Breaking into APAC: Effective communication strategies for European businesses

The Asia-Pacific (APAC) market offers immense opportunities for European companies and startups - governments across Asia are ramping up investments in AI, deep tech, and digital infrastructure, ensuring that the region is primed for innovation-driven growth.

With the opening of our new office in Singapore, we are excited to introduce Sara Pereira as Managing Director for the Asia Pacific region.

We've asked Sara to provide profound insights into the challenges and strategic approaches necessary for European companies aiming to enter the region and establish themselves. 

PIABO: Sara, leading our new office in Singapore, you have firsthand experience with the APAC market. What is the opportunity that European companies have when entering this region?

Sara: A quick look at the national agenda of most Asia Pacific nations shows that governments are investing heavily in technology  from Singapore’s USD2B National Productivity Fund boost and Malaysia’s USD89B Madani Economy framework to Australia’s USD9B National Reconstruction Fund prioritizing clean energy, advanced manufacturing and quantum tech and Japan’s USD65B investment in AI and the semiconductor industry to strengthen domestic chip production and AI leadership.   

These are clear signals that APAC is a hotbed for technology expansion, not just for local companies but for organisations that enable them. APAC’s surge of technology investments presents a golden opportunity for European companies, not just as market entrants, but as key enablers of innovation in the region.  For European companies entering the region, Singapore is often the first stop, allowing them to take advantage of its central location to reach the region, plentiful incentives to invest and a deep technology market.   Secondly, firms are looking for global expertise.  There is deep local admiration for and trust in European expertise and innovation in technologies such as quantum, sustainability and AI.  Finally, as APAC economies prioritise relationships, early European entrants can secure market share, talent, and long-term collaborations before the landscape gets even more competitive.

PIABO: What kind of challenges have you seen European companies face when entering the region?

Sara: Obviously we are a diverse region if you focus on the plethora of languages, business cultures and the differing stages of the economies across the different markets.  

What I’ve found from running regional marketing campaigns for technology brands is that more unites us than divides us.  Look at data about how your customers behave.  For example, 72% of business buyers across Asia Pacific are GenZ and millennials.  This is the self service generation, they’re used to finding information, and understanding what it can do for them and the brands that they serve.  By the time they've reached out to you, they’re over 70% of the way to choosing a brand to work with.  How you create content and experiences that entice and excite them will be crucial to making sure that you’re in the running to make them your customer.  

The other thing is that B2B buying cycles are longer and more complex in Asia.  The average buying cycle is about 13 months compared to 10 months in Europe so patience and strategically planning out the sales cycle and your customer engagement strategy is key.  

In many Asian markets, success isn’t just about making a great product or closing deals.  It’s about building long-term, trusted partnerships. Unlike in some Western markets where business can be transactional, in Asia, relationships drive business, and trust is earned over time.

PIABO: How does the media landscape and communications strategy differ from Europe in APAC?

Sara: A critical factor which is overlooked is government influence on media. In certain countries, press freedom is limited, and state-controlled narratives dominate the media. Companies must carefully navigate these landscapes to ensure that their messaging aligns with regulatory frameworks while still engaging their target audience effectively.

Secondly, social media platforms like WeChat (China), LINE (Japan and Thailand), and KakaoTalk (South Korea) are not just messaging apps but comprehensive business and lifestyle platforms. These super-apps serve as primary news sources, e-commerce channels, and customer service hubs.

Finally, trust in influencers and Key Opinion Leaders (KOLs) is significantly higher in APAC compared to Europe. Many consumers turn to social media personalities for purchasing decisions, which makes influencer marketing an indispensable component of any communications strategy. Even in B2B buying, 98% of senior business decision-makers in SEA value the opinion of B2B influencers on social media.  However, selecting the right influencer is crucial, as authenticity is highly valued. The audience must perceive the endorsement as genuine rather than commercially driven.

It's important to remember though that in the end the media are the same everywhere, and the fundamentals which drive story telling in Europe also matter in Asia.  Media are looking to connect with their audience, so they seek stories that resonate. This means that while news can be global in nature, it must be made to be locally relevant and align with what people know, care about, and understand within their market.  

PIABO: What common mistakes do European companies make when communicating in APAC?

Sara: Governments in Asia are actively looking to create incentives for companies that are looking to enter their markets.  This can be through tax breaks, R&D funding or infrastructure support. But those benefits often come with an expectation of local contribution i.e. hiring local talent, setting up operations, or collaborating with local firms.

In markets like Singapore, Malaysia, Japan, and Indonesia, governments actively seek international partners who can contribute to their long-term national agendas in AI, semiconductor production, clean energy, and digital transformation. Companies that co-invest, share technology, establish strong relationships with local players and build local capabilities will find more doors open to them.

On a personal level, directness, which is often appreciated in European business culture, can come across as abrasive or disrespectful in many Asian cultures. Communication tends to be more nuanced, and reading between the lines is essential. For example, a simple “yes” in Japan or China does not always indicate agreement; it may simply mean that the message has been understood.

Another common misstep is underestimating the importance of localizing branding and marketing materials beyond mere translation. Cultural adaptation is essential. For example, humor varies greatly across cultures – what is funny in Germany may not resonate in South Korea. Similarly, color symbolism plays a crucial role. Red is considered lucky in China, while it can signify danger in other regions.

PIABO: How significant is language in communication strategies?

Sara: Language is not just a means of communication – it’s a gateway to cultural understanding. While English is widely used in business settings, it does not necessarily reach the broader consumer base. Many markets, such as Japan, Thailand, and South Korea, prefer content in their native languages. Poorly translated or inauthentic content can be a major deterrent to local audiences.

Moreover, certain phrases and idioms carry different connotations. For instance, in China, indirect communication is preferred, and messages are often wrapped in metaphor and context. In contrast, more literal messaging may work better in Australia or Singapore. This linguistic nuance extends to written materials, video content, and even customer interactions. Businesses should invest in native-speaking marketing teams or localization experts to ensure their messaging is well-received.

PIABO: What are your key recommendations for startups aiming to establish themselves in APAC?

Sara: First and foremost, patience is key. Success in APAC is not achieved overnight. Relationship-building takes time, and trust must be nurtured through continuous engagement. Companies should be prepared for longer negotiation cycles and invest in establishing credibility.

Companies that enter APAC with a short-term, high-return mindset often struggle. Many Asian businesses and governments prioritize stability, reliability, and sustained engagement over immediate profit. Companies that show they are here for the long haul, through local investments, partnerships and ecosystem development, gain credibility.

Second, adaptability is crucial. The market dynamics in APAC shift rapidly – consumer preferences evolve, government investments and regulations change, and infrastructure defines how businesses operate. Companies must be agile and ready to pivot their strategies accordingly.

Third, leveraging local expertise is essential. Partnering with local agencies, consultants, or hiring regional talent can provide invaluable insights and help navigate the complexities of the market. Without this local knowledge, companies risk costly missteps.

Finally, authenticity cannot be overstated. Brands that show a genuine interest in the local culture, respect traditions, and engage meaningfully with communities tend to perform better. Superficial attempts at localization are easily spotted and can harm a company’s reputation.

PIABO: Thank you, Sara, for these valuable insights! We look forward to seeing more European companies thrive in APAC with your guidance.

Sara is more than happy to provide further insights into what you need to consider when entering the APAC market: sara.pereira@piabo.net