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Tag: Brand

  • Gucci’s smart KOL strategies in China

    Gucci’s smart KOL strategies in China

    Google announced the top 10 most searched fashion brands of 2017, among which Gucci claimed the number one spot. What kind of smart strategies has it applied so far?

    The company has chosen three different methods to help itself expand its presence in China, through the WeChat mini program platform, through advertising campaigns, and through ambassador branding.

    Gogoboi: Take advantage of WeChat mini programs
    Gogoboi (Ye Si, 叶嗣) partnered with Gucci earlier this month to launch his 2017 Holiday Collection on his official WeChat account. This is the first time when Gucci offered exclusive online sales via a third-party platform – specifically a WeChat mini program – with a KOL in China. The outcome was remarkable: within 5 days, all of the promoted items were sold out, which was comparable to that of Givenchy’s sales in July 2017.

    Originally a features editor for Grazia China, Gogoboi rose to fame in the fashion world by running his own Weibo account, where he writes style guides and criticizes cultural icons in China. Contrary to other fashion critics who tend to praise all brands regardless of their quality and design, Gogoboi’s comments are usually snarky and negative. However, this does not stop him from being popular among Chinese consumers as he chipped away at the mainstream fashion media and was adored by more and more Gen Z customers. Eventually, Gogoboi gained national recognition for his strong point of view, and his remarks are usually seen as a top “fashion guide” resource in China.

    In April, Gogoboi launched a mini program for his own high-end e-tail store, dubbed Bu Da Jing Xuan (不大精选), which allows customers to shop luxury brands through WeChat on their mobile phones. A mini program is an app used within the WeChat app itself, with no additional downloads. Blurring the lines between sales and critiques, Gogoboi curates a recommendation list for all luxury brands that Bu Da Jing Xuan tries to sell, and Gucci’s 2017 Holiday Collection is one of them.

    Zhou Fenxia (周芬霞): Connecting with ordinary customers
    Gucci unveiled its “Roman Rhapsody” advertisement campaign in September, which features models in different neighborhoods of Rome. The promo video quickly went viral in China not only because of the eye-catching pieces from Gucci’s upcoming collection, but also because a Chinese immigrant, Zhou Fenxia, starred in the promo video. “This is the first time that an ordinary Chinese woman was selected for a high fashion promotional video in three decades, and her personal video clip has gathered the most likes on Gucci’s Instagram,” according to CGTN, an English-language news channel of China Central Television.

    Zhou is neither a professional model nor a TV personality. She is the owner of a Chinese restaurant in Rome, indeed. Zhou met Alessandro Michele, Gucci’s creative director, when he was dining in her restaurant, and Michele quickly realized that Zhou would be a good fit for the “Roman Rhapsody” campaign. “[The reason Gucci came to me was] Probably because of my Chinese identity,” Zhou told Netease (网易) during an interview. “Gucci wants to expand its Chinese market and I think they would like to star Chinese people in their campaigns.”

    Chinese customers are by far the most important national cohort of luxury consumers, accounting for about 30 percent of all luxury purchases in Italy, according to a recent report by ouliannews (欧联网). Choosing a non-celebrity model likely helped Gucci better connect with ordinary customers in China, and this may even be revolutionizing the fashion industry. Michele, who is known for his creativity and originality, does not conform to the chic aesthetic currently dominates the fashion industry, and starring Zhou in “Rome Rhapsody” may signal a new strategy Gucci will use cater to the Chinese market.

    Li Yuchun (李宇春): Redefining fashion icons in China
    Li Yuchun is a Chinese pop singer, songwriter, and actress. In 2016, she obtained another role: the brand ambassador for Gucci in China. Li has broken the stereotype of Asian women being sweet and gentle, and showcases a style of androgyny that has proven a good fit for Gucci.

    Li’s fame in China was also a significant factor in Gucci’s decision to make her its brand ambassador. Li won the national singing contest Super Girl (超级女声), in 2005. Ten years later in 2015, she was picked as one of Business of Fashion’s 500 Global Fashion Leaders. For Gucci, Li represents feminism in some way – to set loose women from the shackles that traditional Chinese culture imposes on them, which is a kind of spirit Gucci would like to convey and continuously uphold.

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  • 5 Tips For Powerful Retail Brands

    5 Tips For Powerful Retail Brands

    With the competition so steep in today’s retail market, retailers must build on their brand and their customer service in order to edge ahead of the competition. First, they must learn how to better enhance their services so that they can deliver better than their competitors.

    In today’s powerful market, owning one’s own brand is tantamount to their success. It can help them to edge ahead of the competition and focus on the reasons that customers are choosing them over the competition. In recent research with some of the larger retails in transforming their labels into their own personal brands, we’ve decided to share the Top 5 discoveries along the way.

    1. Train Staff

    Training staff and keeping them up to date with the latest techniques and changes in the industry should be the number one thing for any business in retail. This is a fast paced business and the companies that invest in the knowhow and skills of their workers are the ones that come out on top. There are plenty of corporate e-learning companies and businesses that can help you with this aspect and it can make all the difference.

    1. Never Underestimate A Name

    Names denote the quality of a product. They frequently revert to the normalcy of the market and how the public perceives the product. It’s imperative to find a name with personality as well as a name that reflects the brand. The name must be powerful and assertive enough to draw the attention of the market. Central to the overall design, a Co-operative Food brand name must show the core values of the company without overpowering the product. The field range must show the corporate logo and brand yet allow the product to shine through. Such a decision is the core value and a frequent strategy that will yield more product sales. This helps to keep the integrity of the company at the forefront of the market. It also helps to unify the range, aid in the recognition of the product and the company and show a sense of warmth and well-being. This, in turn, builds up the confidence for the quality and the taste of the product. Shown in multiple colors, such logos further elevate the notion that the company is involved and has it together. This is a benchmark for the market.

    1. Don’t Just Sell The Brand, Sell The Product

    It’s not just about the sale of the product. The label must denote the brand of the product without overpowering the name of the product. It must tell the customer why this product should stand out from the rest of the market. The best way to do this is to sell the brand as well as the product. For Morrison’s, it had to show that they had their own brand as well as an outstanding product. It had to show their commitment to the quality of the fresh food as well as the reason that the food should be chosen over others foods of different brands. The customer had to feel that this product was the superior product over the other products on the market. It denoted an authenticity and although it was wrapped simply, it stood out from the crowd and the design was personalized with a hand-written script. This gave it a personalized and friendly tone that showed not only quality but also, a personalization that others were lacking. This clearly showed that the market cared about the quality and led the consumers to want to buy something that was “hand-made” just for them.

    1. Value Denotes Value

    It’s easy to choose cheap over quality. It’s done every day in every market. However, it’s not always the best way to shop. More attention must be given to what people are seeking and how to get them what they are seeking. The category must point out that the product is quality and worthy of their attention. The range value must be in line with other products, yet offer a value to the consumer. To break the conventional approach, the products would have to stand out from the crowd and offer the customer a value that other products didn’t offer. This meant that the company had to use a different approach and offer them a different level of value. The value range made customers smile and gave them a superior product. This, in return, yielded a year on year growth of 49 percent and the competition was quickly surpassed.

    1. Brand Identity

    Consider that the brand must identify itself vs just the packaging. Thus, it’s vital to consider the identity of the product as well as the quality. Designs should stand out and focus on the quality of the product as well as identify the brand. Color, packaging, and brand should all stand out and be apparent when considering the retail brands and how to make them stand out. This gives a huge impact on the shopping experience.

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  • 250 to 300 international brands to enter India

    250 to 300 international brands to enter India

    A new wave of international fashion brands will be entering the Indian consumer market in the coming two years as an increasing number of mid-segment brands expand into India.

    Following the success of many international fashion brands in India including Zara, Mango, H&M, and Levis, many mid-segment brands are now looking to follow their lead and enter India.

    The retail solutions provider Franchisee India Holdings has estimated that between 250 and 300 such brands will enter India over the course of the next two years.

    With the entry of these brands, the business also estimated that an investment of about one billion dollars will accompany this, a figure that could transform India’s fashion market.

    “Now, it’s the turn of small and mid-sized brands as they look to cash in on the open retail policy and huge gap in the market for branded products,” said Gaurav Marya, the Chairman of Franchisee India Holdings. Anurag Mathur, a Partner at Pricewaterhouse Coopers, agreed: “Many international brands are lining up as the retail sector is growing and international brands like Zara and H&M have been really successful, with strong profits and revenue growth being reported in the country. Now, the slightly mid-level or smaller brands too want to explore the Indian market.”

    Some of the mid-section brands that are in the process of expanding into India include Kiabi, Mavi, Avva, Colin’s, Damat, Tudba Deri, and Dufy.

    It is expected that this wave of brands will focus their expansion efforts on Tier 1 cities and, for them to be able to reach out to Tiers 2 and 3, infrastructure will have to greatly improve.

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  • Hugo Boss sales improve on its brand divergence

    Hugo Boss sales improve on its brand divergence

    Hugo Boss has achieved solid sales growth thanks to its policy of focusing on its own retail store network.

    Retail same-store Hugo Boss sales rose 5 per cent in the third quarter, to September 30, and currency-adjusted sales were up 3 per cent.

    “We are well on track to achieving our goals for 2017 or even exceeding some of them,” said Mark Langer, Hugo Boss CEO. “In particular, the performance of our own retail business is highly satisfying. We are making good progress in repositioning Boss and Hugo.”

    In its own retail business, the momentum of comp-store sales growth accelerated.

    “This performance was again underpinned by Great Britain, China and, for the first time in two years, by the own-retail business in the US,” said Langer.

    “The group’s own online business also grew in the quarter. On the other hand, sales in the wholesale channel declined slightly as expected. Operating profit fell slightly short of the prior year’s figure due to intensive marketing activities for the Boss and Hugo brands, spending on the digital transformation of the business model as well as negative currency effects.”

    The group now expects Asia-Pacific and Europe to drive “low single-digit percentage rate” sales growth for the remainder of this year.

    From the end of the year, first parts of the Spring/Summer 2018 collection, which reflects the focus on splitting Boss and Hugo for the first time, will be available in stores.

    “The repositioning of the two brands has been accompanied by numerous online and offline events and campaigns over the past few months. Formula 1 world champion Lewis Hamilton and Hollywood actor James Marsden presented their personal favorites from the Boss Menswear collection in the global “Own Your Journey” social media campaign. Consumer response to the advertised styles has been extremely positive.”

    In July, Boss Womenswear unveiled its “Gallery Collection” in a presentation at the Berlin Fashion Week. Future capsule collections of both brands will be used to generate heightened attention.

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  • GXG joins an Australian sportswear brand

    GXG joins an Australian sportswear brand

    Australian compression and high-performance sportswear brand 2XU has formed a JV with Chinese fashion retailer GXG as part of an Asia expansion plan.

    This will give it access to more than 1 billion Chinese consumers, and 2XU plans to add special apparel lines for the market. China’s gym and fitness industry has been growing at an annualised rate of 11.8 per cent since 2011 and generated nearly US$4.6 billion in revenue last year.

    Under the JV, 2XU plans to open up to 50 retail stores throughout mainland China in the next three years as well as its online and wholesale business.

    CEO Paul Higgins says the move is significant for the business, which launched in Melbourne 12 years ago. It first entered Asia in 2008 with a wholesale presence in Hong Kong and Singapore, and is now in 13 markets across Asia Pacific. It plans to increase its stores from 22 to 50 in the next 12 months, and to 100 in the next three years.

    Growth in the sportswear market in China has been driven by an upswing in sports participation rates. About 2.8 million runners last year took part in events, according to the Chinese Athletic Association – double the number in 2015. However, the number of gym attendees across 70 major cities has grown by up to 5 million every year since 2011.

    Already 2XU has been generating 51 per cent year-on-year growth in Asia Pacific in the past 12 months. The brand is available in Mainland China via concept stores in seven major cities, and has retail and wholesale channels in Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan, the Philippines and Vietnam.

    Under the new JV, 2XU Performance Centres will start opening in major Chinese cities from early next year.

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  • Luxury fashion brands start to sell on China’s WeChat messaging app

    Luxury fashion brands start to sell on China’s WeChat messaging app

    China’s Tencent Holdings Ltd. is using its vast social-media network to attract luxury-fashion brands to its WeChat app, potentially opening a new frontier in online retail.

    France’s Longchamp and the U.K.’s Burberry Group PLC have begun selling handbags and clothes on WeChat, China’s most popular messaging app. LVMH Moët Hennessy Louis Vuitton SE’s Givenchy and Dior brands are testing demand for their goods through flash sales on the platform.

    The move signals a challenge to Alibaba Group Holding Ltd., the dominant player in e-commerce in China, where online transactions are expected to reach 6 trillion yuan ($870 billion) this year, according to consulting firm Bain & Co. Alibaba’s sites processed more than $547 billion in transactions in fiscal 2017, which analysts say is more than eBay Inc. and Amazon.com Inc. combined.

    While luxury sales on WeChat are in their infancy, Tencent’s courting of high-end fashion brands is part of a widening battle between China’s internet companies. Alibaba, Tencent and search engine Baidu Inc. are venturing beyond their traditional business lines into payments, social media and e-commerce.

    Upscale brands are rethinking their digital strategies amid a tough environment for luxury sales. Global sales of personal luxury goods were flat in 2016, at EUR239 billion ($267 billion), while global spending on luxury by Chinese consumers fell for the first time last year, according to Bain. Even so, luxury brands are seeing a pickup in mainland China as brands lower prices there and Beijing encourages consumption at home.

    In the U.S., a small number of luxury labels have tested sales on social media including chat apps. But Tencent in China is making inroads with luxury brands by taking advantage of the massive online ecosystem it has built around WeChat, whose more than 900 million users book movie tickets, hail rides, order laundry pickup and pay for utilities without leaving the app.

    The online sales are also fueling WeChat’s mobile wallet, WeChat Pay, against market leader Alipay, launched by Alibaba’s Ant Financial in 2009. Only WeChat Pay can be used on Tencent’s platform. As recently as 2014, Alipay commanded nearly 80% of China’s mobile payments market, but its share slipped to 54% by the first quarter of this year. Tencent’s payment system, including WeChat Pay, had 40% in the first quarter, according to research firm Analysys.

    Last year, Alibaba joined with Mei.com — which received a $100 million investment from Alibaba in 2015. The e-commerce giant is also relying on big data to clean up counterfeit goods listed on its platform. Alibaba is the “world’s leading fighter on counterfeits,” founder Jack Ma said last year.

    In the past year, Alibaba has reduced the number of third-party product listings of goods made by the top 10 luxury fashion brands by an average of 73%, according to L2 Inc., a digital consulting firm. Still, an average of 49,000 total product listings remained as of April on Alibaba’s Taobao site, a bazaar-like platform of small businesses and sellers.

    Affordable brands such as watchmaker Tag Heuer, jeweler Pandora and cosmetics companies have opened on Tmall, Alibaba’s platform for mostly large brands. But most luxury fashion brands remain wary of open platforms such as Alibaba and rival JD.com because they fear losing their aura of exclusivity, according to Danielle Bailey, head of research in Asia Pacific for L2. Burberry is an exception, opening a store on Tmall in 2014.

    Mr. Cassegrain, Longchamp’s CEO, said, though, that WeChat’s appeal is that it isn’t an open platform where luxury goods can be sold along with everyday products. Users must follow Longchamp’s account or scan a QR code to be taken into the brand’s site.

    Burberry, along with watch and jewelry brands Cie. Financière Richemont SA’s Cartier and IWC Schaffhausen, are among the few that have opened full stores on WeChat.

    Cartier advertises on WeChat’s news feed and sells on the platform because “China is one of the most digitalized markets in the world today, and Cartier has to adapt to it,” said Renaud Litre, chief executive of Cartier China.

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  • LVMH confirms launch of multi-brand fashion site

    LVMH confirms launch of multi-brand fashion site

    LVMH is launching a multi-brand e-commerce website inspired by its exclusive Parisian department store Le Bon Marche, as the world’s biggest luxury goods group steps up the digital side of its business.

    The new website, named “24 Sevres” after the Rue de Sevres location of Le Bon Marche in the chic 7th arrondissement, will offer fashion, cosmetics and luggage products from LVMH’s own portfolio as well as brands from outside the group.

    Overall more than 150 labels, including 20 of LVMH’s own stable such as Louis Vuitton, Dior, or Fendi, will be featured.

    The size of the investment amounted to several million euros and marks the biggest digital initiative taken by LVMH since it hired former Apple music executive Ian Rogers in 2015 to craft its digital strategy and capitalise on the luxury sector’s online sales expansion.

    LVMH, controlled by French billionaire Bernard Arnault, said the new site would go live on June 6 in more than 70 countries.

    Competing with established rivals such as Yoox Net-a-Porter , MyTheresa, Matchesfashion.com or LuisaViaRoma, it echoes the high-end positioning of the Le Bon Marche store.

    It will give international clients “very Parisian choices” in the selection of exclusive products, Rogers told Reuters.

    “The idea is to be attractive with unique products, not necessarily have a huge offering,” said Rogers.

    E-commerce is still a relatively small part of the global luxury goods market, representing 7 percent of industry sales, but this is expected to rise to 12 percent of industry sales by 2020, according to the Boston Consulting Group.

    Luxury goods companies face a dilemma over trying to reach young Internet-savvy shoppers while preserving the sense of exclusivity that drives up the value of their products.

    LVMH has already tapped into the increasing importance of online social media by setting up LVMH Luxury Ventures to invest in start-up luxury goods projects.

    Until now each LVMH brand has had its own separate digital strategy, with some brands such as Fendi and Kenzo putting significant resources into this area while other brands such as Celine had no E-commerce website of their own.

    The new website will complement the offering available on the respective websites of the LVMH brands, Rogers said.

    Big fashion brands such as Prada, Gucci or Valentino will be sold on the site as well as Maison Margiela, seen as a more cutting-edge label, or others such as Kitsune or APC.

    LVMH’s online sales of €2 billion ($2.2 billion) last year equated to 5.3 percent of overall group revenues.

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  • China Southern Airlines issues open invitation to brands

    China Southern Airlines issues open invitation to brands

    Li Jianhua, President and CEO, Guangzhou China Southern Airlines (CSN) Inflight Duty Free says it has enjoyed double-digit sales growth in recent years driven by innovation in its product portfolio as well as the introduction of duty free exclusives and a pre-order service.

    “We have redeveloped our products and pricing for specific buyer groups,” said Jiianhua. “But we still need more luxury brands to enter the market to appeal to a new generation of consumers in China.”

    She also implored brand owners in the audience to come forward to begin conversations with CSN, whilst promoting the huge potential of the China inflight market.

    Jianhua charted the company’s rise to success to become ‘the largest airline in Asia by fleet and passengers’ as the carrier claims. Jiianhua highlighted that CSN launched its first inflight retail programme in 2001 and it very quickly began to play a very important role for the airline, not just from a customer engagement perspective, but from a revenue generation standpoint.

    She pointed out that the company wants to extend its global reach, identifying that Southeast Asia represents 31% of the company’s current route quota and with Japan & Korea accounting for 28%.

    She also pointed out that she believes the company has great potential, especially considering that Chinese overseas visitors reached 122m in 2016. As the company expands its route reach and takes advantage of the growing number of passengers Jianhua insists that inflight retail will be available on ‘every international flight’.

    Skincare represents 30% of China Southern’s inflight business.

    She noted that research from Fortune Character suggests that Chinese consumption continues, but has slowed down in recent years and high-end consumers now tend to make more ‘rational’ decisions.

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  • Brandline – Bring Your Brands to Life

    Brandline – Bring Your Brands to Life

    Consumers are exposed to more than 3000 messages a day. The real question now is, what will make your brand stands out? As consumers only spend a few seconds in front of retailer shelf, are the in-store messages targeted properly and relevant? Hence, design solutions that boost the traffic and sales potential in retail environments are sorely needed.

    As the expert in merchandising and in-store communication, HL Display Thailand has the most innovative design and ideal solutions to create a more desirable shopping experience and brand awareness that includes

    • Creating a place where the consumers want to shop
    • Developing impulse buying and customer loyalty
    • Making differentiation from competition
    • Increasing basket size and footfall

    Communicate the brand values and product benefits with Brandline™, the collection of shelf liners, highlighters and accessories, specifically designed to create highly effective on-shelf communication and segmentation. Extending the message areas with additional accessories such as lighting is also reinforcing brand awareness and instantly adding positive disruption visually.

    https://www.youtube.com/watch?v=DUECYwjKfjA

    Health and Beauty category for instance, is a category characterized by many new products introductions coupled to variety of pack sizes and shapes. State of the art message conveyer, cosmetic front rails, sample tester holder, lighting accessories are becoming a must have in store environment, and this is when Brandline™ becomes even more important than ever.

    For further information, Bangkok based HL Display Thailand can be directly contacted during office hour at +66 2276 2445 with the attention to Mr. Thanasun Sakchuenyod, or e-mail to thanasun.sakchuenyod@hl-display.com or info.asia@hl-display.com. Visit the company website at www.hl-display.com/asia

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  • Nike And Jordan Brand have opened a huge store in China

    Nike And Jordan Brand have opened a huge store in China

    Jordan Brand and Nike came together to open up a humongous store dedicated to basketball. China will now hold a 6,550-square-foot store located in Beijing’s EC Mall. The store will feature some of Nike basketball and Jordan brand’s latest basketball products with opportunities for personalized store experiences with NIKEiD. The space will also feature trailing zones for custom products which is called Nike+Basketball trial zone.

    “Our new Nike and Jordan Basketball Experience Store demonstrates Nike’s commitment to the sport and culture of basketball in China, and how we’re continuing to lead the future of sport retail,” said Dennis van Oossanen, Nike’s VP of direct to consumer efforts in Greater China.

    The store will also include huge appearances from athletes, in-store events and much more.  Check out the gallery below of the 6,550-square-foot store.

     

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  • Marikina-made shoes a hit in Indonesia

    Marikina-made shoes a hit in Indonesia

    Filipino fashion retail brand Rusty Lopez recently opened its newest store in Jakarta featuring comfortable sandals and casuals made from Marikina, the Philippines’ shoe capital known for producing durable and high-quality footwear.

    According to a recent report of the Department of Trade and Industry’s Philippine Trade and Investment Center – Jakarta, the store in Sogo Lippo Mall Puri located in the St. Moritz Central Business District is the brand’s 9th outlet following the opening of stores in Seibu Grand Indonesia, Sogo Emporium Pluit, Sogo Central Park, Sogo Alam Sutera, Lotte Shopping Avenue, Metro Plaza Senayan, Metro Gandaria City, Metro Taman Anggrek.

    In a statement, Philippine Commercial Attaché to Indonesia Alma Argayoso said the sales of the newest collection during the opening were brisk. The other stores also received positive feedback.

    “It is exciting to bring to the Indonesian market the Philippines’ world-famous Marikina-made shoes. This affirms our belief on the potential of fashion retail products in Indonesia, Southeast Asia’s biggest economy,” Argayoso said.

    The first overseas store of Rusty Lopez opened in Jakarta on March 6, 2016 at the Seibu Department Store of Grand Indonesia Mall and featured carefully selected designs suited to the Indonesian market.

    DTI noted that increased interest in Philippine-made shoes abroad helps revive the local shoe industry and is expected to open more opportunities for small enterprises to generate employment within their communities.

    As part of the DTI’s Industry Promotion Group, the Philippine Trade and Investment Center (PTIC) in Jakarta will continue to support and assist Filipino homegrown brands in globalizing their products and accessing regional markets by continuously looking for potential partnerships.

    Aside from Rusty Lopez, other Filipino fashion retail brands in Indonesia include Karimadon, Penshoppe, Gingersnaps and Ann Ong Jewelry.

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  • YLKI Protests Indecent Bikini-brand Snack

    YLKI Protests Indecent Bikini-brand Snack

    Chairman of Executive Committee of the Indonesian Consumers Organization Foundation (YLKI) Tulus Abadi protested on a Bikini-brand snack product. Tulus said the brand sold in social media is considered as indecent.

    “That is a snack (fried noodle) product with a non-educational, even indecent, brand name”, Tulus said Wednesday, August 3, 2016.

    Recently, information of the Bikini snack circulates through chain messages. The product shows a woman’s body from shoulder to hip with just wearing a bikini. The worst part is the package has “remas aku” (squeeze me) slogan written on it.

    YLKI protested the circulation of the product and asked to recall the product from the market. Tulus requested the National Drug and Food Agency of Indonesia (BPOM) to reprove the manufacturer and demand to shut down any form of sales through social media.

    “Online selling, particularly via e-commerce Olx.com and Bukalapak.com, must be immediately stopped. Consumers must not purchase the product, especially the children,” said Tulus.

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  • Golden opportunity: why now’s the time for brands to move in Myanmar

    Golden opportunity: why now’s the time for brands to move in Myanmar

    In the street outside Yangon’s Shwedagon Pagoda, a Buddhist monk reaches into the folds of his burgundy robes for his mobile phone. He cuts a somewhat incongruous figure, tapping his screen against a backdrop of golden spires, with a steady stream of pilgrims and traffic all around. But this blend of ancient tradition with digital connectivity is now the way of modern Myanmar.

    The pace of change here is on a scale unseen in other fast-growth Asian markets. Just three years ago, buying a mobile SIM card meant handing over $2,000 in cash on the black market; now, there are now three competing networks and a SIM costs just $1.50. Ownership of mobile phones has already shot up to more than 50 per cent – a fact all the more remarkable given that only a third of people here have mains electricity in their homes.

    It is this prevalence of mobile connectivity right at the beginning of Myanmar’s growth curve that is proving such a strong accelerant of change. Mobile connectivity won’t just enable growth, it will direct it, leading entire business sectors – from banking to retailing – to leapfrog stages of development.

    The International Monetary Fund has predicted Myanmar will have the world’s fastest-growing economy this year, with GDP growth of 8.6%. Since the country embarked on a programme of ‘disciplined democracy’, investment has been increasing. The smooth transition to a civilian-led government earlier this year is giving many more businesses the confidence to invest and expand here.

    Economic growth and urbanisation are giving rise to social mobility, and with that, the world’s newest, youngest middle class. Myanmar is home to 51 million people, more than half of them aged under 30. By 2020, Boston Consulting Group anticipates that 10 million will be middle-class or affluent. These people won’t necessarily be wealthy by global standards, but they will have disposable income that puts fashion, fragrance and home appliances within reach. Later, they will be in the market for cars and overseas holidays.

    For brand owners, this represents unprecedented opportunity, and there is a clear early-mover advantage to be had. WPP’s global BrandZ study tracks the way consumers feel about different brands around the world. Some brands are so little understood by consumers, they are a ‘clean slate’ in consumers’ minds. In Myanmar, where shoppers have had little choice about where they shop and the brands they buy, about a third of all brands fall into this ‘clean slate’ category – double the global average.

    That means now is the time for brands to start making an impression, not just on people who are ready to buy, but also on those who are on their way up. Ford and Chevrolet are already here; Coca-Cola, KFC and Pizza Hut are among the other international brands to have launched in Myanmar.

    Consumers in Myanmar are open to trying new products and new brands, but while global brands can serve as shorthand for quality or safety, they are not a badge of honour and do not instantly command a premium. People are embracing the opportunities that digital connectivity offers, but do not seek an express route to ultra-modernity. The languorous pace of life here is seen as something to be treasured; thoughtfulness and self-control are admired, and modest attitudes to spending and thrift can make indulgence seem decadent.

    Brands need to be respectful of tradition, and understand that parents and grandparents are highly influential. BrandZ analysis shows that the strongest brands in Myanmar project idealism and a sense of adventure, but steer clear of individualism and rebellion. They also help consumers navigate what is becoming a sea of choice, emphasizing not just the features of a product but the difference it can make to the consumer’s life. This involves working closely with the traditional retail trade – local ‘Mom and Pop’ shops – which account for the vast majority of sales here. These stores are not just distribution points but trusted sources of information and advice.

    Norwegian mobile phone network Telenor has demonstrated how global brands can achieve local resonance. Its TV campaign reflects the importance of family as a young woman in the city calls her mother in the countryside for urgent cooking advice; she wants to cook ‘nan gyi thohk’ noodles from her home-town to impress her mother-in-law. The ad has been so popular that nan gyi thohk is now ‘the Telenor dish’.

    Similarly, the isotonic drink 100PLUS, from Malaysia, has established a powerful connection with consumers in Myanmar by reflecting what it feels like to be in a hot climate with so much that needs to be done.

    For now, access to television is higher than mobile penetration, but only just. Mobile internet is where consumers are increasingly getting their information, and going online in Myanmar means going on Facebook. Even President Htin Kyaw is a subscriber. Media plans need to be mobile-friendly, if not mobile-first.

    Success in this market requires a nuanced approach both to business and communications. The Buddhist monk on his phone appears to be straddling very distinct worlds; in fact, he is integrating the two in a uniquely Burmese way.

     

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  • First-ever Myanmar Study Highlights Factors for Brand Success & Future Game Changers

    In a nascent marketplace where local brands hold their own against foreign competitors, Apple has emerged as the most differentiated brand whereas local telecom player MPT ranks as the most loved. Brands like mobile provider Telenor have also earned recognition for innovation, despite being a recent market entrant.

    Myanmar’s rapid transformation also means businesses need to ready themselves for game-changing scenarios propelled by technology and infrastructure advancements. Myanmar is set to become the first country in the world to go straight to smartphone as part of its “leapfrog” development. Key changes affecting marketing and brands include the rise from almost zero mobile penetration to nearly 50% in just a couple of years. Technology will likely direct a new generation of digital growth, from retail to banking to social communications.

    The Spotlight on Myanmar findings are based on everyday buying decisions such as coffee, soft drinks as well as long-term purchase decisions around mobile service and handset sectors. Research shows that the most effective messages come from brands that put their products and benefits front and centre. Key differentiators behind the strongest brands are those that project idealism, desirability and a sense of adventure.

    BrandZ research in Myanmar includes 1,660 consumer interviews and covers 42 key international and regional brands that are already building a sense of meaningful difference in Myanmar, based on either their global profile or their local activity. Findings show that:

    • Apple is the most differentiated brand in Myanmar followed by Coca-Cola and Samsung. Apple indexed 232, where the average brand indexes at 100.
    • Mobile network Telenor is the most innovative brand in the survey, indexing 125, with rivals MPT and Ooredoo coming second and third respectively.
    • MPT is the most loved brand in the survey, indexing 129, nine points ahead of Samsung and 11 points ahead of Telenor and Huawei.
    • Samsung’s brand proposition scored the highest at129, ahead of Apple on 125 and MPT on 118.
    • Huawei scored highest on brand power -a brand’s ability to boost sales or gain market share due to consumers’ predisposition to choose this brand over another – indexing 436, significantly higher than its global average score of 81. Huawei performs better in Myanmar than it does in its home market, China, on this measure.

    “There are huge opportunities for international brands to be successful in Myanmar, if they get their cultural message right and understand the diversity of the country, particularly in the border areas. Our teams have identified comparisons with the India of 30 years ago and indeed some aspects of rural India today. Also valid are comparisons with Indonesia, which also has a large population that lives off the land as well as a huge range of different climatic regions,” said David Roth, CEO at The Store, EMEA and Asia.

    The report also highlighted a number of key trends that will change how brands and agencies should approach this market, now and in the next few years, including:

    • Rapid improvement in infrastructure. It has taken just three years to build a national mobile network; other changes including the arrival of greater electrification and improved transportation links will happen much faster than would be expected in many markets.
    • e-tailing is coming. Despite the current poor retail infrastructure, the rapid growth in e-commerce in other developing markets acts as an indicator that the speed will be similar in Myanmar.
    • The world’s first mobile-only market. Consumers are increasingly looking to mobile for both information and entertainment. While TV is important, brands need to consider Myanmar as not just a mobile-first environment but also a mobile only market.
    • Sell the effect, not the spec. Consumers are new to choice in Myanmar so they will navigate the new landscape differently. Brands need to focus on how the product will meet their needs and make it easier to compare functions and prices.
    • Appreciate the diversity of Myanmar. This is not a homogenous nation. Although 88% of the urban population is Buddhist, there is a huge range of ethnic, climatic and cultural variety, which will be particularly critical in the personal care sector.

    “BrandZ’s first research in Myanmar will help international and regional marketers understand the challenge of building strong brands in this new market. Experience in other fast emerging markets shows that first mover advantage and the loyalty it engenders in consumers can last for decades. Myanmar is a long-term commitment but one that will pay off for the brands that get it right,” said Doreen Wang, Head of BrandZ, from Millward Brown.

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  • Dtac plans major prepaid brand revamp

    Dtac plans major prepaid brand revamp

    Thailand’s Dtac has announced a major prepaid brand revamp and introduced new promotional tariff plans as  part of efforts to attract at least 1 million digital consumers to its prepaid subscriber base.

    As part of the revamp, Dtac will replace its Happy prepaid brand as it moves to bring all its prepaid brands under the Dtac umbrella.

    The operator has allocated 200 million baht ($5.7 million) this year towards marketing the Dtac prepaid brand.

    Dtac has also introduced plans offering unlimited internet access and free calls within Dtac networks for 29 baht ($0.83) per day.

    Prepaid customers will also be offered free YouTube streaming from midnight to 8am and 24 hour music streaming.

    Around 80% of Dtac’s 25.5 million subscribers are prepaid customers, with the wide majority using the operator’s 3G network, statistics provided by the company show. Around 68% of Dtac’s prepaid customers own a smartphone.