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[Webinar] Winning in Asia in the Age of Disruption

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Asia has boasted uninterrupted growth for more than two decades. In recent years, Asian brands have grown in sophistication, with many overtaking western brands in popularity. In today’s hyper-competitive digital age, more and more businesses are turning their attention towards Asian markets for new opportunities.

But, with very distinctive cultures, traditions and values, breaking into the Asian market is no easy undertaking.

In this Acquia webinar, marketing expert and author of The Brutal Truth About Asian Branding, Joseph Baladi, reveals:

The secrets of brands that have successfully launched into Asia
Cultural mindsets of customers
Strategies for winning hearts and minds, and much more.
Register for this webinar on Winning in Asia in the Age of Disruption
About the presenter
Joseph Baladi
Marketing consultant, speaker, author and lecturer, Joseph Baladi, has lived in Asia almost 20 years and has worked in virtually every Asian market.

Further to the worldwide release of his hugely successful book, The Brutal Truth About Asian Branding, Baladi received the prestigious Ron Frank Fellowship to read the Executive MBA program at Singapore Management University, where he is also Adjunct Professor of Strategic Brand Management. He is completing the first empirical research study on the Brand Purpose construct.

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[Webinar] Winning in Asia in the Age of Disruption

  1. 1. Follow Us ! @acquiaAPAC
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  4. 4. 5 This document is protected by copyright 2019 v The prosperity and prominence of the “western world”, and America in particular, over the past 70 years was directly the result of their ability to create “brands” that appealed, inspired and ultimately defined people all over the world. INTRODUCTION: THE AMERICAN CENTURY
  5. 5. 6 This document is protected by copyright 2019 The “American” Century changed the world - culturally • The single most powerful driver and indicator of economic power and growth is consumer spending.. Consumers buy brands. • Brands single handedly created the so-called American/Western Century and, in the process,, defined millions of people across generations around the world.
  6. 6. 7 This document is protected by copyright 2019 4KEY POINTS
  7. 7. 8 This document is protected by copyright 2019 CHANGE The “landscape” realities that fuelled the American Century – and what consumers wanted – have changed. Whilst the starting point dates back to the end of the Cold War, real change was manifested through globalization and new technology. KEY POINT #1
  8. 8. 9 This document is protected by copyright 2019 NEW CONSUMER EXPECTATIONS What consumers want from brands today is that they go beyond excellent functional features and benefits. But how? At one extreme of the continuum they scrutinize corporate conduct and expect responsibility and active contributions by business to making the world better. At the other end they look for brands that are relevant in their lives. Increasingly this manifesting in via brand purpose. KEY POINT #2 a 3600 shift
  9. 9. 10 This document is protected by copyright 2019 ASIA RISING Consumer expectations are changing considerably at a time when Asia is rising. Many are labelling this era as the “Asian Century”. KEY POINT #3
  10. 10. 11 This document is protected by copyright 2019 THE ASIAN CENTURY Whilst the rise of Asia is unquestionable, the likelihood of this phenomenon transforming itself into the “Asian Century” is, however, doubtful unless the effort is actively engaged by the government and private sectors recognizing two crucial balancing factors: 1. Pull from the outside: the purpose and core values imperative expected by consumers. 2. Push from the inside: the essential need for Asian employee populations to enjoy cultures that foster innovation. KEY POINT #4 This is now happening at a faster pace and a more visible manner.
  11. 11. 12 This document is protected by copyright 2019 ALL FOUR POINTS ARE CONNECTED CREATING A CYCLE THE ASIAN CENTURY #4 CHANGE #1 ASIA RISING #3NEW CONSUMER EXPECTATIONS #2 PEOPLE=COMMON DENOMINATOR
  12. 12. 13 This document is protected by copyright 2019 THE GREAT PARADOX
  13. 13. 14 This document is protected by copyright 2019 WE ARE WITNESSING – IN OUR LIFETIME – THE RISE OF THE ASIAN CENTURY YET BROAD STROKE LEADERSHIP CHARACTERISTICS CONTINUE TO ARREST THAT RISE
  14. 14. 15 This document is protected by copyright 2019 15 the great paradox The emergence of the “Asia/China Century” *The Brutal Truth About Asian Branding, pages 2-3 … in political, social and business environments where “the government knows best” and “the CEO rules absolutely” unchallenged, where very few dare to question, contradict or even offer an opinion”*
  15. 15. 16 This document is protected by copyright 2019 1. THE TRADITIONAL ROLE OF THE ASIAN CEO 1. PEOPLE ARE CONDITIONED TO “KNOW THEIR PLACE”. 2. PATRIARCHAL AND HIERARCHICAL
  16. 16. 17 This document is protected by copyright 2019 2. CORPORATE CULTURE The absence of CEO attention to corporate culture – more specifically: to the immediate and massive impact it has on competitive advantage IGNORING THE OBVIOUS
  17. 17. 18 This document is protected by copyright 2019
  18. 18. 19 This document is protected by copyright 2019
  19. 19. 20 This document is protected by copyright 2019 Meaningful Work LOW Opportunity for Growth LOW Trust in Leadership LOW Willingness to take RISK LOW Willingness to Collaborate LOW Source: BrandAsian Brand Audit Surveys 2005-2015 Asian Employee Workplace Attitudes 20
  20. 20. 21 This document is protected by copyright 2019 21 ON THE OTHER HAND “ASIA” IS REDEFINING ITSELF: OPENNESS, PROGRESS, PRAGMATISM AND A GROWING SENSE OF OPTIMISM AND LOCAL PRIDE THE GREAT PARADOX
  21. 21. 22 This document is protected by copyright 2019 1. Local talent = massive opportunities for companies that inspire them 2. Consumer expectations changing
  22. 22. 23 This document is protected by copyright 2019 Asian consumers expect more of companies and brands
  23. 23. 24 This document is protected by copyright 2019 BUT ASIA IS NOT MONOLITHIC…
  24. 24. 25 This document is protected by copyright 2019 EVERY MARKET IS FIGURING ITS OWN WAY CHINA IS DIFFERENT FROM JAPAN WHICH IS DIFFERENT FROM INDONESIA AGAIN
  25. 25. 26 This document is protected by copyright 2019 Exploiting opportunities will require an appreciation of what the different cultures in the region expect when it comes to making the world better.
  26. 26. 27 This document is protected by copyright 2019 SOME HEADLINES:
  27. 27. 28 This document is protected by copyright 2019 The No 1 driver of success in China lies in creativity. This outranked trustworthy in importance. In China, being creative and taking risks has seen a 16% increase from 2015. China: Creativity Rules*
  28. 28. 29 This document is protected by copyright 2019 Chinese tech brands increasingly considered trailblazers rather than copycats. Embracing artificial intelligence Shift from search-based shopping to recommendation-based shopping China:
  29. 29. 30 This document is protected by copyright 2019 Kuaishou is a platform for recording with millions of original fresh videos everyday. Short Video App, Live-streaming, Artificial Intelligence, Big Data Kuaishou
  30. 30. 31 This document is protected by copyright 2019 China: from copy-cat to super-app China
  31. 31. 32 This document is protected by copyright 2019 China: Creativity Rules* *Source: Campaign 13 June 2019 AT THE SAME TIME QUALITY OF LIFE EXPECTATIONS ARE INCREASING
  32. 32. 33 This document is protected by copyright 2019 33 DESPAIR IN BEIJING
  33. 33. 34 This document is protected by copyright 2019 Brands that navigate the nuance and take on a behavior of disruptor brands are the ones that are rising to the fore in consumers’ minds. Brands will need to look to deeply local issues, universal values and work out meaningful solutions, not just campaigns
  34. 34. 35 This document is protected by copyright 2019 Indonesia Hectic, dynamic, busy, crowded, ambitious… increasingly loyal to its own brands
  35. 35. 36 This document is protected by copyright 2019 GoJek has become a verb in Indonesia: it isn’t uncommon to hear the phrase ‘Let’s GoJek It’ in Jakarta
  36. 36. 37 This document is protected by copyright 2019 Japan: Japanese consumers have the highest preference for local brands — #1 globally. This reflects a long-standing belief in the quality of and pride in Japanese products
  37. 37. 38 This document is protected by copyright 2019 Thailand: Honesty Above All is valued highest from brands - Thais are also looking towards brands to make their country better, and to provide both positivity and optimism. 86% of people in Thailand prefer to buy brands that support and promote their country, compared to the APAC and global average of 76% and 75%.
  38. 38. 39 This document is protected by copyright 2019 be prepared for the worst. To do well, brands need to reassure. More than 50% of 16-25 year olds desire a career that can make a social difference, not just making money.* *Source: Cause marketing takes off in Singapore, 30 June 2016 Singapore:
  39. 39. 40 This document is protected by copyright 2019 Students in South Korea rank lowest among all OECD nations in life satisfaction, and they tend to suffer from stress and depression due to an ‘all work, no play’ approach to education. For young professionals, the competitive landscape doesn’t make it any easier. The Chaebols, the large business groups such as Samsung and Hyundai, account a large chunk of the country’s economic prospects.* The rise of social change as well as socially conscious marketing *Organization for Economic Co-operation and Development (OECD) South Korea:
  40. 40. 41 This document is protected by copyright 2019 Not the same as China! Hong Kong:
  41. 41. 42 This document is protected by copyright 2019 and yes, digital is important…
  42. 42. 43 This document is protected by copyright 2019 Like everywhere else , ad fatigue is rampant on digital platforms Brands need to properly engage with consumers instead of just getting eyeballs. DIGITAL PLATFORMS
  43. 43. 44 This document is protected by copyright 2019 FOUR things happening in Asia: #1 | Powerful brands are developing a digital voice - Visually attractive - Humanized in order to gain engagement. - Consistent voice across platforms. #2 | Powerful brands are building communities Community-based marketing is like word-of-mouth marketing; It’s organic and trusted. #3 | Powerful brands focus on micro-influencers Micro-influencers are more likely to bring you higher engagement rates and returns as social media marketing has become increasingly saturated. DIGITAL PLATFORMS #4 | Powerful brands are moving from content to “context”
  44. 44. 45 This document is protected by copyright 2019 It used to be that THE BIG CHANGE
  45. 45. 46 This document is protected by copyright 2019 When we look, for us it's really about going under the skin of advertising and looking at where is this guy, woman or whatever, living in what conditions? Can those conditions be discussed along with what the product or brand has to offer? We find that the people are more interested in their condition rather than what the brand has to offer. They want the brand offering to be connected to their condition. That condition can be very personal, it can be very social, it can be very cultural, it can be political, it can be religious. It's that environment which allows for a dialog It's the context that allows for a dialog.” Chairman & CEO BBDO, India (interview 2019) "Content is king, but context is King Kong
  46. 46. 47 This document is protected by copyright 2019
  47. 47. 48 This document is protected by copyright 2019 The number one thing by far that everybody wants brands to do is to make business more environmentally sustainable – “so make sure you are behaving in a more responsible way” (Source: Report from McCann Worldgroup – The Truth About Global Brands 2: Powered By The Streets) #1
  48. 48. 49 This document is protected by copyright 2019 situational context
  49. 49. 50 This document is protected by copyright 2019
  50. 50. 51 This document is protected by copyright 2019 PURPOSE SHIFTS THE CONVERSATION FROM WHAT A PRODUCT DOES TO WHAT A BRAND MEANS IMPROVING PEOPLE’S LIVES Purpose brands have conviction. They know why they exist, and they share their passion.
  51. 51. 52 This document is protected by copyright 2019 Source: 3BL MEDIA October 13, 2017 (Globally)
  52. 52. 53 This document is protected by copyright 2019 Global brands have the power to make things better, according to 85% of APAC consumers In Asia Consumers are positively disposed to brands that do good *Report from McCann Worldgroup – The Truth About Global Brands 2: Powered By The Streets
  53. 53. 54 This document is protected by copyright 2019 54 The Lifebuoy soap brand is dominating the market in India and other emerging countries. With “Help a Child Reach 5” Lifebuoy’s brand purpose is to save lives by spreading the importance of good handwashing habits around the world.Viewed by over 19 million people
  54. 54. 55 This document is protected by copyright 2019 55
  55. 55. 56 This document is protected by copyright 2019 Q: How does a detergent brand deliver a meaningful purpose that transcends its modest reason for being: to clean clothes? A: By involving itself intimately in the lives of people in order to recognize, discover… understand “real” meaningful “truths” – and then expressing these truths via a compelling, emotional story that ultimately improve people’s lives P&G’s laundry detergent brand Ariel used the issue of whose responsibility it is to do the laundry to highlight the wider issue of gender inequality, encouraging Indian men to “Share the Load”. Source: P&G India, BBDO India and warc
  56. 56. 57 This document is protected by copyright 2019 “The WARC Prize for Asian Strategy has, over the past few years, attracted a lot of purpose marketing campaigns.” 13 June 2019
  57. 57. 58 This document is protected by copyright 2019 CASE STUDY
  58. 58. 59 This document is protected by copyright 2019 A $5 Billion dollar, privately owned “box-mover company*” *Source: Bloomberg, November 28, 2017
  59. 59. 60 This document is protected by copyright 2019 We looked for “context”
  60. 60. 61 This document is protected by copyright 2019 61 1. OUR PAST/PRESENT (UP-STREAM) 3. OUR FUTURE? PURPOSE PURPOSE PURPOSE Low Margins/ Commoditization Services that in the future may be replicated by a competitor 2. OUR PRESENT (DOWN-STREAM) The other “side” of the coin FUNDAMENTAL QUESTION THE COMPANY NEEDED TO ANSWER: WHY DOES ZUELLIG PHARMA EXIST? CUSTOMERS ZUELLIG PHARMA CASE STUDY
  61. 61. 62 This document is protected by copyright 2019
  62. 62. 63 This document is protected by copyright 2019 Who did this make a huge amount of sense to? Their core, upstream customers.
  63. 63. 64 This document is protected by copyright 2019 *Source:ZuelligPharmaWebsite
  64. 64. 65 This document is protected by copyright 2019 In a region steeped with profound cultural mind-sets, dynamic change is changing the expectations consumers have of brands and employees have of companies The #1 goal most people in the region have is to make business more environmentally sustainable Brands that win will be those that improve people’s lives (first) and help mend the world. Most will do so by creating powerful internal cultures and telling their own stories in real, compelling ways – always rooted in truth. Leading the way will be Asian brands – many reflecting a leading edge wave that defines entirely new and existing generations of not only Asians, but people from all over the world. 65
  65. 65. 66 This document is protected by copyright 2019 66 1. Know where you are 2. Know who you are It’s a PROCESS
  66. 66. 67 This document is protected by copyright 2019 Thank You Joseph Baladi jbaladi@brandasian.com www.BrandAsian.com

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