Consumer sentiment in Asia-Pacific (APAC) increasingly mirrors the diversity of the region itself. Our latest ConsumerWise research finds a surge of optimism in Australia, with spending intentions rising across all income groups as inflation ebbs. China and India are experiencing dynamic shifts in consumer sentiment. India continues to exhibit robust confidence, whereas optimism in China declined sharply in 2022 and has only slightly recovered in the most recent quarter. Meanwhile, consumer behavior in Japan and South Korea remains relatively stable, with a growing preference for omnichannel shopping.
The following five charts showcase findings from our latest ConsumerWise survey in the APAC region.
Asia-Pacific’s consumer landscape is marked by a dynamic interplay of economic conditions, generational shifts, and evolving shopping behaviors, with a noticeable trend toward essential and high-value purchases. Younger generations are driving optimism in some areas as well as increased omnichannel shopping. This complex environment demands that businesses remain agile and responsive to diverse and shifting consumer needs across different markets. Watch this space for regular updates on the state of the APAC consumer. To contact us for more information or to read additional insights, check out our ConsumerWise page.
ABOUT THE AUTHOR(S)
Alex Harper is a partner in McKinsey’s Brisbane office, and Resil Das is an expert in the Bengaluru office.
The authors wish to thank Ayush R. Gupta and Eitan Urkowitz for their contributions to the article.
Consumers in leading Asia-Pacific (APAC) markets have become more cautious and thoughtful since the beginning of this year. McKinsey’s latest ConsumerWise Survey finds that a growing number of consumers are trading down to save money, although many are also inclined to selectively splurge. The survey also finds that consumer confidence remains higher in India and China than in APAC’s more advanced economies, which may result from the growing number of consumers ascending to the middle and upper classes. Below are the survey highlights.
Economic uncertainty is persisting throughout critical APAC markets. Will consumers gain confidence or pull back their spending? Watch this space for regular updates on the state of the APAC consumer, and visit our ConsumerWise page for more insights.
ABOUT THE AUTHOR(S)
Abhishek Malhotra is a partner based in McKinsey’s Mumbai office, and Resil Das is an expert in the Bengaluru office.
The authors wish to thank Eitan Urkowitz and Rhythm Ahuja for their contributions to this article.
