Asia Pacific consumers trim spending but still indulge

Consumers in APAC are less likely to feel the bite of inflation compared to other regions, but they’re still delaying big-ticket purchases and shopping for cheaper options on everyday items while looking for opportunities to indulge themselves. 

That’s according to analysis by WARC and GWI that identifies the pivotal factors shaping consumer purchase decisions across various brands and categories. 

Context 

Inflation and the cost of living are issues affecting consumers everywhere, while Gen Z, faced with a world of worries, is also experiencing a mental health crisis. WARC’s 2023 Consumer Trends report identifies those aspects of emerging consumer behaviour that are more pronounced in different regions.

Takeaways

• While APAC consumers are making the biggest spending cuts in out-of-home entertainment, spending on dining out and other treats has risen as they look for ways to indulge themselves, even as they tighten their belts.
• Second-hand shopping is an emerging trend in Asia Pacific, but trust and product credibility remain a barrier to entry.
• APAC consumers are especially receptive to social commerce and display high levels of trust in influencers.