The Emerging Middle Class (EMC) is a rapidly growing global market of consumers newly entering the middle-income group, whose immense opportunity remains untapped by many multinational corporations, reveals a study by social innovator, Eden Strategy Institute.

According to the Asia Emerging Middle Class Survey, the EMC population currently stands at 565 million. It is expected to reach 3.5 billion in 2030 with 85% of the growth within Asia’s developing markets of China, India, Indonesia, Malaysia, Myanmar, Philippines, Thailand and Vietnam.

Pictured left: Huan, a student in Myanmar

Eden carried out the study in partnership with Jana, a global mobile rewards, social marketing and research company. It leverages Jana’s connections with 237 mobile operators, which reach 3.48 billion emerging market consumers in 70 countries.

The survey was conducted among 4,000 EMC consumers across India, Vietnam, Indonesia and the Philippines, representing individuals earning or spending US$2 to US$20 per day.

Eden said this was the first survey of its kind that reveals the EMC’s earnings, savings, spending behaviour; their hopes, fears, possessions, material attachments and aspirations.

“The Emerging Middle Class represents an untapped market of over half a billion consumers. Unlike the traditional middle-class, EMC consumers may have irregular income flows, and are highly discerning about longer-term value of their purchases,” said Calvin Chu Yee Ming, partner at Eden Strategy Institute.

“Multinationals need to take a collaborate approach to innovate around their unique contexts, needs, and desires in order to successfully bring relevant products that help these consumers escape from the poverty cycle,” he added.

Some key findings:(see slides below for details)

• Aspiration: The biggest hope of the EMC consumers are having a healthy life, becoming rich and becoming closer to God. (Pictured right: pollceman in Thailand)
• Health: Respondents from all countries surveyed chose health as the number one thing that they are most afraid of losing, over their jobs, friends, social statuses, savings and their houses.
• Job security: The second greatest concern of the respondents is job security. This fear of losing employment security might be derived from the nature of their jobs, where their health might heavily affect their job productivity and hence their income.
• Mobile device/internet: Access to mobile internet was the most common EMC consumer possession, with an average of 42.2% ownership of a mobile phone, computer or tablet across the four countries. Internet and mobile device ownership is highest among EMC consumers in the Philippines, with over 57.9% of respondents having Internet access.
• Household electronics: An average of 38.5% of respondents own a television set, while only 28.2% own a washing machine, refrigerator or air-conditioner.
• Property: More respondents own a television set or electronic gadgets than a house. A possible reason for this low home ownership could be due to the lack of suitable mortgage options for the average EMC consumer. Indonesian respondents said they would rather lose their savings than their house.
• Dining: The lowest among all types of consumption, a tenth of EMC respondents still dine at an international restaurant at least once a month. However, respondents in Vietnam revealed that they could not live without fast food (20.4%) than mobile phones (18%).
• Friendship important: EMC consumers from all countries value their friendships more than their houses.

The full report is available for download here.

• Photos courtesy of Eden Strategy Institute