Cheat Sheet for Doing Business in SE Asia

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South East Asia, an amalgamation of amazing nations and distinct cultures geographically south of China, East of India, west of New Guinea and north of Australia. To say that the region is at a tipping point and on the verge of an economic renaissance, would not be far from the truth. The reasons are fairly easy to pencil down…a relatively younger & productive population, access to the internet through smartphones & better infrastructure, urbanization, stable democracies & governments to name a few . All these factors seem to be converging & leading to the point of hockey stick growth. And while I may be biased, the single most important factor seems to be the access of the internet- fast, wireless & on affordable devices/screens.
In early 2000 there were virtually no internet users in Viet Nam & today Viet Nam is racing ahead with expected users to be at close to 50 million by end 2016. Not bad for a country of 95 million! Similarly, Philippines has seen a remarkable growth in the number of internet users in the last 5 years and stands at almost 43 million…again not bad for a population of 100 million. Ditto for Indonesia, erstwhile Twitter & Facebook capital of the world and now racing to adopt Instagram through its close to 100 million internet users in a population of about 250 million. What is even more encouraging than the net number of users is the rapid internet penetration and amazing business being started up adding a valuable layer to the economies.
None of what I have shared above is top secret or anything new, but was meant to highlight the importance of the region from a market growth perspective for those of you who may be thinking of either entering the region or growing more aggressively.
Over the next two decades, Southeast Asia is forecast to be one of the world’s fastest growing consumer markets with regional GDP to quadruple to 10 trillion USD by 2030 and with negative growth happening in developed countries, this region will play a big role in the growth and sustenance of technology companies in the future & one which no right thinking business can afford to pass.
Since I have had the opportunity to engage with the finest minds in this region representing internet/social media players, telecom operators, VCs, industry associations, thought leaders, digital government functionaries, I was getting nudges from friends to share my top business development 101 tips for the region. So, for those wanting to get a share of the action and keeping customers delighted, here goes in no particular order of preference or priority:
 

1. SPEAK S-L-O-W-L-Y:

I cannot reiterate this enough. SE Asia is an amalgamation of countries, none of which have English as their spoken/ preferred language (with the exception of Singapore), so please speak slowly and coherently. Introduce yourself, hand out business cards and give your business partner time to understand and respond. Remember, if he/she is understanding English, they already know a language more than you…so respect that.
 

1. Localize:

In the context of large strategic market entry plans, we always think of “localizing” our product or creative advertising to appeal to a larger subset of the population. Think on those same lines for a meeting or engagement in a SE Asia country. Try picking up key words and using them as ice breakers in your meetings. Trust me, even a simple “Terima Kasih” or Thank You in Indonesian Bahasa would charm your toughest of business partners. Don’t be afraid of making a fool of yourself. The fact that you tried to speak their language will be hugely appreciated. Similarly, respect local dressing and local food. When you do go out with a potential client or partner be a sport, try the Indonesian Nasi Goreng (fried rice with vegetables or meat) or Sambhal( traditional chili paste in multiple varieties..if you can handle it)  or a Vietnamese Cá Kho Tộ (caramelized fish in clay pot). For business meetings try wearing local dresses like an Indonesian Batik shirt (which I love!). While dressing though do take advice from a local. You wouldn’t want to do a boo boo for an important meeting.
 

1. Face Time:

Ok, so I’m not rooting for Apple here, but culturally the whole Asian region prefers doing business with a face attached to a name. While emails, concalls, video conferencing etc. are the tools available to the modern business development champion, there is nothing that beats a face to face meeting for building trust. More so, if you are pitching to a senior executive & can more easily read body language & modulate your pitch accordingly. Once that trust is developed & visible (which may take multiple meetings) with the key executive, it will be easier for you to navigate through various teams in culturally hierarchy aware societies. Also, in general, I have found senior executives in the SE Asia region to be more open and transparent about their thoughts on my pitch vs say executives in India.
 

1. Network:

This one is a no brainer. Especially if you are trying to develop a new market or territory for your company. And don’t limit networking to adding connections on LinkedIn but go out and speak to people, meet them at social & industry events & ask for introductions. I would even recommend friending people from all walks of life, maybe even the concierge of your hotel or the cab driver. You will be surprised at the amount of local knowledge and relevant inputs that you will get.
Of course, while having a conversation with an executive at an event the basic rules still matter… that of being relevant and having done enough ground work for a fruitful meeting.
 

1. Patience & Persistence:

Last, but certainly not the least, understand the virtues of patience & persistence. Rome wasn’t built in a day and neither will your deal come through instantaneously no matter how cool your product or service is. It is not uncommon to have multiple meetings and conversations after an “in principle deal/ term sheet finalization”. This may be a bit hard to understand for some of our colleagues in the Western world, but keep this in mind, balance internal expectations with reality & keep chipping away at your goal.
 
All the best!!

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