MARKET REPORT, ASIA
First Asian hub fi res warning shot
Asia’s economy is returning to positive growth and consumer confi dence, although still ragged, is improving. But one political or structural glitch could bring it all tumbling down. By Guy Hearn
In 2009, the global fi nancial crisis hit Asia hard with sharp contractions in GDP recorded in many markets and a slump in consumer confi dence. Fast forward 12 months and most
economies around the region are projected to grow strongly through 2011. Consumer confi dence has improved, although there is still evidence of caution and longer buying cycles in high-involvement purchase categories. The growth and increased demand in China and India is particularly impressive. From a media and marketing perspective, advertising spends are up and agencies that downsized in 2009 are hiring again. However, international marketers
would be well-advised to pay heed to a number of underlying stories.
Dependence on China
The Chinese economy is booming due to the government’s massive fi nancial stimulus. Adspend is forecast to grow more than 14% this year and is pulling along growth in markets as diverse as Australia – a primary supplier of raw materials to Chinese industry – and the fi nancial, services and logistics hubs of Hong Kong, Singapore and Taiwan. Yet there are signs that the government is worried about the market overheating, and any attempts to dampen the economy will have knock-on eff ects.
Dependence on exports
Hong Kong, Singapore, Malaysia, Thailand and Taiwan are heavily dependent on exports and recovery in
MEDIA TRAVELLER
their major export markets – the US, the EU and Japan – is still fragile. Any disruption is likely to have a negative impact on growth and be refl ected in reduced consumer confi dence causing a return to the value hunting that characterised consumer behaviour in 2009. Add to that local structural issues and the potential for political instability in Thailand, and it’s clear that south- east Asia and hub markets have plenty of challenges to face.
Japan peeps from the shadows
Japan is still to emerge from years of economic diffi culties. Although mild growth is forecast for 2010 this comes on the back of two successive years of decline for the world’s third largest economy. The automotive, fi nance and information technology categories have suff ered the most as consumers show little inclination to spend. Advertising revenues fell by almost 12% in 2009 and 2008 levels are not predicted to be regained until 2012 at the earliest. There is promise, but international marketers relying on Asia to improve
their fortunes have been warned. ○
Guy Hearn is director of communication insights, Asia-Pacifi c, Omnicom
ASIAN ADSPEND GROWTH
Market
China India
2009 2010
5.8% 14.2% 8.5% 13.8%
Japan -11.9% 4.4% Taiwan -13.5% 7.7% Singapore -10.8% -3.0%
Source: Credit Suisse, eMarketer
DELHI, INDIA KF Lai, chief executive, BuzzCity
MOST CONVENIENT HOTEL
The Lalit Hotel at Connaught Place – it is very central, making it convenient for meetings
BEST BUSINESS LUNCH
Chor Bizzare – the interior looks like a fl ea market with antiques lying around the restaurant. It has a really great atmosphere
www.mandmglobal.com
REASON TO WAKE EARLY
It is a lot cooler than the rest of the day
BEST MEDIA HANG OUT
The Press Club
ETIQUETTE TO LEARN
There is nothing specifi c that you should be aware of, just don’t forget that you have to be polite
TOURIST ESCAPE
Get a cheesy souvenir; I suggest a Taj Mahal model from carved soapstone… with a built-in clock!
DON’T...
Travel in peak hours
For more in-depth comment go to
mandmglobal.com/ market-reports
IN 60
ASIA
SECONDS
Tata strengthens media and entertainment portfolio
Carrefour eyes expansion into India Facebook to set up shop in India Aegis strengthens Chinese offering with TV company acquisition BuzzCity launches Mobilizer
Willcom in Japan fi les for bankruptcy Google shifts Chinese operations
Washington Post in Indian
newspaper tie-up Pakistan gets
dedicated Newsweek edition WSJ
launches app in India Golf Digest launched in Thailand Canal+Group unveils new channel package in Vietnam Forbes to reveal an international edition in Indonesia Nat Geo launches BlackBerry App in Hong Kong and Australia BBC Worldwide announces plans to launch three channels in Malaysia
Grey Group axes joint Taiwanese venture
M&M PREVIEW 2010 21
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