Sluggish consumer growth, 76% biz not confident with 2020

South-East Asian marketers are modestly optimistic, despite having to do more in a difficult economic situation

by NUR HAZIQAH A MALEK/ pic credit: ada.asia.com

ADA wants to share this outlook complete with industry tips and insights to help our customers outmanoeuvre their competition

OVER 76% of businesses are uncertain about this year’s outlook amid sluggish consumer growth, according to data analyst group ADA.

Slower growth is generally expected for 2020 in comparison to the past years, whereas South-East Asian marketers are modestly optimistic, despite having to do more in a difficult economic situation.

ADA CEO Srinivas Gattemneni (picture; above) said the survey revealed that 54% of marketers are expecting the region to experience slow to modest growth, which is consistent with the current global economic outlook.

“However, the majority are positive that they will be able to make the most of this, albeit in creative ways.

“ADA wanted to share this outlook complete with industry tips and insights to help our customers out-manoeuvre their competition,” he said in a statement yesterday.

He added that 2020 is set to be an interesting year, whereby brands that understand consumer trends, armed with the correct information and strategy can steal the spotlight.

“While some companies will tighten their belts, others will invest in cherry-picked efforts to surge ahead of their competition,” he added.

The survey involving over 200 decision-makers, brands, marketers and industry observers found that only 10% expected positive rapid growth in their countries, with only 8% reported to having sufficient budget for the year.

In spite of the challenges, about 50% of the respondents expect their business to be positively impacted.

ADA also looked into how South-East Asian consumers have reacted to the past socio-economic changes, noting that across all categories, a dip can be witnessed in consumer spending with Malaysians enjoyig eating out, while cutting back on other luxuries; Filipinos cutting back on travel and data usage; and an overall decline of spending among Indonesians.

The data integration company noted a few ways that marketers can incorporate to steer their businesses throughout the year, such as utilising data to gather insights and thus leading to action and business outcomes, as well as placing emphasis on brand building, which has become an important part of the corporate world for powerful campaigns, which leads to the priority of tapping into emotions of consumers.