Want to Succeed inAsia? Respect Your Customers
In this day and age,market entry into Asia Pacific may be the pinnacle of growth for yourbusiness. Powerful economies, widespread use of new technologies, andpotentially limitless customer acquisition make Asia an ideal environment formarket expansion.
Combine thatwith the endless mobile innovations that facilitate operating acrossinternational borders and the Asia Pacific $525.2 billion e-commerce industry,and you may wonder why your company hasn’t already set up shop in Asia.
With so many potential customers in the globalmarketplace, overseas expansion is necessary for business survival. Yet eventhe most experienced business managers can find it a challenge to enter theAsian market.
The key to success is localization. Global ventures thatdon’t localize are doomed long before their expansion starts. Respectyour target customers by showing them you understand the intricacies oftheir market.
Expand into the leading Asian markets
Japan, China, and Koreaare the natural destinations for expansion because of their strong economies,advanced consumerism, and powerful markets. They are a clear choice for Westernbusinesses looking to expand overseas. However, many companies don’t realizethe difficulties they will face with branding, messaging, and localization inAsia.
The younger generation of Asian consumers is starting tohave an aptitude for Western products, but Asia has an overall tendency toresist foreign brands. Japan and China are especially inclined towards localproducts and services. They are prideful of their national brands and businessstrength.
In Japan, it israre to see anyone without a NTT DoCoMo, KDDI, or SoftBank Mobile phone. Thesecompanies make up a sizable portion of the national economy. When Vodafone triedto compete with these powerful national carriers, it was ultimately taken overby SoftBank. Vodafone lacked a localization plan. They simply couldn’t givecustomers a good reason to leave the high-quality coverage, products, andservices of Japan’s national providers.
…or into the behemoth of China
China prefers tokeep foreign companies out, letting local businesses like Baidu, Sina Weibo,Alibaba, and WeChat thrive. While plenty of foreign companies have succeeded inChina, plenty more have failed. Those that succeed conduct extensivemarket research, understand cross cultural branding, and employ solidlocalization strategies.
In China, KFC,Starbucks, and McDonald’s succeededby catering their menus to familiar local tastes, incorporating flavors likered bean. Even Pampers managed towin the hearts and minds of Chinese consumers—a huge deal for a nation thatdidn’t understand the need for diapers. At first, Pampers tried to compete onprice points alone and failed.
Undeterred, Pampers stepped back and analyzed Chinese baby needs throughextensive research in hospital nurseries. They developed a new product tailoredto those needs, educated Chinese mothers on the benefits of diapers, and becamean indispensable household brand in China.
Understandyour customer
Asian shoppersbuy different types of products from Western shoppers. Even the same types ofproducts are sometimes used differently. Home Depot established a successful “do-it-yourself”brand in the US, but they failed in China. Chinese customers just couldn’tunderstand why they would want to build their own furniture when they couldhire cheap laborers to do it instead.
Nomore one-size-fits-all solutions
Globalization doesn’t mean you can simply take yourexisting product or service and ｄrop it into a new market. Instead, you mustlocalize your product to fit local regulations, customs, culture, languages,and consumer tastes.
Even Hollywood has started catering to global markettastes. The movies you watch are carefully tailored to appeal to Chineseviewers. Businesses must be forward-thinking and culturally sensitive tosucceed in Asia.
Article Source: http://blog.btrax.com/en/2014/04/14/respect-your-customers/
Image Source: http://www.kohspot.com/wp-content/uploads/2010/11/shoppinggirl.jpeg
VOCABULARY WORDS:
1. Pinnacle (n.) ~ the highestpoint or level, especially of fame or success
2. Doom (v.) ~ to condemn toruin or death
3. Intricacy (n.) ~ thequality of being complex or complicated
4. Behemoth (n.) ~ someone orsomething that is abnormally large or powerful
5. Extensive (adj.) ~widespread
6. Undeterred (adj.) ~ notdiscouraged
7. Indispensable (adj.) ~absolutely necessary
8. Tailored (adj.) ~ madeaccording to the specifications of an individual
QUESTIONS FORDISCUSSION:
1. Which do most Koreans prefer localbrands or foreign brands? Why?
2. Do foreign restaurants localize theirmenu to cater to Korean tastes and preferences? Give examples.
3.Which foreign brands became successfulin the Korean market?
4. What foreign brands do you like andconsume? Why do you like them?
