Emerging Asia is playing an increasingly important role in the global economy, with countries like China, India, Indonesia, and others contributing more to world GDP each year. As Asian economies grow, they are also gaining influence beyond economic matters by providing thought leadership on issues like sustainability and global challenges. For companies to succeed in these emerging Asian markets, they need strategies that understand local preferences and develop adapted products, as well as public affairs strategies that respond to the evolving business environment in these countries.
1. Towards a New Direction:Emerging Asia-Pacific Brad Staples, president, international APCO Worldwide Public Affairs Asia Conference | March 31, 2011 1
15. Asian Thought Leadership CEO of IFC, Lars Thunell pledged continued support to promoting sustainable economic growth and creating jobs in Indonesia by helping build infrastructure projects, expand access to finance for smaller enterprises, reduce greenhouse gases, and improving the investment climate. The Indian government will move forward with a controversial bill requiring some firms to spend 2% of their profits on CSR programmes. India will start phasing in International Financial Reporting Standards (IFRS) this April, starting with big companies. 15
16. Asian Thought Leadership The 2011 APEC meeting has established the following areas as priorities: 16
17. Reverse Innovation some global businesses are struggling to ‘glocalise’ their western brands and products, adapting them to very different local preferences in emerging Asian markets “scarcity may become the mother of innovation” local entrepreneurs in emerging Asian markets have the intimate appreciation of local needs and consumer requirements They understand how to develop better suited products, establish leaner business models, that boost low-cost demand and, critically, achieve impressive EBITDA results 17
18. Growth vs Sustainability The emerging economies that will thrive in the future will be those that acknowledge this dynamic tension and take meaningful steps to ensure energy supply challenges, food prices and waters shortages do not undermine inward investment, but potentially drive innovative thinking locally and new solutions to global challenges. 18
22. Strategies for success Foreign firms that wish to succeed in China must have a public affairs strategy that responds to this evolving business environment and supports business success. The key elements of this strategy include: 22