Does branding still matter in the AI era? The answer is not just yes—it’s becoming more critical than ever. 

AI is radically transforming how people shop, communicate and make decisions. In Asia, consumers are embracing these powerful technologies faster than anywhere else in the world. They’re using AI assistants, experiencing AI-powered recommendations and creating content with generative tools daily.  

Something surprising emerged from Prophet’s research, The Rise of the AI-Powered Consumer, comparing GenAI trends in Asia and around the world: As technology advances, human connection becomes more valuable. We surveyed consumers across five countries and discovered that people in China and Singapore aren’t just AI enthusiasts—they’re also the most insistent on authentic brand relationships. They want the efficiency AI brings and the transparency, trust and genuine human touch that brands can uniquely deliver. 

This creates both a challenge and an opportunity for brands in Asia. Here are three key trends brand leaders should keep in mind, along with examples of companies already building powerful, practical connections in the wake of AI disruption. 

Consumers Want Authenticity 

Consumers are adopting GenAI at a fast pace, especially in Asia. Prophet’s study found that 60% of Chinese consumers and 56% in Singapore are using GenAI, well ahead of consumers in Western markets. Moreover, 84% of consumers in China and 75% in Singapore say they are excited about brands that integrate AI.

With brands being more dynamic than ever, they must evolve into intuitive storytellers, balancing machine insights with human judgment. If brands are not careful, GenAI content and experiences can appear too polished or too perfect. That may feel generic and inhuman, undermining trust and connection. 

At the same time, concerns persist. Globally, 43% of consumers find some aspect of AI worrisome, but in Singapore, that rises to 57%—the highest among surveyed countries. People also expect companies to be honest, with 82% saying companies should always disclose the ways they use AI. 

As consumers become more aware of AI’s role in marketing, brands must continue to lead with authenticity to maintain credibility and long-term loyalty. Brands that leverage AI for personalization can enhance their identity and relevance, but they must also be cautious of over-reliance on technology, not losing the humanity that makes for meaningful and enduring relationships with consumers. 

(Image Source: Campaign Asia)

One powerful example of authentic AI use comes from Telekom Malaysia. To celebrate Hari Kebangsaan (Malaysia’s Independence Day) in 2024, it launched “Sejuta Suara, Satu Ritma, Jiwa Merdeka,” using AI-driven lip-syncing and voice cloning to let Malaysians sing in their preferred language. Rather than showcasing AI for its own sake, the campaign celebrated Malaysia’s rich linguistic diversity and highlighted the brand’s promise to open doors to a promising tomorrow. 

The result: AI amplified cultural identity rather than diminishing it, showing how technology can strengthen authentic connections. 

Other brands are also using AI in service of authenticity. Zalora, a fashion ecommerce site, developed an intuitive, multilingual chatbot deeply integrated with customer service data. It helps users track orders, manage returns and resolve issues quickly—and it does this in ways that look and feel distinctly “on brand.” This demonstrates how AI can enhance the customer experience while maintaining the authentic brand voice that shoppers trust. 

Brands can enhance authenticity by: 

• Ensuring overall brand strategy is built based on core human insights and not technology alone
• Creating AI tools that solve real customer problems rather than showcasing technology 
• Maintaining consistent brand voice and values across touchpoints using custom-built AI assistants 
• Combining human oversight with AI to ensure outputs stay true to brand tone, audience needs, and real-world relevance 

Consumers Crave Human Connection 

In China, 89% of consumers believe GenAI improves people’s lives by automating tasks and boosting efficiency; in Singapore, it’s 84%. (These enhancements are proving so valuable to consumers that 83% of Southeast Asian shoppers say they would pay more for them.) 

But even with their enthusiasm, consumers remain wary of losing human interaction. In Singapore, 75% of consumers worry that AI might replace human contact—the highest level of concern among surveyed markets. Almost half of Chinese consumers also share this fear. 

Many companies begin their AI journeys by solving customer pain points. When AI simplifies transactions, consumers welcome it. But in the meantime, the role of brand remains crucial by ensuring that technology complements—not replaces—human connection.

AirAsia’s “Ask Bo” concierge app is a strong example. While it automates travel tasks like booking and gate changes, recent updates allow customers to seamlessly transfer to a human agent when needed—combining AI efficiency with human reassurance. This hybrid approach acknowledges that while AI can handle routine tasks, human intervention remains essential for complex situations—preserving the human touch that builds trust. 

Shiseido Haneda Boutique (Image Source: Shiseido) 

Shiseido offers another best practice. Partnering with Revieve, a beauty tech developer, it uses AI for skin analysis but complements it with in-store beauty consultants who personalize recommendations. The result is an experience that feels deeply human, even when AI powers the initial interaction. By combining technological analysis with human expertise, Shiseido creates a premium experience that neither AI nor humans could deliver alone, deepening the customer relationship. 

Brands can maintain human connection by: 

• Clearly signaling human oversight within AI systems 
• Giving customers access to live human support when needed 
• Designing AI experiences that complement rather than replace human expertise 
• Creating opportunities for emotional connection even within automated processes 

Loyalty Still Matters 

Even as AI changes consumer expectations, and transforms the customer experience, loyalty remains at the heart of brand value AI enables brands to deliver personalized, relevant interactions that serve to strengthen bonds with customers.  

This is especially true in Asia, where consumers are particularly optimistic about AI’s potential. In China, 76% believe GenAI will improve their financial well-being by offering smart insights, as do 65% of Singapore’s consumers, creating an opportunity for brands to deepen trust by delivering tangible, AI-enabled value. Asian consumers also show greater trust in AI’s ability to spot opportunities they might otherwise miss. About 72% of Chinese and 76% of Singaporean consumers believe AI can help them make better decisions—higher than any other region surveyed. 

DBS Bank, headquartered in Singapore, exemplifies loyalty-building AI. It has embedded more than 800 AI models across 350 use cases, offering customers personalized financial advice. Its AI-powered virtual assistant supports call center employees, reducing call handling times by up to 20%—making human help faster and more satisfying for customers. By making human help faster and more effective, DBS strengthens its reputation for exceptional service—turning AI into a loyalty-building advantage. 

Anthony Tan, Grab Group CEO and Co-Founder at GrabX 2025 (Image Source: GizGuide)

Grab, the Southeast Asian super app, is also investing heavily, introducing AI Merchant Assistant and AI Driver Companion tools in collaboration with OpenAI and Anthropic. The two AI-powered solutions are personal, intelligent assistants designed to help Grab’s merchants and drivers optimize their businesses and maximize productivity. By making daily tasks easier for its partners, Grab builds loyalty by showing its AI innovations have heart, not just efficiency. These tools demonstrate Grab’s commitment to supporting its ecosystem of partners, building a community of loyal merchants and drivers who in turn provide better service to end customers. 

Brands can build loyalty by: 

• Personalizing experiences in ethical, human-centered ways 
• Designing AI solutions that save customers time and help achieve their goals 
• Using AI to empower employees to deliver better service 
• Creating feedback loops that continuously improve AI tools based on customer input 

Prophet’s global research study is applied and brought to life in client engagements. We help organizations unlock uncommon growth by understanding and taking advantage of digital disruption. There are several ways to work with us: 

• AI-powered growth consulting: Creating future-back business and brand positioning strategies that help you act on GenAI consumer and business trends to drive tangible results 
• AI-enabled products and experiences: Envisioning and bringing to life new products, services and experiences that are enabled and accelerated by GenAI 
• AI-driven marketing organization for the age of GenAI: Understanding your marketing vision, activating relevant AI use cases and deploying new capabilities 

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Digital platforms such as Amazon, Uber and Netflix have reshaped industries, seamlessly connecting businesses and consumers, while leveraging data and technology to deliver personalized experiences that redefine modern commerce and entertainment. The success of platforms highlights the transformative power of digital ecosystems in fostering innovation while driving sustainable growth. 

“Winning Through Platforms: How to Succeed When Every Competitor Has One,” a best-selling book by Ted Moser, a senior partner at Prophet, highlights the essential role of digital platforms in achieving business success in the modern age across industries. The book serves as a playbook by diving into the different types of platforms as business models while decoding growth moves from a decade of platform competition. 

This framework guides companies to leverage platforms for brand relevance, customer value growth and efficient customer acquisition. 

Rapid Digitalization of Economies and Shift in Consumer Behavior 

Asia, especially Southeast Asia, is experiencing rapid digitalization and reliance on online platforms fuelled by a multitude of factors – the COVID-19 pandemic, internet penetration, a burgeoning middle class and supportive government policies. This shift prompted digital transformations across businesses, leading to a boom of digital marketplaces and services such as Shopify, Grab and Lazada.

Meanwhile, companies are heavily investing in strategies to create and meet demand across the entire customer journey. Companies focus on Demand Plays and Transformation Plays to meet evolving consumer needs and transition traditional businesses into digital domains. 

Temu: Aggressive User Acquisition Through Demand Plays 

Temu, a brand of China’s Pinduoduo, entered the global markets in 2022. It has quickly disrupted the status quo of the global e-commerce landscape, becoming the No. 1 shopping app on Apple’s App Store, surpassing Amazon, Target, Walmart and SHEIN. Temu’s success is made possible by its unparalleled demand-gen capabilities. Through the campaign “Shopping like a billionaire,” Temu offers a clear yet differentiating value proposition of providing cheap and accessible products for everyone. Beyond a clear brand message, Temu employs a comprehensive demand–gen strategy, from agile supply chain, data-driven user analytics, to aggressive marketing campaigns and pricing schemes, as well as savvy digital marketing and user acquisition tactics. 

Huawei: Leading at the Frontier Through Transformation Plays 

Huawei stands out as a prime example of strategic innovation in action. Initially recognized as a B2B telecom leader, the company seized the opportunity to diversify into B2C markets by introducing smartphones renowned for their cutting-edge camera technology. This transformation underscores Huawei’s unwavering commitment to innovation, as evidenced by the staggering investment of over 11 billion RMB in R&D over the past decade. Amid U.S. sanctions, Huawei demonstrated agility by strengthening its own HarmonyOS operating system. Recently, Huawei entered the electric vehicle (EV) sector by launching startup EV brands AITO and LUXEED in collaboration with automotive players Seres and Chery, respectively. These EV models integrate HarmonyOS for Automotive, seamlessly synchronizing with Huawei’s mobile operating system to deliver a cohesive user experience. This integration reflects Huawei’s vision of creating an ecosystem centred around HarmonyOS, extending its influence beyond telecom. By leveraging its technological prowess and strategic partnerships, Huawei has embarked on a transformation journey to shape the future of multiple industries, cementing its position as a global leader in the ever-evolving landscape of technology and innovation. 

Need for Innovative Solutions in Competitive Markets 

E-commerce, fintech, AI, and IoT have become some of the most disruptive technologies for traditional business models, where a holistic platform strategy plays a major role. In Asia, a fast-growing consumer market that’s largely digital – and mobile first – this is especially the case. Leveraging these technologies to develop their own platform through digital transformation while taking a customer-centric approach now becomes a key challenge for traditional companies. To adapt and futureproof, the most resilient companies are often agile in prioritizing innovation efforts. Prophet’s recent research on how innovation builds resilience revealed that 35% of the respondents in China and Singapore have formal innovation incubation programs, compared to only 15% of the respondents in the U.S. and the UK. 

Consequently, companies are channelling resources into the development of innovative platform features and services, leveraging Innovation Plays to continuously provide new and distinctive platform benefits for a competitive edge. Moreover, businesses strategically explore Portfolio Plays to diversify roles within the platform ecosystem, emphasizing continuous innovation across product development, market approach, and customer engagement strategies. 

Grab: Achieving Impactful Growth Through Innovation Plays 

Grab serves as a standout example of a platform business that maintains sustainable growth by bringing ongoing innovations to market. Originating as a ride-hailing service, Grab expanded into a super-app business, the “Everyday Everything App,” offering new products and benefits including food delivery, digital payments, and financial services. This strategic shift capitalized on Grab’s extensive user base and diversified revenue streams. Additionally, Grab deployed collaborative go-to-market strategies, by partnering with local governments and financial institutions, to extend its reach and tailor offerings to specific regional markets. To deepen its connection with a wide array of customers, partners and stakeholders, Grab has also further defined its company mission – to drive Southeast Asia forward by creating economic empowerment for everyone – while continuously implementing various ESG initiatives. 

Nike: Connecting with Evolving Customers Through Portfolio Plays 

Nike exemplifies effective portfolio diversification, transforming from product innovator to a digital marketplace leader. Nike integrates digital platforms with physical retail, offers market-specific mobile apps, and engages users through customized experiences and robust digital ecosystems. Through digital platforms like Nike Training Club and Nike Run Club as well as offline community activities, Nike engages with users beyond transactions. This platform-driven strategy not only solidifies Nike’s leadership in leveraging digital platforms for growth, but also resonates exceptionally well in the diverse and unique markets across Asia, where tailored experiences and integrated digital solutions are increasingly sought after.  

Regulatory and Cultural Diversity of the Region 

Asia’s diverse regulatory and cultural landscape poses unique challenges for platform businesses. With varying regulatory frameworks, cultures, languages and economies, consumer behaviors and preferences can differ vastly across different Asian countries. This complexity significantly impacts how companies approach market entry and expansion, where adapting their business models and marketing strategies to different regulatory and cultural contexts becomes pivotal. 

To effectively navigate these intricacies, companies employ Design Plays to develop differentiated value propositions that align with local preferences and cultural sensitivities. Meanwhile, companies should also tailor O+O customer experiences to different Asian customers through Interaction Plays, to enhance engagement and foster brand loyalty. 

IKEA: Mastering Localization Through Design Plays 

IKEA’s entry and expansion in China is a textbook example of a strategic design play, reflecting a deep understanding of local preferences and behaviors. Going beyond furniture sales, IKEA adapted its business model to overcome unique market challenges and fit the Chinese lifestyle. Product designs were adjusted for smaller living spaces, which was a shift from its offerings in European markets. As part of its location strategy and with the support from an extensive logistics network tailored to China’s infrastructure challenges, IKEA placed its stores nearer to city centers with easy public transport access, catering to most Chinese consumers who are less likely to own cars. Furthermore, by quickly embracing digital transformation, IKEA offered online shopping, home delivery services and popular payment options like Alipay and WeChat Pay, exceeding Chinese consumer expectations for retail convenience. 

Lululemon: Building a Loyal Community Through Interaction Plays 

Lululemon’s approach in Asia exemplifies a successful full-journey engagement, seamlessly integrating online and offline experiences, offering personalized assistance, and fostering community experiences. Through dynamic segmentation, Lululemon tailors offerings to diverse Asian audiences, driving conversions with personalized recommendations and localized content. Lululemon also adopts an agile content strategy, featuring regional influencers and traditional Asian wellness practices. It leverages user-generated content, including customer testimonials and photos, to foster authenticity and engagement. This customer-centric approach has strengthened brand loyalty and deepened the connection with customers in Asia. 

Reimagine Your Business Strategy with the Platform Mindset 

From Huawei’s transformative journey to Grab’s and Lululemon’s innovative strategies, these best practices exemplify how companies are leveraging platform plays to navigate Asia’s diverse market dynamics and evolving consumer needs. 

Whether your organization is already a platform business or not, adopting a strategic platform mindset is essential for companies to stay competitive today. From developing a comprehensive platform strategy to evolving existing capabilities, the six Platform Plays illustrated in “Winning Through Platforms” provide essential insights that inform actionable next steps for a futureproof growth strategy: 

1. Assess your current capabilities and needs to determine the most suitable platform strategy.  Understand which role your platform can play within your business portfolio and select the one that aligns with your strategic goals.  
2. Consider developing a comprehensive platform strategy that goes across all aspects of the organization. This involves clarifying how the optimal platform role aligns with the company’s strategic objectives to maximize differentiation and growth. Leaders must also identify the strategic implications of what must change in the business.
3. Build an internal case for change and digital transformation while designing a transformation vision and roadmap. This includes the internal moves that need to be made from an organizational perspective, including structure, culture, processes, and capabilities.  
4. For mature companies who have already found success in platforms, find opportunities to evolve your current platform strategy. Revisit customer experience strategies to deepen engagement and conversion; adopt more complex platform roles to drive deeper integration into the business; or harness the power of data and AI capabilities to refine and extend your ecosystems to new, differentiated offerings. 

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Investing in both innovation and organizational resilience are two essential elements of success for companies to compete in today’s rapidly changing world. Through interviews with 14 senior executives and surveying 300+ innovation experts across the globe, Prophet’s latest research explores how successful organizations use innovation to drive business resilience.  

Four Learnings for Companies in China to Build Innovative Organizations 

Our findings reveal that innovative companies are more likely to be resilient. Particularly, 60% of respondents in China agree that innovation and resilience are connected, more so than their counterparts in Singapore (48%), the U.S. (47%) and the UK (47%). However, there exists a strong tension between the two characteristics – while Chinese companies on average deploy more innovation tactics compared to companies globally, they also face more pronounced barriers. In this article, we share our key findings and explore implications for Chinese businesses seeking to drive sustainable growth through innovation. 

1. Prioritize Cross-Functional Alignment 

Incubation programs and pod-like team structures have long proven to be effective innovation tactics and are widely adopted by companies in China. According to our research, 35% of Chinese respondents report that their companies have a formal innovation incubation program compared to 21% of respondents globally. Additionally, 27% of Chinese respondents report their companies use pod-like team structures vs. just 18% of respondents globally. However, such team structures risk becoming siloed. A lack of cross-functional alignment remains a significant barrier to innovation and growth, with 44% of Chinese respondents citing it as a challenge compared to only 32% globally. 

One example of how cross-functional alignment can impact innovation comes from the fast-growing beverage brand Chi Forest. As a startup, the company found tremendous success through operational agility, running pod-like teams with product managers in each team leading individual innovation initiatives. However, as Chi Forest grew, organizational inefficiencies emerged due to a lack of streamlined workflows and cross-functional collaboration, causing an overlap of roles and processes. Chi Forest has embarked on an organization-wide transformation agenda to reimagine its operation and business model.  

Takeaway: It is important to implement innovation incubation programs and pod-like team structures, while also emphasizing cross-functional alignment. 

2. Develop Balanced Innovation Incentive Structures 

Incentives are a crucial part of driving innovation, but overly focusing on short-term financial outcomes can hinder success. Our findings show that 56% of Chinese respondents report their companies to have special incentive structures for new business opportunities compared to 30% globally. Yet this has also led to an innovation barrier, where 54% of Chinese respondents say their companies have too much emphasis on short-term financial results compared to 35% globally. 

To empower long-term growth for the company, innovation success should be measured against various objectives beyond financial ROI. For example, Xiaomi has a series of incentive programs to encourage innovation, including an Annual Technology Award that rewards $1 million to an internal engineering project every year, evaluating technology and engineering excellence as well as business impact. The 2022 winner, Xiaomi’s CyberDog team, impressed CEO Lei Jun because the project successfully integrated many of the group’s R&D results and presented new technologies that could be soon applied to other core products. This is a good example of how incentives can be used effectively to drive impactful innovation.  

On the other hand, companies like Pop Mart are facing growing pains. Although the company offers generous incentives, it measures innovation success solely on the creation of new product lines and their short-term sales volumes. As a result, the toy maker is left with a bloated portfolio and hasn’t been able to elevate its brand equity despite years of exponential growth. 

Takeaway: To avoid pitfalls, organizations must develop incentive structures to recognize results, while avoiding overly focusing on short-term financial outcomes. 

3. Guide Rapid Innovation Cycles with Long-Term Vision 

Rapid prototyping and iteration is a common innovation tactic, but past innovation failures and a lack of long-term planning processes can discourage innovation. Our findings show that 31% of respondents in China say their companies use rapid prototyping and iteration compared to just 19% of respondents globally. However, failed past attempts at innovation have limited commitment to future innovation for 40% of Chinese companies compared to 28% globally. Additionally, 40% of Chinese respondents say their companies lack a long-term planning process compared to 38% globally. 

Shiseido’s approach to innovation is a great example of how companies can balance a strong brand vision and rapid innovation cycles. “Shiseido’s ability to have lasting success is in large part due to our dedication to creating the best quality products to meet consumer needs. This dedication to ‘craftsmanship’ is why we don’t blindly follow market trends but rather think critically about how we can further refine our products,” said Carol Zhou, SVP of China Business Innovations & Investments at Shiseido, in an interview with Prophet, “Although we may not always be at the forefront of trends, we have found the right pace to create a timeless brand.”  

Takeaway: Organizations should lead innovations with a clear vision and long-term planning, while enabling rapid prototyping and iteration based on a clear strategic roadmap, to create products that meet both long-term and short-term goals. 

4. Focus on Customer Insights as a Foundation of Innovation 

Creating differentiating innovations and finding emergent subcategories are effective ways to separate yourself from competitors, but paying too much attention to competitors and too little attention to customer needs is a surprisingly common mishap, according to our research. Chinese companies tend to focus heavily on competitor activity, with 40% doing so compared to 29% globally. This is often at the expense of paying attention to the needs of their customers, with 52% of Chinese respondents reporting that a major barrier to innovation for their companies is paying too little attention to customer needs, compared to 37% globally.  

Companies must develop an organizational-wide mindset of diving into customer insights, data analysis, and user testing to identify what customers truly need and want. By doing so, they can create innovative products and services that truly differentiate them from their competitors, making them stand out in the market. Nike has been successful in this regard, with a strong focus on the athlete and understanding their needs driving their innovations. As Mark Parker, CEO of Nike, explains, “Our success has been based on our commitment to innovation and great design, which really in our case starts with our commitment to the athlete – and really understanding the athlete and the insights we get from that relationship. So, we translate those insights into real innovation.” In China, Nike actively deploys a localized digital ecosystem to engage with its customers and understand their needs. In turn, the rich data gathered from these digital platforms continuously fuels its innovation and growth. 

Takeaway: Prioritize a human-centered approach that focuses on customer needs to create truly meaningful innovations. 

Building Innovative Organizations 

Indeed, innovation is not a department, but a collective achievement of an organization, as one innovation leader has told us. Companies should lead with a vision, encourage risk-taking, experimentation, and collaboration across all levels of the organization. This will help to create an environment where innovation can thrive and become ingrained in the company’s DNA. 

What can your company do today to turbocharge innovation? 

1. Emphasize the importance of always-on consumer insights and deploy the right team and structure as enablement. 
2. Ensure a holistic view of the market demand landscape, covering both consumers and competition and strategize growth moves and innovation efforts. 
3. Build a multi-year roadmap with different chapters and cross-functional teams and land the detailed action plan in a short-term/ one-year plan. 
4. Clarify how innovation initiatives drive business purpose, develop employee value propositions and define incentives accordingly. 
5. Transform how your innovation team works within your organization to instill agility and collaboration. 

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