NTU to host global center studying pan-Asian consumer behavior

A new research centre at Nanyang Technological University (NTU) will give vital insights into Asian consumers and establish Singapore as a pan-Asian consumer research hub. Named the Institute on Asian Consumer Insight (ACI), it is a key initiative to help Singapore capitalise on the long-term trend of Asia's growing wealth.

ACI aims to be the thought leader in understanding pan-Asian consumer needs, wants, and preferences, and to conduct research and education programmes which help firms innovate brands, products and services that meet the needs and aspirations of consumers across the region. Plans for the education programmes include postgraduate degrees, executive development programmes, and an accreditation framework for market researchers.

ACI is jointly funded by the Singapore Economic Development Board (EDB) and NTU - up to S$77 million over five years - and is expected to have about 20 researchers by the end of its fifth year in operation.

NTU President Bertil Andersson said: "ACI is an exciting partnership between NTU and the EDB that will establish Singapore as the go-to source for Asian consumer insight. Singapore's multi-cultural environment and strategic location in the heart of Asia will allow us to gain a better understanding of what drives Asian consumers, and how their unique tastes and cultures impact buying decisions."

He added: "Establishing this national institute fits perfectly with NTU's strategy to become the New Silk Road of knowledge, combining the best of the East and West."

Under NTU's five-year strategic blueprint, the New Silk Road is one of five interdisciplinary areas on which the university aims to put a global stamp, the others being sustainability, healthcare, new media and innovation.

ACI will benefit from tapping NTU's extensive internal and external networks. Located in Nanyang Business School (NBS), it can access the multi-disciplinary capabilities offered by NTU's colleges of business, humanities and engineering and the upcoming medical school set up in partnership with London's Imperial College to get more holistic insights - from marketing to product innovation and design - that are valuable to companies expanding in Asia. As a national institute, ACI will work with other local universities and NTU's academic partners in the region.

It will also engage business-to-consumer (B2C) companies to develop capability for "future-casting" on pan-Asian consumer behaviour and research methodology.

Further, the institute will work with the industry to nurture a conducive environment for consumer research and innovation activities to take place in Singapore.

As it stands, leading B2C firms like Procter and Gamble, Unilever, Philips and Hewlett-Packard have made Singapore a regional hub for consumer research, product development, and brand management. Top market research, design, and branding specialists, like The Nielsen Company, Gfk, Interbrand, Bannistar and Elmwood have also established presences here.

As the fast growing and increasingly affluent populations in Asia join the middle-class, their rising consumption is creating enormous opportunities. The Organisation for Economic Cooperation and Development estimates the region will drive 80 percent of global middle-class spending growth, which is projected to rise from US$21 trillion in 2009 to US$56 trillion in 2030. B2C companies are looking towards Asia for growth but are realising that it is insufficient to replicate and use their present strategies in Asia.

EDB Managing Director Beh Swan Gin said: "With ACI, Singapore is well-placed to help companies understand the similarities and also the differences across the diverse markets in Asia. This will enable companies to innovate products, services and channels, and capture new markets."

Dr. Beh added: "The EDB will continue to work on enhancing consumer insight ecosystem here by placing more platforms which facilitate multi-party collaborations among stakeholders like academics, brand owners, market research firms, advertising agencies, and regional retailers."

Provided by Nanyang Technological University