Best Practices in Market Intelligence for Asia Pacific


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Asia-Pacific holds a wealth of opportunities for different industries - from outsourcing production to take advantage of lower costs, to reaching out to new target customers. However, diversity at both regional and local level poses a significant challenge to navigating the markets, and to defining a successful growth strategy. When assessing market opportunities or planning strategies for Asia Pacific, reliable market intelligence must be brought into play to ensure this diversity is taken into account. Business strategies must be tailored to each sector and country according to local market characteristics.

This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit

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  • Dear Sir,

    I saw your ppt on Competitive Intelligence on Slideshare. You would be glad to know that Amity University, Noida (India) is organizing a Conference on Competitive Intelligence on March 06, 2012. We would like to invite you for the same. Pls respond with your email ID for details.

    Looking forward to hear from you.

    Thanks and Regards,
    Dr. Shikha Bhatia,
    Amity University.
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Best Practices in Market Intelligence for Asia Pacific

  1. 1. Best Practices in MarketIntelligence for Asia-Pacific Webinar presentation November 18, 2010 The White Paper will be available soon on request from after the webinar.
  2. 2. Presenters•  Ms. Stephanie Tan, Global Intelligence Alliance !  Marketing Manager, Asia-Pacific !  Webinar conferencier•  Mr. Pete Read, Global Intelligence Alliance !  SVP, Asia-Pacific !  Webinar presenter
  3. 3. GIA is a strategic market intelligenceand advisory groupGlobal Intelligence Alliance (GIA) was formed in1995 when a team of market intelligencespecialists, management consultants, industryanalysts and technology experts came togetherto build a powerful suite of customizedsolutions ranging from outsourced marketmonitoring services and software, to strategicanalysis and advisory.Today, we are the preferred partner fororganizations seeking to understand, competeand grow in international markets. Our industryexpertise and coverage of over 100 countriesenables our customers to make better informeddecisions worldwide. - page 3
  4. 4. Access local knowledge in over 100countriesGIA Group has 13 offices on 4continents. Together with affiliatedGIA Member companies, certifiedGIA Research Partners andconsultants, GIA provides accessto local knowledge in over 100countries.All GIA Network companies adhereto GIA’s Research and AnalysisQuality System as well as the SCIPCode of Ethics. - page 4
  5. 5. Webinar content outline•  An overview of the Asia-Pacific region•  Challenges of Market Intelligence in Asia-Pacific•  Some ideas on addressing the challenges•  Market intelligence case studies
  6. 6. An overview of the Asia-Pacific region
  7. 7. Asia-Pacific fast facts•  Asia-Pacific supports 60% of the world’s population with China and India are the 1st and 2nd populous countries in the world.•  China and Japan are the 2nd and 3rd largest economies in the world.•  India and China are the motors driving the growth of Asia-Pacific in 2009/10•  Asia-Pacific’s development has been largely uneven, both across the region and within countries•  Asia-Pacific is diverse in terms of economies, culture, climate, governments, regulations and level of wealth
  8. 8. Asia-Pacific overviewGIA divides Asia-Pacific into four sub-regions The 4 zones East Asia China (includes Macau SAR and Hong Kong SAR), Japan, South Korea and Taiwan South Asia Bangladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka Southeast Asia Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, East Asia Thailand and Vietnam Australasia and Australia and New Zealand together with Oceania smaller countries such as Papua New Guinea Southeast Asia South Asia- Pacific fact file Asia Population 60%of the world’s population Languages Around 3,000 languages Association ASEAN, the APEC, ASEAN plus three, OECD Major currency units No unified currency in Asia-Pacific China: Renminbi (RMB) Japan: Yen (JPY) Australasia and Oceania India: Rupees (INR) S. Korea: won (KRW) Australia :Australian dollar (AUD)
  9. 9. East AsiaEast Asia covers 28% of the Asian continent with more than 1.5 billion people. Itcontains both developed and developing countries with a large discrepancy in GDP percapita. Political alliance between China, Japan and South Korea is relatively weak. GDP GDP Growth Population GDP/Capita (US Import Export Country/ Regions (US$ bn) (%) (‘000) $) (US $bn) (US $bn) China 4,984 9.1 1,330,141 6,600 954,300 1,204,000 Japan 5,068 -5.3 127,470 32,700 499,700 542,300 South Korea 832.5 0.2 48,636 28,100 317,500 373,600Hong Kong SAR 210.6 -2.8 7,089.7 42,800 348,700 321,800Taiwan 378.5 -1.9 23,025 32,000 172,700 203,400Japan is the 3rd largest economy in the world China is one of the largest and fastest growing countries in•  77% GDP came from service sector in 2009 the world. It is still (arguably) a developing country, and the government has great influence on the economy.•  Strong in technology of motor vehicles, electronic equipment and chemicals •  Largest labour force in the world - around 814 million•  Government debt is estimated to have reached 192% •  2nd largest exporter with textile, electricals/electronics of GDP in 2009 and machinery as the major exports •  5th largest consumer market in 2010South Korea’s economy is export-driven; a developed •  Recently, government has increasingly emphasizedcountry that maintained growth during the financial crisis domestic consumption, which mainly drove GDP growth•  9th largest exporter in the world in 2009 in 2009•  Electronics, telecommunication, automobile and shipbuilding are main industries•  Overdependence on conglomerates (chaebol) and an inflexible labour market
  10. 10. Southeast Asia (South/West)Economically, Southeast Asia countries are very diverse, though there is some shared history andculture. Several countries have been plagued by political bottlenecks or exclusive collaborationbetween government and government/politician linked business, resulting in considerablerestrictions on domestic growth, wealth development and inward investment. GDP GDP Growth Population GDP/Capita (US Import Export Country (US$ bn) (%) (‘000) $) (US $bn) (US $bn) Malaysia 193 -1.7 28,274 14,900 119,300 157,600 Singapore 182.2 -1.3 4,701 52,200 240,500 274,500 Indonesia 539.4 4.5 242,968 4,000 84,320 119,500 Brunei 10.4 -0.5 395 51,200 2,610 10,670 Cambodia 10.9 -1.5 14,454 1,900 5,440 3,647 Singapore is largely an open-market economy and is Malaysia is well-endowed with natural resources in areas also said to be one of the most business-friendly such as agriculture, forestry and minerals. economies in the world. •  It is one of the top exporters of natural rubber and palm •  The worlds fourth largest foreign exchange trading oil in the world. center. •  Tin and petroleum are the two main mineral resources •  Relies on (re-)exports, particularly in consumer that are of major significance in the Malaysian economy. electronics, information technology products and •  State-owned oil producer Petronas supplies 40% of pharmaceuticals. government revenue. •  Main international gateways to Southeast Asia •  English is its first language and technology is advanced, which favours foreign investment
  11. 11. Southeast Asia (North/East)Apart from Singapore, most of the Southeast Asia countries’ economies rely on rich naturalresources and cheap labour force GDP GDP Growth Population GDP/Capita (US Import Export Country (US$ bn) (%) (‘000) $) (US $bn) (US $bn)Vietnam 93.2 5.3 89,571 2,900 65,080 56,980Thailand 263.9 -2.2 67,089 8,200 119,000 154,200Philippines 161.2 0.9 99,900 3,300 46,390 37,510Laos 5.6 6.5 6,368 2,100 2,034 1,104 Vietnam’s economic growth is one of the fastest in Thailand’s economy has been plagued in recent years Southeast Asia and the country has recently by a prolonged political crisis despite a relatively well- received a positive assessment from investors and developed infrastructure, pro-investment policies and a economists alike. free-enterprise economy. •  Industrial sector is the largest contributor to the economy, accounted for 45% of GDP •  Tourism is the key industry in Thailand •  Key industries include food processing, garments, •  Thailand has being ASEAN’s largest automotive shoes, machine manufacturing, mining, cement, market and assembler. chemical fertilizer, glass, tires, oil, coal and steel •  A favourite with Japanese conglomerates investing in Southeast Asia
  12. 12. South AsiaThe economy in South Asia is mainly driven by agriculture. GDP per capita is relativelyless diverse than other parts of Asia-Pacific, and it is one of the poorest regions onEarth, with the lowest GDP per capita in region. With the rise of India as a globalpower, South Asia is gaining the world’s attention and most countries have showedpositive growth since the global financial crisis. GDP GDP Growth Population GDP/Capita (US Import Export Country (US$ bn) (%) (‘000) $) (US $bn) (US $bn) India 1,236 7.4 1,173,108 3,100 268,400 164,300Bangladesh 94.6 5.6 151,118.5 1,500 20,220 15,910Bhutan 1.2 5.7 699.8 4,700 533 513The Maldives 1.3 -3 395.7 4,300 782 88Nepal 12.9 4.7 28,952 1,200 3,626 907Pakistan 162 4.2 184,405 2,500 28,470 18,440Sri Lanka 42.2 3.5 21,514 4,500 9,700 6,983India serves as one of the motors driving Asia-Pacific recovery from global recession, with average 7% growth per year since 1997.•  2nd largest labour force with 467 million people, many English speaking•  Well-known as the outsourcing center for Information technology and business process (BPO)•  Strong in technology of motor vehicles, electronic equipment and chemicals•  The growth of GDP is mainly driven by domestic demand, especially consumer durables and cars/2-wheelers•  Power shortages, inadequate quality of roads and capacity shortages in the ports sector are restricting growth
  13. 13. Australasia and OceaniaAustralia and New Zealand are two developed countries with relatively high GDP percapita compared to many countries in the region. Australia is rich in natural resourcessuch as coal, iron ore, copper, natural gas and renewable energy resources, whichattract high levels of foreign investment. Agricultural products such as meat, dairyand fruit are a key export. GDP GDP Growth Population GDP/Capita (US Import Export Country (US$ bn) (%) (‘000) $) (US $bn) (US $bn) Australia 994.2 1.3 1,173,108 40,000 163,900 160,500 New Zealand 117.8 -1.6 4,252.3 27,400 23,450 24,990 Australia has successfully transformed itself into an New Zealand has a small population but is one of the internationally competitive and advanced market economy most developed countries in Asia-Pacific region. in recent decades, with 17 consecutive years of growth prior to the global financial crisis. •  Urbanization is over 85% •  Service sector contributed 72% of GDP in 2009 •  Service sector contributed nearly 70% to its GDP in •  The economy fell into recession before the global 2009 financial crisis, the central bank cut interest rate •  Recently, Australia concentrated on expanding the aggressively and the government developed fiscal resources industry, for example, the US$40 billion stimulus measures to pull out of the recession in late Gorgon Liquid Natural Gas project 2009 •  In terms of infrastructure, it owns 37,855 km railways which is the 7th largest in the world.
  14. 14. Challenges of ConductingMarket Intelligence
  15. 15. Intelligence challenges in APAC: Fundamentals Each of the countries within the region is unique with differing economic characteristics dictated by factors such as culture and language, government, history, geographical location and (lack of) natural resources. Socioeconomic levels, purchase power parity, unemployment rates, and other population measuring tools are inconsistent with those used in the West and must be adapted to local conditions and climates. Unreported black / grey market factors must be estimated when calculating market size. The impact of contraband products, copies and clones must be taken into consideration within short-, medium-, and long-term sales objectives. Reported growth rates (usually in US$) must take into consideration foreign exchange fluctuations and possible devaluations Reaching precision in market strategy and positioning can be frustrating, as target markets frequently shift rapidly in size and structure as a result of the economic dynamics mentioned above. - page 15
  16. 16. Intelligence challenges in APAC:Cultural factors (1/2)•  Official information Information quality varies from country to country and source to source. In many countries government data are unreliable and/or outdated.•  Press With the exception of a handful of worldclass players, the press is very often equipped with limited research and investigative capabilities, and there is a lack of industry specific publications.•  Associations Most do not generate market intelligence. There are few exceptions in specific industries within certain countries (eg. automotive in Indonesia, AV in Japan).•  Off-the-shelf studies Mostly available only on a macro economic or political scale; industry studies tend to be shallow and/or inaccurate.•  Websites Plenty of information in some countries and industries but difficult to differentiate credible from non-credible sources. In addition, definitions vary across the information landscape, resulting in challenges making like-for-like comparisons. - page 16
  17. 17. Intelligence challenges in APAC:Cultural factors (2/2)•  Social Disparity / Eliteness Accessing business decision makers and high level consumers is difficult; they often isolate themselves.•  Skepticism Consumer research is sometimes inhibited by lack of awareness or fear of commercial (or criminal) motives.•  Legal System A relatively undeveloped and inconsistent (across APAC countries) legal system fosters mistrust of competitors and competitive intelligence.•  Centralized Management Changing rapidly in some companies and countries, but centralization of management handicaps the information flow amongst middle management, meaning challenges for B2B information gathering.•  Corruption Valuable information is closely guarded by public and private sectors and may only be available in return for “special incentives”, which does not sit well with multinational companies and consultancies. - page 17
  18. 18. Intelligence challenges in APAC Time Factors •  The absence of secondary data requires increased time (and money) investment in primary Cost Factors research •  Need for primary research to gain full •  Telephone interviews have limited success with understanding some Asian cultures so interviews must often be conducted in person •  Telephone costs are higher than in the US or Europe •  Decision makers can be difficult to access •  Skilled consultants are as expensive as their US •  Travel to and from interviews can take 1-2 hours or Europe counterparts each way in many countries •  Real estate prices are highly inflated in many •  Survey techniqes may require large samples due capitals due to the region’s rapid growth to demographic segmentation •  Travel costs may be double the US or European •  More focus groups must be conducted to rates due to the distances involved. research the entire market, again due to diversity - page 18
  19. 19. Some ideas on addressing the challenges
  20. 20. Primary Research is essential for MarketIntelligence in APAC Lack of secondary Rapid Market Changes Grey Markets information Tackling market changes, grey markets and lack of secondary•  Primary research is the best and only way to obtain most up-to-date information and grey market data.•  Data collected from primary are most relevant to a particular company’s needs•  Telephone interviews are cost effective however face-to-face interviews are preferable in some countries and industries.•  Good geographical spread of interviews is needed to understand the factors that sharing similarity and driving difference. - page 20
  21. 21. Always cross verify information with primaryresearch Secondary information •  Information is not reliable, unstructured or not valid Tackling lack of structured and reliable information•  Always verify the information using multiple sources before reaching any conclusion•  Test and validate information obtained from secondary sources through primary interviews with industry players and experts.•  Cross-checking data with other Asia-Pacific countries when conducting multiple countries study•  Look for an Market Intelligence partner that has strong industry knowledge and primary research capabilities. - page 21
  22. 22. Work with an Market Intelligence partner with localknowledge, track record and country-level presence Diversity •  Social , Cultural , Language, Economy, etc Tackling Diversity•  Tailored approach needed in the information collection process with a geographical element built in•  Local partners understand the reality on the ground as they are continuously interacting with people along the value chains•  Local partners have network of local contacts and know the right points of contact for gathering information - page 22
  23. 23. Establish market monitoring and Market Intelligencepartnerships•  Customised market monitoring is cost efficient and can help decision makers to understand market development in short order.•  By working on continuous projects, the results will become increasingly valuable and fit to the company context. Switching partners from time to time requires lot of efforts on selection and the project results are not guaranteed Repeated process helps the company succeed MI Partner MI Partner MI Partner Understand Deliver resultEngage new Work on corporate that fits into Benefit from project project culture and company the project expectation context Company Company Repeated process helps Market Intelligence succeed - page 23
  24. 24. Market intelligence case studies
  25. 25. Business Case (1/2) – Daily market monitoring andanalytical insights for a global logistics leader Industry: Logistics Geographic scope: Asia-Pacific, 15 countries Method : Secondary research, Continuous market monitoringStrategic objective/issue •  A leading global logistic giant needed support on sales and marketing updates and strategic planning through tailored intelligence content. •  Replace and improve the existing system involving two in-house analysts and email distribution of weekly and monthly newsletters. •  Coverage of macro-environment, customer sectors, competitors, and the logistic industry.Approach •  Monitoring news in logistics market and competitive environment in English, Arabic, Japanese, Chinese and Korean, competitor updates and industry reports covering. •  Delivering daily intelligence via an online portal to 100 users in the client organization across top management, strategic intelligence, country management and sales & marketing.
  26. 26. Business Case (1/2) – cont’dSolution •  GIA created a cost-efficient Intelligence Desk™ market monitoring service which delivers tailored content and regular analytical summaries for decision-makers, thorough a customized web-based platform.Key Benefits •  Access to the information easily and directly in one customized platform •  Keep abreast of competitor developments, service launches, acquisitions, and other signals •  Understand important trends in key customer segments. •  Make better informed business decisions.
  27. 27. Business Case (2/2) - Market entry and businessexpansion analysis for Asia small appliances market Industry: Consumer & Retail Geographic scope: Korea, Philippines and Thailand Method : Primary interviews, on-site observation, market attractiveness analysis and recommendationsStrategic objective/issue •  A global leading small appliances maker was looking to strengthen its presence in Asia with initial thoughts focusing on business expansion in Korea, Philippines and Thailand.Approach •  GIA conducted in-depth interviews with industry players and observers such as key competitors, channel players, prominent master distributors, industry associations, analysts, and experts. •  GIA arranged focus group discussions in each country’s major city with consumers to explore usage, attitudes, perceptions, concept reactions, brand loyalty, etc. •  On-site observation with retail visits and distributor /showroom visits were also conducted
  28. 28. Business Case (2/2) – cont’dSolution •  GIA provided the client with analyzed market and industry structure, drivers and growth, value chain as well as competitor information. •  GIA recommended a business expansion strategy including investment prioritization, optimal channels, product focus and price positioning, and the fastest route to implementation.Key Benefits •  The client gained valuable information on the target markets that enabled it to strengthen its presence in Asia, with initial focus on business expansion in Korea, Philippines and Thailand.
  29. 29. GIA capabilities in APAC•  Offices in Mumbai, Singapore, Hong Kong and Shanghai.•  We help companies understand, compete and grow, serving both: !  multinational organizations interested in doing business in the region, and; !  local organizations looking for growth in the region and expansion on a global level.•  ~400 consultants on the ground across 16 APAC countries•  Industry experience in manufacturing and industrial, chemical, ICT, healthcare, media, consumer & retail, energy & resources, media, and financial services
  30. 30. Contact GIAFor additional informationabout Global IntelligenceAlliance and our services,please send an email toinfo@globalintelligence.comor log on to the GIA
  31. 31. International Global Intelligence Alliance Group info@globalintelligence.comBaltic Region Gateway Baltic baltics@globalintelligence.comBelgium Global Intelligence Alliance Belgium belgium@globalintelligence.comBrazil Global Intelligence Alliance Latin America brazil@globalintelligence.comCanada Global Intelligence Alliance Canada canada@globalintelligence.comCentral & Eastern Europe EasyLink Business Services cee@globalintelligence.comChina Global Intelligence Alliance China china@globalintelligence.comFinland Global Intelligence Alliance Finland finland@globalintelligence.comFrance RV Conseil france@globalintelligence.comGermany Global Intelligence Alliance Germany germany@globalintelligence.comHong Kong Global Intelligence Alliance Hong Kong hongkong@globalintelligence.comIndia Global Intelligence Alliance India india@globalintelligence.comJapan McRBC japan@globalintelligence.comNetherlands Global Intelligence Alliance Netherlands netherlands@globalintelligence.comRussia ALT R&C. russia@globalintelligence.comSingapore Global Intelligence Alliance Singapore singapore@globalintelligence.comSouth Africa Butterfly Effect Intelligence southafrica@globalintelligence.comSpain Infoline spain@globalintelligence.comTunisia Tunisie RV Conseil tunisia@globalintelligence.comUK Global Intelligence Alliance UK uk@globalintelligence.comUnited Arab Emirates GCC Consulting uae@globalintelligence.comUSA East Coast Global Intelligence Alliance USA East Coast usaeast@globalintelligence.comUSA Midwest Global Intelligence Alliance USA Midwest usamidwest@globalintelligence.comUSA West Coast I.S.I.S. – Integrated Strategic Information Services,