There is no denying that Asia represents a major opportunity for most western companies to grow their markets. With ballooning middle classes emerging in India and china alone bigger than any current market combined.
How we adapt our brands in these markets is key to success. The upcoming Beijing Olympic games will be a test to see how western brands behave in an emerging market.
Brands like coke have already invested heavily in Asia and China in particular. One of the common mistakes has been what works at home will work overseas, with no reference to cultural or local market conditions.
There is not one Asia but several and understanding the nuances is critical to any market expansion plans. Add to this the complexity that there is not even one China but several regional areas, dialects, cultures and tastes, making a one size fits all model very dangerous.
Another factor often overlooked is the concept of a Brand itself. We have been trained that one toothpaste brand is at a premium over the other. While the issue of brands and intellectual property is still an evolving concept in parts of Asia particularly China. The mere concept of a premium brand is not well understood, toothpaste is toothpaste, but a Mercedes is prestige.
Companies like Proctor and Gamble and now Coke have spent large amounts of funds on research in the local Chinese markets. Putting researchers in the field and living in the community to see the behavioural trends. The balance of value, commodity and brand are still being defined in these markets for all but Luxury goods.
So while you are watching the summer games of 2008 spare a thought for all those marketing drones who’s careers depend on success in Beijing.