A recipe for success: The right way to expand in Asia

Digital acceleration spurred the rapid rise of eCommerce, with consumers buying things from all around the world with just a simple click of a button. When it comes to cross-border eCommerce purchases, APAC is leading the pack as buying online from other countries soars in popularity among consumers in the region. Over the past year, cross-border purchases have increased from just over 50% to 75%. In other words, if you’re a brand looking to expand, you now have access to a digital highway that leads directly to any consumer you want to reach in Asia. But with over 40 different countries, each uniquely different in their culture, language, and digital maturity, expanding into these markets can be trickier than you might think.  

Consumer behaviour varies greatly from country to country in APAC and it’s important to remember that there is no one-size-fits-all expansion strategy. Each market deserves its own approach – and you’d be smart to consider three key areas that you should always keep in mind before entering any market in Asia.

1. Ask yourself: What value do I bring to this new market?

Before you get too excited by market projections and revenue forecasts, it’s important to understand the qualitative factors at play in expansion. Consumer preferences, buying behaviours and competitor loyalty are all elements that can make or break your expansion strategy; and believe it or not, they’re often overlooked.

Let’s look at China, for example. As one of the most mature commerce markets in the region, it’s home to some of the savviest consumers you’ll encounter. The market is saturated with competitors of all industries and consumers are not easily swayed by ads or promotions. What they’re truly looking for are value and experience, and brands that can provide this are rewarded with their loyalty. The question is, can your brand provide the same or better value?

Each and every market has these hidden and, sometimes, unquantifiable nuances. Getting a grasp of these can significantly increase your chances of success. So before charging into a new market, ask yourself, what value do you bring to local consumers?

2. Ask yourself: How much am I willing to lose?

This question is to replace “how much should we invest?”

The problem with this question is that it’s usually answered by how much ROI the market will generate. While revenue generation is the goal of any business, this ROI-focused mindset can often be short-sighted and can therefore mean failure in the long term.

Immediate ROI in any market expansion is never guaranteed. Success does not happen overnight, especially when you’re trying to navigate the local cultures and behaviours of the different markets. A failed campaign at the beginning doesn’t mean there’s no potential, it just means that there’s more work to be done and more to test and learn. So, a better way to look at your investment is by asking how much you are willing to spend to learn and discover the market. 

3. Break down your long-term thinking

The rapid rate of digitalisation in Asia combined with the evolving commerce environment means that markets are always changing. While we’re all used to forecasting several years in advance, timelines need to be broken down into phases, lasting no more than six months. This allows you to stay agile and responsive to the market dynamics. Early phases should be devoted to testing, learning, and adapting, gathering as much consumer data as possible, with revenue only being a secondary objective. While this is sometimes an uncomfortable place to be as a business, in time, the knowledge you gain from this exercise will form the foundation for a successful market entry.

How can we help?

Assembly (formerly ForwardPMX) offers a global omnichannel media solution, powered by business, data and technology consulting solutions that help brands transform and grow their businesses. Home to over 1,500 talented media experts across 30 offices in more than countries, Assembly combines a global perspective with local expertise. Our APAC teams in Hong Kong, China, Singapore, South Korea, Japan and Taiwan possess a deep understanding of local behaviours and media landscapes, successfully helping clients navigate the complex and nuanced region.

This article is written by Yanyan Froud, regional vice president, APAC&RU, Assembly