‘Seventy-six per cent of businesses not confident of 2020 growth’

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KUCHING: Things are not looking bright for businesses in this new decade as more than 76 per cent of marketers say they will struggle with sluggish consumer growth.

This came courtesy of research from ADA, which is part of the Axiata Group, following its release of a thought leadership piece based on ADA’s data of over 280 million consumer profiles, coupled with a survey of over 200 decision makers, brands, marketers, and industry observers within the region who shared their expectations on business growth for 2020.

“As China’s entanglement in the US trade war deepens, fears are mounting – will Southeast Asia (SEA) be impacted, or does it have a trump card to play?” ADA noted.

To help marketers navigate this period of economic uncertainty, ADA’s report, 2020 Outlook for Southeast Asian Marketers: 4 Steps to Outmaneuver Your Competition states there are industries that continue to flourish during times of economic uncertainty.

From their consumer base of 280 million profiles, ADA looked at how SEA consumers have reacted to socio-economic changes in the past. They found that across all categories, consumer spending takes a dip with some exceptions.

Malaysians still enjoy eating out although they cut back on other luxuries; Filipinos cut back on travel and data usage; and Indonesians’ overall spending declines but more modestly.

Meanwhile, the survey of over 200 decision makers, brands, marketers, and industry observers found that only 10 per cent expected positive rapid growth in their countries while just eight per cent reported having sufficient budget for 2020.

Observers also found that surprisingly, in spite of these challenges, about 50 per cent expect their business to be positively impacted.

This means that while the expectation for 2020 to be slower than past years, SEA’s marketers are modestly optimistic on some growth, despite having to do more with less in a difficult economic situation.

“Our survey revealed that 54 per cent of marketers are expecting the region to experience slow to modest growth – this is consistent with the current global economic outlook. However, the majority are positive that they will be able to make the most of this, albeit in creative ways,” ADA chief executive officer Srinivas Gattemneni said.

“ADA exists to make our customers and people win. Hence, we wanted to share this outlook complete with industry tips and insights to help them outmaneuver their competition.”