Our international marketing expert Alison Humphries keeps us informed of the latest news from around the world, including experience marketing, export between the UK and Japan and the importance of strong customer service.
What is new, important and interesting in international marketing? This week we're looking at new markets to diversify and increase sales, the attention that should be paid to service delivery, the momentum of reinventing post-pandemic marketing strategies, and the development of Chinese industrial goods exports current trade challenges with the U.S. and the importance of offering virtual events instead of previously scheduled offline events to ensure ongoing customer engagement.
JAPAN LOOKS FOR STRONG EXPORT MARKET OPPORTUNITY FOR UK COMPANIES
The weak economic growth forecast for the UK is worrying companies in many sectors. The Institute for Export and International Trade Report on an optimal export market opportunity that could increase the sales of UK companies in their home market, which could benefit from diversification through internationalization or are able to extend their reach to new markets with a clear demand for their products or services. Foreign Minister Liz Truss said today that discussions began on a trade agreement with Japan that could generate £ 1.5 billion in revenue for the UK economy and could bring additional benefits to digital commerce and closer financial cooperation under the EU trade agreements are not available to trade.
The following statistics describe the potential opportunity that results from the agreement:
- Great growth opportunity – Japan is the third largest economy with GDP of $ 5.18 trillion (source: Gov.uk.)
- Existing strong trade partnership – UK-Japan trade reached £ 31.4 billion last year (source: BBC)
- Q2 2018-Q1 2019 UK exports to Japan amounted to GBP 14.6 billion (source: Gov.uk.)
- E-commerce in Japan is expected to grow to $ 203.9 billion by 2019-2022 (Source: Gov.uk.)
The trade agreement provides entry into the CPTPP free trade block and opens up opportunities for the Asia-Pacific region: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Currently worth 13% of global GDP and rising to 16% if Britain joins.
OFFER FOR CUSTOMER SERVICE FOR SUCCESSFUL GROWTH AFTER THE PANDEMIC
Jing Daily analyzed consumer experiences with luxury brands to identify those who have greater survival potential and are able to navigate successfully through current economic challenges. Consumers have had mixed experiences trying to return defective items to recently opened stores or online stores. They hypothesized that 50% of luxury brands may not survive the pandemic, not due to the economic impact of the virus, but due to a lack of appreciation of relationships with their current customer base and over-promising and underdelivery.
Survival advice is that customer relationship management is at the heart of your business:
- Be customer focused – maintain a continuous flow of communication so your customers feel loved
- Creating extreme values and creating lasting memories – Clarity about brand positioning across the company is essential to achieve this
- The higher investment is worthwhile
- Away from product orientation to a holistic customer journey – the after-sales service is equally, if not more important, than the service provided by the transaction
Brands that focus on creating value, positioning them inspirationally and rationally, delivering a targeted and relevant story and carefully planning the customer journey announce the greatest chances of survival.
DYNAMISM AND AGILITY ARE PROPERTIES THAT SUPPORT THE STRATEGY DEVELOPMENT THROUGH THE PANDEMIC
Think with Google researching how digital ad strategies can be adapted to a post-pandemic world.
The importance of authenticity for marketing communications becomes critical to success by emphasizing the human factor and bringing a sense of care and community to the fore.
Changing the tone to adapt to the change in our current way of life is much better received Publicis of Italy The Heineken campaign "New Social Relationships" is a good example of this.
Companies are more likely to accept new things that could promote survival. Advanced attribution models help you decide on the best strategies. The key is to focus on implementing long-term, future-proof tactics.
It is essential for success to learn from each other to determine the most effective ways to implement successful advertising strategies during this period.
Adaptation is important; Tesco protects you Campaign and Mondalez The adaptation of their production process from chocolate sculptures to medical visors for NHS employees at the front line exemplified their sensitivity to vulnerable groups, which was well received by their target group.
The rethink in corporate culture was welcomed by companies that have successfully emerged from the pandemic and are on the pulse of VULCA (volatility, uncertainty, complexity and ambiguity). Biedronka, the largest supermarket chain in Poland, took a successful approach by partnering with Glovo, an on-demand courier service that allows consumers to buy their products online and have them delivered to one of the 10 closest stores.
Will we see a reduction in exports of manufactured goods from China?
The center for strategic and international studies examined Plans for the global economy to move production away from China. It appears that the U.S. government wants to reduce high-tech exports to China, limit the expansion of investment, and move production from China to land, but most U.S. and Western European companies do not strive to achieve these goals.
A recent survey by the European Union Chamber of Commerce in China found that only 11% of European companies are considering moving their investments from China to other markets, which is lower than last year. Another survey conducted in Germany found that a number of companies canceled or delayed investment decisions, but only 4% considered moving production out of China. The US version of the survey shows that only 9% of American companies surveyed are trying to sell their manufacturing operations in China, and only 8% are considering doing so.
The Japanese government's recent funding of $ 2.2 billion to help companies move production out of China appears to be high. This is a very small part of Japanese investment in manufacturing in China. In addition, Toyota recently established a joint venture with 5 Chinese companies to manufacture fuel cell powered commercial vehicles.
Diplomatic tensions are not the main reason that companies are removing manufacturing from China, rising labor costs, improvements in 3D printing and other automated manufacturing processes, and climate change are often a factor.
The U.S. government's trade negotiations are unlikely to result in a sudden surge in goods manufactured on the domestic market. We may have strong arguments for maintaining manufacturing alliances with China.
VIRTUAL EXPERIENTIAL MARKETING SKYROCKETS ADAPTED TO REMOTE WORK
Initially, the future looked bleak for companies that depended on events to increase their earnings. However, many have turned to organizing virtual events as an alternative.
eMarketer to discuss Best practices with MAG Experience from New York:
- Make your customers feel like they are investing in them
- Create interesting and tangible content
- Consider gamification – give participants the opportunity to interact with your brand or with each other and provide content in an entertaining way. By engaging the interaction through offering games, they get engaged.
- Make sure that video on demand is available to people who may not be in your time zone
These are recommendations that could help many brands considering postponing events to rethink how they could instead be virtually delivered to maintain that higher level of brand engagement.
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