The Knowledge to Decide

Imagine the Nevada desert with thousands of mirrors arranged in concentric circles facing the sky, all lit up by the sun. The reflected sunshine is concentrated towards the top of a tower in their midst, at a height of 640 feet. Does this seem like a scene from a sci-fi movie? Wrong. This innovative power plant generates electricity and can carry on even when the sun sets. According to research, global energy storage installations are bound to rise from 1,750 megawatts (Mw) in 2016 to nearly 11,000 Mw in 2020. The lucrative business of harnessing sun and wind energy has picked up in Asia. For instance, Hindustan Power Projects Limited (HPPL) has investments worth INR17,000 crore (out of intended INR35,000 crore). It is also set to enter the wind power arena and set up 3 Gw of wind energy by 2020. Can solar and wind energy provide a safer, cleaner and more reliable form of energy for the 21st century? https://www.spireresearch.com/newsroom/spirethoughts/next-generati

As use of mobile wallets grows across Asia, digitalized financial services are transforming consumer behavior. In this context, Informa Business (IBC) organized the 4th Annual Mobile Wallet Conference to discuss key industry trends, opportunities and challenges in Jakarta, Indonesia. Jeffrey Bahar, Deputy Chief Executive Officer of the Spire Research and Consulting group, was honored to be a guest speaker at this event. In his presentation, Bahar highlighted key facts about the mobile wallet ecosystem in Asia with focus on consumer trends, growth drivers and acceptance of digital currency. Bahar mentioned the rise mobile wallet payments is due to faster transactions (71%), ease of use (55%) and the need to have cash on hand (47%). There are more opportunities for organizations, regulators and startups due to the convergence of multi-channel integration, integrated IT infrastructure, digital currencies and Big data analytics, to name a few trends. The Philippines beca

400 million Chinese consumers make online purchases and China’s e-commerce market is set to reach USD1.57 trillion by 2018, making it the world’s largest. As smartphone penetration continues to surge in Asia, online retail is evolving. Will mobile commerce become the dominant mode for online purchases in Asia? Japnit Singh, Senior Director at Spire Research and Consulting, shared his insights in China Daily – Asia Weekly. China’s e-commerce retail sales in 2015 increased by 42.1% to reach USD672 billion. This is equivalent to over 40% of global e-commerce retail sales. As the online retail experience continues to evolve, more purchases are made using smartphones. Growth factors responsible for this e-commerce boom include the rise in demand for imported products due to rising incomes, new online platforms and initiatives by the government. Cross-border consumer e-commerce added up to about USD40 billion (in 2015) – more than 6% of China’s consumer e-commerce in total.

Service standards in Singapore are still not at par with some Asian counterparts. Can Singapore build a strong service culture? Leon Perera, Chief Executive Officer of Spire Research and Consulting shared his insights in The Business Times – Views from the Top section on how Singapore can inculcate higher standards of service. Service standards begin with a strong foundation right from school. Ample opportunities to practice good service in school through role-playing games and competitions will help inculcate this culture. Perera opined that it is crucial that older students undergo at least one internship that involves a front-facing role. The objective of this should be to instil an ethic in humility – to serve customers with pride and not view it as humiliation. This standard should be reinforced in the workplace by business leaders who set a personal example. Business leaders should set aside time to serve customers directly, underscoring the importance of good servi

The San Francisco Bay area has set the global benchmark as a successful tech innovation and start-up epicenter. Drawing inspiration from this, the Asia-Pacific region wants to foster its own tech hubs. Will it succeed? Spire Research and Consulting shared its insights, published on the US Consumer Electronics Association’s blog. The formula for success for San Francisco’s Bay area, more commonly known as ‘Silicon Valley’, includes strong backing from a pro-business government, a pool of highly talented and educated workers as well as ample access to venture capitalists – all in the context of a risk-taking culture. Other Asian countries are working towards developing a similar culture and business eco-system in order to clone this technology hub. Some of the up and coming innovation centers across the Asia Pacific region are Cyberport in Hong Kong, Daedeok Innopolis in Daejeon, Korea, Fusionopolis in Singapore, Macquarie Park in Sydney, Australia and Yokosuka Research Park in

The retail and food & beverage (F&B) sectors contributed MYR 434 billion to Malaysia’s Gross Domestic Product (GDP) in 2013. In a bid to facilitate the contribution of franchising to retail growth, the Franchise International Malaysia 2014 Conference gathered industry professionals to share insights and explore opportunities within the local retail market. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, was amongst the guest speakers at the Franchise International Malaysia 2014 Conference held in Kuala Lumpur, Malaysia. In his presentation, Bahar emphasized the steady rise of Malaysia’s retail market. Malaysia had seen impressive economic growth compared to its Asian neighbours; registering 6.2% real GDP growth in Q1 2014, while Thailand, Vietnam, Singapore and Indonesia reported -0.6%, 4.9%, 5.1% and 5.6% GDP growth respectively. The retail sector had been a key contributor to this growth. The average Malaysian consumer still pr

Crowdfunding refers to using the internet to raise funds from a large number of people for a project or new venture. There have been numerous crowdfunding projects in Asia, such as Singapore’s Buccaneer 3D printer, which raised nearly USD1.5 million. At the same time, crowdfund marketing is another activity that enables several companies to cash in on the widespread popularity of crowdfunding. Many companies have websites allowing people to crowdfund their purchase. It is about targeting the right audience and gaining traction from the infant stage of an intended business. South East Asia is now catching up. For instance, Indonesia’s KitaBisa is the local version of America’s KickStarter – a global crowdfunding platform. ToGather.Asia, a similar firm based in Singapore, is gaining traction in terms of project creators and crowd funders. Can crowdfunding breathe new life into Asia’s start-up scene? https://www.spireresearch.com/newsroom/spirethoughts/will-crowd-fundin

Studies show that every year, US bus and railway fleets are upgraded by spending close to USD5.4 billion. Much of the vehicle and carriage assembly takes place in cost-effective regions of Asia. To prevent this, the Obama administration has enforced Buy America – a federal law that ensures transportation projects utilize 60 percent of products manufactured in the U.S. Some see this as a protectionist move, though others point to the fact that many governments around the world find ways to give work to large local firms so as to create domestic jobs. It is also the case that some manufacturing is shifting back to the US in any case, as a function of trends like rising costs in China and 3D printing. Nevertheless, will the US move herald a rise in protectionist measures globally? https://www.spireresearch.com/newsroom/spirethoughts/will-the-new-year-see-a-rise-in-protectionism/

Asia’s mobile market is poised for growth. As competition intensifies, brands are increasingly customizing their approaches to the unique needs of the Asian mobile customer. Spire Research and Consulting shared insights on key trends in Asia’s vast mobile market, published on the US Consumer Electronics Association’s blog. Global mobile technology brands are excited about the 85% mobile phone penetration in vast countries like India, China and Indonesia. At the same time, there are still over 400 million people in Asia who do not have a mobile phone, which suggests plenty of room to grow. What will set top brands apart? Three brands are taking the competition to a whole new level in the region and here is how: Xiaomi is a popular Chinese brand which has made headway into the Indian market with its recent fourth flash sale – marking a record 11,500 mobile phone units sold per second! Xiaomi’s popularity stems from its low price points ranging between USD200 and USD300, combine

Ageing populations remain a key trend in most East Asian countries. Many age-friendly and accessible products are available on the  market . What new frontiers are yet to be explored in Asia’s silver market? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his views in The Business Times – Top Stories on how marketers should tackle Asia’s silver market. According to the Asia-Pacific Silver Economy Business Opportunities Report 2013, the projected household savings of over-60’s senior citizens is set to reach USD974 billion in Japan, USD37 billion in Singapore and USD148 billion in South Korea by 2017. At the same time, senior citizens in their mid-60’s and younger – otherwise known as baby boomers – are often healthier, wealthier and better educated. They also tend to have diverse tastes and aspirations which marketers can tap into. Perera opined that it is crucial to develop standards in elderly nutrition, eldercare and living conditions in homes

Obesity is a growing threat to quality of life, healthcare systems and economies across Asia. Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his thoughts on the implications of rising obesity levels in Asia in China Daily – Asia Weekly. According to a study by Cornell University in 2012, the U.S. spent USD190 billion a year on obesity-related healthcare. An epidemic long thought to affect only the western world has gradually crept onto Asian shores. Traditional food products are now being replaced by processed  foods and fast foods  in many parts of Asia. Perera commented that obesity is strongly linked to ailments such as Type 2 diabetes and other chronic conditions. Obesity has also been linked to a rise in absenteeism and medical insurance costs. Though the impact of obesity on Asia’s healthcare expenditures is currently lower than it is in the U.S., it is on the rise. Urbanization has driven the consumption of sugary and fatty foods and

Japan and China are emerging as the leading Asian countries for 3D printing adoption, thanks to government initiatives and rapid growth in industrial demand. Can these countries outstrip the West in integrating 3D printing into supply chains? In an article inspired by the  SpirE-Journal , Spire shared its views on the challenges and opportunities in Asia’s 3D printing industry. In comparison to the 3D printing market in Europe and the US, Asia’s growth is sluggish. However, the Asia-Pacific region – especially Japan and China- is now 3D printing-ready, thanks to its extensive industrial base, government funding and a supportive research and development (R&D) eco-system. The Japanese Economy, Trade and Industry Ministry (METI) has set aside USD44 million in the 2014 budget to support R&D initiatives for metal products manufacture through 3D printing. This demonstrates its seriousness in promoting Japanese leadership in 3D printing. On the other hand, China’s Ministry

The banking landscape in Asia has seen more foreign banks expanding in the region. Most recently, the Australia and New Zealand Banking Group (ANZ) – Australia’s third largest bank – was granted a subsidiary banking license to open 20 branches across Thailand; signaling the Thai government’s readiness to accept more foreign bank investment. Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his view on Thailand as an investment banking location. ANZ reckoned that the size of Thailand’s economy, its importance as a regional manufacturing center, as well as its proximity to other South East Asian markets amounted to a positive long-term outlook for the country. Previously, Thailand had opened its doors to other foreign banks, including Japanese banks Mizuho, Bank of Tokyo-Mitsubishi and Sumitomo-Mitsui, just to name a few. While mobile banking may become an important channel in future, ANZ and the other foreign banks in Thailand should continue to loo

Banks in Asia now offer cardless ATM withdrawals, enabling consumers to access their money with only a mobile phone. This is seen as providing not only increased customer value but also brand differentiation. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, was invited to share his observations on Asia leading the way in cardless ATM withdrawals. UOB was the first bank in Singapore to offer Mobile Cash – a method of retrieving money without the need for an ATM card. Now, consumers can go to the ATM and top up their pre-paid cards with mobile cash. Subsequently, they access the internet via their mobile device and use that money to perform transactions online. In Malaysia, Maybank was the first bank to offer a similar feature. A PIN would be sent to the recipients’ phone as an SMS, and it would be used to withdraw funds at an ATM. CIMB Niaga launched a service called “Rekening Ponsel” in Indonesia; allowing consumers to use banking services w

As non-bank financial service activity expands in Asia, does the region need a more unified set of banking regulations? Leon Perera, Chief Executive Officer of Spire Research and Consulting, remarked that Asian banks and governments should be at the forefront of pushing for better global regulations on non-bank financial activities, rather than forming alternative regional standards. At stake is the delivery of financial services for Asia’s huge unbanked and under-banked population. Perera commented that unified banking regulations across the Asia-Pacific region should come via global multi-lateral platforms. Asian governments should work with each other to form an effective regional voice for improvements in global financial regulatory regimes. The implementation of the Basel I, Basel II and Base III standards after the global financial crisis had not been easy in Asia, due to various inconsistencies. Moreover, the Basel reforms were reportedly too Europe and US market centr

Withdrawing money from automated teller machines (ATMs) using a mobile device is the latest milestone in the trend of more buying and usage behavior migrating to mobile devices. The  Bank  of India recently became the first state-run lender to allow withdrawal of funds from its ATMs across India, without needing to own a bank account. The Instant Money Transfer (IMT) service further allows any customer of the bank to transfer money using the receiver’s mobile number and a passcode sent via a text message. Singapore’s United Overseas Bank (UOB) also offers the transfer of funds via any mobile number. The money received can be withdrawn from any UOB ATM, credited into a UOB account or used to top up a cash card. https://www.spireresearch.com/newsroom/spirethoughts/cardless-withdrawals-from-atm-machines-asia-leading-the-way/

The recent spate of health scandals is encouraging Asian consumers to turn to natural, organic and herbal remedies in health and beauty. In 2013, 90% of urban female consumers in China preferred products made with natural ingredients. Furthermore, they are placing more trust in local products, due to the familiarity of Asian philosophies linked with balance and harmony. Greater awareness of environmental and  food -borne toxins is also prompting Asian consumers to turn to natural and traditional health & wellness remedies. For instance in 2013, cosmetics brand Sulwhasoo launched a series of products in Malaysia that were formulated according to Korean philosophies of Sangseng; aimed at promoting harmony between body and mind. Are Asian consumers going back to the past and driving a niche market in wellness herbal remedies? https://www.spireresearch.com/newsroom/spirethoughts/asian-consumers-are-turning-back-to-natural-and-ancient-ingredients/