At this point last year, we were beginning to discover how COVID-19 was impacting us and our brand choices. But in this year’s Brand Footprint, we can now see the true impact across 2020. In Asia particularly, we have witnessed a lot of changes in consumers’ daily lives and therefore, so do their behaviours.
Welcome to the third annual Asia Brand Footprint ranking, which recognises and celebrates the region's most chosen consumer brands. We are now into the second year of the COVID-19 pandemic, and the crisis continues to drive shoppers’ behaviours and the trends we see in the FMCG market.
Asian consumers are still experiencing constraints on their lives. Mobility remains restricted, which has changed where and how people shop, while financial concerns continue to influence spend. However, these constraints have not had a negative impact on every category. Being unable to travel overseas has boosted some domestic sales of brands including beauty care. Many brands in the health, personal care and household care categories have also experienced significant growth rates.
In other words, there were opportunities for growth in these exceptionally challenging circumstances. The brands in our Asia Brand Footprint 2021 ranking have successfully grasped them, enabling consumers to live good lives despite the limitations they are living under. These brands have found ways to help their consumers to feel safe, confident and happy at a very difficult time.
The trends that have come to the foreground over the last year have been in play for some time, but these have been significantly accelerated by COVID-19. The impact the pandemic has had on the consumer has accelerated the evolution of these trends.
An increased focus from physical hygiene to inner health and wellness. People are taking a more holistic view of wellness. Prevention, protection and function are important, and they are also paying attention to emotional wellbeing. Health supplements are booming as consumers are willing to spend on products that will boost their immune systems. FMCG brands have embraced this trend by targeting communications towards specific concerns, reassuring shoppers, and developing innovative products that meet new needs.
Behaviours differ by country and category therefore do not average Asia. As we predicted last year, some consumers shifted spend to value brands, while others moved to the premium end of the market. Not everyone was willing to give up luxury, and people also bought treats to give themselves a boost when they could not go out. FMCG brands excelled at showing consumers they do not need to compromise, by creating great ‘moments’ and generous promotions to encourage trading up.
Stay home economy will continue to remain important. Consumers’ desire to live better during periods of lockdown has led to tremendous growth for in-home related categories. For example, cooking brands have helped consumers to recreate their favourite dining experience by creating more sophisticated meals in their homes. Due to the constraints on out-of-home consumption, shoppers are mimicking outdoor experiences at home – for instance turning to personal care brands that have launched ‘home spa’ products enabling people to give themselves that moment of relaxation and self-care. This has given rise to consumers becoming more environmentally friendly in their product selection.
Ecommerce with continuous potential for growth. Millions more consumers have turned to ecommerce as a regular shopping channel. Users have increased in quality as well as quantity, with a rise in ‘middle aged’ shoppers who have huge spending power. Brands are using digital platforms to transform the way they sell, with livestreaming video proving highly effective as both a sales conversion point and a brand communication point. Many have introduced delivery services, to ensure they retain existing shoppers and maintain loyalty.
Shoppers have preferred to avoid crowded public places during the pandemic, feeling more comfortable visiting neighbourhood shops, convenience stores and community markets, and this has created a challenge for hypermarkets.
The 5 strategic growth levers for brands to expand their footprint remain unchanged. Finding new shoppers is key as penetration breakthroughs made today will remain for the long-term as consumers’ new habits become ingrained in their lives. Creating new occasions and identifying new needs is all about zooming in on how people’s lifestyles have changed and finding ways to become a part of them. Brands must not be afraid of reviewing their portfolio and entering new categories where they can do so in a meaningful way. When it comes to increasing presence, every brand must have an ecommerce strategy, while making their products available in the smaller stores people are favouring.
In this report you will find the ranking and overview for the Asia region, detailed profiles for each country and brand success stories. I hope you will find the shared insights impactful and valuable.
About Consumer Reach Points (CRPs)
There is a decision point in every FMCG purchase; a point at which the shopper decides to buy one brand instead of another. The Brand Footprint ranking reveals which brands are winning at that moment of truth, using the Consumer Reach Points measure. This measures a brand’s strength in terms of the number of times brands are chosen by shoppers.
The measurement is then weighted by actual population to calculate the brand’s reach. As well as a clear picture of the size of its global footprint, this reveals where the brand has opportunities to grow its penetration and its frequency.
