The Southeast Asian market keeps growing at an “amazing” pace. With the continuous implementation of the “Belt and Road” Initiative, Chinese companies see greater profit margins and receives stronger policy support in the Southeast Asian market.
On the other side, Southeast Asia is likely to embrace technologies faster than their Western counterparts, thanks to the progress of local governments and relatively affordable and reliable Internet connections, as well as a large young population.
Emerging entrepreneurial and investment opportunities in Asia are tilting towards Southeast Asia.
ZWC Partners held its China & Southeast Asia Innovation and Growth Summit in Singapore on December 16.
Its Founding and Managing Partner, Patrick Cheung, invited Forrest Li, Founder and CEO of Sea Group, the largest Internet company in Southeast Asia, and Professor Arthur Yeung, Senior Management Advisor to Tencent Group and co-author of Reinventing the Organization, to share in a panel their management and innovation experience learned during the innovation and growth of companies.
From left to right: Joji Philip, Forrest Li, Arthur Yeung, Patrick Cheung
Photo Credits：ZWC Partners
*How much of the China playbook can be replicated in markets like Southeast Asia and India? what’s the role of a cross-border investor in helping companies when talking about value-add service?
“Do not use the 100% Chinese model to enter the Southeast Asian market.” Are many outstanding entrepreneurs from China really determined to become locals? I found this to be a big weakness because they were not 100% integrated into the local market. Second, it is important to understand the local market, consumer behavior and local culture. When you want to enter the Southeast Asian market, you should first measure how to use the capabilities you have developed in China and how to use the expertise you have learned in China, and then work with local teams to make yourself more local. The strength of Chinese companies lies in their experience. They know how to develop business models and how to expand markets.
With an influx of capital to the SEA markets from China, ZWC has been differentiating itself from other funds in providing 360 value adds to our portfolios. Close to market approach to provide on the ground value-add services to portfolios.Our value adds are frequently recognized by our portfolios.
We have set up local team in both Singapore and Jakarta, enabling direct access to market and dynamic interactions with portfolios.
Prof. Arthur Yeung’s HR advisory also value add our portfolios in all spectrum of organization management including organization structure, talent recruitment and training, etc. Our Co-founding shareholder, Jason Jiang, Chairman and CEO of Focus Media Group, as an expert in marketing and branding can advises on growth and brand strategies for our portfolios.
Ongoing expansion of our Venture Partners ecosystem to strengthen our strategic value adds to portfolio. We proactively invite domain experts to join us annually. For example, we have on board this year Eric Ye, ex-CTO and Chief Scientist of Ctrip International, pivotal to growing Ctrip OTA marketplace to be the largest one in Asia.Internally, we also set up a role to help our portfolio companies recruit top talents, and assist in recruitment strategy.