After traversing new milestones last year, the Asian dawn is set to rise even higher in 2020 with its GDP set to beat the GDP of the rest of the world combined. The region is poised to contribute 60% alone in the global growth with Asia-Pacific contributing whopping 90% of 2.4 billion new middle members entering into the global economy.
A big chunk of this phenomenal growth is coming from India. The development will change the entire market landscape and give rise to several new decisions for businesses and respective governments. However, the consequence of the transformation is a closely knitted mystery—which we try to crack in this blog for you. Here we go:
Change in Consumption Patterns across Markets
These estimates signal at a substantial growth but in reality a change in consumption patterns across markets is also foreseen. The growth rate will completely depend on demographic factors. Rising income, jobs, and a drop in household savings will increase consumption. India’s growing middle class as well as huge demographic dividend will drive consumption and global economy.
Malaysia, Indonesia, and the Philippines are set to boost their labor force also. This will give rise to per-capita disposable income. Meanwhile, Asia’s exponentially growing digital economy will provide access to previously unserved and deliver on consumer demands.
Consumers with More Power and Demand for Premium Goods
The new age consumers will have more power and demand for value-for-money goods and services. They will be more discerning than they are now about what they consume, where they shop, and how they are influenced.
Local and Regional Players Beginning to Disrupt the Market
Local players will begin to gain prominence in the market due to their advantage of proprietary access and local familiarity. They score well when it comes to dealing with short-term market turbulence.
Fourth Industrial Revolution Paving Way for a Job Market Transformation
Developing countries across Asia-Pacific are overcoming poverty and other significant growth challenges to match up with the pace of the digital world. Fourth Industrial Revolution and digital transformation will lead to displacement of existing jobs and shift the distribution of jobs across sectors in the process.
The Rise of Focus on Sustainability and Its Environmental Impacts
Governments of the region will start giving importance to sustainability and its environmental impacts. The institutional definition for businesses will shift to health, wellness, diversity, and equal opportunities. In fact, a number of investors have already shifted their focus from industries such as oil and gas to business models that address environmental and social needs.
Therefore, 2020 is for sure going to be a year of historical growth and opportunities for Asia. Businesses expanding their operations to the region can expect high-returns due to increased consumption, strong local players, and discerning consumers. Connect with the most trusted India entry consulting firm Tecnova today to penetrate into Asia market safely with experts.
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