State of the Brand: Luminaries of Asia

Asia – a vastness of cultural and commercial difference unmatched by any other place in the world. It’s a place where foreign brands need to step lightly and very few actually know success. On the flip side, Asia has given us some of the oldest, most iconic brands in the world. So, is there something different about their brands, strategies, and management, than what we have in the West?

In our previous SOTB, we found out that Eastern European branding struggles with client education but things are slowly changing for the better. Similarly, the Asian market doesn’t seem to be any different, whether we’re talking local, import, or export. What is mildly shocking is that, for most of Asia, product is still king, and this has huge implications for the way Asian brands are built and managed.

We decided to consult branding practitioners from the most evolved regions of Asia, on the state of branding in their home markets – perceptions, struggles, opportunities, and solutions. Together with our 11 guests from 4 countries – Japan, Taiwan, Hong Kong (China), and Singapore – we explored how branding is perceived and practiced, and also what foreign brands have to do to stand a chance in this delicate Asian environment.

Read below what their biggest challenges are and download the free State of the Brand to get their insights on more of our questions. 

Q. What would you say is your biggest challenge as a branding specialist in Asia?

JAPAN

Alison Jambert, communications director @ Eat Creative

“The largest challenges faced by branding and creative companies in Asia also emanate from the region’s biggest strengths. Asian corporations have established history and reputation with an unparalleled scale of reach, and, in many ways, have cracked the formula for success. This formula largely involves lessons learned from post-war, manufacturing-oriented, economic growth – innovative hardware produced with low costs, made with high quality, and distributed just in time. 

However, today’s business environment entails more than creating more of the same, for more people. In many industries, it means re-envisioning what a category actually means, adopting new technologies, and being able to attract talent from new generations with different values and expectations. In most cases, this involves a digital focus, too. 

Branding, at its best, can help align a company around a new direction and establish momentum for employees and communicate a new direction to customers. However, organizations in Asia may not set themselves up for this, with the exception of younger, more dynamic companies. Tradition and precision mean that new processes or even visual symbols can be met with hesitation and an attitude in which risks far outweigh possible rewards or opportunities. Even if corporations are receptive to change, it can be difficult to gain access to key decision-makers, both for agencies and employees themselves, especially amidst complex organizational structures that resist new ideas that threaten to disrupt harmony. 

Additionally, marketing education is also a relatively new addition to universities in many parts of Asia, in contrast to its long-standing status in the US and Europe. Couple this with the fact that the traditional Japanese approach to cultivating talent is to develop ‘generalists’ that have exposure to company operations across a range of fields but not necessarily deep expertise, and this means marketers who may not be as used to getting the best out of their agencies. This means that agencies have to go the extra mile to produce effective work.”

Reiko Ogata, chief branding director @ Dentsu

“Changing the mindset of the client. Japanese people traditionally value trust and reputation built through long-term relationships. The world’s oldest company still operating today is a Japanese construction company, established in 578 AD! As a matter of fact, of the 11 companies that have a history of over 1000 years, 8 are Japanese. 

This may be too extreme but, if you count companies that have a history of over 100 years, there are roughly 33,000 (including Japan’s largest advertising company, Dentsu, founded in 1901) which covers virtually every aspect of the business sector in Japan. Getting back to the way Japanese often regard the brand as a corporate thing – many of them a family business, Japanese brands were all about meeting and exceeding customer expectation over the years, protecting and expanding the reputation and trust their ancestors or predecessors had established, through the superior quality of their products and services...until recently. This may still work if you are only looking at the Japanese market, but if you are thinking outside of Japan, this would just not work, and they should get used to a more strategic and proactive brand building.”

Kotaro Watanabe, managing partner & context designer @ Takram

“Branding is a process that requires research and discussion involving various stakeholders, including, but not limited to, management, new recruits, and external stakeholders. So, a rebranding project through a top-down decision by a few people, such as designers or managers, will not work, whether the output is a visual or an abstract guideline such as a philosophy or MVV (mission, vision, values). 

The brand’s new verbal and visual philosophy needs to be reinterpreted and enrooted by each person involved. A brand cannot function unless it is a narrative that is re-told by individuals. Just as you can look into the same kaleidoscope and see a different view at different times, a brand is a single vessel that allows you to dream differently. 

This also means opening the brand’s activities to the future and to people. I call this process of design, a process that is completed by the individuals, ‘Context Design’ – and by context, I do not mean surrounding words and circumstances, but rather its Latin etymology of ‘weaving together’. 

It is also connected to the idea of operating a company as the commons; that is somewhere between the public and the private. 

It is also a way of thinking about sustainability and governance in a contemporary context, where CSR is not just an alibi, but an activity that is inextricably linked to an organization’s essential sense of purpose and brand.”

TAIWAN

Mark Stocker, managing director @ DDG

“In short, the biggest challenge we face as a branding agency is the lack of understanding and appreciation for the brand as a differentiator. Manufacturers, which make up a significant portion of the businesses in Taiwan, focus on tangibles. For them, the product is king. Very few companies in the Taiwan market understand the role of intangibles in building differentiation for their business. Only a few companies here are driven by a clearly identifiable purpose, philosophy, or core ideal beyond that of making and selling products and services. This is entirely attributable to Taiwan’s long history as a manufacturer to other brands. I believe, however, that we are witnessing something different in China, where a good number of companies have grown up with a focus on the vast domestic consumer market, leading some to differentiate themselves through purpose, philosophy, or other intangible concepts. On the whole, the principles behind the discipline of branding are new to Asia, and I think we will require another decade or so before they become better understood by business owners and managers. There is a sense that things are moving in the right direction, but there is much work to do before Asian companies see brands as a valuable tool for building differentiation. For now, a great product at an affordable price is where most companies sit in terms of brand strategy.”

Joshua Roberts, founder & CEO @ Level

“The biggest challenge we encounter is the lack of understanding of what branding really is, and, because of that, the lack of value attributed to it. Many companies see branding as something you do once, then move on. Branding in Taiwan tends to be seen as logo design and visual identity, and once those things are done, you can check branding off your list – you are essentially done with it. That couldn’t be further away from the truth, of course, but that is still the general perception. 

It is this lack of understanding that creates fundamental challenges for branding specialists because we need to educate and highlight the importance of branding, all the while competing against agencies and freelancers that are willing to accept projects at low costs, effectively devaluing our service. 

The most difficult challenge we see is actually finding companies that are willing to trust in the process and believe that the investment will bring long-term financial benefits in the form of higher margins, cost savings, and increased loyalty (to name a few).”

Erik Chen, founder & managing director @ Tenten

“I think communicating the value of investing in the brand may be the toughest aspect. Many SMEs usually see branding or brands as something for big corporations and enterprises. They often doubt how much value investing in their brand can bring them. I think there may be a correlation between the size of the company and the view they have on branding. The bigger the company gets, the role of strategy in branding gets bigger. The smaller the company is, the role of branding is used for memorability and visual appeal. Like I stated above, most smaller-sized companies invest in their product or service before investing in their brand, as it brings them immediate value. Investing in a brand is a long-term investment and process, thus many companies in Taiwan see it as something ‘nice to have’.”

HONG KONG (CN)

Annabella Zhuang, co-founder & business director @ DSIGN

“Frankly speaking, there are quite a lot of challenges as a branding specialist in Asia, however, one thing that came to mind is the pricing differences in Hong Kong. In other words, despite offering the same service, prices vary greatly between small agencies and big agencies. Moreover, it is hard to define what a good branding service is. There is no standard and metric to measure that. Sometimes, clients feel very confused about the pricing gap between different agencies. 

Furthermore, Hong Kong is a fast-paced city. Local clients here are fast-paced and are often looking for a quick return in the short term while demanding high standards for their work. However, it takes time and patience to cultivate a good brand.”

Joey Lo, founder & design director @ Box Brand Design

“It would be client education. Some clients in Asia have no idea about what branding exactly is. They may be confused with branding and marketing. One of the most common cases is that the client simply recognizes branding as the V.I. (visual identity) system, which is just a part of the whole Brand System. So we struggle a lot trying to explain and widen our clients’ understanding of branding. What’s more, the Chinese market keeps changing fast, which requires brands to respond quickly and keep up with the pace. This phenomenon makes brands lose patience in brand building, because of its ‘inefficiency’, as we mentioned above. Thus, they tend to neglect the significance of branding and prefer to invest in marketing.”

Chris Tong, founder & design director @ DASH

“Different cultural backgrounds and lifestyle are likely to be a major challenge if the brand works across countries. A brand tagline would even be different, not only in language but in tone and manner, which we will still need to align with the master idea.”

SINGAPORE

Kimming Yap, co-founder & managing director @ Creativeans

“Perceptions of the value of branding. It is a challenge to explain, educate, and justify the importance of a branding process as it is intangible and long-term. In Asia, people are generally more pragmatic and see value in tangible assets, as compared to more mature economies like the US and Europe. We have to build trust and convey the value of branding before clients begin their branding projects with us. In Singapore, I am happy to say that people are becoming more open to the idea of branding with increased education from the government as well as many local agencies, including ourselves.”

Edwin Tan, founder & creative director @ Bravo

“The biggest challenge would be to help businesses recognize the long-term value of branding. Because branding is intangible, it is hard to predict and measure an immediate return on investment. Clients are usually more concerned with that, which is why they exercise a lot of restraint when investing in branding projects.”

If you’re curious to find out more about the state of branding in Asian countries, the biggest challenges for branding specialists in these regions, opportunities, and solutions, free download this edition of State of the Brand here.

Here are some other questions you’ll find answered by the experts:

• What is the state of branding in Asia? Is there a clear distinction between branding, marketing, and advertising?
• How do Asian clients perceive branding? Do they see it as a strategic business tool or is it just about visuals in their opinion?
• Where does the Asian market differ from other global markets (e.g., the US or Europe)? What should foreign brands focus on when trying to reach this target? 
• What is your take on branding that you think is different from how Western specialists approach it? Are there any cultural principles, such as tradition or discipline, that influence it?
• What are your recommendations for brand specialists from these regions?

Read more here.

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