In 2017, Indonesia-based Go-Jek transformed itself from a mere motorcycle-ride-hailing service provider into Southeast Asia’s leading super app, all by leveraging the power of local communities. The brand actively engages with drivers, small businesses, and customers to include them in the brand’s ecosystem. By doing so, Go-Jek didn’t just build a platform; they created a whole movement. This grassroots approach says a lot about the emergence of community-based brands in Asia, a phenomenon shaping the region’s economic, cultural, and business landscape.
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A Shift Towards Community Engagement
The rise of community-driven branding results from the region’s evolving consumer behaviour. This is evident in a 2021 Facebook and Bain & Company study, which stated that over 70% of Southeast Asian consumers prefer brands that resonate with their values, particularly those prioritising community upliftment. The reason why these community-centric strategies are game changers in Asia is because of the massive online presence the region has. With over 2.6 billion people in Asia having access to the internet, a community-centric approach renders the most success for emerging brands or well-established brands entering the region.
Hyperlocal Success Stories
Across Asia, brands are leveraging localism and crafting strategies that engage specific communities to drive loyalty and growth. AmorePacific, a South Korean cosmetic giant, leveraged its community knowledge by emphasising the use of local ingredients. Their advertisement and other promotional material informed the masses that their products contain certain traditional ingredients like green tea and ginseng.
Similarly, in India, a garment retailing company, FabIndia, created a supply chain that included local vendors and artisans. This became the main premise of their advertising campaign and created a sense of belonging within the minds of the local masses.
Another example is Shopee. It introduced features like “Shopee Live” to let sellers interact directly with customers, enhancing trust and community feel. This approach helped Shopee secure a 40% market share in Southeast Asia by 2022.
Driving Social Engagement Through Digital Platforms
Another major reason community-based marketing is gaining traction in Asia is the massive social media user base there. According to Digital Marketing for Asia, 60% of all social media users hail from Asia. This allows brands to explore unique avenues for interaction with the masses. TikTok, particularly in countries like Indonesia, Thailand, and Vietnam, has become a hub for fostering micro-communities. For example, Nike leveraged social media during their Air Max launch in Brazil. By creating content that resonated with the local audience, they increased their local engagement by almost 22%.
In China, WeChat, a messenger platform with over 1.26 billion monthly users, has gone beyond marketing and created a whole ecosystem. WeChat allows brands to effortlessly integrate e-commerce, customer service, and other community-building services.
The Power of Purpose-Driven Branding
The success of community-driven brands lies in their ability to align with social causes. Studies indicate that 88% of Asian consumers are more likely to purchase from brands that address environmental or social issues. For instance, Uniqlo’s RE.UNIQLO initiative promotes sustainable fashion by encouraging customers to recycle old garments, directly addressing the region’s growing environmental concerns. Similarly, Grab’s community-driven campaigns during the pandemic, which included driver support funds and free deliveries of essential goods, cemented its reputation as a socially responsible brand that leverages its abilities to do some good in times of crisis.
Challenges and the Road Ahead
One of the major challenges of creating a community-based brand is the diversity of Asia, one of the most diverse regions on the planet. This means a marketing campaign that might work in Point A might not work in Point B, even if they are in the same country. When it comes to linguistic diversity, Asia is second to none. This makes it very difficult for community-driven brands to scale their operation into a new region of Asia.
Furthermore, regulatory hurdles and uneven digital infrastructure pose challenges that cannot be easily overcome without investing hefty capital in the region. Increased scrutiny is another factor that can play an important role in the success of a brand. Moreover, brands can get stuck in between two communities in case of a conflict, which can affect the business quite significantly.
Building Trust Through Community
Asia’s community-driven branding offers valuable lessons for global businesses. It underscores the importance of authentic engagement, a localised approach, and the integration of digital platforms. As the region continues to innovate, brands willing to invest in community-centric strategies will undoubtedly thrive, shaping a new narrative for global commerce.
The rise of community-driven brands in Asia exemplifies how businesses can achieve success by embedding themselves in the social fabric of their target audiences. By aligning values with actions, these brands are not just selling products—they’re cultivating trust and loyalty in a way that resonates deeply with modern consumers.
