The Asian Century – Glenn Schloss

Beyond the glittering skyline of Tokyo, the innovative electronic gadgets and cutting-edge technology, the excitement of manga comics and J pop, there has existed a mind numbing, boring grey zone, the existence of which raises doubts Japan’s future prosperity. That’s the world of Japanese politics – the smoke-filled rooms and ultra-expensive restaurants where dull men in dark suits have traditionally cut deals which doom the world’s second largest economy to an uncertain future.

Japan has been a nation with so much to offer during the 60 years of its phoenix-like rise from the ashes of World War II. But at the centre of despair about its future is a sense of hopelessness about the Japanese political scene, its uninspiring politicians and their general lack of vision for the future.

That could all change in coming days following the resignation of the opposition party leader on Sunday which came two months after Shinzo Abe quit from the post of Prime Minister as a broken man. That’s because the downfall of Ichiro Ozawa, leader of the Democratic Party of Japan, opens the way for a fresh opposition leader who could turn Japanese politics upside down. However, the prospects of an outsider taking charge of the DPJ is remote as the likely successors currently being touted are the same faces. There’s a sense of growing crisis in Japanese politics which provides a sense of opportunity, and hopefully bring more openness and the potential to harness the power of communications.

What all this highlights is the need for a fresh approach to political communications in Japan. Last week, I wrote that one of the defining trends of the Asian century will be increased political choices for Asians. Unfortunately the prospect of greater choice for Japanese voters appears as elusive as ever unless a breakthrough comes soon. Real choice will only emerge in Japanese politics, hopefully in the close to medium-term future, thanks to the onward rush of globalisation and the growing realisation that the nation risks being left behind by the rest of the region.

What really needs to happen in Japan is for the reservations and lack of direct communication which still smothers much of the nation’s dynamism to be lifted from its political system. Appeals to the interests and needs of voters must replace the focus on factions and service for vested interests. Populism is not an alternative but a more popular, appealing and dynamic form of politics needs to be developed. What is missing primarily is dialogue between the elected and their true electorate, the people.

Politicians need to develop policies which answer not only the nation’s myriad problems as well as the real concerns of their voters and then effectively communicate their proposed solutions. Apart from the traditional methods of consultation such as the election period speech, kissing of babies in shopping malls and community meetings, social media on the Internet should be better utilised by politicians to explain their platforms as well as listen to the voters.

And to put the icing on this cake of reform in political communications, politicians should craft more compelling “political and life stories” about their policies and themselves.  They need to put a human face on their political persona, not present themselves as yet another grey suited factional operative. Remember Junichiro Koizumi, the pint-sized lion-haired reformer? Now he had a story to tell.

HONG KONG, Monday November 5, 2007

[Photo: Apple Daily]

The Chinese characters on this t shirt – seized with hundreds during a police raid on a trendy fashion outlet Thursday in Hong Kong – say “14K”. That’s the second biggest triad, or organised crime gang, in “Asia’s world city”. Who says Asian marketing and branding isn’t innovative or creative enough?

Police swooped on the headquarters of G.O.D. (Goods of Desire), arresting 17 staff including sales people and designers for selling the t shirts. Triads have long been a menace in Hong Kong to the extent that the law prevents anybody from claiming to be a triad or possessing any insignia related to the gangs.

The fashion for ironical statements on t shirts which has been sweeping the globe has clearly been gripping Hong Kong too, shirts bearing cannabis leaves and marijuana leaves are popular. Whether the 14K shirt episode is a step too far or the police have overreacted will be decided in the courts of law and public debate. Already media have suggested freedom of expression extends to the wearing of t shirts. Apple Daily, the local equivalent of a racy tabloid which also advocates democracy, shouted sarcastically about the raid on its front page: “14K t shirts confiscated – police put on big show”

G.O.D. is a great Hong Kong lifestyle, fashion and furniture brand oozing creative flair. It evokes an East-meets-West mood which captures the current zeitgeist. Its handbags are fashion items – featuring pictures of Chinese-language classified newspapers or red, white and blue clutches as a twist on the much larger, plastic bags used by domestic helpers or the elderly to lug goods around, known locally as “amah bags” or “Kowloon Samsonites”.

Its “Delay No More” t shirts and fashion line sells incredibly well, given the pronunciation of the English phrase in Cantonese sounds similar to the local insult suggesting something offensive involving your mother.

It has won creative design prizes from local establishment bodies. Asia needs more brands and marketing like this which taps into local tastes while reinforcing high design standards.

However, unless you are an advocate of “any publicity is good PR” methods, G.O.D. could have followed some basic communications protocols in Asia:

• Don’t do anything illegal or (in this case) which is in the grey zone until ambiguity is clarified - triad symbols are extremely sensitive in Hong Kong and the law forbidding their use is well known
• If in doubt about any commercial activity, seek legal advice or discuss informally with the authorities before setting off
• If a law appears wrong or stifles a legitimate business activity, mount a carefully-planned public affairs or lobbying campaign – don’t get caught selling a product (this had been on sale for a couple of months) unless the risks associated with high profile arrests, extensive media coverage (no matter how sympathetic) and an unhappy police force are those that you are willing to bear

Nevertheless, here’s to the team at G.O.D. - in the pursuit of innovation and creativity, artists and designers sometimes cross the line. From a communications perspective, the most important thing is to demonstrate a commitment to operating within the law or having the law clarified. In the final analysis, G.O.D. is a business, not an artists’ collective.

www.goodsofdesire.com

HONG KONG, November 2 2007

The Asian century is unfolding with full speed.

Here are five trends currently unfolding that will be pivotal in shaping the years ahead:

1. The rise of Asia on the world stage

“Chindia” is the fashionable reference for the continuing rise of two of the world’s fastest growing and most populous nations. China and India comprise 40 percent of the world’s population. With the standard of living in China one-fifth and India one-tenth that of high income economies, high levels of growth are expected for another 40-50 years. It’s likely China will continue as the world’s factory and India its office for the foreseeable future. Their political and economic systems are currently vastly different and there is some prospect for cooperation. However, some analysts also see political and economic divergence giving rise to potential conflict. China’s growth has been so rapid that Goldman Sachs a few months ago revised its projection for it overtaking the US (in real dollar terms) by 2027 (moved forward from 2035). The investment bank also projects India will be larger than the US by 2050.

Few multinational companies with operations in Asia have yet recognised the impact this massive shift will have on communications and brand strategies – including where the power over related decisions still resides geographically. The opportunities/threats which are arising have yet to be properly addressed.

2. Choice in markets, politics and brands

Asians are enjoying not only prosperity which they could only dream of in the previous century – choice and personal freedoms are on the rise. Markets will continue to be opened. The longer-term trend is for more choice in the political space too, continuing the developments of the past 30 years.

Increased prosperity will flow through societies across Asia, empowering consumers and providing them with the greatest choices in products, services and how to spend their time than ever before. Civil society will continue developing across the region. Accordingly, the rise of stakeholders will heighten pressure on companies to behave according to international norms, with greater transparency and accountability. CSR is already on the rise, with approaches currently heavily borrowed from Western best practice – expect Asian-grown solutions to emerge.

The ongoing liberalisation of markets will not only bring more multinational brands into Asians’ lives, the quality and quantity of locally-produced products will increase dramatically.

Competition will be intense, consumer and media scrutiny unrelenting.

3. Asian brands going global

The first and second waves of brands from Japan and Korea to go global have been successful in winning awareness – Sony, Panasonic, Samsung, LG and so on. Now the third wave of brands and Asian companies taking on the world is emerging from China and India – Lenovo (computers), Haier (whitegoods), Li-Ning (footwear), Ranbaxy (pharmaceuticals) and Tata (steel, cars and the owners of Tetley tea).

The strategies are currently focused on acquiring well-known Western brands but as experience, confidence – and quality – is further developed, Chinese, Indian and more Taiwanese companies will take their brands to the global markets.  For the time being, Western multinationals which have managed to build indigenous brands with strong local appeal will need to remain nimble and flexible – the key will be identifying appropriate opportunities for portraying foreign or local attributes, depending on the tastes of audiences. Conversely, Asian brands will need to develop globally by downplaying their roots. They should only retain some appeal based on origins when brand development is boosted by that association.

4. Taking the race out of the Asian space race

The much-hyped Asian space race is on, and the effects – far beyond the media sensationalism and patriotism – will be long lasting and mostly beneficial. With space as the final frontier now being conquered, the focus on the heavens truly indicates Asia’s arrival. China, India and Japan are all shooting for the moon now. All three nations rely heavily on natural resources and are major exporters. Natural resources on the moon and Mars figure in their space plans. However, the spill over effects for R&D and innovation in the region will be significant.

Governments will need to communicate carefully the benefits of these programs to local audiences as well as the international community to avoid tensions or nationalism being stoked. After an initial period of focus on the competitive elements of ‘being first’, the emphasis will likely move to exploring resources and space collaboratively – not exclusively, certainly not in a race – and communicated accordingly.

5. Turning green

The air over much of Asia is brown and polluted. Green zones in populated areas are disappearing. Asia has paid the price for its rapid development and as prosperity rises, the toll it takes on health and the environment will no longer be tolerated. China is showing signs of getting tough on polluters and facing up to the dilemma of development versus growing calls from the international community to cut greenhouse emissions. Japan’s experience indicates the trend for the century ahead: its post-war development frenzy and rising level standards culminated in demands for tight controls on pollution and conservation of what remains of the natural environment. The rest of Asia has no choice but to turn green. [For more on H&K's Return on Environment study including impact in China, click here]

Companies in Asia will need energy strategies to deal with rising concern from regulators as well as stakeholders about climate change. Given the state of the environment in the region and signs the situation is moving to a tipping point, broader environmental strategies will also be crucial for corporate reputation.

Trends and events examined in detail

These trends are not only related to economics, politics and security, they have significant ramifications for communications and branding activities of multinational and local corporations as well as governments.

Hong Kong, November 1, 2007