News Release

NTU to host global center studying pan-Asian consumer behavior

Business Announcement

Nanyang Technological University

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."

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Media contacts:

Feisal Abdul Rahman
Senior Assistant Director, Media Relations
Corporate Communications Office
Nanyang Technological University
Tel: 6790 6687
Email: feisalar@ntu.edu.sg

Clement Quek
Senior Officer, Marketing & Communication
Singapore Economic Development Board
Tel: 6832 6700
Email: clement_quek@edb.gov.sg

About the origin of the Institute on Asian Consumer Insight (ACI)

ACI, a result of an Economic Strategies Committee recommendation in 2010, is a key initiative to help Singapore leverage the long-term trend of Asia's growing wealth.

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.

As Asian economies continue to boom, B2C companies are looking towards the region for growth but are realising that it is insufficient to replicate and use their present strategies in Asia. These firms thus have to specially innovate products and services, and channels to reach the growing number of Asian middle-class families.

Singapore's research and development capabilities, good infrastructure, and location at the crossroads of global trade and culture make it ideal as a hub for pan- Asian consumer research to support these companies in their endeavours.

A recent meeting by the EDB Consumer Insights International Advisory Panel further endorsed the initiative.

The panel, led by Coca-Cola Company Marketing Strategy & Insights Vice-President Stan Sthanunathan and EDB's Dr Beh, said Singapore was well-placed to address the lack of consumer insight research in Asia, which companies need to make innovative products and services.

They said the institute would enable Singapore to develop a distinctive and valuable capability in pan-Asian consumer insight, and strengthen its position as the strategic location for both global and Asian companies to drive consumer-centric business and innovation activities.

About the Consumer Insights International Advisory Panel (CI IAP)

Held for the first time in 2011, the CI IAP gathered industry opinion and advice on areas Singapore needed to focus on, to build up its position as a leading business hub for global companies and Asian enterprises.

The CI IAP brought together 12 thought leaders from US, Europe, and Asia in the consumer knowledge and market research space to discuss a range of topics pertinent to consumer insights. Through the expert opinion of the IAP members, Singapore looked to better understand consumer research and innovation trends in Asia, and also to define the role we could play to support companies growing into the Asia-pacific region and beyond.

About Nanyang Technological University

A research-intensive public university, Nanyang Technological University (NTU) has 33,500 undergraduate and postgraduate students in the colleges of Engineering, Business, Science, and Humanities, Arts, & Social Sciences. In 2013, NTU will enrol the first batch of students at its new medical school, the Lee Kong Chian School of Medicine, which is set up jointly with Imperial College London.

NTU is also home to four world-class autonomous institutes – the National Institute of Education, S Rajaratnam School of International Studies, Earth Observatory of Singapore, and Singapore Centre on Environmental Life Sciences Engineering – and various leading research centres such as the Nanyang Environment & Water Research Institute (NEWRI) and Energy Research Institute @ NTU (ERI@N).

A fast-growing university with an international outlook, NTU is putting its global stamp on Five Peaks of Excellence: Sustainable Earth, Future Healthcare, New Media, New Silk Road, and Innovation Asia.

NTU has a satellite campus in Singapore's science and tech hub, one-north, and is setting up a campus in Novena, Singapore's medical district. It will also have its first campus in China, the NTU Tianjin College, in 2013.

For more information, visit www.ntu.edu.sg

About the Singapore Economic Development Board

The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore's position as a global business centre. EDB dreams, designs and delivers solutions that create value for investors and companies in Singapore. Our mission is to create for Singapore, sustainable economic growth with vibrant business and good job opportunities. EDB's 'Host to Home' strategy articulates how we are positioning Singapore for the future. It is about extending Singapore's value proposition to businesses not just to help them improve their bottom line, but also to help them grow their top line through establishing and deepening strategic activities in Singapore to drive their business, innovation and talent objectives in Asia and globally.

For more information, visit www.sedb.gov.sg


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