The impact of economic disparities on consumerism in Southeast Asia

SHOPPING in Southeast Asia is the story of economic disparity woven with threads. Some of these countries have flourishing economies at the same time as having a high poverty level mixed with a huge percentage of population in the middle-income category. The uneven landscape, borne out in countries like the Philippines, Indonesia and Malaysia, has established a consumer behavior pattern that is distinctly unique. It is an interesting challenge for business enterprises, as well as exciting opportunities. Think of Southeast Asia as a book of millions of individual stories.

The Philippines has considerably more poverty despite a gross domestic product (GDP) per capita of approximately $3,500 compared to its more prosperous neighbor, Malaysia. Now, this economic truth translates quite readily to how people shop. The wealth gap appears wide, separating those who can afford luxury vacations and designer clothes from those who have to plan every penny spent.