Today, businesses and consumers are placing increasing importance on brands. Brands give us identity, stimulate our senses and enrich our life experiences. It is a human need to affiliate and surround ourselves with things we know, trust and aspire to be.
Strong brands with unique appeals championed by passionate leaders are becoming the body and soul of the modern businesses. These strong drivers of business growth are creating a new type of companies with a competitive edge.
Comparison of the market capitalization of leading globalising firms with strong brands over a couple of years demonstrates that the market has put a premium on the growth opportunities of firms seeking to build individual or portfolios of international brands, in order to capitalize on growth opportunities.
Importance of developing global brand strategies
Asia is still one of the world's biggest providers of commodities. At the same time, Asian manufacturers mostly produce for other companies and the majority of these products are therefore non-branded. In other words, volume products without personalities, values and distinct faces. The largest part of the financial value is still captured by the manufacturers' customers primarily driven by strong marketing and branding programs. What is the evidence for this? There are only a few global brands originating from Asian companies (disregarding Japan and Korea as they are a different breed) compared to brands galore within almost all industries originating from Western companies. The time has come to change this somewhat historic and outdated trend. New Asia has finally emerged.
Potentially, the New Asia is a competitor to the Western world and its traditionally strong representatives of global brands. Asia has changed dramatically over the last two decades and now represents strong product quality, a very well-educated and competent workforce, powerful financial sources, endless R&D capabilities, a rare passion for techno-logy & gadgets and a growing infrastructure in most countries. Furthermore, the increasingly changing trade structures, including the development of free trade agreements throughout the region, or at least a changing attitude to barriers, and the glooming Chinese powerhouse are important supplementary factors which positions Asia firmly in the international arena.
The drivers of globalization are a combination of many factors which have forced businesses to look outside their home markets for growth opportunities in new markets, and very often to gain economies-of-scale and to diversify their risk/reward balance. However, the competition in the global business environment is increasing and achieving a unique position and competitive advantage becomes more and more difficult and expensive. The high level of investment necessary to maintain production capabilities and rising cost of R&D for product differentiation efforts to steer clear of becoming generic puts totally new requirements on Asian management teams to cover these heavy investments.
Therefore, creating and implementing global brand marketing strategies are inevitable for tomorrow's successful Asian companies in order to capture a larger part of the financial value and enhance the profit streams. Additionally, strong branding enhances the competitive position in the market place and helps fight competition. Asian companies need to move up the value chain through strategic branding and they have all the capabilities needed to achieve this in the years to come.
Asia can play an important part of the global branding battle
In the next five years, we will see a rapid changing landscape in Asia where the opportunities for Asian companies to benefit from international corporate and product branding efforts will be larger than ever before. The growing emphasis on international branding will move up the boardroom agenda and VentureRepublic strongly believes that branding will become one of the most prominent drivers of value in Asia Pacific in the next two decades. Our experience with several clients in the region along with our close ties with top-management teams across industries have shown that branding is moving up the board room agenda.
Businesses with a sustainable business model and with a visionary and passionate CEO with branding talent will benefit from the rising opportunities for taking on the global scene. But having the branding know-how and marketing technology is no longer adequate. The modern Asian company leader needs to be a complete player who covers all grounds and have the vision to follow through and improve.
Being a marketing wizard is no longer enough. One also has to be an excellent business leader and brand marketer with a truly international edge.
Traditionally, new senior executives among the Asian companies are recruited from within the ranks of the organisations and they tend to come primarily from technology and/or financial related career backgrounds and departments. Much fewer are the talents coming along with in-depth and high-level marketing and branding backgrounds compared to Western companies. Therefore, many companies tend to lack experienced top-leaders who have spend their entire executive careers in marketing and branding hence bringing with them the important capabilities and international experience in the branding field.
Therefore, reconsider the management teams in New Asia and take on more highly skilled people with outstanding capabilities and global experience in branding strategy and execution, and also talent with preferences for rapid change, new knowledge and best practices. All these factors are no longer a luxury but a necessity to win a lucrative position in the global branding battle.
New Asia has all opportunities at hand.
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"Martin is a top tier executive, business consulting professional
whose accomplishments when it comes to branding excellence,
leadership and Asian knowledge, are second to none.
He is bright, articulate and freely shares his knowledge with
wit and directness. He approaches both life and the consulting
process with integrity, knowledge and a "can do" attitude. I would
recommend him without hesitation."
Michael Aagaard Andersen
Executive Vice President
Bang & Olufsen Ltd
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