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Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....
Business - 5 min read
If you've ever thought of expanding your business overseas, you may have considered Asia. With the expansion of free markets into Asia, the middle class is growing significantly. Deloitte predicts that by the year 2020, 3.2 billion people in the world will be "middle class." That's up from just 1.8 billion in 2009. The bulk of this growth will happen in Asia, Africa, and Latin America.
But will this "next billion" have the spending power of traditional middle-class customers in Australia and other advanced economies? Not necessarily. They will live in different conditions and need somewhat different products and services. However, they provide a large growth opportunity for businesses that can figure out how to reach them.
Clearly, the opportunity is there, but Asia is also fraught with traps for companies that are uninformed about the markets they're trying to reach. Here are just a few of the areas you'll need to study closely before expanding into Asia.
Some Asian areas skipped over some of the technological phases that Australia went through, jumping into the mobile era without having to build the intermediary telecommunications infrastructure that most advanced economies built. Therefore, many Asians have a different relationship with technology than do Australians. Public wi-fi is being installed everywhere from Indian railway stations to Chinese shopping centers. And as of 2014, more people in China were accessing the Internet via mobile devices than via PCs.
Does your business model mesh well with the rapidly changing technological environment in Asia? Can your telecommunications systems, marketing strategies, and employee interfaces be adapted to the mobile-heavy environment prevalent in much of Asia? If not, can you make adaptations?
Not all products and services are applicable to all markets. Are your products and services saleable in Asia? Here's an obvious issue: you run a residential landscaping company that also takes care of outdoor backyard pools. This is a company that will not find many customers in a city with substantial high-rise residential buildings.
Asia is huge and diverse. If your services and products don't fit in well in one place they may well find a home in another. An in-depth market research will help you to find where your company can find a toehold in Asia's burgeoning economy.
Each country has different infrastructure. Local and national governments have different regulations and requirements, roads and utilities can vary widely, and suppliers and technological infrastructure can be quite different from what you're used to.
Is your company equipped to handle differences in infrastructure? Are you able to acquire materials and supplies in Asia, or would you have to ship everything there? How would this affect your prices? And the speed in which to sell to your market?
It's easy to look at Asia as a single entity, but there are many different markets in Asia with many different ways of doing business. You'll have to tackle cultural and linguistic challenges for each region. One of the best ways to overcome the differences in language and culture is to hire really good people. Look for people with excellent language and communication skills. If you can find people who have international experience, and better yet, experience within the industry, you'll be in an even better position. Without people on the inside who are fluent in the culture and language, you'll likely have a difficult time with your Asian operations.
It could be either, depending on your business, your background, and your methodology in expanding into Asia. Done right, expanding into Asia could offer you access to seemingly limitless new customers “the new middle class” but there are definitely hidden speed bumps and road blocks in the way.
Can you successfully navigate Asia's technology? Are your services and products compatible with the lifestyles and needs of Asians? Can you work with the local infrastructure and overcome the hurdles of cultural and language differences?
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
Business - 9 min read
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Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
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