Direct marketing gains greater influence and relevance in Asia

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Asia's potential economic growth is generating greater commercial activity, where companies and brands are increasing their investments and advertising and marketing strategies with the aim of promoting their products and winning over consumers.

In the face of this economic growth, more and more companies are turning to direct marketing as a marketing strategy to sell their products in markets and countries such as China and India that are becoming more competitive every day.

Asian consumers, long accustomed to doing business with trusted friends or family to avoid scams, see direct marketing as a safe way to learn about a product in a world of commercial uncertainty, experts say.

According to Dominic Powers, vice president for Asia-Pacific all country mobile number list at marketing firm Epsilon International, "People still respond to direct mail," adding that "Relationships are very strong, more so than in the United States, and they make things happen."

Although the major firms operating in this region use both direct and indirect marketing, it is the former that is becoming more widely implemented and more important.

According to data from market research firm Euromonitor International, direct sales in Asia rose by 5% last year to $40 billion.

In parallel, and according to a report by HSBC Global Research, forecasts indicate that consumption and savings across Asia will increase by up to 4.6% next year, which will obviously generate a greater boost to general sales and investments in marketing and advertising.

According to a report by marketing communications firm Grey, approximately 48% of the $150.3 billion spent annually on direct marketing will be focused on Asia in 2012.

Dibyo Haldar, a strategy analyst at the marketing agency Euro RSCG Worldwide in Singapore, commented that "big brands and companies have to adapt to the Asian situation" and that is why "the percentage of advertising investment by companies allocated to direct marketing is increasing."

Furthermore, those who have already resorted to direct marketing strategies recognise that this type of action involves a lower cost than mass advertising.

In this respect, it is worth highlighting a clear example such as that of the trade organisation Sri Lanka Apparel, which has reached 100,000 people with an investment of only 150,000 dollars, by accessing networks and virtual communities with users with a defined profile and target. The same effectiveness using conventional advertising would have cost at least 20 million dollars.

Companies specializing in direct marketing such as Amway Global, headquartered in the United States but with global reach in Asia, have seen growth of up to 25% in this region, generating 30% of their international business profits there.