In 2022, Asia mostly avoided the rising inflation and threat of recession that major economies in North America and Europe faced. However, we expect that in 2023, the ongoing war in Europe, resulting global economic slowdown, and always-rising customer expectations will force firms in Asia Pacific (APAC) to find new drivers of growth. Yet they must align their actions with their ambitions while striking a balance with customer and employee expectations.
Here are some of Forrester’s most important predictions for APAC’s business, digital, marketing, and technology leaders in 2023:
- Fifty firms risk facing penalties for ESG-related performative actions. The rise of values-based consumers has forced firms to commit publicly to environmental, social, and governance actions. But the pressure to act quickly will lead some firms to take steps that are merely performative. APAC regulators are taking note from their counterparts in the US and Europe, and will clamp down on mispresenting or overstating ESG claims. Firms not only risk steep fines but also bad press and reputational damage.
- Regional cross-border commerce will grow by 20%. APAC is fast becoming a hub for innovation in commerce and payments. For example, China, India, and Southeast Asia are embracing modern payment networks that threaten the 50-year-old SWIFT system by going cross-border. The Regional Comprehensive Economic Partnership (RCEP) agreement will give an added boost to cross-border commerce, as it removes tariffs and eases barriers and restrictions to regional trade.
- 80% of the post-pandemic omnichannel initiatives will fail. After the pandemic lockdowns, firms are reprioritizing in-person customer experiences to improve quality. However, the siloed nature of most of these efforts will result in firms struggling to deliver customer and business value. They will find themselves playing whack-a-mole across physical and digital channels, leading only to tactical improvements.
There is so much more to discuss on these wide-ranging but very pertinent topics. Look out for our online events and outreach on predictions in your respective countries.
In the meantime, explore our Predictions 2023 resources to learn more about the trends and forces that will shape the business landscape within the APAC region. Download Forrester’s complimentary Predictions guide or visit our Predictions 2023 hub. For help navigating these changes, please reach out to us.