Asian companies are seeing a confluence of economic and societal factors that will accelerate their global expansion in the coming decade. 

Gen Z has been an important driving force in enabling Asian brands to go global. According to the United Nations, this group of digital natives represents a quarter of Asia’s population and is discerning in their choices. They do not shy from self-expression and seek authentic and “relatable” home-grown brands to reflect their Asian identities. 

Gen-Zers tend to make purchase decisions after online research and product comparison. They trawl Instagram, TikTok, and YouTube videos for reviews. They are savvy enough to decipher which user feedback is bot-generated and which is genuine. Their ready access to data helps them make informed decisions. More are demanding quality, differentiated, and increasingly environmental, social, and governance-compliant (ESG) products and services.

Asian brands have taken heed of Gen-Zers’ unapologetic approach to holding companies accountable for any shortfall in expectations. Their comments, both good and bad, can go viral overnight on social media. The world of “point of view” and “fear of missing out” has democratized information, and companies that do not address the feedback risk reputational and financial damage.

The global stage is set for Asian companies. 

Social media is today’s way of life. Of the 8 billion global population, close to 5 billion use social media, with an average person spending about 145 minutes every day, Forbes reports. 

In Asia, social media doubles as an e-commerce platform. Social commerce, pioneered in the region, is the browsing and direct buying on video platforms. Here, influencers or key opinion leaders act as promoters. Content is highly engaging and entertaining, encouraging product discovery and impulse buying. Social commerce is expected to reach $2.9 trillion in transaction volume by 2026, according to Shopify. 

Social media has also brought global visibility to Asian brands. After Asian companies win at home, the journey then begins for them to go regional or global. In the past, the gap between being local and being global was massive, but with social media, the jump is less daunting. Social media directly connects buyers and sellers, allowing companies to build highly engaged and loyal communities in a compressed time frame, often bypassing legacy distributor and retailer relationships and leveling the playing field.

There is a clear trajectory for cross-border e-commerce, which is expected to double from $1.6 trillion in 2023 to $3.3 trillion by 2028, a 107 percent increase and outstripping the 48 percent growth of domestic e-commerce over the same period, Juniper Research has found. Selling online globally will be crucial to Asian brands looking to expand market reach, gain wider brand recognition, achieve all-year-round demand, and test new markets with relatively limited risks.

Increasing familiarity with Asian culture is also a boon for these brands, and this has been aided by the steady rise in international tourism. Leisure traveling globally increased from 277 million in 1980 to 1.5 billion in 2019 and will hit new highs in 2024 after several years of COVID-19 disruption. Of the 1.5 billion tourist arrivals in 2019, over 360 million are in Asia Pacific, and Asia is steadily becoming more attractive for holiday-goers. 

The traveling global audience will have a greater appreciation of the region’s tapestry of diverse cultures and rapid speed of development. Importantly, a firsthand experience will provide a lasting impression of brands. Tourists are the unseen ambassadors of Asian hospitality and products.

Asian companies have come a long way from their manufacturing roots. They have progressed from low-cost original equipment manufacturers to tomorrow’s lifestyle and innovative leaders. Many leaders now understand how the power of branding, user experience, and design can earn them long-term financial value.

Asian companies are more willing to invest in brand equity because the large and rising middle class in their home turfs gives them a platform to grow big. In large single markets like China, Japan, and India, there will be 3.5 billion middle-class residents by 2030, according to the World Economic Forum. From their local markets, they can gain scale and then launch and reach the global audience.

We are familiar with Asian brands that have already made their mark overseas—Japan-based Uniqlo and Toyota, South Korea-based Samsung, and Hong Kong-based Mandarin Oriental and Peninsula Hotels.

For ambitious Asian brands looking to be well-known everywhere, they will have to put their noses to the grindstones, set higher goals, and reach them consistently. More established family-backed conglomerates must also be willing to be more ESG-compliant and be more transparent on governance.

The global stage is set for Asian companies. Stay tuned for more Asian brands that will become ubiquitous trademarks, indispensable in the global citizen’s life.