Strategic Localization in APAC: How Consumer Brands Are Adapting 

Consumer goods and services companies across Asia-Pacific face a practical question: how much should they adapt their strategy to local markets?  

As countries retreat into economic isolation and regional trade groups gain power in early 2025, this issue matters more to company leaders. 

We looked at what industry executives are saying and what researchers have found to offer a clear view on this issue. 

The Impact of Global Changes

The first three months of 2025 show countries turning inward. The US has added more tariffs, triggering responses from affected countries, which has split the global economy further. NATO countries are building up military numbers, and recent US government statements show they’re putting national interests ahead of international teamwork. 

Supply chain disruptions during recent conflicts have accelerated this retreat from global trade. In response, companies have adopted ‘friend-shoring‘—relocating production to allied nations—as a compromise between full isolationism and unrestricted globalization. This shift in production strategy necessitates corresponding changes in how top companies serve and engage their consumers. 

Why Localization Makes Sense in Asia-Pacific

The Asia-Pacific region offers several reasons for localization because of its varied cultures, languages, and economies. A recent study found that “for emerging global brands from developing countries, perceived brand localness has more influence than perceived brand globalness” on what consumers think and buy. This suggests local brands that use their home-country identity might gain advantages over foreign competitors. 

Cultural Needs

Sam Shih, President of Vorwerk China, points out how culture shapes business models: “In China, we’ve had to adapt our sales model significantly. While Vorwerk uses home parties to demonstrate the products in most of its markets, Chinese culture is different—people typically only invite relatives and very close friends to their homes. So, we’ve adapted by establishing cooking studios in shopping malls instead, with more than 70 now across China.” 

This recognition goes beyond sales methods to product creation and digital tools. Shih explains: “While our core products originate in Germany, our headquarters recognizes that China demands different approaches. Take our digital ecosystem as an example. Thermomix’s guided-cooking function revolutionized the industry, and we successfully introduced it to Chinese consumers. But as China’s digital landscape evolved far beyond other markets and given its unique cooking methods, our headquarters provided exceptional flexibility and support to develop a China-specific ecosystem tailored to local needs.” 

Market Experience Factors

For luxury brands, how developed each Asian market is requires different approaches. Clément Brunet-Moret, Baccarat Chief Executive Officer APAC, says: “If you look at the luxury industry in Asia, we went through a phase of initial introduction into the market, discovery of the market, and then expansion into the markets. We’re now at the point where there is a certain maturity in the markets. There are no more geographical areas in Asia, except India, where the brands can generally develop themselves geographically.” 

This maturity changes what marketing focuses on: “I think 25 years ago, customers would buy Cartier or Louis Vuitton, the mainstream brands, for their French appeal. This is no longer the case. What these brands are now offering is a more personalized lifestyle based on emotional connection between the brands and the emotional needs of the individual.” 

Benefits of Localization

Better Market Entry and Brand Growth

Localization can help companies enter markets and build awareness. Vorwerk has seen this in its Asia-Pacific growth plans, shown by buying The Mix in Australia and New Zealand and setting up direct offices in Malaysia and Singapore. 

For Reckitt, creating products locally has been key to success in China. The company states: “Today, approximately 95% of Reckitt’s portfolio in China is designed locally, tailored to meet the unique needs of Chinese consumers with bespoke products—such as Dettol 4-in-1 laundry pods, Durex polyurethane condoms and Move Free for joint health supplements.” 

Risks of Localization

Weakening Brand Identity

While localization offers clear benefits, it brings important risks. The biggest is possibly diluting brand identity. When a brand changes too much to match local preferences, it might lose the global qualities that attracted customers in the first place. 

A 2006 study found that too much adaptation can hurt a brand’s international position and reputation. For luxury brands especially, keeping a consistent global image is necessary to maintain their prestige. 

Business Complications and Higher Costs

Localization always creates more business complexity. Each market adaptation needs resources for market research, product development, marketing campaign creation, and performance tracking. These investments can increase costs and reduce economies of scale. 

Researchers separate required adaptation (needed because of local conditions) from optional customization (changes that might please local customers). Companies must carefully decide which adaptations are truly necessary versus those that would be nice to have, especially given current economic pressures. 

Finding the Balance Between Benefits and Risks

The challenge for global brands is figuring out exactly how much to localize. Arjun Purkayastha, Reckitt Senior Vice President and Managing Director for Greater China and North Asia, describes this tension: “Both products and marketing must adapt to consumer tastes while balancing global scale with local differentiation. They should be as distinct as needed, but as standardized as possible at the same time. Striking this balance is key, and the pendulum shouldn’t swing too far in either direction.” 

Regional Factors in Asia-Pacific

The Asia-Pacific region creates special challenges for localization because of its extreme variety. Markets range from developed economies like Japan, Australia, and Singapore to faster growing giants like China and India, each with different regulations, cultural values, and consumer behaviors. 

Brunet-Moret of Baccarat gives a practical example: “Take drinking glasses, for example. Glasses are smaller in Asia than they are in the US. People drink large portions in most US states, which is not the case in Asia. Baijiu, for example, is a Chinese delicacy. It is often 53 percent alcohol, which is extremely strong, and thus you need to have a much smaller glass. So, us developing glasses for this is a very good example of localization because we understand local culture and we fit into our customers’ lifestyle.” 

Finding the Sweet Spot: Practical Recommendations

For companies working in Asia-Pacific’s varied markets, these approaches make sense: 

1. Select Where to Adapt Based on Market Size

Rather than localizing everything everywhere, companies should tier their strategy based on market importance. Major markets worth heavy investment in localization might include China, Japan, and India, while smaller markets might get more standardized approaches with targeted changes. 

2. Separate Core Brand Elements from Flexible Ones

Brands should clearly identify which parts of their identity must stay the same worldwide and which parts can be changed for local markets. This approach lets companies keep brand integrity while showing cultural awareness. 

3. Use Technology for Smart Localization

Digital tools now make targeted localization easier and more effective. From AI translation to data analysis that shows regional consumer preferences, technology can cut the costs and complexity of localization while improving results. 

4. Build Local Partnerships and Know-How

As shown by Vorwerk’s acquisitions in Australia and New Zealand, partnering with or acquiring local companies provides valuable cultural insights and market access. Similarly, building teams with local expertise within a global framework helps effective localization. 

The Future of Consumer Strategy in Asia-Pacific

As global politics continues moving toward isolation and regional economic groups gain strength, consumer goods and services companies in Asia-Pacific will likely need to increase their localization efforts. But this must be done carefully to protect brand identity and business efficiency. 

Sam Shih of Vorwerk China sees the trend: “With the current situation and looking at the future, I’m seeing more local adaptations. For us, this would mean localizing both R&D and manufacturing, which would be a big change.” 

Yet the basic principles of good marketing stay the same. As Arjun Purkayastha of Reckitt notes: “It’s hard to predict what other companies will do, but failing to meet consumer needs is rarely a good strategy in our industry.” 

The most successful companies in Asia-Pacific will be those that find the right mix between standardization and localization—keeping their global identity while showing they truly understand and respect local markets.  

About the Author

Victor Filamor is a Partner at Stanton Chase Greater China, serving as the Regional Sector Leader for Consumer Products and Services in Asia Pacific. With 25 years of corporate experience across the Asia Pacific region and over 15 years as a retained executive search consultant, Victor has successfully placed numerous senior management and C-suite executives throughout Asia. A certified professional coach specializing in leadership and career transitions, Victor holds an MBA in Marketing from Greenwich University in Hawaii and graduated cum laude with a B.Sc. in Chemistry from the University of the Philippines, where he topped the National Chemistry Licensure Board Examinations.