Set to inspire more Filipino businesses and entrepreneurs to engage and expand in marketing in the light of the exciting activities in the ASEAN region and take on the challenge of the 2015 to conquer new regions together, great learning and new marketing insights specially relating to the ASEAN regional integration were on buffet at the Asian Marketing Congress, held at the Philippine International Convention Center, Pasay City last July 17 – 18, 2014 and organized by the Philippine Marketing Association (PMA) . The event is a major activity as PMA marks its diamond year anniversary celebration this 2014. It is also a historic event in the field of marketing in Asia since it is the first Asian Marketing Congress , and I was privileged to have witnessed this thru the kindness of Janette Toral of Digital Filipino, the event’s social media partner. Below are some of the topics I got indulged in and hopefully be able to impart some knowledge to marketers out there who missed the event:
1. The Philippine economy is viewed more stable and reliable for international investors as shared by Asian Marketing Federation president Takuya Goto. While gender equality is still a pressing issue in most ASEAN countries, in the Philippines it is more advanced. It is gratifying to know, coming from the AMF president, that “the Philippines and the Philippine Marketing Association will be a model for the rest of the world in the future.”
Competition vs. Synergy : Yayu Javier, PMA President
2. We should not fear the 2015 ASEAN integration, but embrace it. Everyone is encouraged to cooperate rather than compete. As explained by PMA President , Ms. Yayu Javier, who talked about “Competition vs. Synergy” , as leaders collaborate despite differences in culture and ideologies, greater synergy will be born.
3. ASEAN brand is the new global brand. For the brand to tap the world market and even the “local” ASEAN market , synergy or cooperation is more applicable than competition. By working together, synergy will provide connectivity, create leadership through local familiarization, leverage on its individual strengths and build a globally competitive ASEAN brand. Using Universal Robina’s C2 Green Tea brand as an example of an ASEAN brand that has claimed global success, Ms. Javier illustrated how the company collaborated with local and foreign teams and successfully penetrated 32 countries. C2 Cool and Clean is manufactured in the Philippines, supplied with tea from Thai Nguyen , and is now one of the three biggest tea players in Vietnam, even bigger demand than the Philippines.
4. A considerable number of Philippine products have already successfully penetrated the ASEAN and world market through cooperation and collaboration. In the pharmaceutical industry, United Laboratories has operations on 12 manufacturing companies in China , Philippines, Indonesia, Vietnam and Thailand. Armed with their social responsibility to make health products affordable to the poor, Unilab offers affordable healthcare products across Asia thru joint ventures and covigilance. In the brewing industry , San Miguel Brewery has long been overflowing its brew in the international market through alliances. In the local food industry, Jollibee, Potato Corners (what used to be a small franchise concept), Liwayway Mktg thru its Oishi brand, have won foreign markets. Jollibee benefits from this ASEAN cooperation as it allows them to access raw materials and ingredients at competitive costs. Clothing retail Bench brand has several branches around the world and maintains manufacturing operations in the ASEAN region. The local market in the same way embraces the ASEAN brand as shown in the growing branch expansions of Family Mart and Uniqlo.
5. Five suggested keys to unlock that ASEAN market or make your product or service an ASEAN brand, pick one that applies to your industry – 1.) Local manufacturing partnerships, to enable market penetration and product acceptance; 2.) Joint retail venture, to increase store traffic and faster branch expansion ; 3.) Regional communications, to drive business connectivity as connectivity will be the newest drivers of ASEAN integration; 4.) Local food production and localized flavors for competitive price and increased brand preference; 5.) Synergy thru hard infrastructure that will connect countries and provide easier trading.
6. Opportunities for synergy and collaboration also include tourism, medical , retail and SMEs. ASEAN tourism packages will provide regional visits and better offer to tourists. Medical facility mergers will provide regional specialization for medical tourists. Retail companies can offer a wider range of products and creating ASEAN isles. SMEs can integrate themselves into the regional supply chain and global economy.
7. The small and medium enterprises (SMEs) is a big player accounted for 96% of enterprises and 50% – 85% of domestic employment across ASEAN. With these realities, being the biggest enabler and probably the biggest beneficiary, ASEAN formulated a strategic plan which includes access to financing, facilitation, technology development, promotion and human resource development.
8. E and M commerce will play a vital role and is a vital tool in the ASEAN integration. Even small businesses can leverage digital technology to drive business.
9. In preparation for the 2015 ASEAN integration, government initiatives include among others the following: Indonesia expands its SoekarnoHatta Airport in Jakarta and the Bali Airport. Malaysia focuses on conventions and exhibits. The Philippines prepare infrastructures for leisure and gamin in mega casino complex. Singapore flaunts its mega theme parks and resorts casinos. In Thailand, constructions are ongoing on highway connectivity from Kunmin in China through Laos PDR and into Thailand. An Asian Highway is in the making, even our won RORO is set to start its service between Davao to Indonesia.
10. The growing size of middle income class in ASEAN will create more opportunities.
“WOW Marketing” : Mr. Hermawan Kartajaya, AMF Honorary Fellow, Founder & CEO, Markplus Inc.
11. Author Mr. Hermawan Kartajaya of Mark Plus, Inc. defines today’s business landscape being more connected and more competitive , hence there is a need for “Wow Marketing”. Using his level indicators , he explained what is “Wow Marketing “ or Level 3.0. The first one is Level 1.0 which means “OK” or simply “enjoyment”, the customer enjoys the product or service. The second one is Level 2.0 which means “AHA”, where the customer appreciates the “experience” Level 3.0 means “Wow”, where the customer engages with the product or service or brand. Competitiveness of a brand now requires passing the three levels – Ok, Aha and Wow, or Enjoy, Engage and Experience.
12. Mr. Kartajaya holds that with the internet, today’s customer path takes from individual to social and marketers should take note of this . There are now 4 Cs: Company, Competitor , Customer and Change. Brands or companies has to understand “Change” as they cannot create a strategy if they don’t understand the “change”, because strategy is for the future.
14. To create “Wow Marketing” and to convert customers, the brand should create Attraction, Curiosity, Commitment and Affinity. Relating this to #13, Awareness creates Attraction, Appeal or Ask means Curiosity, and Commitment and Affinity relates to being an Advocate.
15. Further, to create “Wow Marketing”, integrate Legacy Marketing and New Wave marketing to be able to achieve the Level 3.0. Legacy Marketing basically tackles the traditional concepts such as segmentation, targeting, positioning, differentiation , marketing mix (product, price, place and promotion), selling, brand, service and process. New Wave marketing on the other hand requires Communitization, Confirmation, Clarification Codification, Connected Marketing Mix (co creation, currency, communal activation, conversation), commercialization, character, care and collaboration.
16. In Wow Marketing, customer is not the king, they are our friend, they are the ones who clarify, commit , stay loyal and become advocate, same as a friend. Hence in the new setup, when the customer is wrong, we can correct and advise them.
“Marketing and Branding in ASEAN.” : Associate Prof Hooi Den Huan, Director, Nanyang Technopreneurship Centre in Singapore, Asia Marketing Federation 17. In Prof. Hooi Den Huan’s talk on “Marketing and branding in ASEAN”, he advised marketers that there isn’t a one size fits all approach to ASEAN because while it is an association of 10 countries, it is also a community of diversity – multi-racial, multi-language, multi-religion. Further, while economic cooperation becomes the center of this integration, there are other forces of change that may affect it such as technology, political and legal aspects, social and cultural changes and the market itself. Technology changes with digitalization; political and legal, economic , and social – cultural aspects changes with globalization; and the market changes with futurization. (By the way, these topics are better discussed in Prof. Hooi , Mr. Kartajaya and Mr. Philip Kotler’s Book, “Rethinking Marketing”)
- • ASEAN Political – Security Community – to enhance rules and good governance for ASEAN
- • ASEAN Economic Community – to enhance integration and competitiveness of ASEAN
- • ASEAN Socio-Cultural Community – to enhance the well-being and livelihood of ASEAN people.
- Government, business and people connectivity are guided with the e-ASEAN agreement which aims to develop ASEAN’s information structure, facilitate intra-ASEAN trade and investment, coordinate and harmonize policies and programs, promote and develop indigenous content, promote private sector promotion, and enhance access to and use of telecommunication and IT.
19. Analyzing the forces of change further, the ASEAN integration aims to achieve Peace, Prosperity and People. Peace with regional peace and stability, Prosperity with economic integration and cooperation, and People with human and social development.
20. The ASEAN Socio-Cultural Community aims to promote human development, social welfare protection and social justice and rights; ensure environmental sustainability; build the ASEAN identity and narrow the development gap.
21. The ASEAN Economic Community aims for a single market and production base where there is free flow of goods, services, investments, capital and skilled labor. Free flow of goods thru elimination of tariff and non-tariff barrier and synchronized external tariff alignment. Free flow of services with full market access and national treatment and remove substantially all restrictions on trade in services. Free flow of investments to all industries and services incidental to these industries in ASEAN investors. Free flow of capital by relaxing capital control measures on intra-ASEAN portfolio investments. Free flow of skilled labor by removing discrimination and harmonization of standards in education.
22. The ASEAN Economic Community further aims to be a competitive economic region by developing a competition policy, strengthening consumer protection, enabling regional cooperation in intellectual property rights, enabling regional cooperation in infrastructure development, completing network of bilateral agreements on avoidance of double taxation, and promoting electronic commerce (e-commerce)
23. Equitable economic development is also aimed with the ASEAN Economic Community by accelerating the development of small and medium sized enterprises (SMEs), and enhancing the initiative for ASEAN integration (AI) to narrow the development gap.
24. Most importantly, the AEC aims to integrate with the global economy by achieving a coherent approach towards external economic relations, including its negotiations for free trade area (FTAs) and comprehensive economic partnerships (CEP) agreements; and enhancing participation in global supply networks.
25. The ASEAN market , with its diversity, offers a wealth of opportunities, with a current population and demographics as follows:
26. A “one-size-fits-all” approach in marketing to ASEAN basically follows the traditional rule – giving value to customers. Superior value doesn’t mean the monetary cost must always be low. Consider the functional and emotional benefits of the brand , product or service over the monetary and non-monetary costs such as time, effort, opportunity. There is no other way but to create and deliver superior value to our customers.
27. The world’s population growth projects 8.0 Billion in 2025. Of this, Asia Future Shock projects that with urbanization, 1.0 Billion more people will live in Asia’s cities in 2027 than in 2007.
28. One tool to market brands in ASEAN is to analyze “change” using the DEN TPC Model – Demographic, Economic, Natural / Physical, Technological, Political / Legal and Cultural or Social. Must make “change” as part of the strategy as nothing is right forever. Even the world weather conditions are really changing so rapidly.
29. Another tool to market is by using the STV Triangle – Strategy, Tactic and Value, implementing the Nine (9) Core Elements of Marketing. Strategy or mind-share consists of 1)Mapping Strategy (Segmentation), 2) Fitting Strategy (Targeting) and 3) Being Strategy (Positioning). Tactic or market-share consists of 4) Capture Tactic (Selling), 5) Creation Tactic (Marketing Mix) , and 6) Core Tactic (Differentiation). Value or heart-share uses 7)Value Indicator (Brand), 8) Value enhancer (Service), and Value Enabler (Process). Strategy requires you to explore, Tactic enables to engage, and Value requires to Execute. Differentiation happens through content, context and infrastructure; while detailed differentiation can be done through the Marketing Mix that is 4Ps – product, price, place and promotion. Building a strong brand is the only strategy that provides long-term advantage for a sustainable business.
30. Marketers may also use the Positioning – Differentiation – Brand Triangle. Positioning (Being Strategy) identifies how the target market perceives the brand. Differentiation (Core Tactic) identifies the distinctive bundle of benefits that yield competitive advantage. And the Brand (Value Indicator) identifies the value indicator. Note that if you do not know who you are, what you are good at, you will waste a lot of marketing expenditure. And whether your customers will recommend you to other customers is the biggest measure of success
“Asian Consumer Behavior Model in the Era of Social Media” : Indraneel Ganguli, Senior Vice President & Global Head – Brand Marketing & Communication, Tech Mahindra Ltd.
31. In today’s world, anybody and everybody who owns a mobile phone has by default become a photographer, and with the new trends, the 16, 17 and 18-year olds are as smart as anybody in this world. Despite these changes, the fundamentals of marketing don’t change. What changes only is the approach.
Disrupt Yourself: Key Consumer Trends To Run With Now: Maxwell Luthy, Senior Trend Strategist
32. Coming from trendwatching.com whose job is to look for a consumer trend , an emerging pattern on consumer behavior, clusters of innovations that have unlocked or newly serviced an existing consumer need, desire, want or value; it is observed that the real one that we are competing against is the global brain. There is this ever thinking, ever innovating global brain and expectations rise from every changes that occur. Trendwatching.com observes that what we have now is Expectation Economy. There is that Expectation Gap that always has to be filled up.
33. In the very near future, the market will be disrupted with the following occurrence : Virgin consumers , status seekers, localizasian, and symphathetic pricing.
34. Virgin consumers come up in the ASEAN market. Brookings Institute projects that by 2030, over half of ASEAN’s population (minus Myanmar, Laos and Brunei) will be in the middle class. From absolute virgins to new middle classes, there’s a first time for everyone – there will be product virgins and brand virgins. Already, Hermes, a luxury brand, integrates in its app features on scarf-tying tutorials. For brand virgins, Yahoo! Caters to Hong Kong – based consumers with brand pronunciation app. Think beyond who your customers are now.
35. Status Seekers will also be a force that underpin almost all consumer behavior. With the growing middle class, the Asia statusphere will continue to diversify. It will be expressed in buying behavior, social media status, stories, skills, eco, healthy active life and many more.
36. Localizasian, an innovation in Asia, by Asia and for Asia will also affect the market behavior. JWT projects in Nov 2013 that 83% of Southeast Asian consumers are positive about brands and products produced in Southeast Asia. Localizasian brings out increasing expectations, world class production and home advantage. Asian consumers no longer think “foreign is best”, they celebrate being an Asian brand.
37. Sympathetic pricing also disrupts the market, these are imaginative discounts that relieve lifestyle pain points, offer a helping hand in difficult times, or support a shared value. Don’t jack up prices up during a time of need, relieve consumer pain with real time.
Marketing to the Premium Segment “Premiumization” : Stuart Jamieson, Managing Director , Philippines, The Nielsen Company
38. As we now live in a world of unprecedented change where factors come together such as the masses, spending power, young consumers, growth, and optimism, a new middle class, premiumization is seen as consumers moving up the price curve in slow increments.
39. There’s a huge focus on the ASEAN area on premiumization as the growth in this region is better than any other region. The growth rate of premium at the moment is growing at 11%, the fastest growing segment w/in the Philippine market. While this is the situation, and given the above changes in market behavior and dynamic consumers, brands still need to have a bold communication strategy and convey a clear and persuasive message.
Marketing to Millenials : Joeri Van den Bergh, Insites Consulting
40. Interesting observations on behavior of millenials or GenY such as : Millenials use brands to impress people. Gen Ys are most impressed by an event when all his friends are going. Gen Ys appreciates colors. Gen Y prefers to be in the driver’s seat. In the Philippines, what makes millennials the most happy is learning a new skill, more than shopping. One out of three millennials would like to learn how to play a musical instrument. Millennials know the marketing tricks better than marketers. They say, ‘Yeah, right. Being successful is Gen Y’s dream. In summary, millenials enjoy killing boring (serendipity), sharing stories (shareconomy), live and learn (mono tasking), wherever / whenever (off/online merge), and celebrating life (party-cipation)
41. The 4 Critical Success factors in marketing to millenials are – Smile (makes me and others laugh) , Surprise (unexpected twist), Suspense (emotions) and Self-ID (relatable – could it happen to ME?).
Multi-Country Study on Media Trends’ Behaviour and Engagement : Rob Valsler, Regional Director, Millward Brown
42. Presenting media trends and behavior from a study conducted in 30 countries among 11,323 consumers, 388 of which are Filipinos at 16-44 years old, brands should evaluate the multiscreen landscape by considering both the scale of screens (reach / opportunity to contact) as well as the receptivity of people to various marketing approaches, both within and across screens. Summary of Findings as follows:
43. Milward Brown holds that in order to reach and engage a large number of multiscreen users, most global brands will need to deploy media plans with a far heavier mobile emphasis than they do at present. This is increasingly the primary way to access many groups of people.
44. The main principles for success across screens are: • Be Consistent – Whenever someone engages with you, whatever screen they’re using and wherever they are, your brand experience and messaging should be uniform. • Be Connected – Think about second-screen experiences, specifically how your marketing can interact engagingly between screens and travel seamlessly across screens. • Be Considered – Some screens are better than others at communicating particular aspects of your brand’s personality. • Be Concise – Use mobile-friendly, shareable content that entertains first, informs second.
America’s View: Philippines: A Billion Dollar Market for US Food and Beverage – from the Office of Mr. William Verzani, Speaker from the U.S. Embassy, Acting Agricultural Counselor, U.S. Department of Agriculture, Foreign Agricultural Service, Embassy of the United States of America
45. Based on 2013 results, the Philippines is a Top 10 US Agricultural market in Southeast Asia, greater than Indonesia and Thailand combined and even greater than India and Brazil combined; valued at $2.7B tripling in the last 10 years. Topping the list of food and beverage products USA exports to the Philippines are dairy, pork products, poultry meat, prepared food, fresh fruit, processed vegetables, beef , snack foods , chocolate and cocoa , and dog and cat food.
46. USDA describes the Philippine market profile as one with the large population of 100+ million, with 15 – 20 million real customers, an urban population of 50% and high literacy rate of 92%. The Philippines also has strong awareness and preference for US F&B products, growing demand for “healthy” , organic, gourmet and convenience foods, and there’s steady growth in retail, food service and food processing.
47. USDA describes the Philippine retail market with increasing consumer sophistication, adopting Western style supermarkets, requires diverse packaging, both large and small sizes or sachets suitable for large lower middle class (Class C), and having the instant mindset for convenience and ease (hence popularity of canned foods and noodles)
Japan’s Perspective of the ASEAN : Mr. Masaki Ishibashi, Asian Marketing Federation
48. The keys to success for brands lie on globalization of values, regionalization of strategies, and localization of tactics.
Tourism and Hospitality: Marketing After Disaster : Amor Maclang, Geiser Maclang Marketing Communications, Inc
49. Life is not as smooth as we think and hope and being in a disaster-prone geographic location, we are witness to so many disasters. Getting up and running again entails careful steps. Relating to the marketing campaign to revive Mindanao tourism after a disaster or how Allah Valley has become what is it now, Ms. Maclang outlined these careful steps from defining what is a risk, crisis and issue, explaining the anatomy of a crisis, setting the 10 rules of risk and crisis , and suggesting rules / steps on how to handle the situation. The anatomy of a crisis are surprise, insufficient information, rapidly escalating flow of events, loss of control, intense scrutiny from the outside, siege mentality, panic , and short term focus. With all these elements, she reminds marketers that it’s not actually the crisis that gets you but it’s the speed and the quality of your response that determines how good a company or a brand you are. Culturally, Filipinos are programmed to say ‘Bahala na’ (Bathala na or let God) when faced with a crisis situation, which shouldn’t be. There should be a connection between how we assess a situation &how we should appropriately respond. Here are the suggested rules on handling a marketing campaign after a disaster:
• Rule 1: Risk, issues and crisis communication plans are mandatory for every branding campaign . Risk pertains to an existing condition, element or situation that may affect you directly or indirectly. Risk becomes an Issue when it aversely affects you, sometimes through one of your stakeholders. An Issue becomes a Crisis when said stakeholder makes the issue known to other stakeholders or general public. Before panicking and letting loose, do the 10 rules of risks and crisis checklist which are as follows:
- 1. Are you sure this is a crisis?
- 2. Focus on de-escalation
- 3. Crisis needs one person in charge
- 4. Crisis needs one spoke person
- 5. Explain , don’t defend
- 6. Never lie
- 7. Get into the front foot
- 8. Identify key stakeholders
- 9. Plan for life beyond crisis
- 10. What can you learn?
• Rule 2: Stakeholder engagement is the new marketing. Stakeholder mapping is the foundation of other business processes like marketing or business development. Meaning get everyone affected to get involved. •Rule 3: Local is the new premium, provenance is the new brand. • Rule 4: Marketing is about continuous engagement • Rule 5: All campaigns should do well and do good
Rising to Dominance: How Asian Brands overtook global leaders : Jonathan Bonsey , Creative and Managing Director, Bonsey Design
50. Labeling Bonsey Design as architects of brand experience in Asia comprising 70 strategy , design and digital specialists in key cities in Asia such as Colombo, Kuala Lumpur, Singapore, Jakarta, Sydney and Manila, and having developed major brands across Asia, Mr. Bonsey explored with authority how major Asian brands made it to the global stream. However, rising Asia is a thing of the past if to relate it to some realities. Over the past two decades, Asia’s companies have enjoyed huge success. But now they need to reform to be more brainer, nimbler and more global for the future [The Economist, Patrick Fouls, May 2014] . Note that 20 years of Asian growth has been built on cheap labor, and easily available money; this is no longer the case going forward. Capital is more expensive; India and China’s state run banks are loaded with bad loans that drive up the cost of capital. Wages are rising but innovation is lagging. The trade off between governments and their populations on the “Price of Progress” is no longer acceptable as new middle classes are demanding. However, now there is less pollution that poisons children and the elderly, more leisure time to enjoy themselves, better safer products that are fit for purpose and there’s more money to fund rising expectations and cost of living. Also, 10 out of the top 100 global brands are from Asia but all are from Japan and Korea. Asia creates 45% of the worlds carbon emissions but only 10% of the leading brands, and value that is created is captured in markets other than Asia.
51. With such imbalance and paradox Asian businesses that have steered through were of hardware, software and heartware – companies like Tata Motors , India’s largest auto and truck manufacturer, Jaguar Land rover , Samsung – world’s largest maker of smartphones, Air Asia – world’s best low cost airline serving 100 destinations in 22 countries, and Jollibee. Obviously, the businesses that showed sustainable success in Asia are those that are 1) relevant to their existing markets but that have “transferable benefits”, 2) able to translate strength at home into compelling strength internationally, and 3) have clear point of difference and express its value simply and clearly. Interestingly, these attributes were adopted by local Asian brands – Uniqlo, Maybank, transformation from the #1 Malaysian bank to an ASEAN financial powerhouse, HSBC, Kim Eng Securities, C2 Green Tea, the Philippines Favorite Green Tea.
Mr. Bonsey shared 5 thoughts to Asian brand marketers:
- Maintain consistency and impact across all your brand touch-points
- Find commonalities in customers that transcend national boundaries for insights, richness and eficiencies
- Celebrate diversify as a new source of new ideas and innovation
- Use design innovation as a fundamental way to distinguish your brands
- Use your customers as the first stop to developing relevant brands
From Clicks to Bricks : Donald Lim, Chief Digital Officer of ABS-CBN Broadcasting Corporation
52. It is the end of ecommerce as we know it. The internet did not turn out to be a magic weapon that will make us very rich or help us increase sales. While what we did everything digitally was to make people buy online, it didn’t happen. It might have worked for some who were successful online but today , digital marketing waits for no one. Why? Could be for two reasons:
• The most fundamental purpose of any business is to have a customer but technology and the internet had companies turning their back to their fundamental purpose. Simply because In order for businesses to win in the digital age, the holy grail is not eCommerce, but the eCommerce mindset. A lot of companies today are not ready for eCommerce. eCommerce is a commitment. You’re in or you’re out, and if you’re in, you have to be willing to invest. It’s not just having a website. Here are the key success factors driving e-commerce:
• Another “digital phenomena” is the shift to the New Digital Economy. We are now in the New Digital Economy where customers are empowered in the collaborative economy era. A social media drive era evolves to the collaborative economy era. First there was the Brand experience era (web), then Customer experience era (social media), then now Collaborative economy era (social, mobile, payment systems) Now it is ‘Clicks to Bricks’ where online retailers are setting up space in physical stores, these retailers are adapting to consumer needs by creating unique shopping experiences. The situation now is that the offline becomes the online diferentiator.
“How to launch your Brand in Asia”
53. Malaysia – identify your target market. Recommended areas are Kuala Lumpur, Penang, Johor Bahru. Consumer behavior is more price conscious , and counts on value for money. Known effective advertising mediums – radio , tv print ads. We aware of social etiquettes.
54. Sri Lanka – with population of 22M, ranked as #1 destination to visit by International Tourism Magazine. Patterns their advise on Reebok marketing strategy – combining Product mix , Price mix, Promotional mix, Distribution mix, Physical evidence and People
55. Thailand offers a more digital market described as follows: • Online population is always on. Average hours per day on social media is 3.7hrs /day, Philippines on 4.0 hrs/day. With • With 78 million mobile subscribers out of 65 million population • #2 in active LINE users where they chat, play, shop • Bangkok is the world’s no.1 Facebook city with 8 million accounts in a population of 10 million • Bangkok is #1 tagged Instagram location city in the world with 603,288 users Generally, there’s a good market opportunities in Thailand, digital yet classic marketing concept still crucial. Build strong brand. Know Thai consumers. Create great campaign by integrating these elements. Be responsible. And don’t be afraid of politics in Thailand
56. Vietnam – What attracts investors to Vietnam? Socio-political stability , Continuous economic growth , Huge market for consumption , Abundant human resources (>60% of total population) , Young labor with high literacy, IT-savvy , Labourious, hard-working , New generation of corporate leaders , Convenient for outsource and processing industries , Located at the heart of Southeast Asia , Enjoy preferential tariffs by FTAs , Low cost of materials and inputs such as Electricity, water, telecoms, air freight, labor cost
Recommended sectors are Hi-tech industries , Food processing, animal feeds, biotech , Wood, leather, textile, steel, ore material , Tourism, education, medical services , Banking and finance , IT, data processing service , Logistics , Real estates.
“Global Banking Trends and Innovations” : Stuart Tomlinson, Country Manager, Visa International
57. Presented the Evolution of Commerce and holds that we are now on OMNI COMMERCE , the total convergence of commerce across physical, digital, and social dimensions providing a consumer-centric seamless experience for consumers. Now it is a People Powered Media where Social is at the core – connected, ,influential and very powerful, so much that we don’t run away from banks, we run away from social media. In terms of quantity, there are 1.85B worldwide social media users in 2014, 60% digital media users use reviews and 92% of consumers trust friends recommendations. With this, there is no doubt that E-commerce is the new frontier in business – in 2013 there was USD 1.25 Trillion spend, have 25M online merchants. Note that 35% of online spend is made in Asia Pacific and this is approaching USD 1Trillion by 2016. Visa campaigns now for “Pay with confidence “ concept. As parting words , Mr. Tomlinson advised marketers to 1) Adapt to the changing landscape , 2) Be social at the core, 3) •Listen to consumers
“How the Banking Industry needs to prepare for 2015”: DGNestor A. Espenilla Jr., Deputy Governor, Bangko Sentral ng Pilipinas
58. The Philippines is expected to be robust as banking sector continues to grow and expand. To stay afoot in the future, banks should mobilize savings for users of capital , facilitate payments for goods and services, expand product lines, reach out to more markets and increase diversity. It is no longer enough to ensure that each bank is operating safely and soundly, linkages matter, the sequence of effects matter and the expected magnitude of impact certainly matters . As the integration continues , BSP works on Amendments to R.A. No. 7721.
On Opportunity or Threat, the Philippine banking system is smaller compared to ASEAN 4, however among 72 jurisdictions monitored by Moody’s, only the Philippine banking sector was given a “positive” outlook
Is the Philippines ready for the 2015 Asean Integration?
59. Alan Daniega, Department of Foreign Affairs (DFA) reported that as of July 2013, the Philippines has achieved a score of 87.2% in the implementation of AEC deliverables scorecard. Right now, they are already discussing the next ten years of work for AEC. Note that integration is not an overnight implementation, cooperation has been established since the implementation of AFTA many years ago. We should therefore regard 2015 as only a landmark. Integration has always been a work in progress.
60. Mr. Hans Leo J. Cacdac, Administrative, Vice Chairman, Philippine Overseas Employment Administrative reminded that The ASEAN Integration is not just economic integration. Unhampered migration for work or free labor mobility can be one of the most tangible manifestations of an Integrated ASEAN.
• As of May 2010, the total population of the Philippines is 92.34 million and foreign citizens in the country number 177,365 or 0.2% of the total household population.
• Foreign nationals registered with the Bureau of Immigration in 2012 totaled 203,753. This was 6% higher than the 194,356 foreigners listed in 2011 • Non-immigrants number more than 47,000; more than 46,000 are immigrants; 5,700 aliens are holders of special non-immigrant visa • The Top Five (5) Nationalities who have permits (Alien Employment Permits) to work in the Philippines in the period 2008-2012 were: Koreans, Chinese , Japanese , Indians and Americans.
With all these mobility, implementation of the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers should be observed. ASEAN member States including the Philippines have a Drafting Team finalizing the text of the Instrument, envisioned to be an “ASEAN Convention for Migrant Workers”. There is work that needs to be done to balance the interest of business (AEC concerns) and the rights of ASEAN nationals (ASCC concerns) in an integrated ASEAN
POEA reminds though that it is not automatic to be employed anywhere, recognition is Key and still governed by domestic (immigration and labor) regulations ; still competency and education outcomes-based and national qualification frameworks as they relate to the ASEAN Qualification Framework will be the “book”.
Implications include vulnerable occupations such as domestic workers, low-skilled work, entertainers, ethical recruitment practices, standard contracts, bilateral arrangements , anti-human trafficking and anti-illegal recruitment, Instrument to implement the Cebu Declaration, and ILO Convention 189
For Outward Mobility , much has to be done on alignment of curricula with international benchmarks, continuous learning, training and retaining and increased efficiencies in private recruitment , and protection of those in vulnerable occupations such as domestic workers
For Inward Mobility, there has to be equity measures that will include transition strategies; industrial upgrading to strengthen and expand the base for decent employment, and improving competitiveness through continuous on-the-job skills acquisition and development
Indeed great learning , tips and insights at the Asian Marketing Congress, don’t miss the next one.