ASEAN – The Fragmented Market

ASEAN – The Fragmented Market เรียนรู้ความแตกต่างในตลาดอาเซียน ผศ.ดร. การดี เลียวไพโรจน์ Thammasat Business School karndee@tbs.tu.ac.th ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Investment attractiveness brings in expats 7 MEGA TREND 6 ASEAN in the world’s spotlight 1 5 ASEAN GROWTH-GROWTH ANALYSIS (2002 – 2011) 4 ASEAN Average 3.6 folds X2 x3 x4 x5 x6 x7 x8 x1 3 2 1 GDP Growth Rate (%) Singapore Vietnam Indonesia Malaysia Source: CIA World Factbook, ASEAN Business Intelligence Philippines FDI Growth Rate (no. times) Thailand ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Indonesia Malaysia Philippines Singapore Thailand Vietnam Private msgs on SN sites71% Email 92% Email 90% Email 96% Email 85% News 90% ASEAN’s Top 5 OnlineActivities (Conducted on at Least a WeeklyBasis) MEGA TREND Technology Dominated, Anywhere, Anytime 2 Public comments on SN sites 61% Private msgs on SN sites 83% Private msgs on SN sites 83% News 86% News 79% Search 81% Indonesia Social Networks Fanatics Browsing people’s profiles 59% News 82% Wall posts, status update,grpmsgs via SN sites 81% Search 81% Private msgs via SN sites 74% IM 68% Singapore The Info & Confidentials Search 79% Updating SN profile 56% News 79% IM 70% Private msgs via SN sites 74% Gaming online 52% Philippines Online Share Bears Email 51% IM 75% IM 78% Private msgs on SN sites 67% Sharing content 69% Streaming audio 47% Vietnam Online WhizKids Malaysia Information Jones Thailand News Radar & Gossip Girls ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Facebook has over 600 million user 1/6 Singapore 2.6 M Cambodia 401 K Of that population comes from ASEAN Lao PDR 96.5 K Brunei pre-3G Cambodia 4G on trail Indonesia 3G+ Laos Pre 4G Malaysia pre 4G Myanmar 2G Philippines 4G Singapore 4G Thailand pre-3G Vietnam 3G Indonesia 40.4 M ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012 Philippines 26.7 M Brunei 221 K Thailand 12.4 M Vietnam 2.5 M Malaysia 11.7 M Source: ASEAN 100 Leadership Forum

MEGA TREND Rising ASEAN Middle Class 3 World’s Middle Class Trend Thai 40 M Philippines 48 M Middle Class in ASEAN Indonesia 150 M In 2015, ASEAN will have over 300 million individuals with middle income, which will likely increase to 360 million in 2020 Vietnam 34 M Malaysia 28 M ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

The Rise of ASEAN Middle Class Economic Growth Engine Educated Unique Life Style and Taste Technology Oriented Environmental Conscious Spending than Saving ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

New Definition of Luxury 5 Spiritual 3 Environmental Friendly 4 Healthy Life 1 Brand Name 2 Unique Taste & Style ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

MEGA TREND World’s Aging Society 4 PROPORTION OF ELDERLIES IN ASEAN MEMBER COUNTRIES Singapore (40%) Vietnam (35%) 2000 2015 2030 2045 2060 Thailand (34%) Indonesia (29%) Myanmar (28%) Brunei, Laos (26%) Cambodia (25%) Malaysia (24%) % Philippines (19%) ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

MEGA TREND Power of Women 5 Better Education Better Opportunity Better Job Financial Independent Maternity Guilt Marriage is an Option ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN KIDS’ DREAM CAREERS Teacher Doctor/Physician Pilot Flight Attendant Artist Doctor/ Physician Doctor/ Physician Pilot Dentist Business Person Lawyer Nurse Police Teacher Marketer Tourist Guide Doctor/Physician Teacher Teacher International Firm Employee Lawyer Banker Chef Business Person Business Person Vet Business / Finance Tourism ICT Scientist Engineer ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN Education Policy CAMBODIA Develop foreign language skills: Chinese & English BRUNEI Quality in higher education institutions • VIETNAM • Overseas training hub • Knowledge exchange between various nations INDONESIA Learning & knowledge-based society • MALAYSIA • Regional hub for higher education • Academic & industry linkage • Enhance research and development LAOS Equality in Education PHILLIPINES Match domestic and global demand • THAILAND • 1 Tablet per Child • Improve outcome of higher education • Equality & Accessibility • SINGAPORE • TEACH LESS, LEARN MORE Policy • Strengthen life-long learning • Technology and design • Become branch destination for renowned institutions ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN’s ORGANIZATION CHART CEO Chief Executive Officer CFO Chief Financial Officer COO Chief Operating Officer CCO Chief Community Officer CGDO Chief Global Development & Trade Officer ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN’s ORGANIZATION CHART IT SUPPORT SERVICE CIO Chief Innovation Officer - R&D CUSTOMERS RELATION MARKETING & PR International Affairs ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN is NOT ASEAN ASEAN in itself is a fragmented market. Various Cultural Backgrounds & Languages Different Beliefs & Lifestyle Different Education System & Children Development Scheme Different Work Habits & Personality ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN Heterogeneity Ethnicity Various Cultural Backgrounds & Languages Source: Central Intelligence Agency, The World Fact Book (2009) ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Different Beliefs & Lifestyle Black Wedding Dress in Indonesia & Malaysia 8 meals a day in Brunei Push up bra for Vietnamese Body Cover for Myanmar Singaporean Lady – Materialistic & Finance Concerned ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Different Work Habits & Personality SINGAPORE Rule Follower System. Critic. VIETNAM Learner Tough Cookie THAILAND The Creative Souls Rule Bender Philippines Fun Loving Global Connector ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Very Socializing. Infrastructure on the Way Places to Hangout Booming Property & Construction Decent Service & Products for Expats ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Peaceful and Conservative but yet Open-Minded Simple & Easy Going Family Oriented Friendly Society Growing City – More Construction ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Urbanization in Ho Chi Min City Urbanization and Materialistic Faces of The Future Anything for the Brighter Future ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Social Country. Social Network Fanatic. Fashion Products Convenience Seeker Growing City - Urbanization ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

Fast & Reliable Capturing Modern Consumers Technology Dominated. Anywhere, Anytime Culture-Technology Integration Convenience Seeker Green Lifestyle ASEAN is NOT ASEAN | Karndee Leopairote, PhD | Thammasat Business School | All Right Reserved 2012

ASEAN – The Fragmented Market