The Rise of the Vernacular Middle Class
By Asrul Sani, Associate Director, Ipsos UU Malaysia
[email protected]
The middle class in Malaysia, which grew rapidly during the early 1990s boom years, are now seen as
the most attractive class for marketers due to their size and their ability to purchase (and appetite
for) consumer goods. At the turn of the millennium, the middle classes were mostly English speaking
and Western-oriented but as the country’s economy grew, it churned out more and more
entrepreneurs and we are now see evidence of a middle-class that consists mainly of those who are
more local oriented.
Subtext
Subtext can get lost in translation
The Ipsos qualitative research team is seeing clear evidence that the current middle class in Malaysia
are better versed in the native tongue – Malay or Cantonese/Mandarin than English.
While it is easy to dismiss the language (which is linked to ethnicity) as a potentially divisive or
sensitive issue in the current day and age, it remains a real issue for marketers whose brand, product
or communication concepts are born mostly in Western-oriented settings.
This group of vernacular speaking audiences will be the most attractive market segment for most
products, and it is probable that there is not enough being done to understand the segment.
“I need to put more detergent because this particular detergent is not foamy enough.” This consumer
was commenting on a concentrated detergent and simply missed, did not notice, or completely did
not understand the meaning of ‘concentrated’ in the first place and preferred to have a ‘visual proof’
on the detergent’s strength. The concentrated detergent in question was not preferred by most of
the ‘middle class’ consumers.
It does not stop at normal household goods; how many times do we hear from car enthusiasts about
how cars these days are made from ‘softer metal’ or how easy it is for the car to be dented,
The Rise of the Vernacular Middle Class by Asrul Sani
disregarding the fact that current cars are designed to ‘crumple’ easily for safety reasons. Granted,
the car argument is more technical but the issue remains that many consumers out there are mostly
a misinformed lot.
While it is easy to laugh at the ignorance, marketers should not ignore the effect it can potentially
have on brands and products. In simple terms, to forge a strong relationship or be relevant with
consumers (in other words trust), brands and products need to prove that it works as advertised – by
using the latest technology if possible to make it sexy, elevate image of its users while still being
seen as affordable.
Creating Consumer Trust
These are the constant trade-offs that the consumers make in their minds and the final decision
involves in compromising one (or more) of the elements. How marketers can build their brands and
ultimately create consumer trust in the products depends mostly how their brand or product is being
understood and knowing what consumers really see in the brand/product.
AirAsia makes a great case study for Malaysia and it is interesting to see how they broke two major
consumer barriers in their way to success. When AirAsia came into the market, flying was very much
a ‘wealthy’ affair and booking the flight ticket through the antenna-less hand phone was very much a
cool thing back then, but with AirAsia, bookings needed to be made through the website. The airline
had to educate the market about buying tickets online and had to help their customers navigate
through their website who would nervously conclude their online purchase with their credit cards.
Bearing in mind that most internet users in Malaysia are vary about online purchases and have and
have yet to comprehensively grasp the written language, it was no mean feat.
Most commentators credit the success to outstanding online and digital marketing effort that
AirAsia made. But was it a strategy or a gamble?
Regardless, even if it was a gamble, AirAsia was a start-up and not the listed multibillion airline that
it is today, perhaps allowing them to be more adventurous with their marketing plans.
Now consider the flip side.
Two leading automotive brands invested a lot of money trying to capture each other’s market share.
One brand appeals more to the Malay market, and for a long time has been trying to pry more
Chinese off the other, with the other brand trying to lure more Malays to use its brand. Neither has
made significant inroads despite investing millions in trying to make consumers understand more
about their product and brand. There is definitely a case of needing to know more about the local
middle class segments and not just about what makes them tick, but may be what makes them tock
as well.
Qualitative research done by Ipsos has indicated that vernacular speaking consumers mostly depend
on verbal advice and recommendations than solely reading product specifications and reviews. This is
partly due to the availability of materials in a comprehensible form, as well as the lack of contextual
reference by the consumers themselves.
The Rise of the Vernacular Middle Class by Asrul Sani
This is the challenge that most marketers will face in building a successful brand or product franchise
in Malaysia.
Knowing does not mean Understanding
Another market reality in Malaysia is that both the Malays and Chinese middle class in Malaysia,
despite their English mastery, best express and comprehend matters better through their native
language.
And as a result, they make interesting brand choices. And how do marketers influence these choices?
For example, ‘luxury purchase’ decisions are made to project a certain level of prestige or indicate
that they (vernacular middle class consumers) have achieved success. The brand choices are carefully
made to ensure that not just the brand is considered as ‘premium’ but the premium brand needs to
be recognized or rather, known by others. So even if the consumer knew that the brand is premiumimaged and premium-priced, it is not serving its purpose if they can’t impress their own version of a
‘target audience.’
This is especially so for the first generation middle-classers who need to make that mark (of success).
AN IPSOS INSIGHT
Vernacular-speaking middle class segment
Malay
Chinese
1st Gen middle class
2nd Gen middle class
Soon-to-be
Create mark of success
with existing brands
Create own content and
brand/products?
Seek inspiration
Beyond recognition, brands are chosen because they signify success, energy and maturity. Brands
that will make them appear old and dull will most likely not be chosen by the first generation
middle-class who want to bring proof to the table about their status.
The second generation middle-class are the pioneers of the local content. We are seeing more and
more local content from the younger section of the society, mostly manifested online. Common
marketers prefer to use the term, “Gen-Y” but there is much less known about this segment, as the
earliest of the first generation middle-class are now entering their 50s.
The Rise of the Vernacular Middle Class by Asrul Sani
As these Gen-Y’s becomes more mature and more prosperous, trends will change and brands that
are established and popular now may not be seen as the in-thing in the future, and could even be
seen as trying too hard, or ‘poyo’ in popular Malay slang.
Marketers potentially face threats from the second generation middle-class as they may create their
own brand because of the lack of current brands and products that serve their changing needs. A
natural example of this would be from the food industry, where there is a rise in local brands and
franchises in the market catering to the needs of a consumer segment often overlooked by the more
established brands.
There is also the question of those who are working to break into the middle class, who are most
likely less savvy and may not be entirely literate. How do brands present themselves to this group?
If words are not the best way to communicate, could there be a more effective way to communicate
to them? The brand that uncovers this secret would become Malaysia’s next AirAsia.
As the market becomes more fragmented, and consumers are increasingly bombarded with
information, while trying to make decisions that often conflicts with their need or wants, the brand
that has immediacy, closeness and the context of its consumer will create the most relevance and
will make the best case to build a stronger relationship with the consumers.
And as the consumers themselves becomes more and more (misguidedly) savvy, long term brand
differentiation should be built on correctly matching consumer expectations rather than gimmicky
claims, which may make the brand stood out in the market for a short while, but end up quickly
creating negative backlash because of the gap between expectation and reality.
The Rise of the Vernacular Middle Class by Asrul Sani