As the Asian economy continues to grow, many businesses are considering expanding internationally in an attempt to capture a wider audience. According to McKinsey, Asia is predicted to top 50% of global GDP by 2040 and drive 40% of the world’s consumption.
Individually, Nasdaq finds that China is the second-largest economy in the world, Japan is the third-largest and India is the fifth-largest. Furthermore, innovation hubs are beginning to take root in Asia which, as of 2019, was home to more than one-third of the world’s unicorn start-ups. Looking at these numbers, the potential value of Asian expansion is obvious.
The Asian Challenge
However, given the complexity of moving into a region with such substantial differences in culture, economies and regulations, expansion is not always easy. When the Harvard Business Review analysed 20,000 companies in 30 countries, they found that companies selling abroad had an average Return on Assets (ROA) of -1% for as long as five years after their move. It would take them another five years to reach an ROA of +1%, with only 40% of companies turning in 3% or more.
With this in mind, businesses who are planning on entering or growing in Asian markets need to invest in comprehensive market analysis, investment structuring and capability building. Already, many companies have tried to break into the Asian market on their own and discovered that their efforts are hampered by a lack of local partners and on-the-ground knowledge. Savvy brands recognize the need to invest in a local partner who will align with their interests and fulfill their strategic intent.
The team at Asia Market Entry will conduct on-the-ground research and utilise market insights to develop a go-to-market plan which covers your objectives, value of offerings, barriers to entry, customer identification and approach. They will then provide in-market representation to help you build a pipeline of qualified deals on the ground in Asia with an immediate start.
Once you’re ready for execution, The MitchelLake Group will then leverage a global network to identify the best candidates, from C-Suite to engineers, to solidify your brand’s presence and accelerate your growth.
Both Asia Market Entry and The MitchelLake Group boast over 20 years’ experience, working with tech and innovation countries all over the world. Together, we have created an offering that will support your company’s expansion into Asia and achieve international success.