From masstige to MASSCLUSIVE: middle class premium consumption evolves in Asia.

1. september 2014
ASIA TREND BULLETIN
MASSCLUSIVITY
From masstige to MASSCLUSIVE:
middle-class premium consumption
evolves in Asia.

2. Middle-class premium
consumption in Asia is all
about masstige ... right?
Any observer of the Asian consumer arena is familiar with
masstige:
Masstige = mass-market products infused with prestige
elements (think smartly packaged USD 20 shampoo sold in
supermarkets), catering to emerging middle classes with an
appetite for premium, but budgets that do not stretch to true
luxury.
But as millions more consumers join Asia’s emerging
middle classes, masstige consumption is becoming more
commonplace.
The result? Masstige consumption is not the status marker it
once was. Now, more affluent and sophisticated Asian middle-class
consumers are demanding new, innovative and surprising
forms of premium.
Says the Asian caveman.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 2

3. 2009 2030
3.22 billion GLOBAL
The APAC middle-class population is estimated
to grow from 516 million people in 2009 to
3.22 billion in 2030, when it will comprise
66% of the global middle-class population.
WORLD ECONOMIC FORUM, 2013
516 million
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 3

4. Of course, conventional
masstige is still going
strong.
One conventional masstige tactic? Mass market products
going premium. 2014 saw Unilever launch Magnum, its
premium ice cream brand, in India. The FMCG company also
launched Pond’s Men, its premium skincare line for men, in both
India and the Philippines earlier this year.
Another standard masstige play? Luxury products go mass
market. Japanese premium cosmetic brand Shiseido is
expanding its business in the Indonesian market with its
masstige line Za. And Saturday, Kate Spade’s lifestyle
(read: more accessible) line recently opened a third store in
Singapore’s Takashimaya Department Store after its first launch
in October 2013.
The takeaway? Yes, there will still be opportunities to delight
the new Asian middle class with traditional masstige
offerings.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 4

5. So if masstige is the
norm, what’s the
innovation camp doing?
Just as happened with traditional high-end luxury (first in the
West and now increasingly in Asia), middle-class premium
consumption is becoming more fragmented.
No longer just about products and services with a little better
quality, more polished packaging, and slightly higher price
points, instead it is now about displays of taste and sensibility,
artisan and local offerings, exclusive locations, rare and
unusual experiences, and more.
The middle-class premium consumer is moving from masstige
to MASSCLUSIVE.
Affordable premium is evolving beyond
“mass goes premium, luxury goes mass”.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 5

6. DEFINITION
MASSCLUSIVITY | A form of
affordable premium consumption
that combines the mass with
the truly exclusive: tasteful, rare,
experiential, compellingly storied,
and more!
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 6

7. WHY NOW?
1. Overcrowding
From Jakarta to Mumbai, walk down any supermarket aisle and
you’ll see masstige products crowding the shelves. A million
mass-market brands are employing premiumization strategies
to cater to the demands of the exploding middle class.
Meanwhile, Asia’s middle classes are getting larger and richer.
That means even MORE people who can afford middle-class
premium.
The result? Conventional masstige is now becoming a little
too mass, and no longer delivering the excitement and status
boost it once did.
The masstige space is too crowded…
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 7

8. 2009 2030
32.9 trillion GLOBAL
The total middle-class spending in APAC is
estimated to grow from USD 4.9 trillion in 2009
to USD 32.9 trillion in 2030, when it is projected
to comprise 59% of global middle-class spending.
WORLD ECONOMIC FORUM, 2013
4.9 trillion
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 8

9. WHY NOW?
2. Evolving tastes
While the masstige space becomes more overcrowded
by the day, Asian middle classes are also becoming more
sophisticated and demanding.
They want products and services that go beyond a higher price
point and upgraded quality, and that truly mark them out from
the crowd.
As a result, witness the emergence of new kinds of premium
offerings – novel experiences, storied products, artisanal
goods, new mass/premium partnerships, and more – aimed at
Asia’s middle-class consumers.
Middle-class status is moving beyond
product upgrade and wealth display.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 9

10. We obviously offer much more
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11. FEATURED INNOVATIONS
Take a look inside Asia’s
MASSCLUSIVE consumption sphere!
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 11

12. FEATURED INNOVATIONS: MASSCLUSIVITY
Chef Creations by
7-Eleven
7-Eleven Philippines partners with local
chef Claude Tayag on gourmet ready meals
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 12

13. FEATURED INNOVATIONS: MASSCLUSIVITY
A Festival About Coffee
Jakarta event caters to emerging gourmet
coffee culture
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 13

14. FEATURED INNOVATIONS: MASSCLUSIVITY
Jeans by Kamine Zoo
Limited-edition jeans ‘made’ by zoo animals
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 14

15. FEATURED INNOVATIONS: MASSCLUSIVITY
Hotel Chains in India
Hotel chains improve services for
Indian consumers
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 15

16. Do you want to be
featured in the next
Asia Bulletin?
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Interested? Sign up to our Happy Spotting
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www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 16

17. FEATURED INNOVATIONS: MASSCLUSIVITY
Burger King Japan
Burgers with black cheese and black
everything else
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 17

18. FEATURED INNOVATIONS: MASSCLUSIVITY
The Inspired Chef
Celebrity chef ice cream available in
Singaporean supermarkets
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 18

19. FEATURED INNOVATIONS: MASSCLUSIVITY
Tmall.com
Fresh New Zealand seafood shipped for
Chinese consumers
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 19

20. FEATURED INNOVATIONS: MASSCLUSIVITY
Vogmask
Pollution masks launched at Hong
Kong Fashion Week
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 20

21. FEATURED INNOVATIONS: MASSCLUSIVITY
Colgate SlimSoft
Charcoal
Oral hygiene brand launch black charcoal
toothbrush in India
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 21

22. FEATURED INNOVATIONS: MASSCLUSIVITY
Harlem Shakers
Harlem inspired gourmet sandwich
eatery in Bangkok
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 22

23. FEATURED INNOVATIONS: MASSCLUSIVITY
Suntory Hibiki
Japanese whisky brand creates world’s first
interactive glass
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 23

24. FEATURED INNOVATIONS: MASSCLUSIVITY
Suzhou Village
Chinese integrated affordable luxury
shopping compound
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 24

25. FEATURED INNOVATIONS: BONUS EXAMPLE
IKEA Singapore
Furniture brand launches spoof-premium
catalogue
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 25

26. SO WHAT’S NEXT?
Turn DRAB products into FAB innovations for
the Asian MASSCLUSIVE sphere!
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 26

27. NEXT
Go from drab to FAB
MASSCLUSIVE innovations are all about
moving beyond product ‘upgrades’ and
thinking more broadly about premium.
How can you offer something truly
different that will mark your customers
out from the (ever growing) middle-class
crowd? To start, read on!
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 27

28. NEXT
1. DETAILS are FAB
A premium consumer experience can
often be created via attention to details.
Extravagant service design, such as
recreating a Silk Road village from the
Middle Ages down to the very last detail,
is one way to do it. But even the smallest
individual detail can pay dividends if you
pay it attention: just look at how Suntory
Hibiki innovated around whisky glasses.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 28

29. NEXT
2. STORIES are FAB
Surprising, compelling, unique. And
Instagrammable :) These always turn drab
into FAB. Especially when they provide
an outlet for self-expression and let
consumers shout about it to their peers.
Jeans ‘made’ by zoo animals that also
let consumers contribute to the WWF?
Definitely a shareable story.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 29

30. NEXT
3. EXPERIENCES
are FAB
In the sea of dime-a-dozen masstige
offerings, one-of-a-kind experiences are
spelled P-R-E-M-I-U-M.
A two-day festival celebrating speciality
coffee? A unique drinking experience
beyond the usual ‘premium’ bar and sake?
Definitely FAB.
www.trendwatching.com/trends/massclusivity MASSCLUSIVITY 30

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