Today's new urban Asia is just as sophisticated and in many ways more exciting than Western cities. Urban Asian consumers are knowledgeable, modern, and keen to embrace the global lifestyle. Young, urban Asians have grown up accustomed to many things that originated in the West. They have, for example, completely embraced pizza, some even claiming that it is a part of their heritage. The story is told about a young Singaporean boy who was taken by his father to Rome. "Hey, look, Dad," the little boy exclaimed, "they have pizza here too!" On sampling the product, the boy decided that it was not as good as the original back home.
Nury Vitachi, who writes for the South China Post and the Far Eastern Economic Review, describes the Asian middle-class phenomenon: "Executives in Asia have become rich at warp speed by taking full control of their own lives. They invest a great deal of time in their work, they use strategy to scramble up the corporate ladder, and they demand payment in cash so they can make their money work as hard as they do."
Signs of affluence are everywhere, but don't get carried away. Traveling around Asia, no matter how rich the Asians become, signs of their frugal nature are still apparent. And they are very cost-conscious. Shopkeepers in many Asian cities, most notably in Hong Kong, demand payments for discounted merchandise in cash instead of plastic, and many Asians are accustomed to that. Most people save the increases in their income, and many prefer to put it into fixed or other income-generating assets. Stock, land, and property are their favorites.
Many affluent Asians still regard financial security as the most important form of security, and they are confident that Asia is the place to be to achieve that. While many have begun to savor the good life, they are not letting go of their top priority of education for their children. Education is looked upon as the most important contributing factor to success in life. And in many of Asia's competitive urban centers, there is a rush to acquire a second degree and other forms of professional qualification to ensure personal competitiveness in the workplace. There are extraordinary opportunities in Asia for education and training programs from language to software programming.
Despite the rise in their assertiveness, Asians still look to the United States and not so much to Europe for ideas and trends. In general, except for those in Hong Kong and Japan, they are not particularly concerned with being fashionable. For today's Asia, Japan and Hong Kong are the sources of Asian fashion ideas, but as Asia becomes more affluent, there is a great opportunity to develop an indigenous fashion industry. For example, a huge market potential exists in introducing new materials and simplified but fashionable designs for countries in tropical Asia with a hot humid climate throughout the year.
The population density and lack of space in urban areas has prohibited Asians from exercising frequently and few indulge in outdoor activities. This is changing. Most Asians consider themselves in good health. Compared with Americans, few are overweight largely as a result of their Asian diet. But now health clubs are becoming popular among younger Asians. Potential for indoor exercise equipment holds great promise. It is also important to dress for the gym, and younger Asians are serious about looking good, complete with makeup, sunglasses, designer exercise shoes and outfits, and a gym bag.
In trying to hit Asia's moving targets, regardless of what you are selling, it is a good idea to stick with market density not country by country, but, mostly, city by city. Asian markets can be a marketer's dream in that their densities are among the highest in the world. Java, Indonesia's main island, has 115 million people. On Nanjing Road, Shanghai's busiest street, businesses are open twelve hours a day almost every day of the year. More than 1.5 million people visit the shops there and spend more than $50 million every day.
Someone said that you can only become rich if you sell to the rich. I would add that you can become rich faster if you sell to the new rich. For investors in the West, watch for Western companies that are preparing a big push in Asia. The world has not yet seen anything like it before, and you can reap handsome dividends if you back those stocks that are going eastward.
In the passage, the author does all of the following EXCEPT:
- resolve a seeming economic paradox.
- offer an interpretation of an observed trend.
- project consequences of current developments.
- make the information presented relevant to the reader.
Answer(s): A
Explanation:
The author does not resolve, or attempt to resolve, any economic paradox: for example, he does not try to present Asia's prosperity as an anomaly and explain this "Asia phenomenon." He does, however, interpret observed trends based on characteristics he attributes to Asians: cost consciousness, low level of preoccupation with health, etc. Choice B is therefore incorrect. He describes business opportunities based on projection on current observations: popularity of further education, fashion trends, etc. In the last paragraph, he offers quite specific advice to his readers about investing in companies that are making a push in Asia. Choices C and D are hence also incorrect.
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