Asia Pacific Update: June 25
In today’s edition, our recovery spotlight looks at how the pandemic is transforming Asia Pacific supply chains, how an automotive brand navigated a product launch in quarantined China, and what our colleagues in the United Arab Emirates have to say regarding a post-COVID world of influencers and influencer strategy.
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Recovery Spotlight: Supply Chains
As many markets within the APAC region begin to move into the recovery stage and economies reopen, businesses are predicting that regional supply chains will recover within 6-12 months.
Uptick in export demand
Demand for semiconductor components remains a bright spot in Asian trade.
In South Korea, early export figures show reduced shipment declines in June, driven by sustained demand for semiconductor components. Average daily shipments increased by 4% in the first twenty days of June, an improvement over May’s 20% decline.
Ongoing demands for telecommuting products brought about by continued remote work in the region, meanwhile, ensured Taiwan’s export orders increased for a third consecutive month in May.
Reconfiguration of supply chains
The pandemic has presented an opportunity for digitalization of supply chains.
Industry specialists observed that the use of machine learning and data analytics has already increased forecast accuracy by as much as 20%. Digitization of processes also represents an opportunity to reduce transaction costs and increases transparency.
Supply chains are also being shortened and regionalized. Approximately 83% of company executives surveyed expecting regionalization going forward. Such processes are expected to offer greater flexibility, resilience and reduced risk of disruption,
Having previously experienced food supply disruption from Malaysia at the height of the pandemic, Singapore has diversified its food supply chain by diversifying food sources for commonly consumed foods such as eggs, chicken and vegetables. The city-state has 23 countries approved for sourcing frozen pork, for example, and 13 for eggs.
Seeking new markets
When pandemic lockdowns and travel bans disrupted supply chains across Asia, many businesses and governments began to rethink their supply chains, many of which relied heavily upon China’s workforce. And, as recovery unfolds, businesses are now looking to cultivate supply chains in a wider array of markets.
Southeast Asia is poised to benefit from the shift to more distributed supply chains. Many businesses are implementing a ‘China Plus One’ strategy, managing risk by locating plants and facilities in China and another Asian nation.
Following a successful containment of COVID-19, Vietnam has demonstrated its ability to ramp up production and can boast lower labour costs than China, exporting more than 415 million face masks in four months. It was recently invited to join Australia, India, Japan, and US in a teleconference to discuss the post-pandemic economic recovery.
To capitalize and facilitate businesses relocating from China into Indonesia, the government is aiming to pass an ‘omnibus’ bill later this year. Thus far, 27 US firms have relocated to industrial parks on the north coast of Java island.
Taiwan, Japan and South Korea, meanwhile, have allocated budgets to support reshoring of their businesses, actively bringing production lines home. These countries have previously heavily invested in manufacturing technologies across robotics, AI, automation, and 3D printing, laying the groundwork for moving manufacturing to other markets.
Media analysis of stories from Australia, Cambodia, Hong Kong SAR, Japan, Malaysia, Macau, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam published between 25 May and 25 June
The Work of COVID-19: Launching Under Lockdown
The launch event for the Buick GL8 Avenir was cancelled due to the Covid-19 pandemic.
Livestreaming is not new in China, but a grand launch event held online is unusual. How could Weber Shandwick China ensure audiences and target consumers remained engaged?
Streamed on Weibo, WeChat and TikTok, we organized a launch that saw five Chinese celebrities skillfully keeping audiences engaged through interactive experiences, including opportunities to win gifts and vouchers. The online event acknowledged the public’s sentiments surrounding the impact of Covid-19. The agency and client collaborated with Tan Dun, a celebrated Chinese contemporary classical composer, to conduct a live concert – 谭盾《武汉十二锣》 (Tan Dun’s twelve gongs).
The music performed reflected the determination of the Chinese people to overcome the pandemic and the brand’s commitment to show fortitude and recover in the face of unprecedented challenges. In line with social distancing, media interviews were conducted online and vehicles were left at designated locations for media to test drive.
The one-hour livestream gained 4.8 million+ viewership, taking the no.1 spot on TikTok for auto industry livestreams.
Deeper Insights: Influence in a Post-COVID World
“Lockdowns have led to a rise in digital content consumption, and communications are largely taking place through online mediums. In this digital sphere, storytelling is still as important as ever and authenticity has never mattered as much as it does today.”
In an exclusive conversation with Campaign, five of Weber Shandwick’s United Arab Emirates experts share their insights on how the pandemic has transformed the world of influencers and influencer-led communication strategy.
About COVID-19 Recovery Report:
- The content of this news bulletin is a summary of publicly available news articles on events and developments related to COVID-19.
- The views and opinions reflected by these headlines do not necessarily represent those of Weber Shandwick.