Looking to be your own boss? Being an entrepreneur in the startup world is a thrilling place to be, for if you can keep up with the fast paced tech industry and are committed to hard work, there is a lot of room to grow. A new target market is emerging – Asia’s quickly growing middle class provides the perfect breeding ground for Vietnamese tech entrepreneurs looking to innovate.
A Middle Class Becomes A Big Spender
Usually described as consumers who spend between $2 and $20 a day, the emerging middle class in this region is forming a potentially powerful purchasing group. However, with a spending range that large, the buying habits of Asia’s middle class differ from the West. This group may have a larger disposable income than the previous generation, but they are not all buying luxury sedans and imported espresso machines.
To gain a deeper understanding into the spending behavior of Asia’s explosively growing middle class (estimated to each 3.5 billion by 2030), the Eden Strategy Institute sent a survey to 1,000 mobile phone users in Vietnam, India, the Philippines and Indonesia. The insights gained from this survey reveal details that should catch the interest of Asia’s tech community:
- Vietnam has the highest rate of credit card ownership of all four countries, potentially enabling these consumers to purchase higher value items.
- The Philippines has the highest smart phone ownership as a percentage of the population, paving the way for mobile apps to be heavily marketed.
- Indian consumers ranked the highest for planning to buy mobile phones and electronics if their income doubled, showing that online entertainment and shopping could find a lucrative market there.
Flappy Bird Leads Vietnam’s Tech Flock
Perhaps unsurprisingly, Vietnam’s tech community is growing quickly alongside Asia’s middle class. From the cult game Flappy Bird to smaller companies like GlassEgg, Vietnam now boasts a dynamic business scene led by entrepreneurs with fresh ideas. Vietnam’s Millennials, who grew up in a time of increased economic freedom, are now part of the new wave of tech innovators invigorating the industry.
The explosive growth of the tech community has in part been fueled by the fact that a third of Vietnam’s population are internet users. Out of a total population of 90 million, more than 20 million use Facebook, 36 million use the internet, and there are more than 140 million mobile phones. This consumer interest in online and mobile business, along with the Vietnamese government’s investment in the country’s infrastructure and a $100 billion loan from the World Bank, has allowed young entrepreneurs to continue to grow.
With established support and an interested target market in Asia’s middle class, Vietnam’s entrepreneurs can also begin to think about how to open their businesses to the continent and even the world. Choosing a secure online payment processor helps tech innovators grow their business by reaching a larger customer base. Plus, with features like mass pay and email invoicing built into the Payza Business account, managing an online business is streamlined and cost-effective – two things that tech innovators everywhere appreciate.