Growing beyond national borders in a challenging economy
By Jeetu MahtaniIt's time for companies in Singapore to expand globally, according to the recent Budget 2016 announcement. An economic slowdown this year has the government predicting a small 1 to 3 percent growth. At that rate, Singapore businesses simply can't afford to keep their sights solely focused on the local market.
Luckily, the answer resides close to home. With 60 percent of millennials slated to reside in Asia by 2020, Asia Pacific (APAC) is lying in wait for a surge in growth. Even better, the government has included initiatives in Budget 2016 to support international expansion – through grants, Double Tax Deduction for Internationalisation for SMEs, and more.
With these initiatives in mind, we've put together what Singapore organisations can keep top-of-mind as they plan for growth in APAC and beyond.
1. Find power in the palm of your hand.
Today, brand control lies squarely in the hands of consumers. They're skipping commercials and screening telemarketing calls. But most troubling to the ad industry? Consumers are increasingly resourceful in blocking online ads.
A recent study on the Effectiveness of Advertising saw that millennials hold the highest adoption rate of adblocker software – with over 300 million downloads worldwide of Adblocker Plus, the world's most popular adblocker app. Furthermore, 96 percent of consumers globally and 94 percent of Singaporean respondents have unsubscribed from receiving emails, with 46 percent of consumers in APAC noting they didn't sign up for mailing lists, to begin with.
Traditional marketing tactics revolving around print, TV, radio, email blasts, direct mail, or cold calling obviously aren’t generating the returns they once did, superseded by more modern tactics such as digital and content marketing, or even native ads, which are not only performing much better but also showing appreciable returns on investment.
It's also interesting to note that Emarketer estimates that there will be close to 1.5 billion smartphone users in APAC by 2019; with the right targeting methodologies in place, this sets up organisations with even greater opportunity to engage with the right audiences at the right time.
2. Look for a less traditional approach.
In an economy where budgets are shrinking, it's increasingly important for businesses to get the most bang for their limited buck. One way is to give your customer engagement strategies a tune-up.
Traditional advertising might still receive a good number of eyeballs, but consumers in APAC are increasingly showing negativity towards tried-and-tested methodologies – including telemarketing calls (92 percent of APAC respondents and all Singaporean respondents do not have a positive experience with this format); pop ups (51 percent); and auto playing videos (40 percent). Additionally, 75 percent of responders in APAC say being subjected to a telemarketing call would lower their opinion of a brand.
Thankfully, native advertising presents a viable way forward. To be fair, no form of advertising received a positive response across APAC. But unobtrusive experiences, like email newsletters or sponsored content on Facebook, Twitter, or LinkedIn, received neutral scores. Among digital consumers, there is one clear preference for native advertising: match the look and feel of the platform they appear in.
Considering the rapid consumption of information a quick scroll down a social media page provides, it's no surprise that native ads create a neutral experience for consumers. And when they're done well, native ads fit in seamlessly with a standard post from the same platform.
3. Upgrade your skill set.
As consumer preferences change, so too should companies. How else do they intend to keep up? Fortunately, according to the Budget 2016 announcement, for qualified SMEs, training grants will be made available through the Business Grants portal in the fourth quarter of 2016.
Interested SMEs can also benefit from the Capability Development Grant which considers 'Brand and Marketing Strategy' as a key development area. The grant funds up to 70 percent of qualifying project costs such as consultancy and training.
With the right training programs in place, not only are employees set up for success and growth but they'll also see returns on investments in the form of improved productivity and better overall efficiency.