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Taking on Asia The Opportunity for Australian Brands Ashley McVey Strategy & Marketing Director, Next Digital

iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

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As Australian brands face increased pressure from international competitors, the growth opportunities in emerging Asian markets become significantly more appealing, and more accessible than ever before. Asia accounts for half of the global population and has the second-largest nominal GDP of all continents after Europe. With increasing digital connectivity and a maturing online market comparatively untouched by international brands, the world's eyes turn on Asia as the next big thing. In this session, we’ll together explore a market with multiple languages, currencies and audience behavioural nuances to demystify the opportunity of, and approach to expanding operations in Asian markets. Aligned with Australian strategic expertise, we’ll spark conversation on the common challenges and brand opportunities Asia presents to your brand.

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Page 1: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Taking on AsiaThe Opportunity for Australian Brands

Ashley McVeyStrategy & Marketing Director, Next Digital

Page 2: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Agenda

A brief overview of the region

Why Asia?

Trends in the Region

Key Learnings

Page 3: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

First, a look at the whole region.

24 countries

3,450,000,000 people

50% of the worlds pop’n44.8% of the worlds internet users

RegionalismLanguagesCultural IdentitiesLaws and Regulations

Page 4: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

2 distinct marketsto set the scene

Page 5: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Why Explore Asia

538m40%

18m62%

20m90%

Sept: 2012

Page 6: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Why Explore Asia

Very attractive to multi-nationals due to high annual GDP growth.

Source: Warc

Global Rank Country Annual increase

6  China 9.5%

64  Malaysia 5.2%

142  Australia 1.8%

Page 7: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Why explore the region?

Asia-Pacific countries lead the world

in e-commerce adoption.

90% of consumers have purchased online.

Src: Neilson. One size does not fit all- Asia's multi-channel opportunityCountries include: Taiwan, Japan, China, S. Korea, NZ, Aust., Malaysia

Page 8: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

But it is a complex Region

16% of Chinese people speak

English

Source: Next Digital Regional OfficesSource: Warc

Half of Malaysians between 20-34

consumer mobile media on their smartphone

Metropolitan vs. Rural audiences

Malaysia is in the top 3 countries for video downloads.

By 2020, China is tipped to have the

world's largest economy

Page 9: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Trends in Asia

ASEAN is experiencing 3 big trends in online consumer behaviour:

Mobile Web

Video Content Consumption

Social Media

1

2

3

Source: http://www.slideshare.net/BMGlobalNews/b-m-global-social-media-checkup-2012-deck-13341217

Page 10: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Trends in Asia

7.96%

14.85%

5.13%

2.86%

17.84%

7.55%

Source: StatCounter. Pingdom.com. May 2012

192.5% increase since 2010

Mobile browsing: % of all web traffic

Page 11: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Trends in Asia

By 2013 the number of mobile searches is predicted to exceed desktop.

Source: Roy Morgan

Page 12: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Social Penetration by Country

Source. eConsultancy. Social media in Asia: Understanding the Numbers

40%41%

51%

20%Region Avg.

Singapore Malaysia China Asia’s avg.

Page 13: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Corporate use of Social Media in Asia

Key Trend across regional markets is micro-blogging. Corporate blog usage has grown by 40% since 2010.

Source: eConsultancy. Social Media in Asia

90% 50% 50%

80% 90% 50% 30%

80% 100% 80%20%

Australia

China

Malaysia

Micro blogs

Social Networks

Corporate Blogs

Video Sharing

Page 14: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

The Search Landscape

VS

Page 15: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

There is a lot of Success Already

Retail

High end goods

Sports brands

Children's Toys

FMCG

Coca Cola

Pepsi

Starbucks

Tourism

Tourism Victoria

Tourism Australia

Manufacturing

Phillips

Sony

Page 16: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Key Learning's

Page 17: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

The Key Learning's

Research the market

Adapt Strategy

Localise your Brand

Utilise Local Expertise

1

2

3

4

Page 18: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Research the Markets

2 distinct language versions Simplistic and Traditional

Highly detached regions

Class division

Unique family structure

Primary language is MalayEnglish very widely spoken

2 distinct land masses

Est. young middle class

Large working demographic

Page 19: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

China is quickly approaching 20% of the worlds pop’n

By 2020, China will have 800 urban locations with a higher income per capita than Shanghai

By 2025, China will have 10 cities bigger than New York

Adapt Strategy

Source: Warc

Page 20: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Adidas

“You can't treat China with a one-size-fits-all approach."

Colin Currie, Managing Director of Adidas Group China

Page 21: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Have identified Upper, Mid and Lower tier cities

Understand consumer behaviours are different due to different living costs

Have a tailored strategy for each location

Adidas

Page 22: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Adidas Neo

Page 23: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Localise your Brand

Message

Brand

Product

Page 24: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Localise your Message

http://www.youtube.com/watch?v=W16qzZ7J5YQ

Page 25: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Localise your Message

http://www.tudou.com/listplay/Mlvy1XqBDUU/p7w518NftF4.html

Page 26: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Localise Your Product

Page 27: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

“I find I need to check my Western sensibilities at the door when planning campaigns.”

Paul Baron,Group Marketing Manager, Tourism Victoria

Your Brand

Page 28: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Work with Local Resource

Page 29: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Tourism Victoria in Malaysia

Page 30: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Tourism Victoria in China

Page 31: iStrategy Melbourne - Taking on Asia: the Opportunity For Australian Brands - Ashley McVey, Next Digital

Melbourne - Sydney - Brisbane - Shanghai - Kuala Lumpur - Singapore

Next Digital MelbourneLevel 8, 15 William StreetMelbourne, 3000

P: 8612 6888F: 8612 6899E: [email protected]

Ashley McVeyStrategy & Marketing [email protected] 8612 6811