The shift in consumer power from the West to Asia!

India, China and several South East Asian countries have brought an important shift in today’s “consumer power”. The reallocation of “trade” (cf. blogpost; “Modern trade becoming tripolar” - Fact 2, 2010) is a direct result of this shift in “consumer power” to Asia (who used to come from Europe and the US). The population of these economies is subject to rising income levels (especially China and India) giving them a growing purchasing power. Spending more on cloths, electronics, food, drinks, cars, amusement; those new “Asian” middle-upper classes are now the “spenders” and the ones to look at!

This fact also highlights how most Asian economies have sailed more efficiently through the recent economic downturn than their Western counterparts. As a result, today and in the future, your organization will have to target those new market segments to be able to succeed as a “global player” in the long term. Opportunities are appearing in all kinds of industries and there is no time to waste to go ahead (remember DragonGate can help you to quickly move in successfully…)!

For instance, lucrative opportunities appear for Fast Moving Consumer Goods companies (FMCG); i.e.: not only are the potential target markets expanding quickly, gross margins are in general higher than what they are in the west.

Though this might seem to be an “easy in” to make lots of $! Well it is not! Numbers of companies have tried, spent lots of time & money and failed! There is no secret to success, you need to plan ALL aspects of your market introduction and that is; to start by understanding your target market, the spending behaviors of rural/metropolitan consumers. China and India are so huge that you need to come up with a process and step by step approach to market your products. Develop a brand promise (customer focus) and a “brand delivery system” (system in place behind the brand to support its value proposition) to match your target market. Furthermore, scalability is key, and this is where DragonGate can help you maximizes your chances of success!

Finally, there is no doubt that China and India will be the 21^st century heavyweights. Their striving economies are supported by their current geopolitical orientations and actions that will reinforce their position in the global economy over the next century. With interests in the Middle East, Africa and South America, they are securing resources (creating partnerships) at a faster rate than any other countries.