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.
- 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.
- 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.
- 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.