E-commerce: Five strategies for market entry in Asia

In 2030, Asia will account for 60% of global middle-class consumption. Due to the enormous number of potential customers, the region offers enormous potential for German companies. Almost as many people live in China's cities alone (300 million) as in the USA as a whole (321 million). Southeast Asia has 630 million people. "European products are very popular in Asia," explains Stefan Bernauer, Director DACH at Rakuten Marketing. "Of the Chinese alone, the largest consumer group in Asia, two thirds are interested in products from Germany and neighboring European countries."
 
The APAC region encompasses many countries and languages, which means that consumer needs, habits and behaviors vary greatly. In addition, each country is in a different growth phase, each of which requires a market-specific approach. "German companies should focus on Australia, New Zealand, Japan, South Korea and China," says Bernauer. "These countries offer the greatest opportunity for German companies, as a young population with rising incomes shows a strong interest in fashion, travel and luxury goods. Authenticity is very important to them when selecting products. They are also experienced in online shopping and pay particular attention to price."
 
Despite the country-specific requirements, there are five strategies that Western companies can use for successful marketing in Asia:
 

1. Social commerce and inbound marketing: The omnipresence and simple shopping functions in WeChat make the system the central communication platform for addressing consumers in Asia, for example in China. Affiliate marketing, a method that can be set up and managed from Germany, is also widespread. Of course, it is crucial to communicate in the right language in order to create trust.
2. Country-specific social media: Using the most important social networks in each country is an absolute must in order to drive brand awareness through word-of-mouth. In Korea, for example, these include KakaoStory, Naver and Daum. In China, Baidu and WeChat are the most important. Facebook and Google hardly have any significant reach in either country.
3. Content and influencers: As in Europe, consumers in Asia and especially in Korea and China respond very well to relevant content and product presentations by regionally known influencers.
4. Holidays: Singles' Day, Chinese New Year or the Australian Click Frenzy are important occasions for targeting consumers with special offers. These and other relevant shopping events should definitely be planned for special promotions.
5. Mobile and desktop: Asia is already a mobile-first region, so special attention must be paid to mobile channels here. Nevertheless, most purchasing processes take place across devices, which is why both the mobile presence and the desktop website must function very well and in combination.