Expanding into Asia offers great reward
Opportunities in Asia are bountiful for First 5000 members. Roxane Horton shares why mid sized businesses are well equipped to expand into the region.
The Chinese Five Blessings are luck, prosperity, longevity, happiness and wealth. Australian businesses will have greater scope to seek these out as a fast growing Asian middle class and the proliferation of free trade agreements creates larger markets for Australian products and services.
A 2012 report by Boston Consulting, Imagining Australia in the Asian Century, identified the following sectors as offering the greatest opportunities for Australian firms: financial services, building infrastructure, resource development, education and health services, innovative manufacturing, food, tourism, professional and technology services, transport and logistics.
Accounting firm William Buck’s recent CFO Pulse Survey suggests small to medium businesses are missing out on vital growth opportunities in Asia because the majority of CFOs surveyed conceded ‘they don’t have the skills or expertise within their businesses to expand into Asia’. Yet in many ways First 5000 businesses are especially well placed to capitalise on offshore opportunities. Mid size businesses tend to be sophisticated lateral thinkers and are at a stage in their growth where they can see the end of the local market and are in a position to think seriously about offshore markets. Managing their own capital gives them agility, nimbleness and an ability to take risks that smaller or larger companies cannot.
Accounting and advisory firm Grant Thornton has analysed mid size business’engagement with Asia. Grant Thornton Australia CEO, Robert Quant, believes mid size business’culture is especially well placed to successfully engage in Asia. Australian brand attributes such as environmental purity, good governance and high ethical standards can be leveraged to add value. Another selling point for mid size business is that their skill level and experience is often very advanced but less expensive than a multi-national.
Asia is not an homogenous region. Businesses must understand and be respectful of the various cultures and business practices with which they are engaging. Quant believes that mid size businesses have an advantage in this regard; they are adept at establishing connections and once made, they invest in them to give greater substance to the relationship.
Korean and Japanese free trade agreements have been signed off, the Regional Comprehensive Economic Partnership (the free trade agreement between ASEAN and Australia, New Zealand, India, Japan, South Korea and China) is due to come online in 2015, and with the China/Australia Free Trade Agreement expected imminently, opportunities are beckoning. May the blessings rain down on you.
Roxane Horton is a principal at Buxton Horton, a Human Rights and International Relations consultancy. Roxane writes Australian/US/Asia focussed foreign policy content for publication or client and stakeholder communications. Buxton and Horton also advise on human rights compliance and indigenous and multi-cultural engagement.
Roxane Horton is a principal at Buxton Horton, a Human Rights and International Relations consultancy. Roxane writes Australian/US/Asia focussed foreign policy content for publication or client and stakeholder communications. Buxton and Horton also advise on human rights compliance and indigenous and multi-cultural engagement.
AT
October 9, 2014 at 9:32 pm
Good concise article! Clearly
Good concise article! Clearly some good reference material for those who don’t think they have the skills to assess what they need to have, and what to do to get them.
Neville
October 8, 2014 at 10:56 am
A very timely and insightful
A very timely and insightful blog. I like particularly ‘May the blessings rain down on you’.