“Southeast Asia: Newest Market” Study Session Report
Eye on Southeast Asia’s Market, Secret to Success: “People x Unique Point”
The various ASEAN countries have been given much attention with the sudden rise in travelers to Japan from these countries and its considerable economic growth as a market. A majority of Japanese companies have already begun moving forward and cases of marketing activities in the B2B industry seem to have been gradually increasing. In regards to the rapidly growing Southeast Asian market, Bigbeat invited Asiaclick’s CEO, Mr. Takahashi Manabu, to hold a study session titled, “Southeast Asia: Newest Market.” Southeast Asia is where “expensive, but quality things have become reliably distributed,” he said. From basic information to the latest market information, Mr. Takahashi informed us about the region while mixing in case examples.
Point: People are the Bull’s-Eye
After helping launch magazines at a large publication company, Mr. Takahashi worked as a Marketing Manager for a language school. Thereafter, he went on an around-the-world trip by himself, gaining business experience in China, and now manages ASIACLICK ASIA PACIFIC REGIONAL OFFICE PTE. LTD. based in Singapore and Bangkok. Currently, he and his staff from 14 different countries fly about day after day to each of the ASEAN countries on a weekly rotation, giving advice about Japanese tourism promotion and current development in ASEAN countries. He is employed as the Head of the Singapore Office for the Tohoku Tourism Promotion Organization, the International Development Advisor for the Tokyo Chamber of Commerce and Industry, as well as the Head Lecturer for Asia Advancement at the Graduate School of Project Design.
First, Mr. Takahashi began his lecture by providing basic information about ASEAN. He said that ASEAN, as a whole, has a population that is now exceeding 600 million, roughly half practicing the Muslim religion, 600 ethnic people, an average young age with each country in the 20’s (Singapore excluded), and 80% of the economy seized by the overseas Chinese merchants who have formerly immigrated from China. In recent years, there has been a sudden surge of travelers from ASEAN countries to Japan, a number that is now surpassing 20 million people, as well as efforts put into promotional activities to increase travel to Japan. Southeast Asia has an image of families with numerous children, however, the reality is that declining birth rates in Thailand and even Vietnam have already begun. Indonesia, having the fourth largest population in the world and following the teachings of Muslim, however, has a population pyramid that shows an increasing young stratum. “The most noticeable in the market is the Philippines,” said Takahashi. He said that from the data, he feels it has the most potential for growth. Additionally, while companies advancing their businesses are increasing on one the hand, it is said that 30% of companies have already withdrawn, and those who wish to take up the challenge again are limited to half. Results from a survey says that the biggest reasons were “difficulty in retaining management talent” and “clashes with local partners.” Each country’s economy had overlapped with Japan’s former period of rapid growth. In Vietnam, this period began with the initial spread of washing machines in family households. In Malaysia, “education,” “safety,” and “overseas travel” have become keywords. “What was most characteristic was that people who, although didn’t have TVs, had smartphones, and, even without TVs, watched dramas on the net, had been increasing,” he said. “The biggest point about the ASEAN market is the national characteristics of its people,” Mr. Takahashi continued. “If the religion is different, the values will be different. If the values are different, the consumer behavior will be different. Being conscious of what they desire is essential.”
ASEAN’s “Word of Mouth” Culture and SNS
Mr. Takahashi next introduced an example of a tourist spot, unknown to Japanese people, becoming popular by word of mouth through SNS. According to a British research agency, Asian people have a strong inclination to decide their travel destination through word of mouth. Why word of mouth? Mr. Takahashi pointed out that it is common for shop fronts in each Southeast Asian country to not display price tags. “From long ago, there had been a culture of exchange built through word of mouth about cheap, good products,” he said. Also, since ASEAN countries are nearby one another, cases of families living separately (for example, children living in Malaysia and grandparents living in Singapore) are numerous, and keeping in contact via SNS or Skype seems to be common as well. With Singapore’s SNS utilization rate more than 70% in regards to its population, and in Thailand, more than 50%, ASEAN countries’ high SNS utilization rate can be clearly felt. In another survey, the data for SNS usage time shows an average of 0.3 hours for Japan and 3.4 hours for the Philippines. Long times spent on social media is identified as one characteristic of this. “So then, what should we do from here? The point is the creation of stories,” Mr. Takahashi continued. “By introducing products and telling stories, the people we want will increase. For instance, in Korea we put up a signboard at a location where a drama was filmed and we made the street corner a tourist spot.” Another, as an example from Japan, was introducing a hotel in Hokkaido. As a breakthrough solution for where even Japanese tourists were few and an administrative situation severe, we transformed the establishment into a place where “if you come here, you can experience all of Japan.” He said that, nowadays, tourists from Thailand have not stopped coming. “There are things that you should be able to do, not just on the tangible side of things, but also on the abstract side of things. You can make talking points for word of mouth.”
Can’t Miss in B2B: LinkedIn’s Practicality
The talk moved on to introduce ways to use LinkedIn in the B2B industry. “Besides Japan and Thailand, social media is being used daily for business. In Singapore, it is said that half the population is using it.” Mr. Takahashi pointed out that on LinkedIn, it is possible to contact representatives in the B2B industry, to search for people who have consented to networking to gain friendly connections, and that a tool to easily make appointments exists. He introduced the approach of using the appointment function to spur attendance to the exhibition (negotiation) booth. “By getting a contact on LinkedIn beforehand and offering a quote, specific business negotiations can occur immediately that day at the venue. The good thing about it is that by introducing your pamphlet or video in advance, the percentage of orders accepted will increase, money negotiations will be easier, and most of all, you can do it all while in Japan.” Moreover, another recommendation Mr. Takahashi gave was “surveys.” Targeting combined from people, age, academic background, etc. becomes complex for the ASEAN market. As a way to save time, group interviews and survey questionnaires rather than investments are effective. Surprising things can be found through conducting surveys,” he added.
“It’s important to negotiate a product’s unique points depending on the bull’s eye for the group of people,” Mr. Takahashi concluded. “Unique points are shown when you think about your own strength and your target. If it’s not there, let’s make it.” He remarks that, moreover, when creating several key messages for each target and in the creation of stories, it is also a point to prepare many approaches. In word of mouth culture, the ASEAN market is where SNS utilization is progressing. He points out that for social media, where the people who are looking are the ones who decide to share things, it’s better to have many openings because one does not know what kind of reach it will be. “Of course, there are examples of failures as well. It’s also important to restrain from the controversial points of peoples’ backgrounds and religions, respectively.” Mr. Takahashi from Asiaclick has seen many examples of successes and failures. As one of our reassuring partners in Southeast Asia, Bigbeat is also working in cooperation with his company to transmit information that would be useful for local business.
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