The ASEAN region, specifically major economies like Singapore, Indonesia, Malaysia, Thailand, and Vietnam, is undergoing a digital transformation, with Singapore currently leading the way. However, organizations in consumer goods, retail, and food and beverage industries are lagging behind in their digital journeys. According to a study from TDCX (Transformative Digital Customer Experience), businesses in the region recognize the need for digitalization to stay competitive and meet consumer expectations.
TDCX’s founder and CEO, Laurent Junique, notes that B2B companies offering digital solutions have a massive opportunity to help ASEAN SMEs accelerate their digitalization. Companies in the ASEAN region plan to increase their investment by nearly 70%, spending an expected $130 billion over the next three years.
The study found that 80% of companies are focused on product and service innovation using digital tools like data analytics. Meanwhile, 69% are pivoting to ecommerce business models, and the same number aims to digitize marketing, customer relationship management, and segmentation targeting operations to enhance business processes.
Junique explains that these companies require help to achieve their digital transformation goals. More than 80% of companies surveyed say the value of an external partner is that it frees them up to focus on their core business functions and extends their reach into their markets.
However, businesses report facing several challenges concerning knowledge and expertise access (67%), technology adoption consultation (65%), and access to the right service providers (60%). Over 80% of companies surveyed state that they are prioritizing marketing and social media strategy, CRM, and CX business functions for digitalization.
To help external digital service providers understand the ASEAN market, Junique advises partnering with local experts. He adds that language barriers are common despite English being commonly spoken across the region. Entrants to the market can encounter companies at every stage of their digitalization journey, which requires agility to understand their needs at any given time and provide secure integration support and data privacy.
Partnering with local companies can provide a significant leg-up for tech providers as they target a ready pool of customers. With the right approach, solution providers can establish partnerships with these companies and unlock new avenues for growth in a dynamic digital economy.
