Expanding into other countries requires a lot of forethought and planning. Expanding into different continents, however, can cause a massive failure without really understanding the culture and consumer. Asian markets are notoriously difficult for Western brands to succeed in, and that’s not just because of the language barrier. Many Asian countries are at a different period in their development than Western nations, and their consumption habits reflect this.
Going in without respect to their culture, or an understanding of what they value, and need is a big mistake. Even bigger of a mistake is to assume that Asia is one, homogenous market. Every country, and more than that, every region, has its own cultural identity that needs a unique approach to succeed in.
Without this dedication to connecting to each area, local businesses will destroy your efforts. They have the presence, and they know their audience. It isn’t a mistake that some of the largest and most prominent brands in the world began and operate from these countries.
Their market is big, and their influence is greater. If you want to expand into the Asian markets, you need to be smart, and you need to use this guide:
Improve Your House, First
Expansion needs to be done at the right time. For that right time to be taken advantage of, however, your house needs to be in order, first:
Improve Your Skillset
As the owner of your business, the best thing you can do for its future is to complete an online MBA. There are a variety of specializations you can choose when you work on an online MBA, and ideally, you will want to choose one that you are not already excellent at. Rounding out your skillset as a leader and business owner is often hard, especially without someone taking a good, hard look at your current self and figuring out where you can improve.
With that in mind, the online MBA that you choose must have a few key characteristics:
- 100% online
- Flexible; you should be able to take on as little as one course at a time
- No mandatory log-in times
- Career coach
- Accreditation
With these as the base of qualifications, you can then go on and find an online MBA that offers the specialization that you are most interested in. This could be in marketing, managing, or even data analysis. In regard to expanding into eastern markets, it is best to focus on more technical elements, like data analysis, as this will make the biggest difference both at home and overseas.
Build a Cloud-Based, Integrated System for Your Business
Your online MBA will help you better manage the human element of your business, and to take creative challenges to the next level. What it cannot help you with is manual labor. Admin tasks take a long time when done manually, and your business will not be able to keep up if you do make headway in your efforts towards eastern expansion. You, and your team, need a system that works with you.
Everyone on your team will be put to better use solving and working on creative challenges. To allow them to focus on that, you need a cloud-based, integrated system. What this means in effect is that storge-wise it can expand as you need to, without any need to upgrade your system. It also means that your western and eastern teams can handle and use the same data, and have it updated for each other instantaneously.
Finally, it means you can introduce automation. Automation is important for any business, as it makes easy work of boring and simple admin tasks that, done by a person, could take days.
Optimize Your Efficiency
The last step in improving your house is to optimize your efficiency. You will have learned a lot of possible strategies and possibilities during your online MBA, but never be afraid to outsource help, too. Some people specialize in auditing a company’s efficiency so that you can get a list of areas to improve on, as well as a recommended action. Doing this before you expand is best because these audits – and their improvements – only become more difficult the larger your business becomes.
Learning About Your New Markets
One thing that your online MBA will teach you is the importance of study. That is why before you actively make overtures to expand into new markets, you need to research them.
Research
You will ideally know exactly what to research and how to research and create detailed reports in your online MBA. If not, then simply brush up on these skills and follow suggestions found from white papers and even from hired consultants.
You want to understand each country. Getting your foot in the door correctly means choosing the right market to focus on. As stated before, every country is vastly different and even more than that, regions within that country vary drastically. It would be best if you targeted where your customer base is, and ideally where there is a hole in the market for your business.
Having a good idea about where to start can save a lot of money and headache, but don’t assume that your research alone is enough. If you want to expand into new markets, then you will need people to help you.
Hiring New Talent
The right people will help you make the right decisions both in terms of where you intend to launch, and how you can do it correctly. You have two main options. If you can afford to open a head office in that country, then you will ideally want to populate it with talented locals who best understand your new customer base, as well as that culture. Have a few members from your head office to ensure that your brand and values are translated over well, but for the most part, you need to trust your new employees to represent your brand well.
The second option is to be represented by an agency. Marketing and PR agencies exist that can take you on as a client. They will work on marketing your brand to that new audience successfully. There will even be those you can hire to help you identify unique opportunities to expand further into that market.
Slow and Steady
It takes time to do this properly, so don’t put too much pressure on yourself. Instead, use what you have learned in your online MBA and manage. Manage the right people and make smart delegation decisions so that your business doesn’t just open in the right Asian market, but that it has a chance to succeed.
Trends to Know About Asian Markets
Building up your team and your business can help you prepare to expand, but you should never start without that key research. Even if your solution is to outsource and hire agencies to help improve the success of your transition, it is foolish not to do your own research. Understanding your customer base is the key to success in every instance and understanding Asian markets can help you provide additional value and cater to their needs as a priority. An online MBA can help you prepare, absolutely, but you must use your new skills to create a unique and comprehensive strategy to help appeal to the Asian markets, rather than expand your existing strategy, as this rarely works.
1. Online Shopping and Engagement
One trend that is universal throughout the world, and why 2020 is a very smart time to expand into Asian markets with a digital branch of your business is the increase in online shopping. Though brick-and-mortar shops are slowly starting to recuperate, night-time shopping, mall shopping, and other key points of contact are still minimal.
All eyes are online, and not only are they online, but they are spending an average of 21% more than before. Overall, online shopping is an average of 15% higher than it was before the pandemic.
2. Marketing to Focus On
Marketing tactics, in particular, are very different in comparison to the west, and you need to be smart before launching your own brand into that market. Google might be banned from places like China but make no mistake – it was failing in that market long before it was formally pushed out.
You cannot just expand marketing efforts from the west into the east. To see success, you need to use different strategies, as well as different marketing tactics. Rather than learn as you go, which is very difficult when extending your business’ branch so far out east, it is better to rely on those familiar with the markets in question.
Hire marketers and experts who have made their career working within Asian markets or rely on external firms and agencies to build a successful expansion plan and marketing strategy so that you can succeed in the area.
3. What Consumers are Looking For
The new decade is sure to bring about some significant consumer trends, particularly in Asian markets. Whereas western nations are waking up to the importance of sustainability, it is countries in Asia that are working fast to mitigate the huge environmental problems their countries face. China, in particular, has made headlines in its effort to cut emissions and clean up their air. It has actively begun to start collecting the funds needed (an estimated RMB 40.3 trillion) through an environmental tax. Coal plants are being shut down, and new sustainable development zones have been approved in Shenzhen, Guilin, and Taiyuan which implement the 2030 SDGs. They are headlining new technologies designed to clean air and new energy solutions, and the fight to clean up their own backyards has infected their citizens as well.
In the next decade, trendwatchers expect the consumer appetite for new and innovative to take a turn towards the environment, with sustainable stewards, good police, and business as social being the key trends for businesses to watch out for.
This echoes other consumer trends around the world, where sustainable lifestyles are becoming the latest status symbol, concerns over privacy and data and making headway, and the importance of community has never been so crucial than it is today.
This occurs alongside a slowing of growth, both in GDP and in personal wage increase. The income growth, in particular, alongside high household debt, is also sure to decrease consumption in these areas. By providing not just a great product, but also catering to that new sense of status, you can appeal to Asian consumers.
Expanding into Asian Markets
If you are set on expanding into Asian markets, you have two options. If you operate a large company, then you must set up a dedicated office, with employees who are familiar with and have worked in that country for their entire career. You can have a few of your home office employees work in that eastern office to ensure that the overall brand identity and your values are upheld, but everything else should be decided on by those who understand that market. It is how you will best connect with these consumers, and the fact is this suggestion applies when expanding into any new country.
Operating and marketing from the US to the UK or Spain, for example, will all look drastically different. There are various cultural attitudes, as well as trends that you can take advantage of to best appeal to those living in the area. Having a team of people who live and breathe these markets will help your business make a big splash abroad.
Smaller companies can also do this, but rather than hiring an entirely new office, you’ll need to find agencies and outsource to them. This way, you still get the right direction for your expansion, but without the high cost of renting an office and hiring an entirely new team.
Leverage all that you have learned in your online MBA to manage and transition your business into Asian markets successfully. Understanding how to properly manage your teams, as well as keeping your budgeting and finances in order, will be your secret weapon. It won’t happen overnight, but with the right people and the right vision, you can expand your business into the Asian markets.