In Asia, relationships are everything. Here’s how personalisation can help.
The biggest continent in the world is Asia, with a population of 4.4 billion across 48 countries - and it has the economic growth to match. In fact, McKinsey estimates that Asia’s share of global consumption will rise to 58% by 2025, with purchasing power at an all-time high. For experts, this heralds the coming of “the Asian Age”, where Asia will become the new centre of the world.
Obviously, the rest of the world wants in on the action.
In 2018, the UK and Germany more than doubled their annual investment in China, helping to bring its total foreign capital investment that year to US$134.97 billion. Meanwhile, Western companies across the board continue to expand their presence in Asia. But there’s a whole other side that brands should be considering if they want to win fans across Asia. And it has nothing to do with investment.
Relationships are (still) everything.
Karaoke with your suppliers on a Friday night. Attending a birthday party for the CEO’s daughter. It’s rare in the West, but part of the culture in Asia, where business relationships typically become social ones over time (Guanxi, anyone?) It’s a reflection of a society that traditionally places a high importance on personal connections in every arena of life. But as mega corporations and modernisation take over, life in many parts of Asia is becoming a lot less personalised.
The spending habits of consumers may reveal how they feel about this shift, with just 8% of consumers in Asia-Pacific considering themselves brand loyal. As incomes rise, switching brands becomes less risky and more exciting; meanwhile, the pricing strategies of companies like Amazon mean that competition is fiercer than ever. Notably missing in this conversation? Any consideration of something beyond product and price.
But there’s still hope: in the same study, 42% of consumers in Asia-Pacific say quality, not price, is the biggest factor for them. And in Singapore alone, 32% of millennials expect brands to make relevant recommendations tailored to their interests. Which means that consumers are choosing not just the product, but the brand experiences they want. By rejecting brands that don’t fit into their lives, they’re voting with their wallets. And it’s time for brands to listen up.
Getting back to that sweet spot.
So how can brands create a point of differentiation that goes beyond the transaction to forge a deeper human relationship - and keep customers coming back? It sounds counter-intuitive at first, but the answer may lie in technology.
With data tech, brands can now bring together disparate sources of information to build a 360-degree view of their customers. And by combining different pieces of this data, they can create personalised campaigns that don’t feel like marketing - they feel human.
The Singapore Airlines app uses data insights to tailor end-to-end experiences for travellers, with personalised marketing communications, flight updates, travel tips and more - almost like having a personal assistant by your side! The result? Over 4.6 million downloads and counting. Meanwhile, Cadbury pulled together photos and names from users’ Facebook profiles to create a personalised video that not only touched viewers’ hearts, it delivered 65% click-through and 33% conversion.
It’s clear that top marketers across Asia-Pacific are no longer relying on traditional, outbound advertising to attract and keep customers. Instead, they’re looking at personalisation to create standout, relationship-building content.
Make a good impression. And then another. And another.
Modernisation and technology continue to change the landscape of Asia, but that doesn’t mean consumers have moved past the need for a personal touch. In fact, trends show that no matter where you are in the world, what consumers really want is a brand that knows them. The sooner you can deliver that, the sooner you’ll start turning your audience into fans.
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