BRAND STORIES

Benchmark for success in 2024

Benchmark for success in 2024

Setting the right targets for penetration growth means knowing where to aim depending on the size of your brand, the markets you operate in, and your category. Asia’s growing brands are today gaining a median penetration of 1.1 points per year. For a small brand, increasing by 0,5 point is a realistic benchmark, while if you’re a large brand you should be aiming for a 2.4% penetration increase.

When planning a growth strategy, we need to bear in mind that the global population keeps increasing organically every year. In 2022 the total number of people in the world rose by 1.9%, which means that brands need to attract 224,000 more households compared with the previous year just to remain at the same level of penetration. To gain 1% penetration today, a brand needs to attract 12 million new households.

It is hard work – but well worth the investment of time, budget and energy: increasing global penetration by just 1% is worth millions of dollars in revenue.

The top 15 penetration powerhouses

Quite rightly, we have put local Asian brands in the spotlight in this report, but there are a number of global powerhouses that deserve significant kudos for what they achieved during 2022.

We’ve shown that consistent brand growth can only be achieved by increasing penetration – and some brands are making this look easy. These are the 15 brands with the largest penetration gains in the APAC region. This is where the magic is happening!

Let’s take a look at the strategies of a handpicked few, to see how they’re getting things so right.