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Over the last 3 decades, many companies have shifted their focus of expansion into the Asian market. Asia has shown tremendous growth despite some major setbacks and has great potential for bigger and better things. Many companies have successfully entered the market and are reaping the profits, but there are even more that fail – the ones we don’t hear about. The biggest factor contributing to their failure is “assumption”. Most of these businesses have enjoyed success within their local market. Assuming what works at home will work in Asia also, they shockingly discover that the market is so different. We at ThinkAsia™ Consulting are committed in helping our clients to be well prepared for success in Asia.
Price Differences: If you have traveled to most Asian countries before, you may have noticed that things are much cheaper there. Many tourists take the opportunity to get some great bargains, sometimes even get prescription glasses or their dentures made whilst traveling through Asia. If anyone wants to expand into Asia, they must therefore research the pricing levels of existing suppliers of similar products. If they are offering a new product, they can get a rough idea through market surveys and researching complimentary goods or alternative products. More often than not, your product will sell for a lower price than it is at your local market, therefore limiting your profit levels. However that is not the end of the world because it means that the operating costs in Asia would be lower as well. Cultural Differences: Asians historically have been quite superstitious. Even though in recent times, most people have changed, but some of these beliefs have become tradition and are observed out of respect. Certain colors and numbers are not well-received in some Asian countries, whereas it may be acceptable in others. Therefore the packaging and design of products play in significant role in the success or failure in the Asian market. On the other hand, companies that embraced and integrated these traditions in their products and marketing have done very well. Buyer Behavior Differences: As we all know, different products incite different buyer behaviors. In a foreign country, it is normal to expect varying buyer behaviors as well. It is absolutely crucial to understand how the market would react to your product or services prior to entering it. What is a necessity in your local market may not be so overseas and vice versa. Traditionally the Asian market is more price driven than most others, however it may not apply to every product and service. In other cases, Western markets prefer simple and practical whereas Asia makes buying decisions based on the packaging and design. There are other differences in the Asian market, most of them are industry specific. The most important thing is to be prepared and understand these things. Some of the differences cannot be picked up by just traveling there. You need to consult local experts who understand the market better than anyone else. There are many consultancies such as ourselves that can assist you in doing so, providing you with important information and recommendations, most of the time more effective and cheaper than your air ticket to Asia.
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