SINGAPORE: Asia is leading the world's digital transformation and Western markets need to take notice, a new report has claimed.
The adoption of digital technologies is expected to deliver massive economic growth in Asia's emerging markets – Asian countries account for half of the world's total 2.8 billion internet users and the region is already the most engaged international e-commerce market – and brands are now realizing the scale of the opportunity.
The Asia Rising: Digital Driving report, by technology consulting firm Cognizant, surveyed more than 300 business and technology executives in Australia, New Zealand, India, China, Hong Kong, Indonesia, Malaysia and Singapore.
It expects that emerging economies will account for approximately 60% of the increase in global spending over the next five years.
By 2025, digital technologies – including mobile internet, e-commerce, and cloud technology – are predicted to deliver 30% GDP growth in Southeast Asia, 20% to 30% GDP growth in India, and up to 22% GDP growth in China.
Consumer demand is leading the digital transformation process for brands in much of Asia. Rising customer expectations (65%), increased competition (57%) and demanding employees (55%) were cited by survey respondents as reason why they were investing more in digitizing their offerings in the region.
Brands are also acknowledging the financial benefits of digitization: going digital was estimated to grow revenue more than 13% by 2017, up from 7.6% in 2015.
Improving new products and services (63%), increasing revenue (60%) and improving sales, new customers, marketing and customer relations (58%) are the top three goals for digital transformation.
Data sourced from Cognizant, B&T; additional content by Warc staff