Master the 2023 APAC Tech & Durables marketplace



Unlock regional growth opportunities for the Tech & Durables industry and retail

Asia Pacific (APAC) is a unique region in many ways, not least due to the wide economic, cultural, and political diversity found amongst its 4.3 billion people and 45 countries. Its response to the shocks of COVID-19, the Ukrainian war, and rising inflation levels have been atypical, with some countries feeling the economic impact more deeply, while others have prospered. 

As a whole, APAC is notable for its favorable economic forecast for 2023. While some other regions head toward recession, GDP growth predictions for APAC have evolved from 3.5% in October 2022 to 4.8%  in April 2023. This brightening in the region’s prospects is largely driven by China as it moves away from its “Dynamic COVID-zero” strategy and reopens its import- and export hubs. Other developing economies are also set to play key roles, especially India, where GDP is predicted to rise by 6.4% this year thanks to healthy domestic demand. 

  • “Asia Pacific, which produces 35% of world GDP, will dominate global growth in 2023, supported by regional free-trade agreements, efficient supply chains, and competitive costs.”
    S&P Global Market Intelligence

The current climate certainly indicates exciting growth opportunities for Tech & Durables (T&D) manufacturers and retailers looking to enter or expand into APAC markets. Yet with every opportunity comes a risk – a fact exacerbated by some of the more striking dichotomies between the emerging and developed economies, and within individual APAC countries. 

In this report, we provide expert consumer and market analysis, backed by local insights and data science, to enable T&D retailers and manufacturers mitigate risks and maximize growth opportunities in the APAC region in 2023. 

2023 market influences: What will dominate APAC this year?

The biggest factors in the global polycrisis — the lingering COVID-19 pandemic disruptions, the war in Ukraine, climate change, the surge in inflation levels and corresponding cost of living challenges — have had a range of impacts on the APAC marketplace and consumer behaviors. At the same time, the region has its own geopolitical and socioeconomic influences in play. Some of these global and localized effects will be long-lasting, while others are short-lived. 

Let’s take a closer look at some of the specific impacts, how these have influenced the T&D marketplace and what we can expect during 2023. 

A mixed response to rising inflation

However, the different circumstances of each country and the responses of individual governments have created some diverse scenarios – some more positive than others. 

For example, one of the main impacts in India has been the shortage of car parts, which are essential to the continued growth of the country’s automotive industry. Otherwise, the effects have proved to be more manageable. Inflation, which rose to 6% in 2022 — the highest in the APAC region — is expected to decline to 5.2% in the 2023–2024 fiscal year. Household spending is surpassing pre-COVID levels and the economy is set to be one of the fastest-growing in Asia in 2023. This bodes well for the Indian T&D marketplace, where Technical Consumer Goods (TCG) grew by 31% year-on-year in Q4 2022. 

However, the impact of high business loan rates of 10 to 14% (compared to 5 to 6% in China and Vietnam), could have hindered T&D brands looking to enter the market. This has been partly offset by Free Trade Agreements that have reduced import costs. 


Beyond India, here’s how governments and the market are reacting to inflation in a few key markets:

  • China Mainland — 3.8 trillion yuan’s worth of pro-growth measures have been introduced to stabilize prices and the supply of daily essentials and bulk commodities. These include import-export tax cuts for some businesses.  
  • Taiwan — a forthcoming tax rebate is expected to boost consumer spending, while cuts to the interest rates are designed to reinvigorate the housing market. As more people buy properties or move house, there will be a knock-on effect for the Taiwanese T&D market, especially for MDA products such as refrigerators and washing machines, as consumers kit out their new homes. 
  • South Korea — high inflation, combined with a rise in the US Federal Bank interest rate, has greatly decelerated the housing market, with a consequent heavy impact on MDA sales. At the same time, China’s strict zero-COVID, combined with the war in Ukraine, hit consumer confidence levels hard in 2022. Although confidence levels have started to recover. 
  • Japan — demand for durable goods has dropped since the height of the COVID pandemic. Lowered demand coincides with soaring energy prices and the sharp depreciation of the yen, which has further increased the cost of goods. These factors have contributed to a drop in consumer spending that saw the domestic home appliance market fall 2.3% year-on-year to 7.10 trillion yen in 2022 

Additionally, several markets, including Taiwan, South Korea, Japan, and South Korea, are offering incentives to consumers buying energy-efficient products, which is helping to lift T&D sales in relevant categories. This is complemented by growing consumer awareness around sustainability and ESG as brand values, which we will examine later as a key opportunity for new market entrants.  

  • Due to the discrepancies in economic situations and the speed of change, both established and new T&D businesses must keep taking the socioeconomic and geopolitical temperature in every market they are looking at entering or expanding into. Local knowledge and insights around inflation and consumer spending, government policies and initiatives, and the state of tensions between countries, will be critical to success.”
    Bernard Kim
    gfkconsult Regional Lead APAC

Internet sales continue to grow post-COVID

More and more APAC consumers are heading online to buy T&D products. This represents an overall shift in purchasing behavior. While some APAC countries already had significant e-commerce penetration pre-COVID, others were still focused on offline channels.  
But when the pandemic swept the globe and stores went into lockdown, APAC consumers turned en masse to e-commerce. By the end of 2020, 82% of APAC consumers had become omnishoppers — greatly accelerating the digital growth already underway in the region.
For the T&D sector, this meant a flood of online sales in product ranges — including SDAs, TVs, gaming consoles, tablets, and laptops — as people sought to work, entertain themselves, and cook for their families at home. 

Now that COVID-19 restrictions have eased, most APAC markets are still experiencing growth in digital sales. Notable examples include:   

  • South Korea — in South Korea, 59.7% of T&D products were sold online in 2022 compared to 45% in 2019. 
  • Taiwan — 40% of both SDA and IT sales now take place on digital channels.
  • Japan — online sales of T&D products grew by 20.4% in 2022. In the same year, 46% of consumers used only physical stores to research and purchase consumer electronics, revealing that brick-and-mortar shopping remains strong in Japan.
The rise of online shopping means that harnessing and optimizing the power of digital sales is a ‘must do’ for all T&D businesses in APAC in 2023. However, this does not mean that offline channels can be ignored or deprioritized. They still have an indispensable role to play in today’s omnichannel customer journey and offer invaluable experiential opportunities that should be leveraged for success. This will be examined later in the report, when exploring growth opportunities for established regional players.  

Innovation is needed to drive premium

Further to the explosion of sales during the pandemic in 2020 and 2021, the global T&D market slumped in 2022. This year, with a typical three-year product replacement cycle, many consumers would normally be getting ready to replace or upgrade products bought during the lockdown. However, with rising prices and the squeeze on household incomes caused by inflation, many APAC consumers are keeping T&D products for longer and only replacing them when strictly necessary. 
These problems are compounded by a lack of innovation in some categories. This issue can be understood by looking at the Taiwanese market. In Taiwan, the IT and telecoms categories saw good sales in 2020 and 2021. Since then, sales in these categories have fallen by 10–15%. According to Winnie Kung, Commercial Director, Taiwan at GfK, this is partly because there are not enough new and interesting products on the market to encourage people to splash out.
  • The decline in innovation could itself be a response to slowed demand, as consumers who bought during the height of COVID-19 hold off on purchases for as long as they can. This discourages brands from investing in innovation. Meanwhile, purchase-shy consumers could be convinced to invest in something extraordinary, setting up a feedback loop that can only be broken by bold brands who continue to innovate despite the slowdown.”
    Sagar Tamang
    APAC CSM and Retail Lead, GfK

Under these challenging market conditions, how can T&D brands seek to drive premium pricing when it is difficult to get consumers to buy at all? Winnie Kung has an answer.

  • Like most APAC markets, prices for home appliances and consumer electronics in Taiwan are increasing. The trend for consumers only buying non-essential products when they need them has been around for about five years, pre-dating COVID-19.

    What we’re finding is that, while consumers are buying less often, they are taking more care with their purchases. They want their appliances and digital tech products to last for longer and be reliable. Where a product has superior features or functionality or is simply higher quality than lower-cost alternatives, consumers are willing to pay more. T&D manufacturers should therefore be looking to innovate with high quality, long-lasting products that justify premium pricing in the consumer’s eyes.”
    Winnie Kung
    Commercial Director Taiwan, GfK

Spotlight on Taiwan



The same principle applies in other APAC markets, especially those where tech-savvy consumers are quick to jump on the latest innovations. For example, sales of premium microwave ovens in South Korea have soared by double digits in recent months, with a +10–13% increase in sales in Q1 2023 compared to 2022, totaling more than US$500M. Meanwhile, mid-range hot beverage makers are showing a similar trend, also due to new features being introduced.  

This proves the case for innovation. Despite the overall decreasing market, the premium segment proved to be one of the growth areas for T&D in South Korea right now, as the overall electronics market declined year-on-year in Q1 2023.  

The APAC consumer in 2023

As is the case in other regions, the APAC consumer in 2023 is not the same consumer as in 2019. What is more, the buyers that companies adapted to serve during the pandemic may not be the same ones who will make them profitable in the future. 

Changes in outlook, lifestyle, budgets, and values — many of them influenced or accelerated by the global polycrisis — have created a new breed of APAC consumers with a new set of priorities. Let’s examine some of the key trends for 2023. 

A focus on health, fitness, and wellness

The COVID-19 pandemic has re-emphasized the importance to APAC consumers of health, fitness, and wellness. While pandemic awareness has always ranked fairly highly in the region compared to global consumers’ personal concerns, it skyrocketed to being the #1 concern for APAC consumers in 2021. Data from the GfK Consumer Life Global 2022 reports indicate it still topped the list in 2022 for APAC as well as the rest of the world. 

Today’s APAC consumer actively shops for products that will make them fitter and healthier, and which helps them and their families feel more comfortable at home. For T&D, this means a strong interest in products such as air purifiers and dehumidifiers, plus ‘healthy eating’ cooking appliances like air fryers. Categories such as wearable fitness trackers and smartwatches have also seen rising sales — with demand for features such as Blood Oxygen- (+14%), ECG- (+12%) and Blood Pressure (+3%) sensors seeing rapid growth.

Take Japan as an example. While total mobile phone sales declined by 11% in 2022, the wearable devices segment grew 14% year-on-year to 3.8 million units. Fitness trackers, which accounted for just under 30% of the wearable devices market in 2022, also achieved significant growth with volumes rising 43% year-on-year. The demand for wearable devices that enable easy management of health information is expected to continue to grow throughout 2023 (source: GfK 2022 Consumer Electronics Market Report).  

The growing trend for healthy eating, combined with an appetite for trying new, Western-inspired food preparation techniques acquired during lockdown, has also boosted kitchen appliance sales. APAC’s air fryer market, for example, stood at USD 740.02 million in 2022 and is expected to grow at a CAGR of 12%. Meanwhile, the forecast global decline in electric juicer sales from 2022 to 2027 will be mitigated by APAC markets, which will account for 41% of growth during this period. 

There is a clear opportunity for T&D brands offering health, fitness, or wellness-related benefits to drive both volume and premium in APAC this year. 

The return of personal grooming

COVID-19 caused a worldwide slump in the personal grooming appliance market, with sales of everything from electric shavers to curling irons declining as everyone stayed at home. Even as restrictions began to ease, market recovery was slow due to the lingering preference of working from home and ongoing concerns around social mixing. 

This year, however, more employees are returning to the office and socializing is returning to pre-pandemic levels. The sector is enjoying a jump in sales as a result. The global personal care appliances market is expected to grow from USD 19.31 billion in 2022 to USD 24.2 billion in 2026, a CAGR of 5.9%.  

Within APAC, the market for hair care appliances alone is predicted to surge by 6.3% in the next five years, achieving sales of USD 7,787.5 million by 2028.  

Smart homes are sought after

Digital solutions are becoming an integral part of life for the global consumer, where 76% say their everyday lives and activities depend on technology. The digitally mature APAC consumer, comfortable with this integration, is driving a demand for Smart Home modifications faster than their global peers. China and India lead the way in smart home activity with an average of 3.8 devices in the home (China highest at 4.1), vs. global at 3.5, according to GfK Consumer Life 2023 data. Furthermore, 1/3 of respondents in China claim to use 5+ items in the home, vs. 27% globally.

Along with the growing demand in core wearables (for example smartwatches with fitness tracking capabilities), smart features in appliances are increasingly sought after. Despite the overall cooldown, the market share for smart vacuum cleaners, TVs, washing machines, cooling and air conditioning has shown a steady increase between January 2019 and March 2023.  

Busy APAC consumers are prepared to pay more for products which make their lives easier. In the smart connect ecosystem, this means consumers are investing in Smart App- and Voice Control features that make controlling their Smart Home efficient and seamless.  

Price is not always the main driver

Despite rising pressure on household incomes, price is not always the defining factor for today’s APAC consumer. We have already seen that shoppers are willing to pay more when non-essential items need replacing. However, there are other factors at play, too, that T&D brands must bear in mind when developing new product ranges for the region.

One trend observed across multiple APAC countries is the increasing importance of product design and functionality. As discussed above with smart feature and smart home trends, consumers want — and will pay a premium for — items that look good in their homes and offer a wealth of useful, time-saving, or innovative functions and features. Just launching an existing product in the latest ‘hot’ colors could have a big impact on sales in markets such as Taiwan and South Korea. 

Sagar Tamang, APAC CSM & Retail Lead at GfK, explains how T&D companies can take advantage of consumers’ dual preoccupations with form and function.

  • People want innovative, multi-functional products that combine style, comfort, and convenience. A very simple example is T&D brands looking to sell dishwashers to rice-eating nations. A steam-clean function, which may not be needed elsewhere, is indispensable for consumers in these countries.

    When it comes to design and color, manufacturers must have their finger on the button. Trends come and go very quickly, especially among Gen Z and Millennial consumers. There must be constant product innovation and modification to keep pace with the needs of different markets. This is where GfK’s weekly POS data and specialized local and regional knowledge really come into play.”
    Sagar Tamang
    APAC CSM & Retail Lead at GfK

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Opportunities for established players in APAC

Sales in some T&D categories are still not back to pre-pandemic levels in APAC. Geopolitical and socioeconomic factors continue to knock consumer confidence in some countries and move focus away from non-essential spending – lengthening the product replacement cycle as a result. 

Nevertheless, the general outlook for the APAC economy is buoyant, and there are multiple opportunities for established T&D brands to grow their presence in the region and move into new categories in 2023. 

Expand into emerging economies

The middle-class population is growing fast in many APAC countries, especially those with developing economies such as China, India, Thailand, and Vietnam. As disposable incomes rise, middle-class consumers have more money to spend on non-essentials such as T&D products. And with the lifting of lockdown restrictions, they are able to eat out and socialize again.  

One category that is growing especially fast in response to both these trends is automatic coffee machines (both domestic models and commercial machines used in coffee shops). This creates an opportunity for established T&D brands to expand their SDA presence in emerging economies. 

A second key factor is the rapid digital transformation and technology adoption taking place, fired by necessity during the pandemic and continuing today. In 2022, just 44% of APAC consumers had access to mobile broadband services, most of whom lived in developed economies. By 2025, the mobile economy is set to explode across the region, as can be seen below, opening up new IT and telecom markets for T&D brands already trading successfully in developed APAC countries. 


Use offline channels to grow high-ticket sales

While APAC consumers are increasingly using the internet to research T&D brands and products before buying, there is still a strong tendency towards visiting a physical store to purchase premium items, especially MDA products. Many consumers also rely on in-store staff to conduct initial or further research, and to ask their opinions and advice about products before buying. 
There are multiple reasons for this. One is that, as noted above, consumers are buying high-ticket items less often, but are spending more when they do purchase. They are therefore keen to get the best quality, longevity, and functionality for their money. To achieve this, there is no better option than viewing the product in-store, where it can be physically showcased and demonstrated by a member of staff. 
Japan, which has a larger sales force of mass retailers than most other countries combined with a strong orientation towards premium, is a great example.
  • Consumers of all ages are spending longer researching T&D products before they buy, both online and in-store. High-priced items sell well in Japan, but there is intense competition among brands and retailers.

    To succeed in the premium segment and MDA category, retailers and manufacturers must physically showcase their products in-store to maximize desirability. That means training staff to demonstrate functions and clearly explain features and benefits, as personal advice and recommendations are still very important to today’s consumer. Stores should double as showrooms, where customers can take their time to explore, research and compare products before deciding to buy.”
    Naoko Odaka
    Director Consumer Technology, GfK Japan

Drive customer loyalty (and premium) by adding value

Leading on from the above point, T&D brands need to place increasing emphasis on providing a great customer experience, both pre- and post-sale. Optimizing the in-store offering is a key part of this approach, as is making product and brand information easily accessible online using the best channels for the target audience. Taking steps that add value to key touchpoints in the customer journey is also a must. 

  • For T&D brands to stand out in the marketplace, they need to provide a distinctive experience that makes the customer feel valued. That means moving beyond a mere transactional relationship and engaging with consumers on an emotional level that resonates with the individual.

    Offering added value pre- and post-purchase services – both for online and physical sales – is a powerful way to generate loyalty and secure repeat business. The best offers will clearly demonstrate the retailer or manufacturer’s willingness to ‘go the extra mile’ to make life easier and more comfortable for the customer, such as offering free one-day delivery on premium MDA products.

    As a result of such initiatives, companies can not only increase their prices without affecting sales, but also benefit from satisfied customers advocating their brands to friends, family and followers.”
    Mohit Bhalla
    Commercial Director. GfK India

Case study: Mobile phone retailer, India

A mobile phone retailer based in South India has successfully increased their market share by devising a set of offers with strong appeal for its customer base.  

The first is a ‘price drop guarantee,’ where the retailer will refund the difference if the standard market price of a handset decreases within one month of purchase. Secondly, the retailer will refund the cost of taking out insurance if the customer does not make a claim within 12 months of buying their new phone. 

Of course, the retailer could potentially be out of pocket by offering these services. However, from the consumer’s viewpoint, there is nothing to lose by purchasing a phone from them in the first place, or paying extra for insurance.  

The retailer has created a post-sale relationship with the customer, based on perceptions of trust and value. This makes them more likely to come back in the future and recommend the retailer to others. 

A crucial element of devising the right pre- and post- sale services is to understand what consumers want from T&D brands. Customer satisfaction surveys and closely monitoring in-store and online experiences from the consumer’s viewpoint (for example, through mystery shopping activities) will be critical, as will ongoing analysis of granular sales data and consumer / market insights. 

Three keys for new entrants to the market

While interest in international brands is growing, many APAC consumers remain loyal to the domestic brands they know and love. Competition can be intense, especially in the developed economies. However, there are definite gaps in the market to be leveraged by new players with innovative product ranges that reflect the latest consumer values and buying preferences. 

Here are three action points for new T&D retailers and manufacturers looking to maximize their chances of success in 2023. 

Target markets where domestic brands are losing favor

In some APAC countries, there is a noticeable swing away from domestic T&D brands as consumers become more interested in international brands. For example, in Japan, while there still is a strong emotional attachment towards national brands, price-sensitive consumers are becoming more open to new, non-Japanese T&D players. Similarly in Taiwan, the last five years have seen overseas brands becoming more popular, especially European products.  
  • The opportunity for international T&D brands is expanding in both developed and emerging economies in APAC. Some markets are more difficult to enter than others; for example, strict safety regulations and strong domestic brands make the Japanese MDA category a tough nut to crack.

    Elsewhere, there are gaps in the market that are waiting to be filled as post-COVID consumers look for new and interesting brands they can show off to their friends now that lockdown restrictions have ended. We are therefore seeing a rise in demand for international T&D brands, across the MDA, SDA and entertainment categories in particular.”
    Naoko Odaka
    Director Consumer Technology, GfK Japan
Two key exceptions to this trend are China, where the proportion of domestic brand sales is expected to increase for various reasons, and South Korea, where most T&D categories are dominated by Samsung and LG. However, other players may still have a chance to find a way to enter the market by leveraging the right channel strategy, including e-commerce platforms, and providing the features that Korean and Chinese buyers prefer. 

Adopt a ‘digital first’ strategy

We have seen that offline channels are still of huge importance in many APAC markets, especially when targeting the premium sector and MDA category. However, it is hard for new T&D brands to gain leverage due to the strong offline presence of established brands. Starting with online channels is often the best strategy, whether or not an offline presence is part of the longer-term agenda, especially when targeting the younger generations. 
  • India is one of the youngest countries in the world, with an average age of 28 or 29. Gen Z and Millennial consumers are rocking digital penetration right now, so T&D brands looking to break into the Indian market must take a ‘digital first’ approach. This is especially important for entry-level product ranges. Firstly, because younger consumers often have lower spending power and secondly, because all age groups are more likely to buy cheaper items online than in-store.”
    Mohit Bhalla
    Commercial Director, GfK India

Winnie Kung agrees:

  • The same principle applies in Taiwan. New T&D brands must invest in Internet sales, which account for 40% of the market in some categories such as IT and SDA. As social media is of growing importance to Gen Z and Millennial consumers, advertising on platforms including YouTube should form a key part of the brand’s growth strategy. TV streaming services such as Netflix and Amazon Prime should also be targeted. Live sales events – which can be streamed online from retailers’ showrooms – are a great tool for pushing impulse sales.”
    Winnie Kung
    Commercial Director, GfK Taiwan

Even for categories such as MDA, where more products tend to be bought offline in APAC, online advertising still needs to play a major role in the marketing mix. Consumers of all age groups will research big-ticket products online before making a purchase in-store, especially on social networking sites.  

Excluding China, APAC consumers aged 16 to 64 mostly use Facebook (87%) and Instagram (81%) to research brands. TikTok lags behind at 29% but is growing fast – making it the platform to watch for new T&D brands entering the APAC marketplace, regardless of target age group. 


Spotlight: the rise of TikTok in APAC

TikTok will be the fastest-growing social platform in APAC this year, where nearly 60% of the world’s social network users are based. Its user increase in 2023 will be nearly double that of Instagram (13.6% versus 7.3%), with much of its growth in APAC driven by Southeast Asia.  
Together, Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam will account for about half the region’s TikTok users in 2023 (excluding India and China*). All these countries except Singapore will see their TikTok user base rise by more than 10% this year. 


Marketing on TikTok is highly effective and enables brands to engage with a massive and diverse audience. When working with content creators to demonstrate products, for instance, campaigns are 64% more likely to get a significant lift in ad recall. Combining paid and organic strategies can lead to 2.6x ROI on ad spend.

Take advantage of growing interest in sustainability and ESG

As noted above, some APAC countries are offering subsidies or rebates to consumers investing in energy-efficient products such as refrigerators, washing machines and air conditioning units. 

This is part of the region’s response to the global climate change crisis, which poses major challenges to its environmental stability, economic growth, and human development. APAC includes 13 of the world’s countries that are most vulnerable to the impacts of climate change. Tackling climate change and reducing carbon emissions is therefore of massive importance to consumers and governments alike.

For the T&D sector, promoting sales of energy-efficient products, in tandem with eco-friendly brand values and visible ESG policies such as reuse and recycling, is a definite growth area — and a useful entry route for new brands. 

 While some consumers simply want to save money, there is an expanding segment of APAC consumers who are genuinely influenced by ‘green’ brand values. However, there is also a ‘say-do’ barrier which T&D entrants must overcome if they are to get consumers to buy their products and not just pay lip service to their values. That means combining sustainability with some of the other consumer trends we have looked at, such as multi-functionality, design, and quality. 

Spotlight: The sustainable brand opportunity in APAC

Companies that close the ‘say-do’ gap set themselves up for success. 49% of consumers in developing APAC countries factor environmental concerns into their purchasing decisions. This is a higher percentage of consumers than any other region. Additionally, 80% of environmentally- and socially conscious consumers in APAC actively recommend sustainable products that they like. More than half of these consumers are ‘super promoters,’ meaning they recommend the product to more than 10 people. They are also willing to pay a premium. 

Another key trend supporting data showing the rise in consumer eco-consciousness is that of electrified Mobility, where interest in EV and hybrid vehicles comfortably outstrips interest in fuel cell- and diesel engines across the region. 

Source: GfK Consumer Life Global Green Gauge® Report, GfK Consumer Life Global (Global = 18 countries) M6 

Expert insights and strategic direction to master APAC T&D market

Watch these expert videos and uncover the expected consumer and sales trends in APAC region for 2023 and beyond, know which strategies are crucial for success as a new market entrant or established regional player. Our experts share their data-backed insights on the region’s economic outlook, and how you can maximize your success in context.  

APAC is set to achieve the highest aggregated GDP growth rate of any region
, but a one-size-fits-all strategy will not work to increase T&D growth. Brands need to understand the complex route to premiumization and sustainable profitability, and much more, to expand in APAC.

Growth opportunities
abound for companies hoping to enter or expand in India, with consumers enjoying increased household income, a positive attitude towards spending, and the fast penetration of technology. Learn about the ways your brand can take full advantage.

Japanese T&D consumers are still willing to spend, but with discernment and preference for high quality and longevity, even if it does come at a premium. Brands that focus on quality perception and positive brand experience will capture this market.

Spot opportunities in a mature market, characterized by savvy consumers who are quick to adopt new technologies and trends.
For example, the growing importance of color and design in electronics is buoying a T&D sector seemingly faced with no significant upsize potential.

Despite a tough 2023, opportunities exist for
T&D manufacturers and retailers who meet consumers' demands for products and features that make their lives more convenient, and comfortable. Brands can capitalize on this, and the continued rise of Premium to boost growth. 

High inflation and a weakening economy could have an impact on growth in China
. Significant technological innovation will be the most important factor to dominate the development of China's T&D industry. Adopting the spirit of "Go Global, Win Local" will help brands achieve success.

Your APAC 2023 T&D success checklist

An executive summary of must-know insights and action points for T&D manufacturers and retailers looking to succeed in the APAC region for 2023 and beyond. 

Amplify your strategic focus on premiumization and innovation

While the cheapest products may suffice for everyday essentials and basic products, APAC consumers prioritize value over price for higher-ticket items. They willingly pay a premium for convenience, and brands who deliver innovative products, features and functions with smart compatibility can drive both replacement sales and premium in 2023. Further, products that integrate seamlessly into the smart connect ecosystem, and also offer consumers a chance to express themselves — through ‘cool’ product designs and colors — and/or align with burgeoning consumer demand for health benefits and sustainability, are set to win big.  

Maximize loyalty with exceptional, omnichannel customer experiences

To meet the demands of tech-savvy Gen-Z and Millennial consumers, brands must strategically optimize their presence on social media platforms and digital channels — staying ahead of the ever-changing landscape, exemplified by the explosive rise of TikTok. Simultaneously, offline experiences remain significant in some APAC countries, particularly for MDA and premium segments. Brands who enable their consumers to switch seamlessly between online and offline are set to win big, as they actively cater to consumer preferences and sense of convenience. 

Further, these experiences must be personalized to drive consumer loyalty. Investing in online engagement programs, such as live-streamed buying events, and transforming brick-and-mortar stores into experience-led showrooms will play a pivotal role in personalization. Pre- and post-sales offers should also be tailored to match consumer needs and values within each marketplace, ultimately fostering repeat sales and customer advocacy. 

Harness opportunities within emerging markets

Emerging markets represent a significant growth opportunity for both established T&D players and new market or category entrants. But to succeed, brands must create tailored strategies, and execute them in ways that respond to local nuances. This requires a deep understanding of market dynamics, and consumer attitudes- and behaviors informed by relevant, accurate and timely data and expert analysis.   

With a growing middle class with rising disposable incomes and favorable GDP forecasts, significant growth opportunities exist — for example in the sustainability segment, where 49% of consumers factor environmental concerns into their purchasing decisions (a higher percentage than in any other region). With expert support and insights, brands can quickly identify and respond to key disruptors and opportunities in these markets to their best advantage.  

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