Iran Tensions Hit APAC Consumer Sentiment; Ipsos Releases 'Understanding Asia' Report on Brand Trends

Ipsos K.K. (Minato-ku, Tokyo; Representative Director: Shunichi Uchida), one of the world's largest market research firms, has released its latest report titled 'Understanding Asia: Regional Brand Trends Amidst Iran Tensions.'

The report highlights how the US-Iran conflict, now entering its third month, is impacting the economy, energy security, consumer sentiment, and brand perceptions across the Asia-Pacific (APAC) region. Amid rising energy costs and inflation concerns, consumers are becoming more cautious and price-sensitive, being extremely selective about which brands they trust.

### Report Highlights

**Sharp Decline in Consumer Confidence** The Ipsos Global Consumer Confidence Index dropped 2.7 points this month to 46.7. Asia witnessed a particularly steep decline, the largest since the COVID-19 pandemic.

**Declining Trust in 'Brand America' and Rising Chinese Influence** Due to geopolitical tensions, the US's reputation is on a downward trend. Among 29 countries surveyed, only 39% view the US as a 'positive presence for the world.' Conversely, Chinese influence is growing, with positive sentiment exceeding 70% in ASEAN nations such as Malaysia, Indonesia, Thailand, and Singapore. This marks a tectonic shift where US brands face headwinds while Asia-born brands gain trust.

**Implications for Brands: Nationality as an 'Active Signal'** The historical advantage of being an 'American brand' symbolizing innovation and quality is eroding. Today, a brand's country of origin is no longer a passive label but an 'active signal' interpreted through geopolitical and economic lenses. In an environment of uncertainty, consumers favor brands that offer affordability, resilience, sustainability, and practical value.

### Impact on the Japanese Market (Comment from Shunichi Uchida, Country Manager, Ipsos Japan) 'Japan is highly dependent on energy imports, with over 90% of its crude oil coming from the Middle East. This conflict demonstrates the difficult trade-off between energy security and climate commitments, leading to high fuel prices, inflation, and supply risks that pressure both companies and consumers. While the government considers fuel subsidies, companies are raising prices and reviewing supply chains, and consumers are cutting discretionary spending.'

Founded in 1975 in France, Ipsos operates in 90 markets and has been listed on Euronext Paris since July 1, 1999.