The keys to overseas success
Hosted by Jean-Jacques Hardy, Chia-Yi Tung will be one of three panellists at “Breakfast talk on economic trends – the keys to overseas success” organised by CCIRS on February 11. For more details and to register, please visit: http://www.ccirs.qc.ca/activitescalendrier/matin-tendances-economiques-11-fevrier-2010-10011.html
SCHEDULE (in French only)
7 H 15 ARRIVÉE DES PANÉLISTES
7 H 30 MOT DE BIENVENUE ET SERVICE DU DÉJEUNER
7 H 40 MOT DU PARTENAIRE PLATINE
7 H 45 CHIA-YI TUNG, Présidente, Orchimédia Inc.
8 H 15 JEAN-PIERRE FORTÉ, Président, Vision Sympalys
8 H 35 MARIE-FRANCE HOUDE, Directrice de comptes, EDC
8 H 55 FIN DU PANEL
8 H 55 PÉRIODE DE QUESTIONS
8 H 58 CONCLUSION
9 H 00 FIN
East-West cultural differences are not the only things that you need to take into account. Although the Chinese, Taiwanese and Cantonese mostly originate from the same Han roots and many share the same language, religion, ethnic traditions and dynamic culture, there are a number of differences between these groups. For example, the Taiwanese passion for baseball, for which the mainland Chinese people are not very keen, results from the influence of the Japanese colonisation that lasted for half a century.
Chu and Chan (2008) have looked into the differences between Taiwanese, Cantonese and Chinese consumers. Among others, they have discovered that the Taiwanese respond much less to promotions that aren’t based on price, unlike the two other groups. They also noted that the factors that positively influence consumers when faced with the image of a company differed from one group to another. Brand names, product packaging, labelling and how easy the product is to purchase are the factors that the Taiwanese consider the most, while Cantonese put more attention on the availability of the goods and product presentation (display shelves, window displays, etc.).
In a world where few communication barriers remain, culture is more and more subject to various influences. What characterises a nation today may not be the case for future generations.
Sources : CHU, K-M et CHANG, H-C (2008). “Cross-cultural Consumer Behavior of General Merchandise for Taiwan, Hong Kong, and Shanghai, Taiwan”, The Business Review, Cambridge , Vol. 11 , No. 1
TAO, S-P (2003). “Life Style and Consumers in Taiwan and the United States; A cross cultural comparison of Activities, Interests and Opinions (AIOs)”, Thesis, University of Minnesota.
Considered to be very poor in the 1950s, Taiwan is now a symbol of prosperity in Asia. The speed of its growth has lead to it being nicknamed “the economic miracle of Taiwan”.
SMEs are the pillars of its economy as one in seven Taiwanese owns a company. Indeed, they represent 97.6% of all companies and generate 77.12% of all employment.
In the last 40 years, Taiwan’s economic growth has been largely driven by foreign trade. Its exports are mostly (98%) industrial products, while initially it was principally agricultural products. For that matter, this sector now only generates 1.7% of GDP, while service industries contribute more than 73%.
Taiwan is recognized as a world leader in the ICT sector: 99% of server motherboards, 93% of cable modems, 87% of notebooks, 77% of LCD monitors and 70% of personal digital assistants (PDA) are made there (New Zealand Trade and Enterprise). Although most companies work on behalf of big international banners, they are promoting their own brand names more and more. Acer, ASUS, BenQ, Mitac and HTC are some of the most internationally recognized brands.Read More
The President and founder of Orchimedia, Chia-Yi Tung, will host a session on the importance of branding in Asia for the “Business Strategies and Emerging Markets” class, which is offered to MBA students at HEC.Read More
Throughout Vietnam, recent economic growth has benefited a certain portion of the population who has actually seen their purchasing power increase. Indeed consumers are becoming more open to novelties and diversity, especially those under the age of 30 who represent more than 50% of the population. Foreign brands, perceived to be of better quality, are warmly welcomed by wealthier people. In order to benefit from these opportunities, it is important to take into consideration certain idiosyncrasies of the Vietnamese market.
Also, recent economic growth has contributed to the emergence of a bigger class of wealthy people. This wealth is concentrated in urban areas: the GDP there is six to eight times higher than in rural areas. More than a third of the urban population (Hanoi / Ho Chi Minh) are now a part of the upper-middle class.
Furthermore, it is necessary to geographically divide the market into parts according to the product or service that is to be offered. It is in Ho Chi Minh that consumers are most fond of foreign brands. In fact, more than half of foreign consumer goods are bought there. On the other hand, foreign companies specialized in infrastructure development (energy, environment, aviation, telecoms, etc.) should be looking more towards Hanoi, as it is where the majority of state company’s headquarters are located, which are responsible for a significant proportion of total imports.
Attitudes towards brands differ from man to woman. Women shall choose products based on efficiency (perceived), whereas men choose certain brands in order to project an image of success and social achievement.
In all cases, it is important to remember that although brands influence the decision-making process of the Vietnamese consumer, he remains very sensitive to the price. It is still the number one criteria when it comes to making a purchase decision.
Source:U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008.Read More
It is understandable that a company whose brand or brands have a huge notoriety would prefer to change as little as possible when trying to penetrate foreign markets. But it could be disastrous to transplant a product from any cultural context to another without carrying out certain adjustments. This is particularly true in India. Kellogg’s learned this when it wanted to launch its product Corn Flakes a few years ago in a country where it is common to eat a bowl of warm vegetables for breakfast, and where the minority who do eat cereal for breakfast prefer to eat them with warm milk. The flakes could not stand up to the heat, became soggy and much less appetising. Paired with a very high price, the product did not experience the success that was expected.
He who wants to win, wants the ball…
Who could have believed that McDonald’s, whose main product is a hamburger, would succeed in a market where the vast majority of people don’t eat beef and a quarter of the population eat no meat at all? Yet, there are currently 160 branches across the country! This is because McDonald’s adapted its products to match local taste in a distinct menu, with no beef or pork but lots of vegetarian options. In fact, more than 70% of the menu is indianized (compared to a general average of 33% in Asia). Besides, they were able to keep their branding and link it to an image of quality, impeccable services, cleanliness and world-wide values.Read More