What’s Next for 2014
Asia Pacific

Welcome to the What’s
Next Trend Report 2014
We hope that you enjoy reading this report and that it inspires
you for the year ahead.
At What’s Next we’re passionate about the intersections
between consumer culture, business practices, the never
ending march of technology and media. We believe these
intersections are what drives the future .
This report explores the trends that will be created in 2014 when
developments in each of those areas collide.
Letter From The Editor

Contents
CONTENTS
EXECUTIVE SUMMARY
10 TRENDS FOR 2014
WHAT THIS MEANS FOR ADVERTISERS
CONTACT

EXECUTIVE SUMMARY
Projections & Trends
STATUS CONTINUES TO BE A
KEY DRIVER OF ASIAN
CONSUMER BEHAVIOUR.
HOWEVER, WITHIN THAT WE’RE
SEEING A RANGE OF SUB-SET
BEHAVIOURS THAT ARE
CHANGING THE MEANING OF
STATUS.
As Asia’s tier 2 and tier 3 markets open up further
the luxury market is breaking up into two, if not
three tiers. While newcomers to the category
scramble for status badge logos, the experienced
Asian luxury consumer is becoming more
sophisticated in his choices, valuing the experience
of luxury as much as, if not more than, the product
itself. At the other end of the spectrum though,
there is a move towards trade-up and trade-in
retail formats for those entering categories such as
consumer electronics for the first time.
THE SMARTPHONE CONTINUES
ITS DISRUPTIVE INFLUENCE, BUT
AS THE INTERNET OF THINGS
BECOMES EVER MORE
PRESENT THE REACH OF ITS
IMPACT GROWS
Mobile continues to be a game changer
but its influence is evolving. As the region
grows in affluence more people are
connecting and they are doing it via
mobile: this has a significant impact on
their expectations of brands. As
smartphone penetration hits and goes
beyond critical mass across all of Asia –
even in developing markets – ‘mobile
natives’ are demanding short form
content, and image first communications.
Executive Summary

SMARTPHONE PENETRATION COUPLED
WITH THE INTERNET OF THINGS COMING OF
AGE WILL CHANGE RETAIL FOREVER.
For a long time, any discussion of the impact of digital on bricks
and mortar seemed to suggest the end of the traditional shopping
experience. However, the smartphone is really the pioneer of The
Internet of Things (IoT) and as businesses begin to harness these
two areas more effectively its beginning to change the bricks and
mortar game completely with heightened experiences for
consumers reinventing the retail space.
Furthermore, the impact of increased smartphone penetration
(and to a lesser extent wearable technologies) and the IoT is
empowering consumers in their daily lives. In 2014 we’ll see the IoT
become more visible as companies begin to commercialise
technologies that intuit what you need without needing to be told.
EXECUTIVE SUMMARY
Projections & Trends

10 Trends for 2014

Image Powered Web
Monthly e-Retail Formats
The Need for Short Form Content
The Polarisation of Luxury
Disruptive Force of Emerging Markets
The Mobile Empowered Consumer: Intuitive Technology
Mobile Natives
Owning the Multi-screen Mix
Changing Retail Environment
Second Hand Status
001
003
004
005
006
008
007
009
010
002
Mouse over numbers to
expand,
click for more
information

The Image Powered Social Web
Although predominantly text-based
apps such as Line and WeChat
have had enormous success of late,
it’s fair to say that over the last 5
years there’s been significant
change in the way that people use
the internet and social media. From
almost exclusively text based status
updates on Facebook and 140
character updates on Twitter we’ve
moved, thanks to smartphones, to a
more visually dominated form of
communication online. Pinterest,
Instagram and Snapchat have
paved the way to for the image
powered web.
These days it feels like hardly a meal
is eaten without it being
documented visually somewhere on
line. There are now over 40m+ users,
& one million daily active users on
Instagram in Australia alone and
more than 100,000 downloads of the
app in China daily.
Data to the right shows the sheer
rate of growth of image centric
apps, with 27% of images uploaded
now being done so through
SnapChat.
WHAT THIS MEANS FOR BRANDS
With an increasing focus on image
powered communications brands need
to think hard about how they create
and distribute content. With imagery
fuelling how we connect, its changing
the form and functionality of websites
and evolving how we discover. Most
significantly for brands, it’s evolving
what we think of as content and
advertising with native advertising
starting to take off. Instead of display
banners, this is about promoted posts on
Facebook, videos on The Vine and
photos on Instagram.
Source: Internet Trends DII Conference, KPCB, May 2013
001
003
004
005
006
008
007
009
010
002
THESE DAYS IT FEELS
LIKE HARDLY A MEAL
IS EATEN WITHOUT IT
BEING DOCUMENTED
VISUALLY
SOMEWHERE ON LINE.

Monthly e-Retail Formats
With the growth of smartphone
penetration across Asia in 2013
e-commerce, and in particular
m-commerce has been a hot
topic over the last 12 months.
However, hot on its heels as
retail trend du jour is that of
monthly e-retail formats.
From beauty and cosmetics to
candy we’re seeing retailers
and manufacturers start selling
on a monthly subscription or
‘subcom’ model. As well as pre-
ordered favourites, customers
frequently receive additional
‘surprise’ items to experience
making this a great avenue for
sampling.
WHAT THIS MEANS FOR BRANDS
Currently e/m-commerce has become a
relatively standardised experience across
companies and brands. Through the
subcom model some brands are finding
an avenue for differentiation and bringing
the ‘surprise and delight’ factor back into
the transaction process.
Korean beauty brand Memebox has seen
exceptional growth through the subcom
model and now has over 100,000
subscribers to its monthly service,
equating to $2m+ of revenue. Off the
back of this success it has expanded the
service into Japan, the USA and is coming
soon to Thailand.
Source: www.techinasia.com
001
003
004
005
006
008
007
009
010
002
FROM BEAUTY TO
CANDY WE’RE
SEEING RETAILERS
AND
MANUFACTURERS
START SELLING ON A
MONTHLY
SUBSCRIPTION OR
‘SUBCOM’ MODEL.

The Need for Short Form Content
Sources: nVision (2013), Trendwatching.com, eMarketer, Mintel and Warc
One Second Everyday prompts users
to capture a clip of their life each
day. Each clip is then saved to a
calendar. Clips then play in
chronological order to create a
short film.
With the overwhelming amount of
content and information we now
have access to, consumers have
an ongoing need for bite size and
engaging content. Consumers are
no longer just consuming media
but also creating and sharing it
themselves.
WHAT THIS MEANS FOR BRANDS
Brands should take advantage of this
creativity and provide consumers with
ingredients and content that they can
adapt, improve and share amongst
their networks.
Making use of the creativity of a brand’s
customer-base not only produces a
better output, it also builds a bond
between brand and customer. It is,
therefore, important to provide all
communications with content that can
engage people and make them want to
share it.
Content should generate interaction
with consumers and offer them social
currency - something they want/need
to share with their social network rather
than an intrusive or commonplace sales
message.
Vine requires users to tell their
stories within a very short period of
time. Creators only
have seconds to get their point
across to viewers.
001
003
004
005
006
008
007
009
010
002
WITH THE
OVERWHELMING
AMOUNT OF
CONTENT AND
INFORMATION WE
NOW HAVE ACCESS
TO, CONSUMERS
HAVE AN ONGOING
NEED TO HAVE BITE
SIZE AND
ENGAGING
CONTENT.

The Polarisation of Luxury
With the coming of age of T2 and
T3 markets across the region ‘luxury’
in it’s broadest sense is becoming
increasingly democratised.
Arguably, some brands such as
Louis Vuitton may have fallen into
the realm of ‘expensive mass
brands’ rather than real luxury.
For the uber-rich or more
‘experienced’ shopper this has
opened up the market to include a
new tier of luxury. More
sophisticated in its out look, this new
tier is notable for its emphasis on
experience, service, story and
discretion: it’s a move away from
obvious badges that say ‘I have
arrived’, although status seeking is
still the key purchase driver.
Those who are already purchasing
traditionally defined luxury goods
are beginning to speak of luxury in
experiential terms; it’s less about
showing off your purchase and
more about having exclusive
access to unique experiences to
brag about.
WHAT THIS MEANS FOR BRANDS
Brands have the opportunity to redefine
luxury further. Its application can extend
much further beyond expensive
products where brands infuse luxury into
unique experiences.
Further to this Point of Sale enjoys an
augmented role in which the story of
where and when I bought X is as
important as the purchase itself. Status
comes from the story more than the
object. Logos that demonstrate status
through expense are no longer going to
give an ‘easy win’ in Tier 1 markets in
which consumers are now looking for
something more from a luxury
experience..
Source: McKinsey & Company, Chinese Luxury Consumer Survey, December 2012
001
003
004
005
006
008
007
009
010
002
ARGUABLY, RANGES
FROM THE LIKES OF
LOUIS VUITTON MAY
HAVE FALLEN INTO
THE REALM OF
‘EXPENSIVE MASS
BRANDS’ RATHER
THAN REAL LUXURY.

Disruptive force of emerging markets
The rise of middle-class
consumers in emerging markets
is leading to radical shifts in
business models and NPD.
Global brands are now
producing innovative designs,
reducing manufacturing costs
and therefore offering cheaper
entry price points. The telecom
and automobile industries have
been the first to benefit from this
and balancing the affordable
with product functionalities will
be key focus for these
consumers.
With emerging markets
accounting for nearly 50% of the
world’s total consumption and
China and India accounting for
two-thirds of this expansion
alone, brands need to continue
to identify opportunities for
growth within these untapped
markets, especially as they are
up against aggressive local
players.
WHAT THIS MEANS FOR BRANDS
For global brands wishing to extend
further into these markets, providing a
strong value proposition will be key.
The needs of these emerging markets
have the potential to disrupt entire
industries by offering cheaper entry and
price points - brands should also look for
opportunities within NPD.
Mobile optimisation also needs to be
strong for global brands operating in
these regions as, quite often, access is
mainly through a tablet or mobile
device. A test and learn culture with
optimisation needs to be implemented
now rather than later, to ensure that
brands are ready for any immediate
growth in these markets.
Sources: nVision (2013),
Trendwatching.com and Warc
Chinese mobile brand Xiaomi has
achieved tremendous growth across
the region, destabilizing the leadership
positions of big name manufacturers
through competitively priced
products and innovative sales formats
like its recent flash sales on WeChat.
001
003
004
005
006
008
007
009
010
002
THE RISE OF MIDDLE-
CLASS CONSUMERS
IN EMERGING
MARKETS ARE
LEADING TO
RADICAL SHIFTS IN
BUSINESS MODELS
AND THE TYPES OF
PRODUCTS THEY
ARE PRODUCING
AND AT WHICH
PRICE POINTS.

The Mobile Empowered Consumer: Intuitive Technology
Consumers feel the need to be
connected anywhere and
everywhere and expect
information to accompany them.
Smartphones are almost becoming
an extension of the consumers
themselves - rarely leaving their
side. They, along with wearable
technology will become so
ingrained in people’s lives that we’ll
eventually scarcely even notice
them. Over the next 12 months
we’ll begin to see the smartphone
used as a ‘control’ device that
manages a multiplicity of
connected screens.
The Internet of Things will also mean
that everything will soon become
connected - not just people, but
objects and places. The digital
ecosystem will develop intuitively
across platforms and devices,
making everything work together
much more seamlessly. As
consumers become more
comfortable with handing over
their data, the more personalised
technology will become.
Future technology and
connectivity will become more
intuitive, passive, automated and
require less input from us.
WHAT THIS MEANS FOR BRANDS
Moving forward, brands will have plenty
of opportunities to blend into this
intuitive digital ecosystem.
The challenge for advertisers will be
how to sync with the consumer’s frame
of mind without interrupting their task.
Thinking should be shifted from how and
where brands can advertise on mobile
platforms, to how brands can blend
more seamlessly into consumers’ mobile
lifestyles. With consumers having the
power to filter out irrelevant messages, it
is essential that brands work harder in a
more human way in order to draw
attention to themselves.
Sources: nVision (2013), Trendwatching.com and
Warc
The Galaxy Gear launched in 2013,
selling 800,000+ units in its first two
months: significantly more than
expected in spite of the current
limitations of the product. Hundreds of
other watch based devices were
introduced at CES 2014.
001
003
004
005
006
008
007
009
010
002
WITH CONSUMERS
FEELING THE NEED TO
BE CONNECTED
ANYWHERE AND
EVERYWHERE, BRANDS
WILL HAVE PLENTY OF
OPPORTUNITIES TO
BLEND INTO THIS
INTUITIVE DIGITAL
ECOSYSTEM.

Owning the Multi-screen Mix
From smartphones and tablets to
laptops and televisions, 90% of all
media interactions today are screen-
based. Consumers now move among
screens to get stuff done:
simultaneously and sequentially.
Smartphones and tablets have
become the enablers of two dominant
forms of viewing multi-tasking,
(although multi-screening is about
more than just those two devices).
Simultaneous ways of consuming
media are growing, such as ‘media
meshing’ (multiple devices
simultaneously used to enhance a
media experience by communicating
or interacting with what they are
viewing) and ‘media stacking’ (using
multiple devices simultaneously to
conduct unrelated tasks while
watching TV). With each mobile
device having a different role, it is
important for us to understand how
consumers use those screens:
smartphones keep us connected,
tablets keep us entertained and
computers keep us productive. With
multi-screen behaviour moving more
mainstream, it is essential that brands
own the second screen.
WHAT THIS MEANS FOR
BRANDS
Brands need to engage with their
consumers with meaningful and
shareable content to provoke
conversation, interaction and an
emotional connection.
Media should increasingly be
thought of as a meeting point and
brands need to think less about
using media based on customer
journeys & purchase funnels and
more about choosing media based
on how they can build bespoke
personal relationships and friendship
funnels.
Sources: nVision (2013),
Trendwatching.com, iab Europe,
Global Web Index, Google Think
Insights and Warc
McDonald's, created a smartphone
app to engage Chinese consumers
during the 2012 Olympic Games.
The app adopted GPS and motion-
sensor technology to allow people
to virtually 'compete' with
Olympians via a mobile game as
they watched the Games live.
001
003
004
005
006
008
007
009
010
002
WITH 90% OF ALL
MEDIA
INTERACTIONS
BEING SCREEN-
BASED, CONSUMERS
ARE NOW MOVING
ACROSS SCREENS
SIMULTANEOUSLY TO
GET THINGS DONE.

Mobile Natives
Source: Social Bakers October 2012
WHAT THIS MEANS FOR BRANDS
Brands need to cater for this new group
of consumers who come to the digital
world from a mobile first perspective.
Analysts are predicting that by the end
of 2014 more consumers will consume
more content on mobile than on any
other device. Considering that 90% of all
media interactions are now screen
based that’s a significant step.
Most importantly advertisers need to
remember that mobile can no longer sit
on the periphery of campaign planning.
It needs to be at the heart of what we
do. With an entirely new ‘segment’
emerging that are used to the dialogue
afforded to them by being ‘mobile
native’, as advertisers we need to make
sure that we monopolise on the power
of now and recognise that awareness
media no longer has to be a one way
conversation.
Connectivity will continue to
blossom in 2014. With the middle
classes continuing to grow rapidly
across Asia, we’re seeing that the
first thing that people want to do
with their increased affluence is
to communicate, and to
participate.
Mobile penetration is surpassing
100% even in developing
markets, with that of feature
and/or smartphones not that far
behind.
With that a new type of
consumer is emerging: the
mobile native.
001
003
004
005
006
008
007
009
010
002
MOBILE
PENETRATION IS
SURPASSING 100%
EVEN IN
DEVELOPING
MARKETS, WITH THAT
OF FEATURE
AND/OR
SMARTPHONES NOT
THAT FAR BEHIND.

Changing retail environment
The retail landscape is
experiencing change. While we
have plentiful opportunities to
shop online, retailers are also
giving new reasons for shoppers
to spend time in their physical
spaces.
Mobile technologies are helping
to enhance and extend the
shopping experience and lines
between online and offline
shopping experiences are
becoming blurred. With
technologies that have already
been implemented like
fingerprint scanning,
360˚scanners and OOH virtual
shopping walls, it has meant
that alongside mobile apps,
smartphones have and will
further become, indispensable
pocket shopping assistants.
WHAT THIS MEANS FOR BRANDS
At a time when retailers and brands are
struggling to entice reluctant, hard-
headed shoppers, brands need to ensure
that their channels work together
seamlessly to create the best, unique
online and offline retail experience. These
channels need to help arouse consumer
curiosity by creating buzz, delivering
unique experiences. Both the physical &
digital worlds need to be connected
through all-in-one experiences.
Sources: nVision (2013), Trendwatching.com, eMarketer, Mintel and Warc
MasterCard’s ShopThis
feature helps tablet
magazine readers
purchase product
directly in-app. This then
shortens and simplifies
the consumer journey to
purchase.
001
003
004
005
006
008
007
009
010
002
PROVIDING
CONSUMERS WITH A
CONSISTENT SHOPPING
EXPERIENCE ACROSS
CHANNELS, HAVING
CHANNELS WORK
TOGETHER AND
ALLOWING
CONSUMERS TO
ACCESS MULTIPLE
SHOPPING CHANNELS
SIMULTANEOUSLY
THROUGH AN ‘OMNI-
CHANNEL’ SHOPPING
APPROACH

BIG NAME BRANDS
ARE
COLLABORATING IN
ORDER EITHER TO
MAXIMISE THEIR
IMPACT ON THE
MARKET OR ENTER
MARKETS WHERE
THEY PREVIOUSLY
HAD NO PRESENCE.
As Asia’s population becomes
increasingly wealthy more
people are coming to
‘affluent’ categories more
quickly than ever before.
These consumers are
becoming exposed to an
increasing number of products
on the global market and are
eager to try aspirational
brands. However, this
aspiration is set against
traditionally price sensitive
mind sets and there finds a
curious tension which is finding
expression in ‘trade up and
trade in’ retail portals.
Discounted, pre-owned or pre-
used models are bringing an
uncomfortable – or even
impossible – financial stretch
within reach.
WHAT THIS MEANS FOR BRANDS
Consumers are coming to high profile,
global brands for the first time in a way
that the brand has little ability to control.
With status still being the key driver for
ownership brands need to think about how
to make the experience of buying through
legitimate retail outlets and/or ‘unboxing’
a strong enough pull to be willing to go the
extra mile financially. Maintaining control
of the brand and product experience
needs to be a key consideration.
Source: Trendwatching.com
Second hand luxury is taking off in China
thanks to stores such as Milan Station. In
2013, over 300 new secondhand luxury
stores opened in China, with sales of
approximately CNY 3 billion (USD 4.94
billion).
Second Hand Status
001
003
004
005
006
008
007
009
010
002

What this means for
ADVERTISERS
THE CONSUMER AND
ADVERTISING
LANDSCAPES EVOLVE
QUICKLYAND OMG IS
CONSTANTLY THINKING
ABOUT HOW TO KEEP UP
WITH THAT RATE OF
CHANGE IN ORDER TO
HELP BUILD BRANDS AND
DELIVER GROWTH.
Advertising is becoming more complex, less
streamlined, and harder to execute and reach
audiences at scale. Today, digital media not
only presents multiple challenges, but also
multiple opportunities to extend content and
experiences beyond traditional media norms.
Omni-channel advertising has been gaining
momentum. Brands need to use platforms less
as siloes, and more as a seamless approach to
engaging with their consumers in a meaningful
way and across multiple screens at the same
time.
The rise of the smartphone, tablet and Smart TV
penetration is presenting more and more
opportunities for advertisers. The increase of
smartphone ownership has also encouraged
the emergence of new behaviours.
What this means for advertisers

WHAT’S NEXT
At What’s Next we’re passionate about the intersections
between consumer culture, business practices, the
never ending march of technology and media.
For more information, contact Sarah Yems at
sarah.yems@omnicommediagroup.com
Follow us on Twitter -
@OMG_WhatsNext