Post on 11-Jan-2016
transcript
Customer and Revenue Acquisition in Asia-Pacific
Jeremy Geiger www.LinkedIn.com/in/JeremyG
JeremyGeiger@RTMAsia.comwww.RTMAsia.com
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
Who Am I?• Living in Asia-Pacific for 15 years
– Tokyo, Seoul, HongKong, Singapore, Bangkok– Business expansion in Japan, Korea, China, HongKong, Singapore,
Thailand, Philippines, Malaysia, Australia, India, NZ
• Started-up 15 new country branch operations– Enterprise software for supply chain, ERP, BI, CRM, BPM, 3D
visualization– $65M revenue, 30+ partnerships, 50-150% annual growth
• EMBA from Kellogg School Mgmt program in Asia• Currently work with software, SaaS, internet & consumer
electronics companies as part of RTM Asia
Who is RTM Asia?
• 80 Successful Asia-Pacific Business Executives• Working with technology start-ups:
• Consumer/Enterprise software, internet and hardware• Who have the challenge of expanding internationally
• RTM Asia creates new market opportunities in AP• Market analysis and go-to-market plan for key Asian markets• Accelerate growth & profitability• Create new business models in Asia to drive incremental
upside
• Minimizing effort, investment & learning curve from HQ
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
WHEN to consider Asia-Pacific expansion?
1. Customer is pulling you– Enterprise customer is asking you to support product in AP– Consumer: Significant swell of new users in AP country
2. Strong growth, publicity and customer references in US3. Potential partner/reseller from AP approaches you4. Market potential is unusually high in Asia-Pacific
– Automotive, Aerospace, Manufacturing, etc.
5. Capital available
WHEN to consider Asia-Pacific expansion?
• Typically stage– $5M-$10M annual revenue for software vendors– Initial contact from potential AP prospect and/or reseller
• Typical reasons1. Revenue (to increase profit or funds for R&D spend)2. Become a Global player (with international references)3. Company valuation (global revenue potential increases
valuation)
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
DIFFERENCES and considerations among AP countries
Size of Market
Early Adopters?
Unit Price
Risks Most Typical
Sequence
Aust/NZ 1
Japan 2
China 3
Singapore/HK 4
Korea 5
India 6
Thai/Malay/ Indo/Phil
7
*Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.
Sample Asia-Pacific Expansion Timeline
Aggressive 0 6 12 18 24
Conservative 0 12 24 36 48
Aust/NZ
Japan
China
Singapore and/or HK
Korea
India
Thai/Malay/ Indo/Phil
Months
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
Difference among AP countries: Product
Need for Localization
Expected Product Maturity
Need for Customization
Aust/NZ
Japan
China
Singapore/HK
Korea
India
Thai/Malay/ Indo/Phil
*Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.
Difference among AP countries: Support & Presence
Support Volume
Local Presence (Partner or Direct)
Channel Partner Network
Vendor Direct Presence Required
Aust/NZ Single
Japan Double
China Double
Singapore/HK Single
Korea Single
India Single
Thai/Malay/ Indo/Phil
Single
*Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.
Levels of Localization
• Level 0– Marketing Materials
• Level 1– Product Documentation
• Level 2– Access files with local language names
• Level 3– User input in local language/formats
• Level 4– User interface
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
Partner Approach
• Most countries in Asia-Pacific require a partner-centric approach
• Types of partnerships1. Strategic Partner with investment2. Strategic Partner without investment3. Master Distributor4. Alliance Partner5. Resellers
Go-To-Market Requirements• $500k - $1M investment per country, in the 1st year• Target break-even in 12-18 months (with no royalties to
HQ)• Need top Pre-Sales person support• Invest in Strategic top-down analysis rather than signing
first reseller that knocks on your door• Need localized product unless targeting highly
specialized technical/management positions• Country/Regional Manager should have relevant
experience doing strategic deals
Go-To-Market Short-Cuts• Using knowledgeable 3rd parties that can get
appointments with the most strategic partners/customers can have significant impact
– 3 month Strategic Go-To-Market Analysis– Operate your branch operation without capital expenditure– Raise capital from local strategic investors– Get paid, based on results
Investment & ROI Expectations
• Go-to-market can be achieved with different levels of involvement & investment:
– High: Direct hire, open offices, local regulations ($750k/country)
– Medium: Country heads, virtual offices, partners
Year 1 Investment per country
Entity Employees Offices 1st Year Target ROI
Year 2-3 Profit Potential
Long-Term Profit Potential
Big Bang $500k - $1M 100% owned subsidiary
Direct hires Rented 0% Med High
Strategic Investor
$250 - $500k
Majority-owned subsidiary
Direct hires Rented 250% High Med
3rd party Accelerator
$100 - $400k
None Provided by 3rd party
Provided by 3rd party
150% Med Low-Med
Remote Partner Mgmt
$100 - $300k
None None None 0% Low Low
Note: Option to start with 3rd party accelerator and then move to Big Bang or Strategic Investor once market traction
Agenda
• Background• Asia-Pacific expansion. When? • Country-Specific Considerations
– Business Development– Product, Localization & Support
• Go-To-Market Investment & Requirements• AP Revenue in relation to global revenue
AP REVENUE in relation to global revenue?
• AP is typically 10-50% of global revenue• Median 20-25%• Traditionally, almost 50% of AP revenue from Japan• In future, China’s share will increase
AP REVENUE in relation to global revenue?
• Much of US tech company’s growth is fueled by international expansion. Ex.: In 2008:
– Oracle Overseas sales +22% vs. US +2%– Cisco Overseas sales +20% vs. US -8%– Google Overseas sales +40% vs. US +22%– eBay Overseas sales +16% vs. US +5%– Apple Overseas sales +29% vs. US +20%– Sun Overseas sales -2% vs. US 10%
Summary
SUMMARY: For Business Development / Marketing
• There is global demand for useful solutions• Global expansion improves company revenue,
profitability, valuation and company credibility• Each country in Asia-Pacific is different and requires a
different approach• There are different strategies for Go-to-market
depending on investment & bandwidth available• Do your homework and involve knowledgeable people
SUMMARY: For Localization People
• Asia-Pacific can not be treated as 1 group of users. Each country will have unique users & needs
• Invest upfront in proper technology and processes because once Asian market expansion starts, it is likely to expand rapidly to other countries
• The structure and number of parties involved in sales, support and training will be very different than the US
• Customer demand will drive localization needs
Thank YouQuestions?
Jeremy GeigerJeremyGeiger@RTMAsia.com
www.RTMAsia.com