After making inroads in much of Asia, Italian clothing brand Diesel has set its sights on Malaysia. Diesel feels it will sell well in Malaysia, because Diesel-branded fragrances—offered by licensee L’Oréal —are already in demand there. Diesel jeans typically sell for 130 dollars and up, and T-shirts are generally priced between 45 and 150 dollars.
Global brands in search of growth are increasingly relying on Asian economies with a rapidly swelling middle classes. Even as demand for everything from apparel to electronics flattens or shrinks in the West, Asian consumers are still clamoring for such goods. Global brands want to foray in these countries because it’s becoming more important to their bottom line.
However, in countries like Indonesia, a fascination with global brands is colliding with a desire to preserve traditional values. That means global brands have to re-visit the relationships they want to build with people. Only four of the top brands originate in Asia. China does not have a single brand on the global rankings yet. But given the size and volume of Asian business today, it is evident that Asia can build many more prominent global brands and capture more financial value from better price premiums and customer loyalty.