What are the best strategies to enter the ASEAN market?

In the pharmaceutical and medical equipment sector in particular, personal networks and trust between manufacturers, distributors and healthcare professionals are even more important than in the European environment. If necessary, self-imposed compliance rules should be reinterpreted within the legal framework. Building solid business relationships may take longer in some cases, but is generally more sustainable.

I consulted a German company that equips ambulances with emergency equipment to build business partnerships in Vietnam. After travelling to Vietnam and speaking with local governments, hospitals and distributors, it turned out, that for certain cities in Vietnam emergency care via ambulances was not practical due to the terrible traffic. The company then opted to a lighter version and focused on equipping motor bikes instead of bulky ambulances. You have to understand your target market. Each country is different. Adapt and find the right product market fit!

In my experiences through many brands and organisations, Culture decides customers’ purchasing behavior. And That is all you need to know and understand to have your products sold in Asean market!

First step in any new market is to identify incumbent competitors and real market potential. Dont be seduced by exotic new markets. Earn them. Do not venture out until you have mastered your home market or have prepared well to launch in a specific market. AESEAN is diverse, exotic, industrious and addictive. If you go in unprepared it will consume you and leave you dead on the beach. Use your Embassy Commerce team in each country, the country Embassy and Consul in the US. Your state Economic Development team is yet another resource that is tasked to develop and support state companies for export amd foreign companies. This creates a reciprocal relationship in any Country or Region than can save you significant time and money.

To understand who is your potential target customer. Of course in-depth market research is the essential for the economic landscape, at the same time, consumer(races, religious, income range, sex) behavior, regulatory environment, and competitive dynamics are crucial. Based on this, understanding the diverse cultures, traditions, and customs- so called cultual nuances significantly influence consumer behavior, marketing strategies, and business negotiations to identify "who pays for what".

If you want to be successful in ASEAN markets, you need to have a local representation. This is why: 1) Cultural differences and language barrier. You need some on the ground who can understand what is said between the lines and who speaks the local language. 2) Regulation: If you want to register a product in these markets you need to have a local representation going through the process. 3) Sales: You need someone present who will represent your company, be present a trade fairs and participate in local tenders. 4) After sales services: You need someone to commission a project and take care of maintenance. PS: I’ve helped +30 German companies form partnerships in Southeast Asia.

Establishing a local presence is a highly effective strategy for entering the ASEAN market. Whether through a subsidiary, joint venture, franchise, or local partner, this approach fosters trust and credibility with customers, suppliers, regulators, and stakeholders. A local presence provides access to valuable resources, networks, and insights, enhancing competitive advantage. Furthermore, it facilitates adaptation of products, services, and marketing strategies to align with the local context and culture. In my experience, this hands-on approach significantly contributes to successful market entry and sustained growth in the diverse ASEAN market.

I agree 100%. I reiterate the use of your State Economic Development and US Embassy Commerce team. They will arrange for careful vetting of representatives, resellers, partners, potential acquisitions and help you through the process. You do not need to cowboy through. They ride through this rodeo on a daily basis. Let the guide you and save both money and time to market.

Having a local presence through partners or distributors is key to success in ASEAN and other regions because it ensures deeper market understanding, cultural alignment, and faster entry. Local partners bring valuable insights into consumer behavior, regulatory requirements, and business practices, reducing risks and enhancing credibility. They facilitate better customer relationships and provide on-the-ground support, ensuring that products and services meet local needs. This localized approach builds trust, fosters brand loyalty, and increases the likelihood of long-term success in diverse markets.

Digital is the most important in ASEAN markets because of the region's rapid internet and mobile adoption, driving consumer behavior and business interactions online as digital channels offer unparalleled reach and engagement. E-commerce, social media, and digital payment systems are booming, making digital presence crucial for capturing market share. Additionally, digital tools provide real-time data and insights, enabling businesses to tailor their offerings to local preferences and respond quickly to market trends, ensuring sustained growth.

In addition to digital platforms, forming local partnerships is key for entering the ASEAN market. Partnering with established companies helps navigate regulations and cultural nuances, while providing access to distribution networks and brand recognition. Tailoring products to the region's diverse preferences is also crucial. ASEAN countries vary in culture, economy, and law, so understanding local consumer behavior is essential for success. Lastly, leverage trade agreements like the ASEAN Free Trade Area (AFTA) to reduce tariffs and regulatory barriers, facilitating a smoother market entry.

To succeed in the ASEAN market, focus on value creation by understanding the unique needs of each country and tailoring your offerings to solve specific problems. Rather than competing solely on price, emphasize how your product or service delivers quality, innovation, and long-term benefits. Highlight aspects like sustainability, customization, or enhanced user experiences, which resonate with the region’s growing middle class and evolving consumer expectations. Investing in customer relationships, from pre-sales education to reliable after-sales service, further strengthens your brand, fostering loyalty and trust over time.

Adding value with your brand in ASEAN markets is better than competing on price because these markets increasingly prioritize quality, innovation, and trust. A value-driven approach fosters brand loyalty, differentiates your offerings, and creates a sustainable competitive advantage. Consumers in ASEAN countries are becoming more sophisticated, seeking brands that meet their unique needs and aspirations. By focusing on value, you build deeper connections, reduce price sensitivity, and enhance your brand's reputation, leading to long-term success in these dynamic markets.

Pick Uniqlo(Japan company) here with 3 elements. ①Adaptability to local preference Tailor product offerings to suit the preferences of consumers, ensuring clothe designs and styles resonate with local fashion trends and tastes. Then actively leverages digital tech and smart solutions to enhance the shopping experience for customers. ②Community Engagement Engages with local businesses through various initiatives, such as charity drives, promotional, and partnerships-demonstrating its commitment to social responsibility. ③Resource Development Heavily invest for local employees, equipping with the necessary skills and knowledge to deliver high-quality service and represent the brand effectively. That brings a value for long-term employment.

Benchmarking with successful companies in ASEAN markets helps SMEs learn best practices, identify growth opportunities, and understand local market dynamics. It allows businesses to adapt proven strategies, enhance competitiveness, and avoid common pitfalls, accelerating their success by aligning with market leaders who have already navigated the region’s complexities.

Bi-literal content and platform. In our case, we prioritize the benefits of deploying our experience and know-how in Southeast Asia. For example, we evangelize the content that can be transformed locally regarding DX in the manufacturing industry (automobiles), which is an excellent Japanese industry. Ecosystem growth in technological innovation, and human resource development can be a role to play that ASEAN can take it from there. The most important guidelines is to establish a position that can grow each other utilizing the digital platform.

I not only focus on understanding its diversity, establishing a local presence, leveraging digital platforms, and creating value, but also prioritise building strong relationships with regional stakeholders and navigating regulatory environments.