2022 outlook: what’s top of mind for income & growth?
We share our perspectives on the investment landscape for 2022 and the opportunities for income and growth.
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Key takeaways:
- Increasingly, consumers are looking for a brand and shopping experience tailored to their preference and convenience1, prompting some companies to invest in personalised products and services.
- Growing interest in sustainable living is also driving changes in consumer lifestyle, presenting long-term growth opportunities in green technologies1.
In today’s market, millennial and Gen Z consumers are increasingly shaping consumption trends and behaviours. These consumers are seeking comfort, convenience, choices and sustainability as well as integrative experiences across channels2.
Consumption in a greener world
The shared creation, distribution and consumption of goods and services is a rising trend among economies3. Digital sharing platforms and mobile apps for ride-hailing and home-sharing services are disrupting some industries such as transportation, hospitality and payments.
Like businesses that are seeking sustainability, the consumer sector is no exception. Retailers are innovating through the use of environmentally friendly technologies and initiatives to sustain business growth and to build a better world.
Some textile makers are setting up sustainable technology solutions to reduce their carbon emissions, reduce the use of hazardous chemicals and better conserve energy and water in the manufacturing process4. Others are also using innovation to cut food waste from farm to fork and are part of a global initiative to create a sustainable food system5.
Alongside growing interest in sustainable living, consumers are also willing to pay a premium for convenience and personalisation2.
Some retailers have been developing a seamless shopping experience through digital platforms and in-store offerings, enabling more comfort and choices for consumers6.
Other companies are investing in technologies to understand more about their customers. Some mobile apps, for example, have customised landing pages, with recommendations based on previous searched or ordered items2.
Some retailers in Asia, for example, have been arranging personalised services for their VIP customers, including fashion consultants and ‘style ambassadors’ for one-on-one assistance, alongside exclusive brands and limited-edition product sales2.
Conclusion
A new generation of consumers are increasingly shaping consumption trends and behaviours. Personalisation and exclusivity in consumption may continue to drive business growth as consumers want more choices, comfort and convenience. We also believe companies that are investing in innovative green services and products are presenting long-term growth opportunities for some investors1,7.
Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice.
Diversification does not guarantee investment return and does not eliminate the risk of loss.
1. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions.
2. Source: “Future of Consumption in Fast-Growth Consumer Markets: ASEAN 2030”, Bain & Company, World Economic Forum, 05.06.2020.
3. Source: “How the Sharing Economy is Transforming Business”, Washington State University, Carson College of Business, 2021.
4. Source: “Tracing the transition towards a more sustainable textile production”, Global Centre of Partnerships for Development, 20.04.2021.
5. Source: “Tracking global food waste”, The Food Waste Atlas, as of November 2021.
6. Source: “How shopping experiences and sustainability are shaping the future of Travel Retail”, Duty Free Dynamics, December 2020.
7. Source: Good Fashion Fund, as of November 2021.
Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current and future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.
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