CEBU, Philippines - A branding expert has warned domestic brands that understanding well other potential markets and the current needs and culture of various consumers in the Asean region is critical in the economic integration.
Jacqueline Alexis Thng, chief executive officer of Lexis Branding, said several local businesses have failed to realize the importance of physically entering into a certain market and finding growth opportunities in there.
"Philippine brands tend to focus more on the local market," Thng said in a branding forum organized by the Mandaue Chamber of Commerce and Industry yesterday.
The brand strategist stressed that with the impending economic cooperation among Asean countries, market opportunities for homegrown brands are also expected to be growing.
If businesses in the Philippines want to penetrate other markets in the region, she advised that they should understand the culture and the "taste" of potential consumers they want to serve.
A Nielsen study revealed that Indonesia and Philippines have been the most optimistic countries in the world which implies that people in these nations are happy to spend for high valued items with enough disposable income.
This is an idea which, Thng said, could teach local brands that they can do selling outside the country, considering the good prospects of free-trade initiatives.
She shared a study that has found out that most Southeast Asian manufacturers have focused on mass-market production and creating scale with low-priced products.
According to the Singaporean strategist, this reflects the idea that many executives of brands still don't appreciate the power of branding, believing they can solely compete in terms of pricing.
However, with a unified huge market of various economies in the region, Thng emphasized the need for local businesses to strengthen their approach to branding which goes beyond the creation of company logo so they can be successful in other nations.
The big challenge for food and non-food enterprises is to keep updated on the changing needs of developing markets and their needs, from which innovation initiatives can come out to adapt to the fast-paced global market, she explained. — (FREEMAN)