Yuri Anisimov

Ability Factors Pte. Ltd.

Each market within the ASEAN is

unique in its own way due to political,

economical, social and cultural factors

Knowing the market is more important

than any brand cache you may have

People want to see that you are part of

the scene with a commitment to stay

English speaking

Large amount of multi-nationals, financial hub, investors/ strategic partners, seed money and grants available

Ideal entry point for SE Asia

Ease of doing business

Relatively well developed start up system due to Government support

Not being left behind approach makes Singapore a natural leader in adopting the latest solutions especially if endorsed by the Government as futuristic

Singapore is a small market but of one the most competitive in the world

It is safer to run a pilot in Singapore and validate the suitability of the solution to the regional nuances. It also helps the entrant to prepare a list of reference sites for the regional markets

Singapore leads the adoption of a new product or solution

Malaysia would uptake the offering within the next 12-24 months

Indonesia and Philippines trail by another 18-24 months

Markets like Thailand, Vietnam, Cambodia and Myanmar within South East Asia that are attractive but differ in language, culture and economics (+5 years)

Low trust culture and people want to see that you are part of the scene with a commitment to staying in the region before investing

Investment gap between seed investors and VC’s

Service level requests and demands are higher

Small population – you need to be thinking global from the outset

Staffing may be a challenge – some skill shortage, having right people on board is crucial to success.

Culturally diverse and sensitive

Market research to see if there is real opportunity for the offering and if the market is matured enough to receive the offering.

Ensure if there is a Product-Market fit, as it may require tweaking the product features to suit local conditions or change the business model

Scout for potential partners who can front the offering while the company provides all necessary handholding from beside.

Allowing sufficient time for visas and start up stages.

Managing capital to expand into the region.

Seeing the region and Singapore as a long term relationship.

Mistakes are not easily forgotten here

The commercialisation gap exists - a large mass of IP being patented and inventoried

Arrive and commit: not a matter of logistics and short notice. It’s about showing commitment. When you are asked at the start of every initial meeting: How long have you been in Singapore?

… the question really being asked is:

How long are you staying?

Get a local partner: Interconnection is one of Singapore’s social strengths; it’s easy to get left out from opportunities, not through active discrimination but because it will be assumed that you know what’s going on through one of the informal networks

Singaporean government agencies are hands-on; concerned that businesses should be independent and that they do not become semi-detached organs of the public sector living from one subsidised project to another. Hence the ability to direct strong policy from the centre.

Direct messages and questions are best

addressed verbally, one-on-one and face

to face in an informal setting.

Face applies to institutions and nations

as well as individuals

Make the connection to the local life -

life is just different here

Thinking of Singapore as a company building a brand, rather than the country that it really is, sometimes helps to make sense of it

Price factor: people will pay good money for a good product when the benefit is tangible, or linked to privilege and aspiration; there is a cultural aversion to paying for ideas, expertise and consultants of all kinds

Higher non-billable-time overhead here than expected

Not related to Russia:

No $1B Exists in Asia

Lack of systematic exit markets does not allow to predict capital gains and defies the investment model

Government intervention – “We are not promoting startups like “GrabTaxi”

Venture Capitalism is counter –natural WhatsApp valuation in 2014 was $22B (company

without profit or business model)

Nokia was sold for $7.2B in 2013

Incubators are giving grants to young locals that know the world “gaming”

Russia is still an unknown huge cold country with hard liquor consumption, and predators on the street. Image created by Hollywood Movies

No interest in manufacturing in our Far East

Low interest in Infrastructure Investment in Russia

Lack of understanding the importance of Trade Mission and government efforts to promote the image

No developed NMC from Russia to create informal tech community and businesses around

Community is small (20k Australians; 45k British, 350k Indians, Russians – 3-5k) Russians are largely professional and business-oriented

A few successful companies started by Russians – Novatte, Actronis, Parallels, Sportsmaster and venture funds – Digital Media Partners,

No business clubbing (Russian Club has different goals)

Academics and Researches

Government delegations on a mission to travel around

Smart but unexperienced in business

Late Entry: Russia is 20 years late to enter the market, lost momentum

The developing world has supplied 60-90% of the growth of Europe’s big firms in recent years

Asian Market started to develop only after Sanctions are introduced

Venture firms like Target Ventures, Runa Capital, TMT Investment, Prostor Capital, Almas Capital still focusing on the Western Markets

Low penetration of large corporations from RF

Weakens the image of a Russian entrepreneur

Exchange Rate

Access to the funding because of the sanctions even local banks that are not required to participate in

sanctions, are hesitating to credit as the can loose US based clearing license

Some banks are closing operational accounts for local companies for transactions with Russian banks (at the same time trying to enter market in Russia)

Collaborations in strategic areas are scrutinized (defense, electronics, Oil & Gas)

Getting business visas, opening bank accounts takes more time recently

Insufficient Strategic planning often just an idea to try in Asia without concept

Poor understanding of the market

Insufficient business planning

Planning the business – not accounting for operational expenses while computing required financing

Going cheap – requesting to much in advance

Poor marketing differentiation

Rushing into a new market unprepared Market research, event if carried out does not focus on local market

needs and society needs, but focuses only on the existing product

Ignoring opportunities, lack of flexibility Market entry concept not offering a solution to existing problem

Being insensitive to local culture

Language – “lost in translation” - missed clues, body language, etc.

Lack of commitment to relocate

Not seeking a local partner; miscalculating when to hire country manager vs. finding a partner

Not engaging local partners/staff

Failing to cultivate local talent

Not being prepared to invest in hiring well-qualified professionals to help with localization

Not anticipating supply-chain issues

Failing to club - Networking mistakes

Not having an MBA equivalent on a team

Inefficient decision-making

Over-reporting and over managing everything Our excessive reporting in government sector

Failing to follow up and loosing time/focus Delayed follow ups create reputational risks

Avoiding confrontation be open - you have only one chance

you have only one chance

Letting your business lost in translation – not hiring an interpreter or not bringing along local partner

Unexpected procedural risks Bureaucracy, anticorruption laws that calls for workarounds

Marketing-template mentality Many markets are turbulent, evolving, and defy easy categorization.

Ignoring the “YO” Factor Asian countries consumers are both Young & Old at the same time

Misjudging communal mind-set Greater sense of community influence consumer behaviour.

Not accumulating marketing memory. Valuable local marketing knowledge is lost, local relationships, a key

Asian asset, are also wasted,

Not localising the product One strategy could be to out-localize the locals

Not building sufficient government relationships

Ignoring R&D potential

Making brand licensing mistakes, not prioritizing IP protection Visibility gap – not exhibiting at the conferences

Internet of Things IoT Asia 2015 , Singapore, April 8-9th

iDA Smart Nation Innovations, Singapore, April 22

CommunicAsia 2015, EnterpriseIT Asia 2015, Broadcast Asia 2015 , Singapore – June 2 -5

TechVenture 2015, TechnoInnovation 2015, Singapore, September 21-22

Future Cities Asia, Kuala Lumpur, October 20-22

Cloud Expo Asia 2015, Singapore October 27-28

International Robot Exhibition 2015, Tokyo, December 2-5

A*STAR Small and Medium Enterprise (SME) Day, Tech In Asia , Singapore May 6-7

Echelon Asia Summit, Singapore , June 23 -24

Red Herring Asia, Hong Kong, August 25-27

ICT: Big Data, Cloud and Security, Singapore, July 27-28

015 International Conference on Control, Automation and Robotics (ICCAR 2015) , Singapore, August 11-14

Digital Forensics in Asia (DFIA 2015) Singapore, October 14-15

Asia Clean Energy Summit Singapore, October 27-28