Don’t Want to Miss Out? Invest on Mega Trend
Article by: Nipapun Poonsatiansap CFP® Independent Financial Planner
Mega Trend is a global macro-economic development driver that impact business, society, culture and livelihood of human kind. The dynamic driving force often fluctuates in a shorter interval of occurrences.
MIn the fast-paced world, it became imperative to prepare and adopt to those changes. Whenever changes occurred, opportunity breakouts. Try to understand Mega Trend better to utilize its benefits i.e., design how to live a life, identify business strategy, seek new investment opportunity or start your own business. If you are an office worker, you will be able to evaluate if your organization is stable. There are 5 Mega Trend as follows:ega
The 1st Mega Trend: Urbanization
The growth of middle class population has led to rapid expansion of urbanization as well as businesses, trading, investments and tourism industry. Thanks to urbanization, lifestyle of rural population began to elevated and modernized. Business trends on the rise are home decorations, 24-hours services, franchise businesses i.e., restaurant, health and beauty, fashion, clothing and accessories.
On the other hand, we will see an influx of rural population into the metropolitan area if the main cities cannot keep up with such growth. The expansion of condominium, apartment and townhouse supply aligned demand for smaller housing space to meet with household size. The effects help accelerates development of infrastructures and public utilities needed for urbanization.
The 2nd Mega Trend: Digital Lifestyle
In digital age, all economic, finance and communication transactions are interconnecting via a wireless network. Technology became the main trigger of consumer behavioural change which, led to innovation, new internet-based business formats and new marketing channels.
In digitalized lifestyle, we are always on the move with mobile devices. Evidently, we see the emergence of new markets as more consumers are spending time online. Subsequently, digital content industry and online businesses expanded. Disruption of digital media has replaced traditional media, transforming products and services to rely on digital media for market communication and sales channels. Businesses progressing to Omni-channel business model in addition to their physical stores.
The 3rd Mega Trend: Aging Society
The Ministry of Public Health revealed increasing number of elderly in Thailand by 0.5 million every year. Thailand is expected to leap into a “complete aging society” by 2025 or 1:5 of the population. A study of “ Aging Society” made by College of Management, Mahidol University, indicated that population of age range 48-57 will become elderly in the next few years. 30% of the population earn a monthly average of 30,000- 60,000THB and 60,000-100,000THB for another 30%. These population are characterized as a decent income with purchasing power and have savings and investments portion as high as 25% of their income.
This mega trend open doors for various aging population market opportunities for new product and service offerings. Businesses are required to deep diving into segment analysis to draft an effective market strategy including, pricing, reliable quality and to design extra care services
Good business trend for aging population are health and well-being, nursing home or elderly community in premium segment (assisted living caretaker or nursing home), merit traveling for peace and calm emotional state of mind, elderly leisure activities, financial services (i.e., retirement financial plan and post-retirement financial plan).
The 4th Mega Trend: She-Conomy
Women are taking on a larger role in society as a result from higher education and employment level. More women are placed on top management positions in many organizations. Thai women earns higher salary by 13.7% compare to statistic from 2010.
These factors give modern women both higher autonomy and spending power. A survey from 2015 has shown 33.6% household autonomy of Thai women. The outcome also reflected why women consumers are becoming a major market driver.
Products and services providers should never neglect “women” consumers and specially design “Product for HER” together with new marketing strategy with direct focus “SHE Marketing” segment.
Major business trend includes household well-being product, special interest travels and beauty service provider such as spa and match maker business.
The 5th Mega Trends: Growing Sustainability
Profitability alone does not reflect the success of an organization. Many organization introduced sustainability and environmental campaigns of CSR, Carbon Footprint and Green Supply Chain from awareness in addressing social issues i.e., illegal immigrant workers, human rights, occupational safety & hazard and environment.
Entrepreneurs are beginning to see the importance of environmental friendly product and service offerings to sustain their business as well as the society. Consumers are consciously aware and want to contribute to the world by selecting products and services from a legal business that take responsibility in community and environment.