The dawn of the Asian century

Asia is currently the world’s biggest regional economy, a fact which should come as no great surprise. As home to two of the world’s most ancient civilizations, the region in fact dominated global trade for large parts of history and has therefore had plenty of time to learn lessons and hone its success.

Today, the region accounts for around 60% of the global population and, with many Asian countries having weathered the COVID-19 pandemic better than a lot of their counterparts in Europe and the Americas, is poised to enjoy continued economic growth. Little wonder, then, that it has been said that we are on the cusp of the “Asian century.” What might this mean for language service providers?

Asia is set to be a decisive factor in the next stage of globalization. With a large consumer base, a cheap workforce and a traditionally flexible approach to pricing, the region’s international trade is on an upward trend. As more companies do business across borders, demand for translation and localization services to adapt products and services to different languages and markets inevitably increases, and the region is one of the fastest-growing markets for LSPs, especially in China and Japan. The governments of these two countries are also investing heavily in the translation industry, with Japan seeking to harness technology to improve the quality of simultaneous interpreting while China has been pouring money into the sector as part of the One Belt One Road initiative, attracting more international LSPs to the market as a result.

Perhaps unsurprisingly, given the year we all experienced in 2020, the demand for medical and pharmaceutical translation is driving industry growth around the world, and Asia is no exception. As of late 2020, Japan’s healthcare industry was up 1.3% on previous years, while China is seeing growth of around 12%, despite the uncertainty that continues to surround the global economy. This can only mean more opportunities for LSPs offering medical translation services in the region.

Another key sector is information technology. With the region now a leading exporter of high technology products, Asia is particularly well placed to succeed in the digital era. In a world dominated by electronics, which are now an integral part of our lives from cradle to grave, the demand for localization is set to expand across all areas, from the software required to operate machinery, to multimedia products, business applications, or video games.

Let’s look at that last example in a little more detail. Video games are now the world’s most popular pastime, and this is a market that is predicted to continue to expand over the coming decade. Asia now accounts for 47% of the global gaming market, and according to Newszoo, the number of gamers in the region is growing faster than anywhere in the world, set to increase by 7.7% year-on-year. Meanwhile, both China and Japan already rank in the top three for global games localization revenue, reaching US$36.54 million and US$18.68 million respectively in 2019.

Of course, there are some specifics to bear in mind for LSPs seeking to enter the games localization market in Asia. First and foremost, of course, the region is not a monolith, but a variety of different markets with their own specific features and needs. Asia is generally divided into five sub-regions: East, Southeast, South, Southwest and Central. Even within the most developed of these—East Asia—countries such as Japan, China and South Korea all have their own languages, cultures and market features. Japan, for example, is a major exporter of games to the West but is also very receptive to imported games. Intense internationalization in South Korea means that not all content necessarily has to be localized—for example, some English is tolerated and even expected—but it should nonetheless be sensitive to the local culture and taboos. China, the world’s largest video game sales market, with 41% of global revenue, has a strong domestic sector. Western games are still in high demand, however it is vital to be aware that censorship of content is strict in the country. It is clear, then, that top-quality localization professionals with solid knowledge of the local cultures and markets are absolutely critical.

Such cultural differences naturally apply to business more broadly, and it is critical to be conscious of these in order to operate successfully in the region, as Janus Worldwide has been doing for over a decade. Again, every country in the region has its own specific ways of doing things, but, for example, showing politeness and respect are particularly important when dealing with clients in many parts of Asia. This can be quite different to the tough, direct approach often encountered in the West. Business cards are commonly swapped with everyone you meet and should be treated considerately – no scrawling on them or stuffing them in a back pocket! In Japan, it can take a long time to build trust with a customer, but if you succeed, you are likely to be rewarded with a strong sense of loyalty. On pricing, many Asian clients prefer clarity and may want to see a transparent price list with a “menu” of discounts rather than engage in protracted negotiations to come up with a tailored quote.

While there may always be some cultural niceties to navigate, they should not be seen as a barrier. As everywhere, expertise and a professional approach will go a long way. Establishing strong relationships on the ground is also a key factor. Janus Worldwide already has plans to further integrate its presence in the region over the next three years. For those LSPs willing to listen and learn—and after all, our business is ultimately all about facilitating communication between cultures—there are great rewards to be reaped as we move into the Asian century.