In the last decade, Asia has experienced substantial technological growth. Opportunities are abound for tech providers that can successfully navigate the diverse region. In this interactive Q&A, two of AME’s representatives – Steve Dawson (Managing Director) and James Kwa (Senior Business Development Advisor) answer the top 3 questions that their tech clients have when expanding to Asia.
Are Asian markets ready to adopt my technology?
“Asia should no longer be seen as a laggard in tech adoption. While markets in Asia are advancing at different speeds, businesses in the region recognise the need to invest in tech solutions so they can compete on the global scale. The rapid growth of Asian economies has also created large startup ecosystems that are beginning to flourish. Tech giants like Grab and Lazada have emerged and scaled across multiple markets rapidly in the last five years.” – Steve Dawson.
“The rate of tech development in Asian markets is uneven. For example, Singapore and Hong Kong have a high Cloud Readiness Index score of about 81/100, which is even higher than UK and US. However, countries such as Indonesia and the Philippines have a score of about 55/100.
Hence, you need to have a good understanding of the state of tech infrastructure, talent and policies to decide which markets are best suited for their products. You should conduct extensive research and seek the latest information from local trade development agencies like EDB.
Companies that have a deep understanding of the region will find that Asia is more than ready for your technologies.” – James Kwa.
How do I build my brand presence in Asia?
“Asia is the most populous region on the planet, made up of almost 50 markets, it is home to communities that speak a multitude of languages and celebrate a diversity of cultures. Hence, it is critical to understand each market’s needs, cultures and nuances to operate effectively.” – Steve Dawson.
“After understanding customer pain points, develop content that speaks to locals. Aside from language translation, tailor your messages to the local norms and capitalise on trending topics in the market to capture attention. Include case studies from the market and local imagery. Have a local office address or in-market partner to show commitment through a physical presence.” – James Kwa.
What is the price sensitivity of Asian markets?
“While price sensitivity varies greatly across the region, price levels are generally lower than in Europe or the US. In some markets, it is not uncommon to offer discounts upwards of 75% from a US list price to close a first deal. Two factors contribute to this discounting – first, a different perspective on the “build versus buy” debate, and second, bargaining is a common business practice.” – Steve Dawson.
“You may wish to consider a tiered price model for different countries. Deals can still be won with discounts, and while the deal sizes may be lower, the volume of potential customers can make up for the price difference.” – James Kwa.