TNS Global Digital Asia

7/30/2019 TNS Global Digital Asia

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Digital Asia

Which region o the world representsalmost 40%1o the global internetpopulation? Which region also

contains over 50% more internet users thanEurope? And, which region contains three outo our o the largest internet populations? Theanswer to all o these questions is, o course,Asia. Possibly the most surprising statistic o all

is that the average internet penetration acrossAsia is just 15%, although it is growing rapidly.Compare this with 48% across Europe, and74% in the US and you start to get the picture Asia is already a major player in the internetgame and it is only just getting started.

But Asia is a region o contradictions.Countries like Japan and Korea have

possibly the most advanced broadbandand wireless networks in the world; Chinais now responsible or manuacturing thevast majority o consumer electronic goods,and India can be credited with providinga growing proportion o the worlds ITcommunity. Yet other parts o Asia lackeven basic means communication such as

telephones or televisions. But one thing isclear - Asians who have access to the internethave probably embraced it more readily thanany other community on earth. Asians arespending over 140 hours a week consumingmedia and interacting with others digitally,multi-tasking as they go. Traditional mediasuch as TV, radio, cinema and print accountsor less than 20% o this time. And eighty

1 World Internet Stats November 2008

By Jonathan Sinton,TNS Research International Australia


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percent are now shopping online, spendingan average o $US3,000 a year2.

With many western economies slipping intoa recession, Asia represents quite possibly the

single biggest opportunity or growth over thenext ew years or many global businesses.Coupled with the worldwide movementtowards digital marketing and it becomesclear that understanding how to build brandrelationships with the online Asian consumer isone o the key challenges acing internationalbusinesses over the next decade and beyond.A marketers understanding o how to builda brand online in a western market is largely

redundant in Asia. The long list o ailedinternational brand websites in China istestament to this. To state the obvious, Asia isdierent rom Europe and the US.

With this in mind, TNS recently commissioned alarge consumer study into consumer digital habitsacross the region to understand how businessescan leverage this important opportunity in thecoming years. We interviewed 6,000 online

consumers in China, India, Singapore, Malaysia,Korea and Australia. The study covered topicssuch as their online behaviour, social networking,online entertainment, blogging, online shopping

and accessing the web via their mobile phone.The single biggest insight that came out o thestudy which is hardly a revelation is thatthere are big dierences in online behaviouracross the dierent markets. Malaysia is

the social networking hub o Asia, Koreais the leader in online shopping, Chinais probably the world leader in blogging,online Australians watch more traditionalTV than any other nation in Asia Pacic andSingaporeans are responsible or the mostemails and gaming activities.

But things change so quickly online anyoneremember riends reunited? its crucial we

understand the underlying needs drivingconsumer behaviour so brands can buildlong term digital strategies. Beore getting tothe dierences in digital needs by market,we have identied 3 external actors that webelieve are creating these needs.

1. The Internet Development CurveInternet penetration varies hugely in the Asia-Pacic region, rom an estimated 79% in

Australia down to just 0.3% in Bangladesh.The stage o internet development providesvaluable insights into the typical internetuser, their needs and their habits.

2. 2008 Visa e-commerce Tracking Survey

Innovators2.5%

EarlyAdopters

13.5%

EarlyMajority34%

LateMajority

34%Laggards

16%

Typical Product Adoption CurvePP

India (5%)

China (19%)

Malaysia (59%)

Korea (71%)

Australia (79%)

Internet Penetration by Country

Sources: World Internet Stats: Nov 2008

Inocomm Development Authority o Singapore 2007

Singapore (74%)

Figure 1: Internet Adoption Curve


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Figure 1 plots the internet penetration o thecountries within our study onto a typical productadoption curve. Markets such as India andChina are still very much in their inancy when itcomes to internet penetration within the average

household. India, or example, has an internethousehold penetration o just 5%. Those usingthe internet are considered pioneers and behaveaccordingly they spend more time online thanany other country in the region and doing thingsonline than many westerners wouldnt dream o,such as writing their daily blogs via their mobilephones. For many Indians, the internet acts asa status symbol a refection o their successand afuence. Hence, much o what they use

the internet or is related to recognition, such asblogging, review sites, business networking andgaming. Unsurprisingly, internet users in Indiaare predominantly young males. Whilst Indiain itsel is unique, other markets at the earlyadopter stage show similar recognition-baseddigital needs.

In comparison, in mature internet marketslike Singapore, the internet has inltrated

almost every household. The typical internetuser couldnt be more dierent than in India the everyday person rather than the earlyadopter. The number o hours spent onlineis much lower, and the typical usage is lessparticipatory and more relaxation and controldriven - checking email, searching or productsand services and logging onto a social networksite such as Facebook. The majority are happyto ollow, rather than lead.

Malaysia oers an interesting insight intoa polarised society. Malaysia is a relativelysophisticated internet market - certainly oneo the most advanced is SEA, within highlyconnected urban areas like Kuala Lumpur. Butinternet penetration remains modest, due to alarge sub-segment o unconnected consumers typically those in more rural areas.

Understanding what stage a country is at helps

to defne the degree o leadership consumersare looking to take when interacting withbrands online.

2. The Cultural NuancesThat Underpin Each MarketThe impact o dierent social and politicalhistories within each market on the wayconsumers use the internet cannot beunderestimated and this is certainly no

dierent in Asia.

An example o how history can impact aninternet population is in China. Chinas mediahas been heavily controlled by governmentover much o the past 60 years o communistrule. But the rules are dierent online. Theinternet has created a Prosumer3 (someonewho both consumes and produces inormation)

3. Prosumer, a producer and a consumer o inormation - Prometeus


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revolution in China. Eighty percent o Chineseinternet users claim to write a blog, withmany writing or more than one hour a day.There is, however, little undertone o politicalmotivation - the typical blog centres around a

persons personal lie and experiences. WhilstIndians blog to demonstrate their leadership orexpertise (and in turn obtain recognition), theChinese blog to be able to express themselves.

Another example o how a country nuancecan infuence dierences in behaviour isonline shopping in Malaysia. Malaysia hasbattled credit card raud or many years andthis means eCommerce currently has limited

potential due to the general distrust surroundingcredit cards. Further, the social shopping tripis an important part o Malaysian subculture.Subsequently, whilst Malaysians are using theinternet extensively to research products andservices, online transactions remain lower thanin other markets.

In many ways the internet is simply anextension o cultural dierences that may have

been in place or thousands o years. Through

becoming sensitive to cultural dierences,brands can gain insight into the suitablemarketing strategies or each market.

3. Infrastructure Differences

The third actor we have identied relatesto inrastructure. Large parts o Asia are stillconsidered to be o third-world living standardsand certainly the GDPs o many countriesare still extremely low by western standards.Subsequently, the inrastructure required orxed-line internet connections simply do notexist in places such as rural China or India.Contrast this with the high-speed connectionsavailable in Korea and Japan, and it again

emphasises the diversity within the Asia region.

Numerous commentators have in the pastsuggested that these inrastructure barrierswill simply be bypassed that consumers willleaprog xed line internet connections andgo straight to the mobile internet.

This could result in consumers having acompletely dierent set o expectations and

hence needs rom the internet. Despite the lack


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o 3G services, the Indians and the Chinese arethe nationalities most likely to be using a numbero mobile data services such as accessing theinternet or using a search engine according toour study even ahead o advanced 3G markets

such as Australia and Korea.

Whilst poor inrastructure can create dierentneeds, equally advanced inrastructures helpto create new digital needs. Singapore is a greatexample o this. Singapore is a small, publictransport centric country. The governmentplays an active part in encouraging advanceddigital propositions, through implementingnew inrastructure standards or private sector

organisations to achieve. The outcome is anadvanced mobile data proposition and wi-hotspots everywhere you go. SubsequentlySingapore is quite possibly the single biggestexample o an always-on nation, underpinnedby a need or instant gratication.

Digital NeedsThese three actors converge to help explainthe underlying digital needs o consumers in

dierent markets.

Australia and Singapore show a number ofsimilarities with needs centring around Controland Entertainment less participatory, more

passive. The Chinese, as already mentioned,

are motivated by freedom of expression, butoften through an online persona. Indians arealso motivated by an opportunity to expressthemselves, but the focus is for them (thereal them) is leadership. In Korea, consumers

are motivated to use the Internet to educatethemselves, but there is also a sense thatthey need to be online to become accepted.Malaysians also seek to educate themselves,but also to seek recognition.

This is o course a very homogenous viewo consumers by nationality there are subsegments o each society which have dieringunderlying needs. For example, through even a

basic segmentation on gender suggests that malesare more likely to be seeking recognition online,whilst women are more likely to be motivated bya sense o belonging. The younger a person is themore likely they are to be seeking connectionand be willing to express themselves.

How can I apply this tomy digital strategy?Quite simply think through how to connect

with consumers in a manner that ts with theirdigital needs. For example, trying to encourageexpression in markets such as Australia orSingapore through participatory media suchas blogs may prove dicult they tend to bemore insular in their usage o the internet and

Country Most differentiated needs

Australia Relax & unwind, Save money, Manage lie eciently, Entertainment & inotainment,Connect with like - minded people

China Freedom o expression, Express other 'desired sel ', Instant gratication, Personal space, Explore& mix real world/ antasy world

India Stand out & be dierent, Freedom o expression, Evolve creativity & personality, Be amous,popular & recognized, Leadership & expertise

Korea Continuous learning, Instant access, Experience the impossible, Instant gratication,Conrmation & Acceptance

Malaysia Continuous learning, Evolve creativity & personality, Achievement, pride & condence,Instant access, Save money

Singapore Entertainment & inotainment, Relax & unwind, Instant access, Connect & share,Manage lie eciently


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possibly a little more rational over what they do.In these markets more passive media, centredaround entertainment may work better as a way

o brand building. Social media is popular andentertainment is an important underlying need, soperhaps the most eective approach (dependingupon the target) may be through social networkapplications or through YouTube channels.

In markets such as Singapore and Malaysiawhere instant access and instant graticationare key underlying needs, location basedmobile marketing is an obvious t with their

needs (see case study).

In a market like India, make the consumer lookgood. Make sure your business is equipped tosupport the plethora o consumers reviewingyour products or services on their blogs.Building Ambassador networks or seeding mayprove eective.

The concept o understanding needs (and unmet

needs) has been around in market research oryears, resulting in the development o dozens

o new products, new brands, new marketingstrategies. The same principles can be applied tohelp understand the digital consumer better andhence shape more eective digital strategies.

Asians are spending over 140 hours a week consuming mediaand interacting with others digitally, multi-tasking as they go.

Tips for Digital Marketers

Sidebar graphic

Understand the underlying digital needs o yourtarget consumer and align your digital strategy

Pick the channel & media to meet your objectives,not the other way around

Avoid invading the consumers sanctuary -drop the corporate messaging, learn to listenand learn to have 1-on-1 conversations withyour customers

Support the Prosumer Revolution, dont tryto manipulate it

Make sure your PR and SEO teams areempowered to deal with the adverse aecto social media

ConclusionAsia is undoubtedly one o the mostcomplex and misunderstood regions o theworld. The internet revolution is spreadingin epidemic proportions and with this, thevalue o the Asian consumer is growingin importance to the global businesscommunity every day. The brands that aregoing to succeed in this environment arethose that understand each market andeach consumer better than its competitors.The brands that are able to do this and canadapt their digital strategy to exploit thisknowledge, stand to gain in Digital Asia.

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TNS Global Digital Asia