnow!”

Thankstotechnologicaladvancementsandtheincrease Thisapproachismoreefficientthanbefore,asconsumersof internet usage across the region, the l ine between chanseeanidseekoutaivarietiyofinformationoirphroducts tl ihaktonl ineandoffl ineisbecomingincreasinglyblurred. t eyare nterested n or ntend to buy wt just a c c .Manybrandsarenowmovingtoonl ineandexpanding In this area, key opinion leaders play a criticalandtheir digital presence to be able to meet consumers convenientroleonsocialmediafortheirfol lowers,wherewherevertheyareandwhenevertheywant.Therehave they share their experiences toward products and theirbeen a lot of social media campaigns and constant sboecnieaflmitse.Fdoiarienxfalumenpcle,rrseovfineewwsblayuknecyhoepsinwioitnhleraodmeorstion orcommunication frombrandstokeeptheir customers pengaged. codesanddirectl inktopurchase.

ASIABRANDFOOTPRINT2019 8

HAPPINESS

Often time, shopping is about satisfaction andin“stant wel lwithaspecialoccasiontheyhaveinmindorspecialgratif”ication, thus, consumers are looking for a feel- information associated with the product that wouldgood mental ity when they consciously„ choose one‟ encourage influencers to share it with their networkbrand over the other. Furthermore, the one fit foral l of friends and fami ly, potential ly immortal izing theconceptofmassproductionistransitioningintoonefit for product on socialmedia.one ofpersonal ization.

An example of special packaging is one that can beBrandsneedtocatertothevaryingneedsthatarisefor used as part of the occasion they are celebrating ordifferentoccasionsandpurposesandgiveinfluencersa a mention of a tie-up with a social enterprise on thecompel l ing‟reason to choose their products overtheir product packaging that they would be proud to becompetitors.Thiscanbeaspecificpackagingthatgoes associatedwithandtoshareonsocialmedia.

An outstanding case for the“happiness ima”ge is Coke. „on „Sm‟al l but„Certain Happiness‟‟and connotes „present,‟

Fol lowing its successful 2014 Share a Coke campaign, trivial, and frequent happiness„ types of cons‟umption

Coke continued to acquire great attention in 2018 from behavior.Intheircase,theyfocuson delicioushealth asnot only football fans, but from“everyone aroun”d the anidealbrandvaluemorethananythingelseintheHome Meal

“world through its World” Cup #pickyourteam and Replacement (HMR)category.shareyourscoreprediction campaign. The campaignswentviralvia‟socialmedia,whichhelpedCokestayontop of Moreover, in the beauty market,we are seeing moreconsumers minds in terms of sharing happiness and customized products that can be personalized by thehaving funtogether. consumerstomixandmatchoraservicetoprovideyouwith aprescribed formula to fit your skincare needs. Recently,

Another good example is Indomie,which has cleverly even make-up has started embracing diverse skin colors,positioned its TV and video-based ads to emphasize its types of‟finishes (look), and textures to help customize apresence throughout Indonesia, along with the multiple look‟ that s suited for certain occasions or in accordance tooccasions where one can enjoy the s“ignature taste of onespreference.

Indomie.Averygoodexampleofthisistheir DariSab”ang

Sampai Mera uke (From Sabang to Merauke) ad that Cl io in Korea, for example, successfully attracted buyers inhighl ighted the many people and many occasions for the millennial generations betw“een the ages of 15 an”d 35

Indomie across thearchipelago. in 2015,when they launched Tinted Tattoo Kill Brow andhe lpedtoexpandt heeye brow market pie,wh ichwash ig h ly

Daesang Corporat“ion”also capital ized on thegrowing niche at thattime.consumptionofthe me trendinKorea,whichfocuses

RECIPEFORBRANDGROWTHINASIA

EVOLVING THE SHOPPINGEXPERIENCEShopping has evolved over the last decade to go beyond just functionalbuying experiencesto something more meaningful and engaging.

This is partly due to the surge of distributionchannels, both onl ine and offl ine, as wel l as a Watsons–Ahealthandbeautyretai lerisalsoagoodexample tomore conscious and demanding consumer, as demonstrate the enhancement of shopping experiencespreviouslymentioned.Therefore,wealsoseemore both in-store and onl ine. The Watson store in Hong Kongretai lers and manufacturers working together util izedadvancedimagetechnologytooffercustomersaskinto create new, exciting, and unique experiences analysis service with tai lored product recomm“endation”s. Infor consumers to ensure they capital ize onevery Chin“aMai”nlandandTaiwan,theretai lerleveraged WeChatstage of consideration and avoid missing out on and Line tocreateabetteronlineandoffl ineexperience.Thisanypotentialopportunitytopromotetheirbrand, al lowsconsumerstorecommen“dandsel lWatsonspro”ductstopushtheirproducts,andincreasetheirpresencein theirsocialmediafol lowerswith WatsonsMiniStore. Italsothemarketplace. enables consumers to ma“ke mobi le pa”yments convenientlybothonlineandin-storewith WatsonsPay viaaLineaccount.The mi l lennials and„ centenn‟ials place moreemphasisonasenseof belongingandbeingpart Another i l lustration isthe development of unmanned storesof,orevenattheforefrontof,settingthetrend.In from North to Southeast Asia, led by technology/retailcontrast,theagingsi lvers,especial lyincountries giants such as Al ibaba and JD.com.These new automatedl ike Korea and Taiwan, are mor”e conscious store formats use innovations such as facial recognition,regardingbeingreferredtoas seniors a„ndwou‟ld personal ized recommendations and promotions, as wel l asbel ikelytoavoidproductswithanovertlysenior digitalpaymentsandRFIDscannerstoprovideconsumerswith abrandingandmessagingbehindit. seamless shoppingexperience.

It‟s notjust about the channels or the products Oreo also used the theory of gamification to engage theirthemselves in this case but rather the complete customers by running an Oreo DJ mixer. In„ ChinaMainland,shopping experience and being present in the they ra‟n a music bi l lboard chart contest, The DJ Mixer bymoment, be it a pop-up store, an interactive OREO, that turned any standard Oreo sandwich cookie intodisplay for instant photo-taking, or a trialbeauty amusicaldevicethatconsumerscouldenjoybyplacingtheircounter for consumers to try and share their OREOcookiesontheDJMixerturntablesandmixupover200prod ucts forfree. songcomb ination sastheytookabite.

Therefore,purposeful content is key to ensurethatconsumersfeelengaged,involved,andencouraged totry, buy, and share. Only then wi l l brands thrive TECHNOLOGY, DATA AND DIGITALinthisdigitalageofnewretai lexperie nces. CONNECTION

Examples include a tie-up between Tiffany and

ASIABRANDFOOTPRINT2019 10

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