Emerging
markets have become a top destination to global brands, and for good reason.
The Asian market in particular, with China at the forefront, presents immense prospects
for all sorts of businesses to succeed.

But
the road leading to success is not a straightforward course and is oftentimes
laden with obstacles in the form of regulatory policies, politics,  marketing, and even brand representation.

In
this blog post, we explore the intricacies involved in adapting your brand to
the Asian market and the role translation and localization services play in
achieving success in the region.

Overview
of the Asian market

Each
of Asia’s five major markets presents exciting growth opportunities. For
starters, the ASEAN region has a combined population of over 661 million
people, and a report published by Global Data predicts that their real GDP will rise
by 6% by the end of 2021, outlining decent purchasing power and a mass market. The
other side of the continent (East Asia) hosts South Korea (one of the
fastest-growing economies) and Japan (the third-largest economy in the world).

Its
impressive economic growth, large consumer market, business-friendly
environment, and rising tourism industry are but some reasons brands should
seriously consider adapting their product to the Asian market.

TIPS ON ADAPTING YOUR BRAND TO THE ASIAN
MARKET

Without
any form of bias, any strategy geared towards seamlessly penetrating the region
needs to revolve around efficient translation and localization of said brand
and product. The absence of which could prove to be the deciding outcome
between success and failure in a brand’s expansion journey.

Localization
is a well-talked topic that plays a significant role in easing any brand into
the global market.  So we have curated
some tips to help brands adapt to the Asian market.

1. Tailor products and prices to local preferences

When
adapting your brand to the Asian market, you must consider the cultural and
economic factors that affect consumer preferences and choices regarding
products and services. For

example,
when Yum! Brands launched KFC in China, they localized the menu, adjusting the
preferences such as spiciness and side dishes to fit the different regions in
China. Understanding market demands and preferences will help properly position
your brand in the Asian market.

1. Have a good understanding of each market’s regulations

Like
every other market, the Asian market also has rules and regulations on how you
should conduct business on its turf. Brands must be well versed in these rules
and work with the government to ensure compliance.

1. Be ready to promote and sell across various channels.

Global
brands must learn to market and distribute their products through various
channels. The lower penetration from traditional and online media in Asia makes
influencing purchase decisions more difficult. Businesses must also be open to
multiple marketing means from TV to prints, outdoor ads, educational campaigns,
and promotions. When using these means, they must consider each market’s
cultural preferences.

For
example, in China,  Coca-Cola used terms
like “close friend” and “classmate”  instead of first names during the “Share
are a Coke”  campaign. This was
because it is disrespectful to call someone by their first name in China.

ONE
SIZE DOES NOT FIT ALL

To
successfully penetrate the Asian market, you must resist the urge to treat the
continent as one homogenous market. Each region has its unique cultural,
political, geographical, and economic characteristics that influence product
demand and how a brand’s localization would occur.

For
example, energy products (traditional fossil fuel and renewable energy
equipment) are competitive in China and the ASEAN countries, while there is a
high demand for luxury goods in GCC countries and heavy industrial products in
India.

Observing
cultural characteristics is also crucial to expanding into the Asian market.
Forming an understanding of the cultural factors which will ultimately reflect
on the brand’s messaging and product requires in-depth research since the
cultures in each region differ. But, when done right, this in-depth research
will inform your localization strategy for each region.

Brands
will do better by focusing on urban clusters than thinking of the whole country
as one market. Hence, your localization strategy and approach might need to
focus on each country or even city.

CASE
STUDY: YUM! BRANDS

Yum!
Brands, the proprietor of KFC and Pizza Hut, is a perfect case study for
illustrating Asia’s potential. KFC opened its first restaurant in 1987 in
China, but today the market accounts for about 30% of their global revenue.

They
owe their massive growth to some extreme steps they took to localize the brand;
localizing their menu (adding more choices and varying it to suit the region’s
taste), making their outlets larger to accommodate groups and families as
opposed to the smaller drive-throughs in America, creating their distribution
system and introducing cross-cultural web interfaces.

By
infusing hints and bits of the Asian culture, KFC is now one of the
fastest-growing fast-food chains in China, with over 5,000  outlets and generating over $5.8 billion in 2020.

CONCLUSION

Indeed
the Asian market is booming with potential. But success in this region does not
come by mere wishful thinking. And it requires brands to carefully navigate the
regulatory, political, and economic peculiarities of the region. Most
importantly, brands must cater to the cultural and ethnic diversity of their
target consumers, which can only happen through effective translation and localization.