By Dave McCaughan

The dramatic changes in the economies of many Asian countries since July 1997 have seen many consumers reassess their lives. Suddenly a region that had enjoyed fabulous growth for over ten years, the rise of large urban middle class populations and a generation of youth who felt that the world was really open to them found itself seemingly going backwards.

For the Identity Builders of the hardest hit countries - Thailand, Korea, Malaysia, Indonesia, the Philippines, Japan - there was a feeling that their life-long promises of access to careers, wealth and international brands has been put off.

For over two years McCann-Erickson's PULSE had tracked the feelings and behaviour of the teens in these countries and dubbed them the "Generation of Light". As a group, it was an age group that had grown up believing that their future was full of promise. For many, it had been their parents who had forced their way into the new burgeoning urban middle classes. Their parents in turn had often showered them with access to the best foreign brands of consumer goods, clothes and entertainment in an effort to establish to their own peers that their family had indeed made it.

Now the effects of the economic crisis are biting and while the Identity Builders' reaction is usually a casual "other peoples' worry" the reality of their changed situation soon becomes evident when they discuss their lifestyle changes.

Of course the effects of the Crisis vary greatly depending on their families' immediate situation and the political situation of the country. A father being laid off work, the promise of attending college being dashed by changed family income bring an immediacy to the teens' situation. Their country's situation also varies greatly (from the Japanese teen who reports a general awareness to the Indonesian who is caught up in major political and social crisis).

Overall, their awareness is tinged with a feeling that things are bad - but not desperate for them personally. There is little open discussion in the home and the teen spends little time in close consideration of the parents' shifting economic situation. We do find that girls are more likely to be concerned than boys, stemming from their typically closer relationship with their mothers and the actual expenditure in the home.

Parents are, of course, protective and try to keep the worst of the situation from their children. From the Identity Builders' perspective we do see many actual changes in behaviour driven by the immediate needs of balancing their own changing incomes with the desire to have all the things they have grown used to having. The result is a chain of fundamental lifestyle changes:

Pocket Money Becomes Limited - Across the region Identity Builders' income structures have changed. Previously they would have expected a regular weekly or monthly allowance which was readily subsidised by parents for every outing and shopping trip. Now, while in most markets pocket money levels have remained approximately the same and only recently are they beginning to be cut back, the "extra" money has dried up. Pocket money once freely spent is now being saved for "big events" like a day out with friends, a new CD or pair of jeans. And, again more likely from girls, there is increasing talk of using the money to help parents.

Legitimisation of Discounts - Before the Crisis the legitimacy of the brand as an international symbol of perceived middle class acceptance and it's place of purchase were often more important than the goods themselves. Shopping only from the correct modern mall, buying only original brands was acceptable. In markets like Thailand where pirated branded goods were easily available, it was never socially acceptable to admit buying a discounted item from the markets. Now teens report a new pride in being smart enough to be buying pirated jeans or sports shoes from the markets. Better a pirated version of a famous brand than not being able to keep up the accepted pace for shopping.

Local Alternatives - In markets like Korea the Identity Builder is accepting the nationalistic driven needs to substitute imported brands for local goods. They report that they are willing to give up their favourite Japanese stationary for local brands if it will help get rid of IMF impositions on their country. In Malaysia too, teens tell us that for the first time they are looking at some local products not as last resorts but as possible alternatives "well, you know, Malaysian goods might be OK".

Media Habits - With less money to spend, the time to fill in changes. Early evening television viewership is up across all countries as the teen has less money to spend after school. Hanging out at friends' homes is now a cool, inexpensive way to spend the weekend. Cinema attendance seems to be continuing to rise as a cheap group activity.

But a trip to the cinema is more than just the movie. The teen in Asia is using the movie as the centrepiece (and most expensive element) in a whole day out with friends. Indeed the cinema trip is usually a two week experience where the group spends a week planning the excursion - which movie at which mall etc, the day of the movie and the week after assessing it with their friends, reliving the experience and considering when and how they can afford it next.

Part-Time Work Becomes Cool - Where having to have a part-time job among middle class teens had been seen as socially very bad by both teen and parent it is now becoming not only acceptable but desirable. The advent of "cool" part-time jobs like serving at HardRock Cafe, Starbucks or Planet Hollywood have led the way. In some markets, the coolest thing you can wear to go shopping is your waitress uniform from these fashionable eateries. As the Crisis hardens, all markets report an increase in teens getting part-time work. In some markets, they will go to extreme lengths. Some girls in Malaysia reported that they would rather lie to their parents and tell them they were going out to study than give up their extra income and newly found exciting sociability from a waitressing job.

And in a region where concern and respect for the parent has never really been questioned we see a connection between increasing reporting of part-time work incomes with a concern for helping to supplement the family situation.

Eating Out Venues - Local food vendors like the mamak stall in Malaysia have resurfaced as socially acceptable places to snack with friends. Their relative cheapness has been rediscovered and their easy access acts as an added argument for their use. At the same time western fast food chains are still seen as among the most desirable locations to hangout. However, they are also increasingly being seen as working hard to take the Identity Builders' now limited funds from them.

Reconsidering their Future - Throughout the region one of the great concerns for Identity Builders has been the changing prospects for education. Overseas college study now seems highly unlikely. For many even domestic college is being put off or forgotten. The search for scholarships becomes harder.

And for those still able to consider post-High School education the choice of subjects is being reconsidered. Where a year ago traditional professions like medicine and law and engineering were seen as boring compared to the potential of business studies, now they are coming back into vogue as a safe future in a troubled world.

Promotions Assessment - The Asian Identity Builder is also facing a barrage of promotions as marketers try to shore up falling sales figures. Consistently teens tell us about promotions abounding that offer price discounting. They tell us that for "big" items discounting is attractive, less so for smaller items like snacks. The common response is "they are only trying to get us to eat more than we want". Similarly they tell us that two for one offers are wasteful. After all, they can only use one item at a time and don't really buy goods with long term planning in mind.

Promotional ideas that they do seem interested in fall into two clear categories:

Value Addition - on the spot redemptions of prizes that they consider "useful or cool". Items like CDs, fashion items, watches, sports shoes and equipment, stationary that would once have been able to ask their parents for directly but that now must be saved for. Items they see as still a part of their entrance to their peer groups. The chance of redemption of such items adds in real terms to the purchase of everyday brands...

Entertainment Substitution - the offer of tickets to concerts, fashion shows, movies ... special free shows at malls, schools and home ... anything that will the void of entertainment that they may be less able to afford now.

And then they also talk a lot of ensuring that their purchase is valid. The right source, the right history, a little bit more knowledge of where else the brand comes from or is popular. The backing of the right Star, for Stars still do count as spokespeople. We note an increasing interest in information about brands beyond being famous for their own sake. Validation of the purchase of a product now means knowing that little bit more.

The implications of all this are many but it goes without saying that the Identity Builder in Asia is in fact changing. They are feeling a little caught and they are looking for advice. PULSE will continue to offer the best way to keep up to date with the changes occurring in each market and across the region.

Disclaimer

Contact Webmaster

© Dave McCaughan / Through the Loop Consulting Ltd 1998-2000