Chinese whispers

CL: We are a communications firm operating in numerous markets with a common factor – how people receive, manage and decode/act on information is changing exponentially. A student with a wi-fi connection in Seattle can move the share price of a client in Shanghai. The traditional model of transmit (vs receive) is dangerously redundant. It is close to my heart as if we are not thinking three steps ahead of where communications and marketing are heading, we are unable to properly advise our clients.

What does best practice look like?

SW: Best practice depends on the business you are in, but first and foremost it's essential to know your customers. Know that customers have access to information faster than you think. You must understand the market environment, and be willing to learn from your competition – why they win or lose. It is not that difficult, but some companies still are not open to change, and marketers fail because they do not listen and can therefore not answer customers' needs.

CL: Data, data, data. And more data. With creative being driven from results, not vice versa. Potentially cold-blooded, but more and more the case. The availability of predictive technology in terms of data analysis (what people 'will' do vs. 'are' doing) will revolutionise the marketing. In the same way that Hollywood now takes an algorithmic approach to film-making to ensure the highest box-office returns, so too data will drive product development, marketing and sales. Being agnostic about 'big brother' (or sister) for purposes of this paper, the terabytes of data we all leave lying around on Facebook, WeChat, WhatsApp and the rest are marketing data heaven. Technology will extrapolate where conversations are going and what services and products will be desired next.

Are the days of a cookie cutter approach over?

SW: Was the cookie cutter approach ever proven successful in new markets? That's the question. Marketing is a cost centre, an expense to companies' P&L – on the other hand, marketing is able to create profits by opening markets, building brands and driving sales. So as marketers we need to be flexible to win – be it new business, sales, shares or reputation. To be successful, marketing should be dynamic, constantly creating needs and opportunities that satisfy consumer needs. So, a cookie cutter approach would never work. That said, some basics shouldn’t change – for example, quality assurance, best talent and retention, consistency and investing in branding, those should not change - but be expressed in a way that the locals will 'buy'.

CL: Were they ever in? Yes, definitely, anyone who has a cookie cutter in their desk should drop it into the trash. For careful recycling, naturally. Ideally into a compass, which will be far more useful.

What advice would you offer Western brands in your market?

SW: If you mean global brands tapping in to Asia, my advice would be: 

Do your homework, not one-off research but regularly walk the markets and talk to the locals. Not only meeting the senior management, but go out and meet clients, talk with your distributors and suppliers, and, if possible, talk to the competition.

I'd advise pilot and test market before you invest heavily. Conduct social listening – you will be surprised how much you can learn from the local conversations.

When you know something needs to be changed (for the better), be prepared to present your case to 'HQ' – why would you need to modify your business plan and offering to accommodate local consumer/market requirement? How would you win (shares, sales) over time? You can stay the course and force-create a need or 'import' a trend, but conversion takes time and resources, to get there you will need early wins (revenue) to help sustain the business … and eventually be profitable. To do so, you might want a plan that brings in sales sooner rather than later. 

Anticipate how you would react if your USP (could be an established global brand) is not as equally valued in a new market. Are you prepared to find the differentiators that matter and a marketing approach that resonate with the local consumers? Or, do you keep going with your global strategy? In Hong Kong, McDonalds sell chicken-a-la-king rice box, Pizza Hut offers Teriyaki and Satay chicken on menu, the answer is clear.

What else? Watch your competition – don't ignore the success stories of the 'non-rivals', instead, learn how local brands get built on WeChat – and believe it, consumer relationships can be built on social media among the Chinese consumers. Why? If you are selling a western (new) brand to the same consumers, why would they turn to you when they are happily buying their local products and at a cheaper price. 

CL: Treasure your reputation. Western brands are highly regarded – often loved – in the Asian economies. Yes, there are worthy local competitors (Singha, Jollibee, LiNing), but Heineken, McDonalds and Nike still command extraordinary presence in this region. As successful brands all know, long-term growth comes from the creation of trust.

This trust can be very hard to break – consider the recent HK and McDonald’s chicken scare. My anecdotal understanding is that sales post-scare will likely be down, but not because consumers stayed away, but because supply was unavailable. This says a huge amount about how much McDonald’s is trusted. It takes truly seismic circumstances to see widespread changes in consumer behaviour, but far-sighted corporations must think through what could catastrophically damage them and then prepare for these eventualities.

Connected, be clear on your market values, purpose and direction. It may well be that your HQ is in California or Copenhagen, but if you want to be successful in Bangkok, you have to resonate with Thailand. You need to become a little bit (or, in some cases, a lot) Thai. Whatever your business, make it clear what you stand for, what you are giving back and what role you play in the country you do business. Be part of the community and be clear why you are there and what role you play. Do this from Day #1 or as part of ongoing operations. Build advocates and be known and trusted. Because when you need a friend, it’s too late to make one.

Always look for the 'Gondola Solution'. I was moving furniture into my HK apartment last week. One cabinet could not get into the lift for love nor money. Rather than put it back on the truck, the removal team and I walked around my building seeking inspiration. We found it in the form of a painting crew’s gondola that was temporarily attached to the building. Just enough room for the cabinet. A unique HK fix to an impossible problem – and highly relevant to business problem solving in Asia-Pacific. What’s your Gondola Solution?