SINGAPORE – With the 2015 deadline for ASEAN economic integration looming, global information and measurement company Nielsen anticipates ASEAN 2015 will be the catalyst for rapid change and strong growth across the region, opening up opportunities for companies which are able to remain agile and anticipate change.
According to a new Nielsen report released today, ASEAN 2015: Seeing around the corner in a new Asian landscape, the trends currently observed in Southeast Asia represent substantial opportunity, with the company citing solid GDP growth forecasts, the expanding middle class consumer population, strong consumer confidence levels and significant investment in infrastructure as factors playing a role in shaping the future of the region.
“While the marketplace is rife with speculation and opinion on whether the member states are prepared for the 2015 deadline, the overwhelming majority of business leaders in the region and around the world share the view that ASEAN will play an increasingly important role in the global economy in the years to come,” states Regan Leggett, Regional Director of Client Service for Nielsen in Southeast Asia, North Asia and Pacific.
The Nielsen report cites three strategies to help companies navigate the complexities of ASEAN 2015:
1. SEIZE THE MOMENT
Actively plan for the broader framework and timelines of the ASEAN objectives rather than wait for detailed directives on what to do and how to respond. Planning should encompass reviewing business systems and processes, broadening market intelligence and building a total market view to guide investment and strategic direction.
“There is a political will to start pushing protocols through and demonstrating an ability to make progress,” observes Leggett. “While this will result in significant changes in regulations, legislation and requirements in the short term, physical changes such as customs processes and infrastructure may lag somewhat. This presents opportunities for those companies which have taken the time to prepare in advance.”
2. DRIVE EFFICIENCIES AND BOTTOM LINE GROWTH
Have a thorough understanding of how price sensitivity differs by market and where changing tariffs, processing, regulations and transport requirements can be leveraged for cost savings in production, sourcing and supply chains. Establish new relationships or leverage existing ones to obtain local market knowledge and insight.
“Nothing matches local knowledge and local networks,” emphasizes Leggett. “Differences in culture, market dynamics, history and relationships can translate into massive variations in the way a company markets, distributes, prices and functions in different markets. Having an established network will be key to accessing local knowledge quickly in order to understand market nuances and identify threats and opportunities.”
3. PROTECT AND DEFEND
Scenario plan with in‐depth market intelligence to calculate the risks that ASEAN 2015 represents. Hold structured planning sessions that facilitate consideration of scenarios to highlight potential threats and opportunities, actively monitor the business environment of competitors, clients, suppliers and partners engaging in new business practices, and develop a clear talent plan taking into account the new regional landscape.
“Political deal‐making, short timeframes and varying agendas surrounding ASEAN 2015 means organizations which are flexible and can adapt quickly to change will have a solid competitive advantage,” notes Leggett. “Preparing in advance will also be important in addressing talent shortages as companies begin to scramble for skilled talent with local expertise in order to realise opportunities or cope with new challenges.”
“There remains a significant amount of unresolved uncertainty around ASEAN 2015 and beyond. Little is known about the details and there are few voices of certainty, which has created nervousness about the outcomes and impact,” notes Leggett. “Despite the uncertainty, there are a number of strategies companies can employ now to prepare for ASEAN 2015, and those who take the time to plan will reap the benefits in the mid to long‐term.”
