4 Dimensions to Grow in Asia: the Consumer
Texere Advisors was born with the purpose of sharing its experience in Asia with Italian and European SMEs which still find difficulties when facing the East.
The real obstacles to commercial success in Asia lie in the "invisible" details, in the daily management of negotiations, in the understanding of the social context and the dynamics that drive it, and of course in cultural differences.
All these are imperceptible elements are often underestimated and cannot be learned from a book. We have acquired these elements by performing hundreds, perhaps thousands of trips, meetings, and negotiations. We rolled out projects and performed market restructuring, which taught us how to build trust and business relationships with Asian partners.
Retail is an emblematic sector as it means taking care of the brand, product, market and consumer. Brand awareness, innovative and sophisticated marketing and communication, an efficient supply chain, impeccable consumer service, an always updated product, an international and dynamic management, the ability to continuously adapt to the changing context, these are rules that are applicable to all industries.
This report summarises in a few pages the above-mentioned experiences, it does not aspire to become a golden rule to be successful in Asia, but more simply to provide essential guidelines to approach a market which is near and far at the same time.
The fourth and final dimension to analyse in order to grow in Asia is the Consumer.
What is important to keep in mind is that the brand's awareness and reputation are crucial to winning over Asian consumers.
THE CONSUMER
When talking about the consumer, there are three key aspects to consider:
BRANDS ADDICTED
- The increase in income leads to the phenomenon of the consumption of brands as status-symbol
- Brands drive consumption, the consumer buys the brand before the product
- The consumer buys the experience and lifestyle associated with the brand and the whole universe around him (store, packaging, media, etc)
- Customisation becomes a distinctive element
IMPATIENT
- The e-commerce boom has accelerated the purchase process and led the consumer to be impatient and spoiled, minimizing the willingness to wait for long delivery times
- The Asian consumer carries out long researches before buying, making him/her very sensitive to prices and brand reputation
- The result is a lack of loyalty: it is open to exploring other similar offers
- Increasingly sophisticated loyalty programs contribute to customer loyalty
- After-sales service becomes crucial to compete with other brands
INFORMED
- Increased internet penetration (64% in Asia compared to a global average of 56% in 2020) means a habit of fast access to information
- More than 50% of online consumers are between 18 and 30 years old
- KOL effect: influencers have a strong impact on consumption, determining current trends and standardising consumption preferences (brands, products, design)
- Consumers tend to know and appreciate the brand when they travel abroad, and sales extend beyond the geographical location
- Emerging trends in favour of sustainable products
Get in touch for a free masterclass with us via pr@texereadvisors.com or read the previous chapter about The Market.