4 DIMENSIONS TO GROW IN ASIA: THE PRODUCT

Oct 26, 2020

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 dimension we are looking into this week is the product: necessary to be successful, but not sufficient.

In fact, if managed with consistency product and brand reinforce each other.

THE PRODUCT

When talking about the product, there are three key aspects to consider:

QUALITY

The Made in Italy is still an important value if it corresponds to the production reality
The craftsmanship, that is the "know-how" and attention to detail, is a desired and sought-after value that makes the difference
The choice and quality of materials must be consistent with price and brand positioning
The production chain is an integrated part of the final product, it must be explained and told
The reputation of the brand is intimately linked to the product. Negative variations of the quality of the product compromise in the medium term the brand and its turnover

POSITIONING

Price positioning must be consistent with product quality and brand awareness
The product must address a clear and specific market segment (luxury, premium, mass), and always be consistent
The quality of the product must also be told through the production process
The packaging must not be distinguished from the product; it is part of the purchasing experience and must be consistent with the product positioning

INNOVATION

The product has to constantly innovate with new and "fashionable" designs and materials
Limited editions are crucial for positioning the brand and gather it visibility
The customisation of the product amplifies its value and exclusivity, contributing to make the brand aspirational