Article

What drives the Asian consumer?

May 27, 2021
Mike Shiao
Mike Shiao
Chief Investment Officer, Asia ex Japan
What drives the Asian consumer?

We believe Asian consumer demand represents one of the most exciting consumer stories in investment history. Supported by a large population base and fast economic growth, Asia’s consumer economy is simply massive. It has more than half of the world’s total middle class and is the world’s largest retail market. It is well documented that both of these are poised for further expansion.

At the heart of this, we see five mega trends propelling this sustained consumption growth in Asia - digitalization, premiumization, experience, urbanization and wellness. Each of these trends is unique and structural and reflects the driving forces behind this growth.

Despite disruptions caused by the ongoing pandemic, we believe these trends remain intact, with some even being accelerated during this challenging period. For example, our transition to an online lifestyle and our increasing awareness of personal health issues.

Video: Five mega trends
Discover the five mega-trends shaping innovation in the Asian consumer landscape with William Yuen.

The Invesco Asia Consumer Demand Fund is manged by the Asia Equity Investment Team and is focused on consumer demand-related stocks in the Asia ex-Japan region. Launched in 2008, the fund has one of the longest track records in this sector.

We believe five mega trends represent significant forces of structural growth, which will shape the Asian consumer landscape in the years to come. These trends provide a stock selection framework for our highly active strategy that allows us to seek opportunities across economic areas, without being confined by traditional sectors.

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