Five secrets to brand activation success in Asia

It is not so long ago that the Western world woke up to the economic power of the East rising on the horizon, bringing a new dawn of market expansion success and branding possibilities. Markets such as Vietnam, Myanmar and Cambodia began to emerge as Thailand’s markets began to shift toward a newly identified middle class and greater consumer sophistication.

While these positive nods Eastwards are all good and well, the narrative has moved on considerably. To acknowledge this enables brands to be properly placed and activated. The real story is that Asia is no longer catching up but is leading the way. As McKinsey reported, in terms of gross domestic product (GDP) the region is on track to be among the Top 50 percent by 2040. The expectation is that this will equate to 40 percent of the world’s total consumption.

Further fueling this growth is the changing demographics, greater disposable incomes and improved quality of life, plus technology and well-developed, unique markets. To succeed in Asia, it is necessary to look at not only the predictions that lie ahead but those that are happening right now and, in some cases, have already been surpassed.

Even to the casual observer, Asia is synonymous with digital advancement and tech innovation. As McKinsey pointed out: “Asian consumers are especially receptive to new mobile and internet technologies”, reporting that four out of ten of the top tech companies are from Asia. Meanwhile, 36 percent of unicorns, private startups valued at over USD 1 billion, are found in Asia.

CMO by Adobe highlighted, it is important to be aware of quickly emerging eCommerce and digital platforms in Asian markets. In Thailand, the Line messaging app is a dominant marketing avenue while WeChat is a market-specific messaging and social media app in China that boasted over one billion monthly active users in 2018.

Global Web Index report: Connecting the Dots: Consumer trends that will shape 2020 suggested the “social” aspect of social media would continue to become less important; evolving into a one-stop-shop for many other daily needs. This could offer more scope for branding through the prism of social media platforms which are less about sociability and more a tool for everyday life.

The concept of culture is nothing new in the world of business. However, today it goes beyond adopting sensitivities toward history, political frameworks and accepted moral and spiritual codes of a market. While these elements are imperative, brand activation can only really engage and lock into the consciousness of a market if there is an awareness of the current cultural mindset.

The secret of brand activation success in Asia is to perceive a myriad of cultures and adapt to individual markets culturally and emotionally. With a focus on the experience being at the heart of brand activation, global brands as well as Western businesses entering Asian markets often seek to create a local sense of brand belonging that inspires loyalty among consumers.

A brand may be perceived in different ways in various Asian markets. Leaders who respond to this understand that players outside of Asia can succeed by playing the brand activation game at a local level. Examples might include understanding emotive advertising in Thailand and leveraging experiential marketing that resonates with the Thais’ love of slapstick humor.

While trends can be looked at in an Asia-wide framework, to make brand activation feel more personal, marketing ideas that work within one Asian market may not translate into others. Even big brand players understand the necessity of leveraging brand activation strategies differently for some markets.

The 2020 Brand Activation Trend Report highlighted how micro-blogging platforms are enabling influencers and consumers to have more control over the content, leading to greater personalization. The focus is on creating “authentic connections” and this can be achieved via smaller digital communities. A good example is the popularity of Instagram within this space.

Part of the impetus to bring marketing into a more local arena is the fact that business leaders regard event hosting as an intrinsic element to their overall strategy. According to a Harvard Business Review study, this view was integral to the plans of 93 percent of those surveyed with 85 percent perceiving brand activation as a must.

Not only is Asia a melting pot of cultural difference but demographics are changing the shape of society within different Asian markets. Renowned for aging populations, Asia is also experiencing a new breed of young, upwardly mobile consumers.

While Gen Xers initiated a world of change and millennials surging forward to embrace the digital age, Gen Zers too bring their own dynamism to brand activation. Understanding what impacts and motivates target generations is crucial. A June 2020 McKinsey report: What makes Asia-Pacific’s Generation Z different outlined how those born between 1996 and 2012 will account for a quarter of APAC’s population by 2025.

Outlining consumer trends, the report concluded that when it comes to APAC’s Gen Zers, brands need to master distinct and sometimes overlapping qualities. They will also need to react to how the impact of the COVID-19 crisis is changing the attitudes and behaviors of Generation Z.