Last week I was fortunate to be invited to a seminar on the burgeoning Asian economies of Korea, Japan, China and Hong Kong organised by the redoubtable and charming Mei Sim Lai, businesswoman, this year’s Master of the Worshipful Company of World Traders and senior member of the City of London IOD.
Japan continues to dominate the Asian economies despite the recent disaster at Fukushima. The country is one of the seven leading global economies with a strong emphasis on research and intellectual property. Japan boasts and enviable portfolio of successful global companies and is rated one of the safest nations in the world with the best infrastructure. In many ways the the country’s handling of the recent earthquake’s aftermath has reinforced Japan’s reputation as secure and well managed and communications specialists have much to learn from the smoothness of the country’s public relations surrounding the disaster.
Korea has grown 144 times over since it was devastated by war 60 years ago. There is a wonderful quote from Warren Buffet that “Korea, which has intellect and passion, can’t help but succeed”. The country is a technological powerhouse with the highest broadband penetration in the world, a position in the top seven for R&D investment and an IT industry worth $271 billion.
China is of course growing rapidly but the figures, when seen in black and white are astonishing. No longer just a production base, there are 5.4 million mainland private enterprises and an annual GDP growth of 9.4% over the last 10 years. China has a growing middle class that currently stands at 300 million, which is leading the country towards travel, wine purchasing and luxury goods. The country is now the second largest luxury consumer market in the world.
As one of China’s two independent territories (the other being Macao), Hong Kong is a gateway to mainland China with simple taxation and easy communications links. Hong Kong is undergoing an incredible rate of infrastructure development including five new railway projects, the development of the Western Kowloon Cultural District, a bridge linking the territory to Macao and a new Cruise terminal.
Clearly there are enormous opportunities for both trade and consumer business across these markets. There is much in Asia to occupy Western CEOs and Marketing professionals can be sure of enjoyable – if heady – ride. A word of warning came from David Cairns, now with the UK Foreign and Commonwealth Office and formerly Director of UK Trade & Investment in Japan: beware of ”hot and cold’ marketing within Asia, particularly in Japan. Business Development must be seen as a long term strategy in order to win respect. This is a challenge for public companies where the temptation is often to tweak marketing budgets from year to year depending on last year’s performance.
If you’d like to discuss market development in Asia or anywhere else, I’d be delighted to share some ideas.