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Customer and Revenue Acquisition in Asia-Pacific

Customer and Revenue Acquisition in Asia-Pacific. Jeremy Geiger www.LinkedIn.com/in/ JeremyG JeremyGeiger@RTMAsia.com www.RTMAsia.com. Agenda. Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support

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Customer and Revenue Acquisition in Asia-Pacific

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  1. Customer and Revenue Acquisition in Asia-Pacific Jeremy Geiger www.LinkedIn.com/in/JeremyG JeremyGeiger@RTMAsia.com www.RTMAsia.com

  2. 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

  3. 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

  4. 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

  5. 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

  6. WHEN to consider Asia-Pacific expansion? • Customer is pulling you • Enterprise customer is asking you to support product in AP • Consumer: Significant swell of new users in AP country • Strong growth, publicity and customer references in US • Potential partner/reseller from AP approaches you • Market potential is unusually high in Asia-Pacific • Automotive, Aerospace, Manufacturing, etc. • Capital available

  7. 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 reasons • Revenue (to increase profit or funds for R&D spend) • Become a Global player (with international references) • Company valuation (global revenue potential increases valuation)

  8. 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

  9. DIFFERENCES and considerations among AP countries *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.

  10. Sample Asia-Pacific Expansion Timeline Months

  11. 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

  12. Difference among AP countries: Product *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.

  13. Difference among AP countries: Support & Presence *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc.

  14. 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

  15. 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

  16. Partner Approach • Most countries in Asia-Pacific require a partner-centric approach • Types of partnerships • Strategic Partner with investment • Strategic Partner without investment • Master Distributor • Alliance Partner • Resellers

  17. 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

  18. 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

  19. 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 Note: Option to start with 3rd party accelerator and then move to Big Bang or Strategic Investor once market traction

  20. 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

  21. 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

  22. 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%

  23. Summary

  24. 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

  25. 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

  26. Thank YouQuestions? Jeremy Geiger JeremyGeiger@RTMAsia.com www.RTMAsia.com

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