Brands taking Asia by storm - Change Agent

Brands taking Asia by storm

2007's hottest brands on the most populous continent

  • Branding August 2007

From In:fact

Asia. Almost four billion of the world's people call it home. Its affluent and middle class consumer base is growing faster than any other across the globe. And brands, both local and global, are fighting for their place among its markets.

Together with leading media, advertising and marketing publication Media magazine and regional brand consultancy Asian Integrated Media Limited, Synovate takes an annual snapshot of which brands are doing well in the hearts and minds of the region's consumers. In a survey of nine Asian markets, we identified Asia's Top 1000 Brands for 2007.

See the Top 100 brands and the Top 3 for each of the nine markets covered.

Is home-grown better?
Seven of the region's top 20 brands are Asian, but is this because Asians prefer home-grown products and services? Actually, no, says Jan Hofmeyr, director of innovation for Synovate's Brand & Communications practice.

"Other than Darlie, the Asian brands in the Top 20 are just as international and globally relevant as the Cokes or Nikes of this world.

"A reputation for break-through products seems to count more than country of origin in this part of the world."

For example, the 8th ranked Samsung (Korean in origin) shows strength across the entire region.

"I don't think the Indians or the Malaysians or whoever think 'hooray, there's an Asian brand', and I don't think there's a sense of common Asian-ness. Although if the Chinese are looking at a Chinese brand, it may be a slightly different story," Hofmeyr says.

Indeed, Asia's markets demonstrate the very definition of diversity. The region includes advanced economies and infrastructures, as well as some of the least-developed places in the world. There is a myriad of languages, not just across nations but often within them. Affordability, distribution and packaging are all challenges that greatly impact brand awareness. But Hofmeyr says consumers everywhere have more in common than we sometimes think.

"People aren't that much different around the world and it's possible to find common elements on which one can build global brands wherever you are. The fundamental techniques of branding are quite universal," he says.

So, what does this mean for marketers? The world's your oyster.

China - If only I could sell one of those to 1.3 billion people...
Competition is fierce amongst brands in China, but there's a great deal of room in a market when it comprises 1.3 billion people. And of course, marketers could be forgiven for dreaming 'If I could only sell one of those to 1.3 billion people...'

But it's not quite that easy, says Synovate's CEO for China, Darryl Andrew.

"Opportunity abounds in China, that's why it's one of the busiest brand landscapes in the world. Multinationals trying to get a piece of the action, though, need to be aware of the growing power of mainland companies," he says.

Exactly half of the Top 20 brands in China are Chinese brands, with a couple of them like Haier and Lenovo, making enormous outbound leaps as well. Andrew says there is growing pride and parochialism in local brands these days... more so now than as recently as five years or so ago.

"More and more local companies are getting clever with marketing, giving them the unequalled combination of manufacturing efficiency, an understanding of the unique challenges faced by marketers in China and – most importantly – a greater share of consumers' hearts.

"That's not to say foreign brands can't be successful though... they just need to ensure their strategy takes into account China's complex and unique challenges. And perhaps realise that they may not be able to access all 1.3 billion people... yet."

Convenience is king in Hong Kong
Hong Kong is arguably the most vibrant city in the world, according to Synovate's Hong Kong-based CEO for North Asia, Jill Telford. Whether you agree with her or not, it's certainly one of the marketing hubs for the region.

"People live a life of high velocity here. They are busy. They are stressed. They work long hours. And they want convenience. That's why I am not at all surprised that so many of the Top 20 brands in Hong Kong are based on convenience and mobility," she says.

Telford points out that Hong Kong is still a shopper's paradise and a brand-driven society.

"For a brand to be successful here they need to follow the fundamentals - advertise, be there - it's very simple. Many brands do very well in Hong Kong using celebrity endorsement. There's a strong following instinct at work here."

View Hong Kong's Top Brands.

Made in Malaysia
Malaysia's marketers are dealing with an unabashed national pride, plus a diverse population that can be divided along religious and racial lines.

Managing director of Synovate in Malaysia, Steve Murphy, sees audience segmentation as a valuable, but sometimes misused tool.

"Audience segmentation can be a hindrance in reaching out to consumers. Brands should not target segments at the expense of understanding the consumer needs of Malaysia as a whole. Some brands have got too fixated on targeting specific races or segments. They should focus more on the needs of the consumers. The reality is that there are many similarities that cut across the consumers of different races."

Marketers in Malaysia face another interesting challenge... the Government has implemented a 'Made in Malaysia' (MIM) policy, limiting the amount of overseas-produced content in television advertisements to 30 percent.

Murphy says this means many global brands are forced to adopt a local approach in Malaysia.

"The upside is that MIM supports the local industry. But it is less relevant to the consumers – they want to see international faces, stories and ads. They are interested in seeing Brad Pitt on the ads as well."

Label love
While many of Asia's Top 1000 Brands are everyday household goods, it is well-known that luxury brands also do very well in the region. While not everyone can afford them, a large number of people aspire to them, with some less-than-affluent consumers saving for months for the 'It' handbag or watch of the year.

"Asians have to show their status somehow, and luxury brands are a great way to do this," says Telford. "Just look at the Asia-wide acceptance of the Mercedes-Benz or the Rolex watch as a sign you have made it – there is nothing shameful about buying luxury brands in Asia."

Hofmeyr also notes this unambiguous love of labels and the opportunity this affords brands. "In Asia, there's a tendency for incredibly rapid adoption of the avant garde or 'in' brand, and it happens far faster and it's much more self-conscious than in the West. It's almost an unembarrassed adoption of whatever's fashionable, and if I had to single out one factor (about Asia), it would be that."

If your brand is not already in Asia, you either need to make sure you are very soon or have a sound reason why you don't need to be.

About the Asia's Top 1000 Brands survey
The Asia's Top 1,000 Brands listing is based on a proprietary survey conducted by Synovate for Asian Integrated Media in association with Media magazine. Nine markets were included in this fourth round of the survey – China, Hong Kong, Taiwan, Philippines, Thailand, Malaysia, Singapore, India and Indonesia.

Synovate interviewed people aged 15-64 years old, with sample sizes per market of 500, apart from China and India, where the sample was 750 across three and four top-tier cities respectively.

What was asked?
Two questions were asked to determine the best brands in each of the various categories covered in the survey:

"When you think of [product / service / category], which is the 'best' brand that comes to your mind? By 'best', we mean the one that you trust the most or the one that has the best reputation in [product / service / category]."

"Apart from the brand you have just mentioned, which brand do you consider to be the second-best brand in the [product / service / category]?"

What was covered?
Synovate covered 12 major product and service categories: alcohol and cigarettes; financial services; automotive; health; retail; food; beverages; cameras and electronic goods; personal/business equipment and services; telecommunication; travel and leisure; and baby products, household products, toiletries and cosmetics. In total, 84 sub-categories were covered in the 2007 survey.

About the results
The results were weighted to the population composition of the markets covered within the survey areas, to provide a representative cross-section of society.

The brands with the highest percentage of votes are listed in descending order, with the most popular brand heading each category.

For the Top 1000 list, Synovate calculated the net vote for each specific brand, with only one mention per respondent counting towards the final list. This is because a number of brands appeared in several sub-categories.

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