Analyses of consumers from various Asian countries indicate falling confidence and a tightening of belts during the recession. Strategies employed by consumers to tide them over the economic crisis include: more comparative shopping; delaying purchases of expensive items; placing more emphasis on product durability and functionality; switching to lower end and local brands; developing a product life cycle-cost perspective; relying more on informative and less on imagery-based advertisements; and buying more often at discount stores. Businesses face cash flow challenges as banks and suppliers are less willing to provide favourable financial terms, whilst customers default more or buy less. Effective strategies that will help businesses during this period include expanding into crisis-resistant markets such as non-Asian and youth markets; introducing 'fighter' lines; maintaining prices while augmenting existing products; developing adaptive positioning; using informative advertisements; and pruning marginal channels.
ASJC Scopus subject areas
- Geography, Planning and Development
- Strategy and Management