Deepak's Musings #124: Southeast Asia consumer confidence on track for rebound as value-seekers embrace new needs

🔥The 7 consumer trends playing out across Southeast Asia and the opportunities this present

The latest SYNC Southeast Asia report 'Bold Moves: Leading Southeast Asia's next wave of consumer growth' by Meta, Bain & Company and DSG Consumer Partners, is a must-read for anyone interested in the Southeast Asia consumer. It reveals insights into the evolving landscape of Southeast Asian consumers and how this diversity presents significant opportunities for businesses in the region both in the near and long term. With ‘wants’ transitioning into ‘needs’ and dissatisfaction with what the incumbent brands provide, it is no surprise that Southeast Asian consumers are choosing disruptive insurgent brands to satisfy their unmet needs and evolving expectations. We uncover 7 consumer trends that will present significant opportunities for founders and businesses.

🎙️ What do strategics look for when acquiring brands?

Insightful interview with Sovos Brands’ Chief Sales Officer Risa Cretella. She talks about velocity growth, Net Promoter Score (NPS), and “brand stretch,” which measures the brand’s ability to support extensions into adjacent categories. Read the full interview here.

🛍️ Tata Consumer’s CPG ambitions

An interesting perspective from The Morning Context into what Tata Group is doing at Tata Consumer Products Ltd to get a meaningful share of India’s large and expanding CPG market.

Having burnt its fingers in the past, TCPL has reportedly passed over two big opportunities in the past six months to acquire market leaders—Bisleri and Haldiram’s. Will it be able to make that required large acquisition to deliver on N.Chandrasekaran’s ambition to be a large full-fledged CPG company as he stated at the June 2023 AGM?

🍞 Introducing Everiday Foods

DSG Consumer Partners was the first investor into Nuguru in 2021, parthering with Vikram Rupani, with whom DSGCP partnered when he founded RedMart with Roger Egan III. Nuguru’s mission was to identify and launch better for your CPG products. The first product range incubated was Everiday Foods, unveiled at Speciality Food & Drinks Asia, which was a resounding success, as founder Riyana Rupani presented their range of wholesome products.

Try the best range of organic chilli sauces or pick you favorite from a full range of the yummiest gluten free bakery products. I have the Sambal with everything I eat.

🌿 Veeba’s new campaign: Cricket 🏏 X 🥫 Food

Your food. Your rules. Veeba's latest TV campaign. Marrying India’s first love, Food, with India’s second love, Cricket. 🏏 X 🥫. Just in time to support India who beat Pakistan in the Cricket World Cup on Saturday by 7 wickets 192/3 after 30.3 overs.

😋 Sampling as a core lever to create awareness and drive trial

Over the last two decades, the one constant I have seen is the power of sampling. This not only creates awareness, it also drives trial. Consumers love meeting the founders and the team behind every brand. Brands can use the opportunity to create and engage with an organic community and get real-time feedback. An example is Pip & Nuts’s recent sampling roadshow.

🍺 Beer: Non-alcoholic sales and premiumisation drive growth

Two interesting unrelated articles and interviews highlight the rise of non-alcoholic beer and premiumisation. First, is Just Drink’s Dean Best interviewing Atsushi Katsuki at Asahi. The second is a story from the Wall Street Journal highlighting soaring sales of non-alcoholic beer in the U.S.