To sell well in China, one must know faces

Eleanor S. Modesto, Jakarta

China -- Asia's giant can be viewed as a threat or as an opportunity. While some cower and anxiously see China as a big competitor, one can take an alternative view and see this country as a big market. Indonesian businesses should look at a country with over a billion consumers as a humongous market.

A scan of the horizon of any modern Chinese city and you'll see a mind-boggling amount of development. Now, think about all that concrete being poured, all those bathrooms that need tiling, floorboards laid and windows to be installed, empty noodle bowls that can be filled. China maybe producing goods that are exported to Indonesian shores but what's to stop Indonesian brands and services from doing the same and appealing to Chinese consumers.

Rather than be cowed by the onset of free trade, I believe some Indonesian companies can expand beyond our borders and operate abroad. The likes of Lippo, Wings, Kapal Api, Mayora, Indofoods, Medi-farma, Mustika Ratu and Sampoerna to cite a few, are spreading their sights across Asia and must be admired for their daring and gumption. It's not easy to enter new markets, more so in foreign lands.

Today, China is the fourth largest trading partner and investor in Indonesia and it's time that Indonesian exploit similar opportunities in our giant neighbor.

But in a sense, they are no different from the great multinationals like Unilever, Coca Cola, Johnson & Johnson or Procter & Gamble when they first set out to enter new markets in the early 20th century. And like these multi-nationals, they must concern themselves with the integrity and strength of their brands as they expand overseas.

A strong brand is the cornerstone of a company's wealth for generations. Consider Coke, Lifebuoy, Nike and Starbucks. Brand- building starts first by understanding and anticipating the needs and wants of people.

However, businesses have two options to get this crucial information -- one is to commission research which is costly and time consuming and the other is to rely on consumer data provided by governments -- generally of demographic and "lifeless". Indonesian companies should look for the big picture model that will provide a more insightful look at what truly drives consumer behavior.

Being in the business of persuasion, communication agencies like Lowe, are big on these type of insightful research models. For in combination with an appreciation for product attributes, consumer insight provides the groundwork for outstanding advertising that help move consumers toward a brand and make a sale.

One such ground breaking research is "Faces of China" -- a survey of 5600 consumers across 11 cities in China. This study is a facet of a larger research being undertaken by Lowe Asia Pacific called "Faces of Asia".

Recognizing that understanding the Chinese consumer is one of the last great un-chartered marketing challenges, "Faces of China" takes a look at a wide spectrum of consumer issues which include how they view the future, their level of optimism, how their traditional values are challenged by modern-day attitudes, their views on local and foreign brands and how they perceive advertising.

In the whirl of "busy ness" that often define start-up operations, it is often that consumer and marketing concerns are set aside until a later stage. This may not be the wisest move. Indonesian companies investing abroad have to search for a new network of suppliers to ensure they abide by the rules of corporate governance in the host country, they need to achieve economies of scale to be competitive; they need to partner with reputable companies to be successful.

But in today's highly competitive world market often defined by parity products, it is strong brands that often spell the difference between success and failure. So the emerging Indonesian multi-nationals must begin the Brand-Building process now, especially in Asia Pacific. And in time, world-class Indonesian brands will finally emerge.

The writer (eleanor.modesto@loweworldwide.com) is Technical Advisor of LOWE Indonesia, an advertising agency.