Investing for a changing world
We share our perspectives of sustainable investing in an overall portfolio.
Read more
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.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service. Informational sources are considered reliable but you should conduct your own verification of information contained herein. Investment involves risk. Investments in funds are not deposits and are not considered as being comparable to deposits. Past performance is not indicative of future performance and investors may not get back the full or any part of the amount invested. Dividend distributions if any are not guaranteed and are made at the manager’s discretion. Fund’s net asset value may likely have high volatility due to its investment policies or portfolio management techniques. The value of the units in the scheme and the income accruing to the units, if any, may fall or rise. Funds which are invested in emerging markets, smaller companies and financial derivative instruments may also involve higher risks and are usually more sensitive to price movements. Any applicable currency hedging process may not give a precise hedge and there is no guarantee that any hedging will be successful. Investors in a currency hedged fund or share class may have exposure to currencies other than the currency of their fund or share class. Investors should make their own investigation or evaluation or seek independent advice prior to making any investment. Please refer to the Singapore Offering Documents (including the risk factors set out therein) and the relevant Product Highlights Sheet for details at https://am.jpmorgan.com/sg/en/asset-management/per/. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with https://am.jpmorgan.com/sg/en/asset-management/per/privacy-statement/. Issued by JPMorgan Asset Management (Singapore) Limited (Co. Reg. No. 197601586K). All rights reserved.
OUR FOCUS FUNDS
For Fund or Institutional enquiries, please call or email us. You can also contact your financial advisor or your J.P.Morgan Representative.