Asia’s Baby Boomer Generation Takes the Lead

Sameer is partner at August Capital Partners, a VC fund focused on early stage consumer products and services businesses. You can follow him on Twitter @sameernarula.

As the baby boomer generation of Asia (those born in the 70’s and 80’s) takes over from their parents, they will be the wealthiest, longest living, most mobile generation this part of the world has seen in a millennium.

These baby boomers will do for this region what the post-war generation did for the US, Europe and Japan. They will redefine social and work norms, and will produce consumer products and services that might be completely alien to western companies.

In this dynamic “frontier environment” the key areas of focus for us will be companies started by mature, ethical and global entrepreneurs that focus on the consumer story in the region. They will do this by building asset and labor light businesses that address the young population’s (70 percent below the age of 35) needs and wants. A few key areas of focus for us include:

F&B / FMCG / Media:

Consumption patterns are changing, lead by increased disposable income and a younger generation eating more protein and packaged foods. They will buy baby foods, speciality foods (organic, lactose free, gluten free and many more) and will patronize brands that help them define their own unique image in a changing society.

They will also start to export popular culture to other parts of the world, first in the form of media content (Gangnam style, J-pop and much more) and then as consumer brands and others.

Emerging companies will need to build efficient logistics and supply-chain systems to address this vast market. Food technologists and packaging companies will need to adapt to local tastes and challenges. Technology will play a key role in this.

The QSR industry in India alone will grow from $100 billion today to $240 billion by 2020. While established brands from the West will certainly get a share of this, new brands and products will claim a large chunk of this market.

Healthcare:

Unfortunately, the lack of a government supported safety net in terms of healthcare will create a huge opportunity for companies to address increasing lifestyle diseases among emerging Asia’s citizens (diabetes, lactose intolerance, cardiac issues, digestive disorders, orthopedic disorders). This will also create an interest in recreational sports, healthy foods, and nutritional supplements among others.

Rising above the tide