Asia Set to Become the World’s Tech Hub
Asian technology is booming and industry experts are predicting Asians will soon overtake Americans as the world’s top tech consumers.
In a recent interview with CNBC, president and CEO at the Consumer Technology Association Gary Shapiro said that Americans are still the world’s leading consumers of technology but, within a year or two, the balance of power will shift towards Asia.
Despite lower unit costs affecting total revenue, innovations in the virtual reality realm, as well as the Internet of things sector, have helped China’s technology market grow. In fact, over the last three years, revenue from the country’s tech industry has risen by 3%, which is a faster rate than witnessed in any other market.
Young Asians Love the Top Tech Brands
In line with Shapiro’s assessment of the market, findings from the Asia-Pacific Consumer Tech Ownership and Opportunity Study found that young Asians base a lot of their tech purchases on brand names. Although battery life and features are important sales drivers, the quality and overall image of a brand are primary reasons to purchase a product, according to the report.
Evidence of this love of technology and, in particular, brand names can be seen across a variety of industries in Asia. For example, gaming has become a major market in the last decade with social gaming now reported to be worth more than 400 billion yen. In fact, this love of free-play online gaming has merged with Asian’s love of gambling to create a thriving online casino economy.
Online Gaming Brands Thriving in Asia
According to the stats, gambling in the Asia-Pacific region was worth $79.2 billion in 2015 and this continued interest in betting has been helped by online casino sites like 32Red. Tapping into Asia’s love of technology and betting, players that join http://www.32red.com/jp/ can now get instant access to an array of games, including Cash Splash slots, Bonus Blackjack and Keno.
As an international iGaming big hitter with platforms in multiple countries, 32Red’s image connects with young Asians’ love of successful brands, with other online casinos benefiting in a similar way.
Ladbrokes has gained exposure through its sponsorship of snooker events such as the Pockets World Grand Prix (110 million Chinese alone watched the 2005 Chinese Open Final). Similarly, Titanbet has boosted its global reputation through its position as an official partner of the soccer team Sevilla FC. In this way, online casinos are able to create an enhanced brand image that Asians are willing to buy into.
Apple’s Surprise Growth in Asia
It’s a similar story with smartphone technology. According to the Asia-Pacific Consumer Tech Ownership and Opportunity Study, the most frequently purchased tech products among 25-44 year olds in Asia are smartphones. A clear demonstration of this is the rise in popularity of Apple’s iPhone 6 in China, Japan and South Korea.
Despite being on the home turf of brands such as Samsung, the latest iPhones saw Apple claim more than 20% of the market (a first for foreign brands) in all three countries, with the share increasing from 15% to 33% in South Korea. Thanks to Apple’s continued status as one of the biggest and most fashionable brands in the world, young Asians have been willing to increase their consumption of its tech products.
Asians Adopt New Tech Faster
Another example of Asia’s love of tech is the Tesla. Back in 2015, Tesla sold 5,000 Model S cars in China and a further 2,000 in Japan. A year earlier, a 2014 report by Bloomberg noted Tesla’s decision to open more service centers across Asia due to “growing international sales”.
Although electric cars are still very much a niche purchase for many, strong initial sales in Asia appear to have been helped by people’s willingness to embrace new technology, something the manufacturer clearly picked up on. Indeed, as the Asia-Pacific Consumer Tech Ownership and Opportunity Study found, 59% of young Asians surveyed stated that they buy new tech as soon as it becomes available.
The Asian Tech Boom is Just Starting
As we can see, technology and, in particular, big technology brands, are big business in Asia and things are only set to get bigger. Shapiro’s recent comment that Asians will overtake Americans as the largest consumers of technology within the next few years certainly appears to be backed up by the facts.
Whether or not the current economic worries across Asia will dampen this enthusiasm remains to be seen; however, at the moment, Asia appears to be leading the way when it comes to embracing the world’s latest technology and the brands behind it.