Asian Economy To Top the World by 2020Economics / Asian Economies Mar 18, 2010 - 11:52 AM GMT
Business analysts predict an economic rise for Asian corporations. The current conditions work towards the success of Asian giants. Their success is presumably based on the low cost of products which it its turn is based on the use of cheap labor force. The prospering Asian companies can not be good at everything. Their weak point is the spheres of communications and branding.
Fleishman-Hillard, a global leader in marketing and communications, conducted a research titled “The New Asian Champions”. The results of the research were unveiled in China, at a conference of the World Economic Forum.
The survey revealed that 70 percent of world political, scientific and business elite were certain that Asia, with China at the head, will become the most influential region of the global economy by 2020. Sixty-seven percent of respondents said that enormous opportunities of the Asian economy would be visible already in five years, taking into consideration current economic trends.
Seventy-two percent of respondents said that the main advantages of Asian transnational corporations are based on the low cost of their products and inexpensive labor force. Nevertheless, Asian companies have to solve many problems to be able to use their potentials on the world market. Thirty-five percent of the respondents said that Asian corporations lacked branding and specialization.
Such Asian brands as Tata Group, Hyundai, Daewoo, NEC and some others are widely recognized, whereas many others are not. It can be explained with insufficient experience in the field of branding and communications to make Asian companies competitive in the world.
Forty-eight percent said that they suffered from the negative influence of the global economic crisis, the lack of information about sales markets, as well as cultural and language barriers. The survey also revealed insufficient transparency of Asian transnational corporations.
“Asian multinational corporations need more visibility to compete with companies in the U.S. and Europe. Only 11 percent of respondents say that companies from the region have the public affairs expertise to succeed in the global arena,” the survey said.
The New Asian Champions have all chances to achieve unprecedented success. It is too early for Asia’s leading companies to rest on their laurels, though. The leadership of the Asian region in the world shall not be taken for granted. It is time for Asian corporations to think about investing in branding.
“The fast-growing economies of India and North Asia have provided unprecedented opportunities for today’s Asian MNCs. As they continue to grow and take on new markets, the next few years will test their ability to reinvent themselves into global success stories. Clearly, the New Asian Champions have unprecedented opportunities to succeed globally,” said Dave Senay, president and chief executive officer of Fleishman-Hillard.
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