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Marketing in Asia


The Marketing in Asia Speaker Series aims to create a forum where business leaders, academics and students can discuss important issues around business and marketing in Asia.

This blog hopes to extend the discussions beyond the speaker events by providing with updates from speakers and articles on the latest academic research and industry trends.

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When Asian Consumers Reach Boiling Point…

Posted by on June 27th, 2012 · Uncategorized

There is compelling evidence that incidents of customer rage are on the rise, and not just in Western societies. Changing social and economic conditions in Asia (e.g., emerging consumerism and rising wealth in China) have spawned the emergence of customer rage incidents in wide variety of societies.

Drawing from a survey of 982 customers in China, Thailand, Australia and the USA, Paul Patterson and his colleagues show that although customers from western cultures are more likely than their Asian counterparts to exhibit rage emotions, the connection between rage emotions and expressions of those emotions is generally stronger in the Asian cultures they studied.  This finding contradicts generally held beliefs of Asian consumers suppressing negative emotion expressions.

Not only did the authors find that consumers from the Asian cultures they studied are more likely than their western counterparts to engage in revenge, they tend to exhibit more extreme forms of anger (retaliatory rage), extreme physical rage expressions, and are more are likely to take revenge. Moreover, retaliatory rage was more strongly associated with physical expression in the Asian contexts the authors studied than in western cultures.  A key finding is that Asian consumers though slow to anger, once initiated, their rage expressions toward service workers tend to be physical and vengeful. Important lessons for management need to be learned.

Study authors:

Paul G. Patterson, University of New South Wales, Sydney, Australia

Janet R. McColl-Kennedy, University of Queensland, Brisbane, Australia

Michael K. Brady, Florida State University, USA

 

 

Speaker Update: Ford Creating Jobs in India

Posted by on June 21st, 2012 · Uncategorized

In this interview recorded in early 2012, Michael Boneham responds to New Delhi Correspondent Richard Lindell’s questions about the current challenges of doing business in India.

He reiterates his confidence in the growth prospects for India’s auto market and stresses the need for stability in policy matters and labour relations.

http://www.youtube.com/watch?v=H43CuqXeSg0

Past Speaker: Ford Tailoring Cars for the Indian Market

Posted by on June 18th, 2012 · Uncategorized

In November 2010, Michael Boneham, President and Managing Director of Ford India, spoke at the Marketing in Asia Speaker Series about the challenges and opportunities of doing business for Multinationals in India.

He used various mediums to explore the demographic, cultural, linguistic and  religious diversity which converge to define the heterogeneity of the Indian economy and the Indian automotive industry- one of the most dynamic across the globe.

He also presented Ford’s launch of it’s small car,  the Figo , in 2010 as a case study. This was Ford’s first foray into the segment that comprised 70% of all vehicles sold in India. Through this case, he examined how Ford differentiated and marketed the vehicle to this segment against the backdrop of the dynamic Indian market.

His slides can be accessed here: Michael Boneham MIA Slides Final

 

Why Seniors Matter in China II

Posted by on June 4th, 2012 · Uncategorized

http://youtu.be/K1RqyVAEJ4U

Tom Doctoroff, North Asia Area Director of JWT advertising firm, writes “Within the next several years, China’s “gray” (50+) marketwill be the most potent spending demographic on the planet.

By 2025, there will be more than 500 million “mature” Chinese consumers, up from 300 million today, or almost 36% of the Chinese population, up from 21% now. Their per capita spending power will exceed $4,100, up from $1,620 in 2006.”

Read more here.

Why Seniors Matter in China I

Posted by on June 4th, 2012 · Uncategorized

Hip Hop Grannies

 

Pre-modern or traditional Chinese society placed elderly people on a pedestal. They were valued for their accumulated knowledge, their position within the extended family, and the sense of history and identity which they helped the family to develop. Respect for elderly people was an integral part of Confucian doctrine, especially for the family patriarch.

That position has not changed much. China’s future is charted, and kept on course by the Politburo, a core group of powerful party leaders. Seven out of nine members of the Politburo are above 63. Even retired members of the Politburo and the Chinese Communist Party (CCP) retain great power by serving as members of shadow advisory bodies.

The CCP itself has a tradition of elderly active within its power structures, and its great leaders, Mao Zedong, Zhou Enlai and Deng Xiaoping, worked to a very great age, into their eighties. Citizens refer to the more approachable of the Chinese leaders, Prime Minister Wen Jiabao, as Grandpa Wen, a sobriquet he lived up to when he personally supervised the rescue efforts during the Sichuan earthquake

The bulk of China’s industrial landscape continues to be led and shaped by those at the helm of state-owned enterprises. Path-breaking entrepreneurs such as Haier’s Zhang Ruiming and Lenovo’s Liu Chuanzhi are above 55 and continue to play powerful roles in their organizations, indeed, their industry. In the private sector, even as the second generation gradually takes charge, the founders of the companies remain influential, using their contacts, influence and power to swing decisions. These are the people who have, in the era of Opening Up, have shaped China. And they haven’t been forgotten.

This group also believes in looking after their ilk. It was once part of the filial duties imposed by Confucianism to care for one’s parents when they were old, so that when you too were old your children would in turn care for you.

In the new China, that old order and sense of duty is breaking down…

To read more, see ‘Embracing Change, Realizing Dreams‘ by Ogilvy & Mather Greater China.

Indian Consumer Kaun Hai? [Who is the Indian Consumer?]

Posted by on June 4th, 2012 · Uncategorized

In this forthcoming article, Julien Cayla and Mark Elson analyze how advertising executives and other cultural producers, such as magazine editors, try to answer the question ‘‘Indian consumer kaun hai?’’ (Who is the Indian consumer?) while trying to develop narratives that can represent Indian ways of living.

In a country as diverse as India, this is an extremely difficult task. Drawing from a content analysis of the Hindi and English versions of India Today as well as interviews with Indian advertising executives, the authors detail how cultural producers imagine Indian consumers.

This work illuminates the striking differences, between the imagined cultural world of the English speaking elite, and their vernacular counterparts. By showing the importance of the English language, and Western cultural references in indexing the ‘‘modern Indian,’’ this work contributes to macromarketing efforts to study globalization and its effects.

Globalization and the Indian Middle-Class

Posted by on May 28th, 2012 · Uncategorized

 

Steven Derne’s Globalization on the Ground Media and the Transformation of Culture,Class and Gender in India

– A Review by Julien Cayla

Beyond the hype about a great Indian middle class, the image of English-speakingIndians working in call centers and software companies, we need more nuanced accounts that critically examine the shift to neoliberal market economy in India. Steve Derné’s ethnographic work on film viewing in India is an important step in that direction. Derné offers a valuable perspective on the changes that have happened in India over the last fifteen years.

 

Derné argues that while globalization has intensified the Indian elite’s obsession with the West, it has not dramatically impacted what he calls the locally oriented middle class,the laborers, drivers and clerks which form the bulk of the Indian middle-class. As the author acutely observes “we must always keep in mind that the effects of globalization are mediated by class.” (p. 128).

 

Grounding his arguments in his longitudinal work with male film viewers in Dehra Dun, a mid-size town in North India, Derné is able to trace the continuity in film viewers’ understandings of family arrangements, the rejection of love marriages, female modesty, and the association of Western women’s fashion with unacceptable sexuality. He makes an especially important distinction between a “locally-oriented” middle class which remains attached to traditional family arrangements and a transnational Indian middle class which positions itself transnationally, in relation to the Western middle class. Furthermore, Derné argues that material conditions (such as middle class Indian women’s access to better jobs) will have to significantly change for middle-class Indians to start embracing the types of values and lifestyles depicted inWestern media forms.

 

This distinction between a locally oriented middle class and a transnationally oriented segment of the population is well-needed. Despite all the talk about the changing lifestyles of the “great Indian middle class” (see Varma 1998), Derné is able to show that for most of the Indians he met in 1991 and then 2001, life has not dramatically changed. Some of these men may have access to slightly better jobs but by and large,their conceptions of love marriages as fantasies and women’s commitment to family duties, their notions of family, gender and modernity have remained very similar. For the locally-oriented middle class, Derné argues, Hollywood films and other forms of transnational media have even intensified notions of male dominance and the objectification of women through images of male strength and female weakness.

 

In contrast, for the 5% of Indians who speak English well, the globalization of the Indian market has meant access to well-paid jobs and cosmopolitan lifestyles. While foreign travel, consumption of global brands and love marriages remain alien to most Indians, members of the Indian elite have more easily embraced these values and behaviors. Derné’s argument is that we have overstated the cultural change happening in India, that because structural and institutional arrangements haven’t dramatically changed for most ordinary middle-class Indians, their social imaginary is bound to remain very similar towhat it was a decade ago.

 

While Globalization on the Ground is an important and original ethnography, there is a crucial element that is missing from Derné’s analysis: the nation. While Derné’s depiction of a Westernized transnational affluent class rings true in some respects, one has to analyze these links to transnational circuits of consumption and labor in relation to the nation. One only has to look at the advertising efforts of foreign multinationals like De Beers, Cadbury or Procter and Gamble in India to realize that, rather than promotingWestern lifestyles, both foreign and local companies have intensified images and talkof Indian tradition and what it means to be Indian. When Derné analyzes the evolutionof Bajaj’s advertisements, he misses those nationalist undertones completely. For if the Ghandian man of earlier Bajaj ads has almost disappeared, Bajaj advertisements still talked until recently of national identity and national values (see Shatrujeet 2001). If globalization has reinforced the economic divide amongst Indians, nationalist discourses have permeated Indian public culture (Mankekar 1999; Rajagopal 2001). We can regret that Derné did not engage with this critical aspect of Indian public culture.

 

In addition, one can only regret that in his ethnographic work, he did not use the rapport he developed with his informants to better understand their own ideas about the opening of the Indian economy, their ideas of the West, their ideas about globalization. A better understanding of globalization and capitalism will have to start with such engagement.

 

Finally, by equating globalization with “transnational messages” (p. 163) and “transnational media” (p. 30), Derné has oversimplified the mechanisms of global capitalism. It did not take very long for MTV to Indianize their programming (see Butcher 2001). Associating MTV or the arrival of cable television with globalization is in some ways similar to the homogenization theory Derné tries to dispel. It equates globalization with a sort of wave of foreign and Western material which depicts alien ways of life. In doing so, Derné misses the complexity of global capitalism.

 

References

 

Butcher, Melissa (2003), Transnational Television, Cultural Identity and Change: WhenSTAR Came to India. Sage Publications.
Derné, Steve (2008). Globalization on the Ground: Media and the Transformation ofCulture, Class and Gender in India. Sage: New Delhi.
Mankekar, Purnima (1999), Screening Culture, Viewing Politics: An Ethnography ofTelevision, Womanhood and Nation in Postcolonial India. Durham, NC: Duke UniversityPress.
Rajagopal, Arvind ( 2001), Politics After Television: Hindu Nationalism and theReshaping of the Public in India. Cambridge: Cambridge University Press.
Shatrujeet, N. (2001), “Lintas Renews Tryst with Hamaara Bajaj anthem,” http://www.afaqs.com/perl/media/index.html?sid=3308 [accessed January 20 2008].
Varma, Pavan (1998), The Great Indian Middle Class. New Delhi: Viking.

 

 

Marketing in Asia Speaker Series

Posted by on May 20th, 2012 · Uncategorized

The School of Marketing at the Australian School of Business launched the Australian School of Business Marketing in Asia Speaker Series where academic experts and industry leaders can meet and exchange ideas on the most pressing and exciting marketing issues in the Asia-Pacific region.

The series will especially focus on China and India as two of the most important economies in the region, as well as on Hong Kong, Singapore, Indonesia and Thailand. The series will generate a rich intellectual debate about Asia and the relationship between Australia and key Asian partners, bringing together both industry and academic experts.

If you wish to be informed of our other events on Marketing in Asia, email your interest, including your professional affiliation to: asbspeakerseries@unsw.edu.au