The coronavirus pandemic has boosted the drive in Asia towards marketing funds digitally. Industry figures are also cutting their use of paper-based techniques to win business in the region, highlighting how the process of selling and bringing products to market is constantly changing.

The lion’s share of Asian fund managers are interested in spending more on digital marketing in order to stand apart in the battle for client money, according to firms surveyed by Cerulli Associates, the research and analytics firm. 

And the digital focus is even more marked when the organisation said that more than half (52.6 per cent) of respondents are inclined to spend less on print advertisements, while at least one third is keen to reduce budgeted allocations to traditional channels such as TV, radio, and billboards. This year’s report surveyed 64 asset managers and distributors from China, Hong Kong, India, Korea, Singapore, and Taiwan, a spokesperson told WealthBriefingAsia when asked to clarify.

The pandemic, by forcing people to work from home, has made the value of digital channels and tools even more important.

“In the long run, Cerulli believes COVID-19 could be a catalyst for increasing the use of digital channels for marketing, advertising, and fund distribution,” Leena Dagade, associate director at Cerulli, said. “As digital channels prove their effectiveness in reaching out and servicing clients, they are expected to play a bigger role in fund distribution.”

“Stable digital platforms and clientele, as well as good customer service, are important success factors. As competition intensifies, managers and distributors will need to be innovative in meeting the requirements of their clients and engaging with them,” Dagade said. 

In China, online fund platform sales flourished in the first quarter of 2020 as investors were confined indoors due to the spread of COVID-19, Cerulli said. In India, it was not difficult for managers to get in touch with distribution partners and investors during the recent lockdown as firms swiftly used emails, webcasts, and videos to offer insights on markets, educate investors, and promote products.

The commentaries come from The Cerulli Edge - Asian Monthly Product Trends, August 2020 Issue.

The organisation said that, based on interviews it has conducted, funds that are simple, easy to market, with lower risk-return profiles have found more success through online channels.

However, to meet the sophisticated investment needs of high net worth individuals, managers should partner with traditional distributors for marketing purposes, it said.