A clear brand idea: How Japanese brands can capture ASEAN

Consumers in ASEAN and India deeply admire all things Japanese, according to a survey by J. Walter Thompson Asia Pacific. This means that the Japanese companies that have a clear brand idea, personalise and humanise to the specific geographic market and play up their origin have an unprecedented opportunity in emerging Asia.

ASEAN and Indian consumers want to visit the country, more than any other country in the world, and they describe Japan as a ‘loved one’, ‘mentor’ or ‘best friend’. Japanese brands have a huge opportunity in the market as consumers here view the ‘Made in Japan’ tag as a symbol of high quality, reliability and superior technology.

However, the study highlights that while all things Japan – the country, its products and its brands – are admired and seen as innovative and reliable, the country and its brands are not seen as sexy, design-driven or cool. Japanese brands are reliable but not evocative. There is a gap that needs to be filled with a clear position and powerful brand idea.

A new wave of Japanese companies are moving swiftly into Asia’s high-growth emerging markets to offset slowing sales and an aging market back home. Outbound foreign direct investment by Japanese companies hit a five-year high of USD 135 billion in 2013 according to a 2014 JETRO report. The biggest recipient was the ASEAN region, which will unite into a free trade zone comprising 600 million consumers in December 2015.

According to the report, consumers in emerging Asia are more open to engaging with brands online, and feel more strongly that brands express their personality, than consumers in Japan. There is a need for Japanese brands to connect with these consumers by developing a strong digital strategy.

ASEAN consumers not only have a high level of admiration for Japan, but are also the most willing to try new brands. They’re also less likely to think Western brands are more stylish than Asian brands.

The study also highlights that Japanese companies targeting mainland China need to approach the market differently to the rest.

Commenting on the report findings, Ratan Malli, J. Walter Thompson Asia Pacific’s Director of Strategic Planning said, “Consumers in much of Emerging Asia already love Japan. Brands just need to tap into that ready, deep pool of affection, trust, admiration and respect.”

“Japanese brands should use their inherent Japanese-ness as a point of distinction and leverage on distinctive elements of Japanese culture to build a unique and compelling brand identity. While ‘innovation’ and ‘reliability’ are top of mind, there are many more facets of Japanese street culture, style and craftsmanship that brands can tap into that will strike a chord with consumers across the region,” Mr Malli added.

According to the report, Japanese brands should play up their provenance in Emerging Asians markets where Japan is highly admired. They should also exploit the technical advantage that’s already associated with Japan, and its products. Even in non-tech categories, the scientific innovation and quest for perfection that consumers associate with Japan offers a powerful route for communication. To amp up the cool factor, brands could do more to leverage other distinctly Japanese qualities, such as attention to detail and craftsmanship, as well as Japan’s youth-driven counter culture that’s put Japanese fashion and anime on the world map.

Speaking about the findings of the study, Tom Doctoroff, J. Walter Thompson Asia Pacific CEO said, “There is no greater brand building potential than harnessing the power of Japanese brands as they expand abroad. In Asia and beyond, Japanese products and services boast assets that can be skillfully leverage to create enduring loyalty.”

Via Digital Market Asia Mobile

Copenhagen INK

Lars is the owner of Copenhagen INK and is an experienced and passionate marketer with a proven track record of driving business impact through innovative commercial marketing initiatives.

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