Product Type: Market Research Report
Published by: Datamonitor
Published: March 2003
Product Code: R313-5582Description Introduction:
Although the operational CRM market shrank globally in 2002, Datamonitor has identified key opportunities for vendors in the Asian market. However, there is no one clear strategy to use in Asia - each country is distinct, and each carries a different degree of risk. Learning how to approach each market differently is the key to success.
Scope:
* Asia is a good growth opportunity for vendors. However, growth will be slower and occur later than predicted by most companies
* The biggest competitive challenge to western CRM vendors in the highest-profile markets of India and China comes from in-house and local players.
* Asia is best viewed as a set of markets with different political, cultural and economic environments. Sales strategies must be country-specific.
Report Highlights:
The Asia-Pacific CRM market will grow from $445m in 2002 to $739m by the end of 2005, but growth will not be evenly spread. While China will grow at a CAGR of nearly 60%, Australia, Singapore and Japan will only grow at an average of 6% per annum. Much of this growth will not be realized by western vendors, but by local, inexpensive CRM suppliers.
Malaysia, China and India are the markets with the greatest growth potential. India’s CRM market is dominated by call center technologies; the Malaysian market is small but stable; and there is no other country that elicits as much excitement amongst the CRM vendor community as China.
The three smallest markets in 2002, Indonesia, the Philippines and Thailand, are at this stage ‘beyond the pale’ for most US or European-based vendors. In Datamonitor’s opinion, no significant investment in these countries should be planned in the short or medium terms (with some exceptions for the outsourcing vertical).
Reasons to Purchase:
* Understand the develop varying strategies for selling CRM into individual Asian countries
* Assess the opportunity by country and vertical against the costs of localization and sales investment
* Determine how your CRM solution fits with the needs of each Asian market, and where to focus precious resources
Table of Contents INTRODUCTION
This report covers the following Asia-Pac countries:
China
Hong Kong
Taiwan
India
Japan
Korea
Malaysia
Indonesia
Singapore
Thailand
Philippines
Australia
New Zealand
China, Hong Kong and Taiwan are together occasionally referred to as ‘Greater China’.
MARKET OVERVIEW
This chapter explores the dynamics of selling CRM into the Asia-Pacific market as a whole, and develops several comparative frameworks to help vendors determine product, pricing and sales strategies for each sector and country in Asia.
CRM in crisis
Focuses on the worldwide operational CRM market
North America is shrinking
EMEA is also suffering
Asia Pacific and Central and Latin American markets are growing marginally
Asia to the rescue?
Analysis of the major trends for CRM growth in Asia-Pacific
Discusses selling techniques in the Asian market
The Asia-Pac market overall
Categorizes countries by market size
Marks countries out by degree of risk and volatility
Establishes a ‘risk/reward’ framework for analysis
Presents changing country shares of the overall Asian CRM pie
Analyzes the need for operational versus analytical solutions
COUNTRY ANALYSIS
This chapter looks at the changes which will occur in the CRM market over the next three years, focusing on license revenue breakdown by country and vertical sector and the major trends and needs in each country.
China
The market by vertical
Competitor dynamics
Peculiarities of the national market
Hong Kong
The market by vertical
Competitor dynamics
Peculiarities of the national market
Taiwan
The market by vertical
Competitor dynamics
Peculiarities of the national market
India
The market by vertical
Competitor dynamics
Peculiarities of the national market
Japan
The market by vertical
Competitor dynamics
Peculiarities of the national market
Korea
The market by vertical
Competitor dynamics
Peculiarities of the national market
Malaysia
The market by vertical
Competitor dynamics
Peculiarities of the national market
Singapore
The market by vertical
Competitor dynamics
Peculiarities of the national market
Australia and New Zealand
The market by vertical
Competitor dynamics
Peculiarities of the national market
Developing small markets
Discussion of Indonesia, Thailand and the Philippines
Competitor dynamics
Peculiarities of the national markets
SELLING INTO ASIA
This chapter explores the issues associated with the successful matching of product to market, and the need for varying sales processes in order to take advantage of high rates of growth in Asia.
Product fit
Localization needs by country
Functionality needs by country
Varying the sales approach
Sales intensive, ‘eastern’ approaches to building client relationships
The western approach, indirect methods, and Australia and New Zealand
Pricing
Trends associated with pricing of solutions, by country
Dealing with pressures on price - how can western vendors cope?
Competitive threats
Discussion of the threat posed by in-country, smaller, cheaper vendors
The position of ERP vendors with CRM functionality versus CRM specialists
The mid-market, and global versus local mid-market players
Presentation of the main competitive dynamics by country grouping/geography
APPENDIX
Supplementary data
CRM application revenues, Asia-Pac, by country, 2001-5
Definitions
Relevant Datamonitor products.
DATASETS
Figure 1: CRM vendor applications revenues, 2001-5, Asia-Pac
Figure 2: CRM applications revenues CAGR, 2001-5, Asia-Pac
Figure 3: Risk versus reward, by country (size = revenues)
Figure 4: Share of Asia-Pac market, by country, 2002 & 2005
Figure 5: CRM uptake path
Figure 6: CRM application revenues ($m), Asia-Pac, 2001-5
Tables
Table 1: Competitor positioning, China, 2002
Table 2: CRM application revenues by vertical, China, 2002
Table 3: CRM application revenues by vertical, Taiwan, 2002
Table 4: CRM application revenues by vertical, India, 2002
Table 5: CRM application revenues by vertical, Japan, 2002
Table 6: CRM application revenues by vertical, Korea, 2002
Table 7: CRM application revenues by vertical, Malaysia, 2002
Table 8: CRM application revenues by vertical, Australia, 2002
Table 9: CRM applications revenues, Asia-Pacific, 2001-5
Table 10: CRM application revenues by country, 2001-5
Table 11: CRM application revenue shares by country, 2001-5
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