Starting as a gaming platform in 2009, Garena has steadily added feature extensions to its original platform, and making breakthroughs in ecommerce, messaging and payments, reports Tech In Asia.
The Singapore based startup has demonstrated its stronghold and established presence in the Southeast Asia region, an accomplishment uncommon for startups in the region.
Based on the talks given by Nick Nash, Garena’s Group President, there are four key important factors when attempting to conquer the Southeast Asian market:
1. Internal consolidation
Tightly integrating existing products should take top priority to ensure best performance output. Garena has no plans to launch new products since it has reached the maximum number it is able to handle, mainly by paying attention to the optimization of existing businesses.
2. Pixel level localization
Due to the segmented geography and complicated historical issues, the alliance of Southeast Asian nations doesn’t significantly alleviate the burdens of operating businesses across countries. As a result, it becomes a challenge to appeal to customers from different countries.
Resorting to a high-resolution strategy, or the ability to meticulously pinpoint the invisible distinctions, makes marketing campaigns more productive. Although this proves more costly in the short term, it will pay off in the long term. Low resolution strategy may be more cost efficient, but will not lead to a deep understanding of local markets.
3. Pursuits of profit growth
For Garena, the two metrics of revenue or Gross Merchandise value (GMV), do not represent the translation of cash flow and profitability for the company’s projections. In other words, a company’s real progression is only reflected in profit growth.
4. Integration of data
Garen’a most valuable assets is data itself. This is largely because of its application gives a company deeper understanding about the market. With data acquired from the gaming platform, Garena+ and Shopee, Garena now has the potential to predict customer behavior. The integration of data could accelerate its product development and company growth, owing to a more accurate outline of a customer profile.
With these guidelines in mind, startups can find the key takeaways and come up with better tactics to cement their footing in an increasingly competitive landscape.
A version of this appeared in Tech In Asia on July 29. Read the full version here.