Millennials as target market for exporters
Makers of housewares, home furnishings, as well as appliances are urged to intensify presence in the ASEAN region, and know the preference of the most powerful market group—the millennials.
The Hong Kong Trade Development Council (HKTDC) in its latest survey exploring the export potential of ASEAN markets, emphasized the importance of knowing closely the buying dynamics and preference of the young consumers, as this group is leading the pack among the high spending consumers.
The HKTDC Research identified the millennial generation as the largest demographic group in ASEAN and the most powerful consumers.
Housewares and small home appliances products are identified at the leading in-demand in ASEAN.
With 630 million consumers, ASEAN is the world's sixth largest economy.
“As growing affluence continues to translate into spending power, ASEAN consumers are moving from buying basic necessities to discretionary items,” the survey highlighted.
Along with the ongoing urbanization, the rising number of residential property developments has boosted the demand for housewares and small home appliances in the majorASEAN cities.
The survey identified home furnishings, furniture, kitchenware, tableware, and home decorative items, such as ornaments, candle holders, clay pots, vases, cushion cover, and rugs as in demand products.
The research paper explained that the rising health consciousness and urban lifestyles are also expected to stimulate spending on modern small home appliances, such as air purifiers, electric fans, electrical toothbrushes, automatic coffee machines, and cordless handstick vacuum cleaners.
While the millennial consumers are voracious spenders, they are strongly discerning, HKDTC warned.
“Engaging them [millennial] is about adapting to the evolving media landscape and reaching out through relevant content and storytelling,” it said.
“Millennials are seeking authentic, honest brands and products that match their values and attitudes and resonate with their aspirations. They do not just want a functional product, they want a product with a story,” the survey indicated.
To penetrate these selected markets, some home furnishings and accessories retailers have opened their own stores in major ASEAN cities, while others expand through franchising.
“Brands that have reasonable brand recognition, a proven business model, good revenue records, and sufficient support for franchisees can consider franchising as a means of overseas expansion,” the research paper suggested.
Apart from operating self-owned and franchised stores, it noted that routes into the ASEAN market are becoming more diverse and competitive for imported housewares and home brands.