08 March 2020
In “2030”, “2 in 3” of the middle class will be on the continent of ASIA. This means a great opportunity. Asia accounts for 55 to 60% of the world’s population. 28% of the world national income is in Asia. A lot of statistical data is shared on the consumption growth of Asia and the rise of the middle class. It will be a unique opportunity for consumer brands. But on the other hand, it is full of potential traps.
- How is it necessary to address the “HEART”, “MIND” and “WALLET” of this large and new consumer base?
Is Asia really the most attractive place for any global firm? No doubt it is, it shows it in statistics. Over the past 10 years, we have seen incredible changes and forward-looking developments in the Asian continent. CHINA, SINGAPORE, SOUTH KOREA, MALAYSIA, THAILAND, INDONESIA, India etc… Only if we take the current position of China, commercial, intellectual protection law, etc. It is enough for us to understand the Global Strategies and Entrepreneurship issues.
It is not surprising to understand how US and European brands focus on deciphering this market entry code. KFC, YUM, PIZZA HUT etc. Now it holds 40 percent of the fast food sector. Interestingly, MC Donalds only has a 10 percent share. IMAX Cinema and IMAX technology is one of the giant companies that deciphered the market. More than 9 years in the Chinese market, it started with the operation of the movie theater and released its own technology “IMAX” cinema technology.
It is about entering the market with a brand and then spreading it! A familiar simple way. However, this work requires great care, understanding of the culture of the market and a time-consuming methodology. So is there a secret method to decrypt these passwords?
Asia is a versatile market. It has many differences. Culture, history, political systems, purchasing
very different in terms of power. One of the behaviors you need to show to decipher is the experimental approach! You should also have a detective approach and feedback mechanism. You must enter this market to succeed. So the advice I can give to multinational companies and SMEs can be to find a way to enter the market, to progress step by step and to learn while they are progressing.
It should not be forgotten that you should win with you local partners, customers or government. If you expect a perfect market to occur, you will encounter perfect competition.