By Tara Hirebet
Asian consumers have never had higher expectations, while brands across Asia are producing ever more best-in-class products and services. No wonder the thirst among Asian consumers for products and services tailored to their needs — by regional brands that really understand them — is set to grow spectacularly.
The boom that has made Asia an economic and consumer powerhouse continues apace. According to Ernst & Young estimates, in 2011, Asia accounted for just 14 percent of global consumer spending; by 2020 its share will be 25 percent, and by 2030 it will reach 40 percent. As a result, brands from all over are rushing to cater to Asian consumers: witness global brand Estee Lauder’s Osiao skincare range, tailored to Asian complexions, or the green tea Oreos that are available in China.
All this attention and subsequent choice means Asian consumers can and will continue to become more demanding: seeking out best-in-class products and services that cater explicitly to their needs, wants and desires.
The traditional narrative runs that as Asian consumers become more affluent, they flaunt their newfound status by turning to established brands from “western” markets. This is true on some levels: just look at the success that luxury brands from the “old world” of France and Italy have had in the region. But running alongside this is the deep-rooted desire for consumers in the region to see Asia succeed. Despite the on-going political squabbles in the region, just witness the support for Jeremy Lin and Psy throughout Asia as they found global fame in 2012.
Now that Asian brands are competing with — if not exceeding — the best of the best on a global stage, Asian consumers are eager to embrace Asian brands. A glance at trade statistics tells the story: the IMF reports that while both global trade and Asia’s trade with outside economies has doubled since 2000, Asia-to-Asia trade has tripled.
And finally, whether because of shared values, operational experience in fast-growth economies, or a natural affinity for local nuances, Asian brands and businesses simply get Asian consumers — their mind-sets, wants and needs — in ways that outside brands sometimes still struggle with.
Witness products built firmly on Asia-to-Asia logic, such as the translation app Hanashite Hon’yaku by Japanese telecommunications firm NTT Docomo. Via real-time, audio-to-text translation, the free smartphone app offers Korean, Japanese and Chinese users a convenient, hassle-free way to communicate with each other despite language barriers.
Korean brands are also frequently taking the lead in adapting products to fellow Asian markets. Korean chaebol LG Electronics has pursued a dedicated “micro-localization” strategy in India since 2010, with 27 products now tailored to the Indian market; including the Charcoal Lighting Heater Microwave, which features an autocook menu with settings for over 130 Indian dishes including naans, parathas, and tandoori items. In 2012, LG was voted the most trusted consumer durable brand in India.
On a much larger scale, 8City, the iconic tourist megacity on the Korean islands of Yongyu-Muui in Incheon, is unabashedly designed to attract and delight Chinese visitors. From luxury hotels, casinos and shopping complexes to a Formula One race track and a “healing” medical specialist centre, a rich array of services will cater to the leisure preferences of mainland Chinese consumers. Scheduled for completion in 2030, 8City will even resemble the shape of number “8,” which the Chinese believe to symbolize prosperity.
Localizasian strategies also allow brands to navigate frontier and niche markets — like Taiwan-based manufacturer HTC. In January 2013, it debuted six models of its smartphones in its first store in Yangon, Myanmar, all equipped with specially designed, localized font keyboards in the Burmese language.
Or learn from Chinese brewer Tsingtao, which used its cultural awareness to adapt its beer bottle for Chengdu consumers. The new larger bottle holds two or three pints, allowing for the beer to be poured into small cups and shared over Sichuan food, mimicking the traditional way that baijiu — a Chinese spirit — is communally drunk.
One opportunity that culturally conscious Korean brands are keeping an eye on is that presented by the large Muslim demographic in Southeast Asian countries like Brunei, Indonesia and Malaysia. In October 2012, Kia Motors updated its Kia Sorento XM SUV model to include a special Qibla compass. The embedded dashboard feature helpfully points Muslim drivers in the direction of Mecca, where they face during their five daily prayers.
The lessons for any Asian brand doing business in Asiaare clear: this is a trend sweeping over the world’s most dynamic consumer arena that you need to be aware of, and respond to. Take advantage of your position — both the psychological and physical closeness — to tailor your products and services for (sub-)populations with local lifestyles and practices in mind.
Asian consumers will also appreciate brands that celebrate their local or regional culture by re-shaping or integrating their products into established traditions or practices, and so honoring them; as Tsingtao did when they reimagined their beer bottle around a traditional drinking custom.
And finally, remember — localizasian can be as simple as tweaking your existing product or service to cater to a new group of Asian consumers. Witness how successfully LG Electronics cornered the Indian market by adding tailored, micro-localized auto-cook menu options to their microwaves.
This is just one of many trends that can be found in trendwatching.com’s new Asia-Pacific Trend Report, now available for download at www.trendwatchingreports.com. As a Korea Times reader, receive 15 percent off of the report by using discount code KT4aP8b. Offer is good until May 31.
Tara Hirebet is the head of Asia Pacific at trendwatching.com.