Emerging Market Households

Households are embracing new values

Economic growth has unleashed new lifestyle habits among emerging market populations. Households are becoming smaller, as extended families can afford their own residence; divorces are surging, as consumers become more liberal in their approach to marriage; households are focusing more on education; and the elderly are spending more on themselves.

Urbanisation is shifting the goalposts for consumption

Rapid urbanisation is having a profound impact on household behaviour. Newly urbanised consumers want more entertainment and leisure options, while craving digital connectivity lacking in rural areas. By embracing urban benefits, single-person households are growing rapidly –better healthcare is extending life longevity for the elderly, while the youth are delaying family life.

Middle classes welcome household brands

The rapidly expanding middle classes in developing countries, such as China, are driving demand for brands in the housing goods and services segment. Apartment-friendly, urban companies, such as Ikea, have performed particularly well in developing economies, due to their affordable but premium offering.

Booming property markets

Economic growth,urban development and population expansion have unlocked value in emerging real estate, sending surging increases in local housing prices, rentals, real-estate business and the construction trade.

Mortgages provide opportunities and debt

Maturing financial landscapes and surging house prices have accelerated mortgage uptake in emerging markets, bringing opportunity for banks and financial providers but also pushing greater indebtedness among households.