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                    Taking The Road Less Traveled ByHow to increase your profits in Asia,            when times are tough   James Chadwick, Regional Account Planner OM Asia/Pacific, OM Singapore Contents Is this a recession? How consumers behave in recessions The decision: fight or flight Learnings from historical studies Choosing to fight 5 strategic opportunities Tough times in Asia - the debate Is this a disastrous crash or a much-needed “reality check”?  Will this make Asia more economically competitive again ? or are we entering a downward spiral? CEO’s Predicting Recovery Rates Tough times in Asia - the debate  Nobody knows for sure how tough it will get, or how long it will last.  In the meantime, it’s time to develop a corporate stance towards the recession.   How the mighty respond…. …and how the rest plan to cut back   Is this a recession? Textbook definitions		 	 Is this a recession? Textbook definitions		   Our definition  	 Consumer mood by country Satisfaction with Quality of Life Index Asians Are Still The World’s Optimists Consumer Confidence in Singapore Impact of Recession on Asian Consumer Confidence Impact of Recession on Asian Consumer Confidence Singaporean Consumer Confidence Trend Changing Confidence of Singapore Consumer How do consumers behaveduring a recession? Consumer spending does not always drop In previous US postwar recessions, real spending  continued to rise  except ‘73-’74 Consumers still need necessities Many consumers find they have more disposable income for everyday items than before reduced high-ticket purchasing less wasteful behaviour Recessionary behaviour is complex Grand Met launched Haagen-Dazs when Europe was in recession a super-premium (+40%) brand that created a new category of its own US$10m sales in 1990 to US$130m in 1994  Perhaps consumers need “little luxury” feel-good brands more than ever during recession Some international learnings* Basic necessities hold up, or increase bread, soup, preparation ingredients, seasoning Vi
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