Page 27 - PET worldwide issue 1/2021

the entire population, Asia re-
quired different regulations for
each country. And because Asia
was divided into developed mar-
kets – composed of Singapore,
Hong Kong and South Korea – and
developing markets in Southeast
Asia, the regulations could have
varying levels of difficulty. Some
markets may allow foreign im-
porters to set up their own entities,
while others could require local
partners. He suggested that pet
companies consider a master
franchise arrangement or a joint Photo: PublicDomainPictures, Pixabay
venture with a local partner: “This
team is closer to the markets than
you are from your regional head-
quarters in the US or in Europe.”
Marketing was another chal- Online is the key or seven Asian markets from a The pet industry in Asia is
lenge in the region of diverse cul- Meanwhile, logistics is a problem free trade area in Hong Kong so characterised by contrasts,
tures, religions and languages. in the archipelagic markets. In- you can check B2B preferences. here selling birds at a market.
Matthias Koch noted this diver- siders know it can become a lo- It’s a cheap test of the market,”
sity impacted on promotions, gistical nightmare because of the commented Matthias Koch. Da-
sale cycles, the kinds of prod- dispersed geography with islands. vid Ng added that companies
ucts that could be brought in – in Adding that new entrants ended had three options when it came
markets that were predominantly up having to look for different to distribution channels in Asia:
Muslim, for instance, pork-based partners for different areas of the sell through an e-commerce plat-
products may be unwelcome– same country, Matthias Koch said form, go through a distributor, or
and even packaging. Pricing was that “this makes it challenging to partner with a retail chain. “You
also an issue in discount-loving enter these markets with a clear must want to be with someone
Southeast Asia. David Ng, chief single brand message.” As for who understands both online
executive of regional pet retail channels, online could be a way to and offline. Because if you go for
chain Pet Lovers Centre, said go with three dominant platforms an online approach, you are limit-
discounting was an important – Lazada, Shopee and Qoo10 – ing yourself in Asia to less than
strategy: “People want to buy worth looking into as they corner 10 per cent of the market,” David
cheaper products. We need to 90 per cent of all online transac- Ng concluded. n
be competitive in terms of pric- tions in the region. Online, he said,
ing.” But he added that equally gave brand owners access to up
important to a good pricing strat- to 25 per cent of the market in Jennee Grace
egy was a good after-sales ser- some Asian countries. U Rubrico is a
vice that built the confidence of By looking at cross-border researcher,
customers in the brands. “The shipment opportunities pro- journalist and
editor. When
opportunity lies in either going vided by Lazada or Shopee, she is not tra-
for the premium market or com- brand owners could test differ- velling for
ing up with a niche strategy,” ent Asian markets. “These plat- work, she lives in Brunei with
her husband and cats.
Matthias Koch concluded. forms allow you to send into six

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