Marketer’s guide to the economic slowdown in Asia Pacific

A study by Starcom and Mediavest in partnership with YouGov, a global research company summarises what brands need to do during a downturn, and in particular this one. The study was conducted online, interviewing 8,000 people in 7 markets: China, Hong Kong, Singapore, Malaysia, Thailand, Indonesia and Australia.SLOWDOWN IN NUMBERS78% of people in APAC see the slowdown in their home countries.43% are concerned but not directly affected.24% are deeply worried and have taken actions.70% believe this slowdown will last 1-2 years.50% say this is just the start, bigger impact to come.What’s different from the last global recession?Much like the last global recession, volatility heightens contrasts between-and-within markets; as wells as breeds creativity in ways people cope. But there are strong differences in comparison with the last global recession:This slowdown is more complex – political tensions will make for a slower recovery for at least 4 out of the 7 markets studied- Malaysia, Hong Kong, Australia and Thailand)Millennials are less worried about the slowdown, but the most stressed.Mobile is the key differentiator this slowdown as it equalises access to information; gives new expressions of social coping; turns Staycation into Screencation, and cocooning a potentially more pleasant experience.Categories are at risk as people opt for trade-offs over trade-downs. For now, people are reshuffling spend across categories, rather than in the categories to maintain their desired quality of life.The study suggests that brands have a four-pronged strategy:  Image source: www.shutterstock.com