Taking on Asia
An opportunity for
Australian Brands
Ashley McVey
Strategy & Marketing Director, Next Digital
Wilson Li
CEO, Next Digital China

I’d like to introduce Wilson!
Wilson, the MD of Next Digital Shanghai introduced himself.
Key points:
• Next Digital operations in China for 6 years.
• Full Service Agency.
• 76 people in office.

First, a look at the whole region.
24 countries
3,450,000,000people
50%ofthe worldspop’n
44.8%ofthe worldsinternetusers
Regionalism
Languages
CulturalIdentities
LawsandRegulations

An exploration into
2 distinct markets

Why ExploreAsia
538m
40%
18m
62%
20m
90%

Why ExploreAsia
Veryattractivetomulti-nationalsduetohigh annualGDPgrowth.
Source: Warc
Global Rank Country Annual increase
6 China 9.5%
64 Malaysia 5.2%
142 Australia 1.8%

Why explore the region?
Asia-Pacific countries lead the world
in e-commerce adoption.
90% of consumers have purchased online.
Src: Neilson. One size does not fit all- Asia's multi-channel opportunity
Countries include: Taiwan, Japan, China, S. Korea, NZ, Aust., Malaysia

But it is a complex Region
16% of Chinese
people speak
English
Source: Next Digital Regional Offices
Source: Warc
Half of Malaysians
between 20-34
consumer mobile
media on their
smartphone
Google has about
10% market
share in China Metropolitan vs.
Rural audiences
Malaysia is in the top 3
countries for video
downloads.
By 2020, China is
tipped to have the
world's largest
economy

Key Trends in Asia
Wilson discusses the key trends being experienced online in China
Key points:
• Internet usage is 538m people
• Mobile consumption has grown 10x in 12 mths
• Social Media usage is highly consumer - Weibo

Trends inAsia
ASEAN isexperiencing3 bigtrendsinonlineconsumerbehaviour:
Mobile Web
Video Content Consumption
Social Media
1
2
3
Source: http://www.slideshare.net/BMGlobalNews/b-m-global-social-media-checkup-2012-deck-13341217

Trends inAsia
7.96%
14.85%
5.13%
2.86%
17.84%
7.55%
Source: StatCounter. Pingdom.com. May 2012
192.5% increase
since 2010
Mobile browsing: % of all web traffic

Trends inAsia
By 2013 the number of mobile searches is predicted to exceed desktop.
Source: Roy Morgan

Social Penetration by Country
Source. eConsultancy. Social media in Asia: Understanding the Numbers
40%41%
51%
20%
Region Avg.
Singapore Malaysia China Asia’s avg.

Social Media Sites
VS

Social Network Prevalence
500m+ Q-Zone
220m+ Weibo
12.8m Facebook
Users
11.5m
in Oz

Corporate use of Social Media in Asia
Key Trend across regional markets is micro-blogging.
Corporate blog usage has grown by 40% since 2010.
Source: eConsultancy. Social Media in Asia
90% 50% 50%
80% 90% 50% 30%
80% 100% 80%20%
Australia
China
Malaysia
Micro blogs
Social Networks
Corporate Blogs
Video Sharing

The Search Landscape
VS

The Search Landscape

Media Consumption
Baidu
QQ
Taobao
Weibo
Google
Facebook
Google
YouTube
Yahoo!
BlogSpot
Alexa Regional Ranking

There is a lot of Success Already
Retail
Highendgoods
Sportsbrands
FMCG
CocaCola
Pepsi
Starbucks
Tourism
TourismVictoria
TourismAustralia
Manufacturing
Phillips
Sony

Key Take Outs
Asian Marketshave high economic growth.
China and Malaysia offer extensive brand reach online.
Mobilehas exploded in the last 12 months.
SocialMediais the most viewedtype of website.

Key Learning's

Key Learning's for EnteringAsia
Wilson discusses the key learning's for international brands online in China.
Key points:
• Important to research and understand the local market..
• Strategy must be Adjusted to fit Asia
• Localise your brand and products
• Use local expertise

The Key Learning's
Research
Adapt Strategy
Localise your Brand
Utilise Local Expertise
1
2
3
4

Research the Markets
2 distinctlanguageversions
SimplisticandTraditional
Highlydetachedregions
Classdivision
Uniquefamilystructure
Primarylanguageis Malay
Englishvery widelyspoken
2 distinctlandmasses
Est.young middleclass
Largeworkingdemographic

Mercedes Benz A-Class
96% of Gen Y are active
on social media
60% interacted with a
brand on social media
within the last 30 days
Malaysia is in the Top 10
nation for video
downloading
48% smartphone usage
19% Tablet usage 60% are likely to act on
suggestions from family or
friends.
Social Mobile Content

Mercedes Benz A-Class
What does Malaysian Gen-Y
connect with?
- Fashion
- Environment
- Art
- Music
- Film
- Entertainment
- Role Models
Each Other!

Mercedes Benz A-Class
The goal for 2012 is not only engagement but... a change of perception!

Dove – Real Beauty
I wont hide my skin anymoreNatural Beauty is Real Beauty
Australia Japan

China is quicklyapproaching 20% of the worlds pop’n
By 2020, China will have 800 urban locationswith a higher
income per capita than Shanghai
By 2025, China will have 10 citiesbigger than NewYork
Adapt Strategy
Source: Warc

Adidas
“You can't treat
China with a
one-size-fits-all
approach."
Colin Currie, Managing Director of Adidas
Group China

Have identifiedUpper, Mid and Lower tier cities
Understandconsumer behaviours are differentdue to
differentliving costs
Have a tailored strategyfor each location
Adidas

Adidas Neo

Localise your Brand
Message
Brand
Product

Localise your Message
http://www.youtube.com/watch?v=W16qzZ7J5YQ

Localise your Message
http://www.tudou.com/listplay/Mlvy1XqBDUU/p7w518NftF4.html

Localise Your Product

“I find I need to check my
Western sensibilities at
the door when planning
campaigns.”
Paul Baron,
Group Marketing Manager, Tourism Victoria
Your Brand

Work with Local Resource

Tourism Victoria in Malaysia

Tourism Victoria in China

And Lastly, Infrastructure Matters
Wilson outlines the importance if hosting your site in China!
Key points:
• The Great Firewall
• Slow site speed if hosted internationally
• UX is greatly improved when hosted in China

Melbourne-Sydney - Brisbane-Shanghai - KualaLumpur-Singapore
Next Digital Melbourne
Level 8, 15 William Street
Melbourne, 3000
P: 8612 6888
F: 8612 6899
E: hello@nextdigital.com
Ashley McVey
Strategy & Marketing Director
amcvey@nextdigital.com
03 8612 6811