2014-02-20 09:40:59

Brand Storytelling Is Key for Asia’s Online Consumers

2014-02-20 09:40:59

 By Jamie Matusow, Editor

The link between consumer online engagement with brands, and how it influences their spending.

Waggener Edstrom Communications recently conducted a research study about the impact of digital content and brand storytelling online for brands across Asia-Pacific. The research is entitled “Content Matters: The Impact of Brand Storytelling Online in 2014.”

The new regional study reveals the relationship between brand storytelling online and key consumer behaviors such as brand advocacy, spending, and engagement across six business categories in 10 Asian markets.

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The study surveyed more than 2,200 consumers between the ages of 15 and 60 across Australia, mainland China, Hong Kong, India, Indonesia, Japan, Philippines, Singapore, South Korea, and Vietnam. The report also shares Asia-Pacific regional findings.

“Communications professionals across Asia find themselves under increasing pressure to prove the ROI of their investments in digital content. Our new research reveals a clear relationship between brand storytelling online and increased consumer spending, referrals, and engagement,” said Stephen Tracy, regional insight & analytics lead, APAC, Waggener Edstrom. “Put simply, the more consumers engage with brand content, the more they spend on brands.”

Zaheer Nooruddin, vice president of digital at Waggener Edstrom’s Studio D in Asia-Pacific, added: 

“For us the real take-away is that brand owners must focus on creating rich, compelling, and relevant storytelling for their audiences in 2014. If brands succeed with creating consumer engagement through high-quality content marketing across Asian markets, then the ROI will follow.”

Respondents were asked a series of questions related to how they interact with brands across different business sectors, including Travel & Tourism, Mobile Devices, Consumer Electronics and Appliances (excluding Mobile Devices), Food & Beverage products, Personal Care products and Healthcare.

Personal Care Findings

When it came to Personal Care some of the significant findings from the study included:

• Australian consumers who follow Personal Care brands online spend up to 111% more on Personal Care products per week


• 88% of digital consumers in Hong Kong participate in brand campaigns that have contests and giveaways on social media.


• 91% of Indian online consumers use Facebook Frequently or Very Frequently.


• 95% of Indonesian online consumers obtain information about products and services on social media.


• 87% of digital consumers in Indonesia search for the latest deals and promotions from brands on social media.


• 60% of digital consumers in Japan actively engage in online advertorial content or click on digital ads.


• 32% of digital consumers in South Korea use Cyworld Frequently or Very Frequently.


• Consumers in Vietnam who follow Personal Care brands online spend up to 156% more on Personal Care products and services per week.

Stephan Tracy, Regional Insight & Analytics Lead at APAC.

Recently Beauty Packaging’s editor, Jamie Matusow, had the opportunity to follow up with Stephen Tracy for additional insight on findings affecting the beauty and personal care marketplace:

Jamie Matusow: Do you think Asian consumers, in general, are more influenced by social media?

Stephen Tracy: I think that consumers across Asia-Pacific are becoming more active and engaged on social channels and, as a result, they could be more influenced by others on social. It’s worth noting, however, that the report showed levels of advocacy varied considerably between markets across Asia-Pacific. 

For example, levels of advocacy were very high in the Philippines yet very low in Japan. We shouldn’t forget that influence is defined by an entity (e.g. a friend, a celebrity, a company, etc.) and the content that they create, whether it’s thought leadership, entertainment, or simply curation. 

So the presence of brands on social and their investments in brand storytelling all contribute to how consumers are being influenced through social media.

JM: Do these findings indicate that retail shopping (in brick & mortar stores) is declining as a result of online? Do they research online and buy online – or research and then go to a store?

ST: We know that both eCommerce and mCommerce are growing rapidly, especially in markets like China and Indonesia. These numbers would definitely suggest that in-store purchases are declining. 

Many mobile apps for retailers have come a long way in recent years that have made the buying experience on your phone much easier and more enjoyable. Overall, we are seeing growth in the volume of consumers researching and buying online, but I don’t think that mCommerce has hit a critical mass in Asia-Pacific as of yet. 

That said, as smartphone penetration continues to grow across the region, and as retailers continue to improve their online or mobile shopping experience, from inquiry to purchase to exchange or refund, e/mCommerce will undoubtedly have a negative impact on the sales at brick and mortar retailers.

JM: Is there any indication as to whether these stats relate more to prestige products or mass products—or a combination?

ST: We took a broad approach to exploring purchase behavior within each business sector, so the data would cover a combination of the two. 

For example, personal care products could include both prestige and mass products. Although our data likely skews toward mass products in these categories, I think the findings can very much be applied to luxury and prestige goods as well. 

There are many great examples of low engagement, luxury, and prestige brands running highly successful, innovative, and engaging content marketing practices on social media. 

Our core findings showed an increase in spending and an increase in a consumer’s likelihood to advocate for a brand as a result of being highly exposed to branded content online, and I think this relationship holds true for luxury and prestige product brands as well.

JM: What would these data seem to indicate for companies in the U.S. looking to expand market share in Asia?

ST: Asia-Pacific is a complex region, with a wide range of languages, cultures, wants, and needs. 
Technology infrastructure and access also vary considerably across the region, but growth in the tech and telecommunications sector is moving fast for many emerging markets. 

To have a successful brand in Asia-Pacific, you need to think local. Invest in marketing communications programs that are both rich and relevant to your audience needs within each market.

To accomplish this, you need to do your research, profile your audience, create great content, and don’t assume that what works in the U.S., EMEA, or even other APAC markets will work in the country you are targeting.

JM: Any relevant findings in the Personal Care sector? How do Personal Care consumers stand out in this regard?

ST: Across Asia-Pacific, the Personal Care sector had the third highest overall impact on incremental spending as a result of having highly engaged audiences online, and the second highest impact on advocacy. The impact on spending in this sector was strongest in markets like Vietnam, China, and Hong Kong.

JM: Which region is strongest in this trend?

ST: Vietnam, China (cosmetic), and the Philippines had among the highest rates of consumer engagement and highest impact on spending and advocacy across sectors.