InsightsWhy Is ASEAN The Most Favorable Market For Businesses

Why Is ASEAN The Most Favorable Market For Businesses

ASEAN, The next largest powerhouse of the global economy. ASEAN has the potential of becoming the third largest economy in the world, which makes it a perfect spot for businesses. Experts believe that ASEAN might reach this milestone in the next ten years. It is also expected that ASEAN will probably have a population of about 732 million which shows how big of a market it will become. This is because the economy is expected to expand to $4.5 trillion. All this is expected in 2030. It is even analyzed that people from around the world will gradually start migrating in ASEAN countries. Well, some of these main countries are Philippines, Indonesia, Singapore, Jakarta, Manila, Myanmar, Yangon, etc. But the question to ponder on is why? What is the biggest reason that is helping ASEAN to boost its economy massively? Well, let’s discuss this in detail!

 

As of 2016, the total of population of 638 million and the median age of 30 years, AESAN had already achieved $2.55 trillion of total GDP and had grown exponentially thanks to the rapid digitalization as the spending power of the income generating population who is young, digitally savvy and reaching the aspiring affluent segment.

 

 

 

 

Why there is Rapid Market Growth of ASEAN in the World?

Three main developed countries are a part of ASEAN. These are Malaysia, Singapore, and Indonesia. Other well developed capital cities and secondary cities are Bangkok and Ho Chi Minh City. From these the most developed country with a huge market, development is Singapore as the GDP of it is equal to that of the US. However, in Myanmar and Philippines, the economies are smaller but they have the largest potential to grow businesses. Key cities to look out for are Singapore, Kuala Lumpur, Jakarta, Yangon and Manila.

 

 

There is high future market potential in these countries as the explosive working rate of the middle-class societies are likely to grow the GDP rate of the economies. The rise in the growth of the markets due to effective B2B advertising and the new developments in digitalization might even leave China behind. The high production of consumer products due to outbound marketing strategies is the main reason. It is expected that the young working class of Philippines is the major force to increase the future GDP.

 

Brands Penetrating ASEAN Markets through Outbound Marketing:

Due to its amazing potential, the ASEAN region is attracting brands from all over the world. This is because there is low-cost labor with high skills available for global businesses and markets. Not only this but outbound marketing strategies are used mainly by Singapore, Malaysia, Philippines, and Indonesia to invite investors from all around the world and invest in their markets and businesses. This is even led by partnerships with various countries so that the ASEAN economy becomes the world leader when it comes to digitalization.

 

Dominance of multiple tech unicorns such as Go-jek, Grab, Traveloka, Tokopedia and Lazada has also fueled this growth, and more will to come as mobile solutions are easily scalable and highly accepted by ASEAN population.

 

ASEAN’s Handling of the Corona Virus Situation

ASEAN nations are in regional cooperation to work well together to address cross border issues and are united in group solidarity to share know-how and resources.

 

 

As of May 12, five of the 10 ASEAN countries achieved “zero growth” in confirmed cases of covid-19. Laos and Vietnam had no new confirmed cases for more than 20 consecutive days. There were no newly confirmed cases in Thailand on the 13 May. In order to alleviate the economic impact of the epidemic, governments of Southeast Asian countries have gradually introduced relevant deregulation policies and measures to restore production and protect people’s livelihood. After resuming the recovery of economic activities, most people can basically carry out normal outdoor activities with Vietnam starting the earliest since April 24.

The pandemic situation in Southeast Asia has slowed down overall, and it has also prompted many governments to begin lifting the “lockdown” measures in stages.

 

The Perfect Media Joining Hands as Out of Home Media:

As the number of partnerships, outsourcing and business is increasing in ASEAN, there is definitely a need for a perfect agency that helps in branding and with the B2B advertising. This is because B2B advertising through out of home media helps to track the journey of the target audience.

 

Therefore, The Perfect Media (TPM) has joined hands as an out of home media for global countries to be a part of ASEAN.

TPM is a highly experienced agency working with several different clients in outbound marketing for businesses and has been successful in improving the GDP of economies due to this.

 

2 clients of TPM recent regional campaigns are Jetstar and Bosch. The branding of these two companies is done perfectly using outbound marketing strategies to penetrate the ASEAN markets.

 

Out of Home media works very well in ASEAN markets thanks to the high population density of the key cities and a few well placed strategic billboards will be able to capture a large majority of the target audience as most similar minded people like to frequent the same areas such as popular malls such as Pavilion in Kuala Lumpur. Industrial products are also often grouped together in the Gajah Madah area in Jakarta or the “Engineering Street” – Jalan Ipoh in Kuala Lumpur and the Quezon Avenue in Manila for automotive cars and auto-repair shops.

 

For Jetstar Asia, they are a regional low-cost airline that is based out of Singapore and they have a large number of routes that serve the ASEAN market. Jetstar also provide low cost airline connections to the growing affluent that loves to travel and the travel loving passengers can use Singapore as a transit hub to travel from Myanmar to Singapore and then to Australia etc.

 

 

Jetstar has created campaigns in Cambodia and Myanmar that is localized and attractive to their source markets to increase both brand awareness and ticket sales via Out of Home Media like billboards and taxi transit media.

 

 

For Bosch, it is a powerful brand for both B2B and B2C markets with their industrial solutions ranging from automotive spark plugs, power drills to their B2C stylish home solutions which are both space and energy savings such as washing machines and cooking ovens. Thus Bosch have both branding and tactical campaigns in different areas. Bosch is also innovative and forward looking to use programmatic digital with Adroady solutions on private hire cars with dOOH LED screens installed at the rear view window. Bosch also created a special creative graffiti mural to showcase robotic spray painting that is able to complement human artists, thus living up to the Bosch tenet that technology improves lives.

 

 

There is still a high potential for ASEAN markets to grow tremendously in the future. Therefore make sure to start joining hands with The Perfect Media to penetrate your brand into ASEAN markets with Outdoor Advertising.

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