If your business has achieved a sizeable market share in its existing region, you might want to turn your attention to a different country or continent. Expansion can be an effective way to achieve organic growth and reap great rewards from an untapped market, but it does come with substantial risks.
Depending on your product or service, Asia may be an interesting prospect for your business. Not only does it have the highest concentration of people on any continent, Asia has a rapidly growing economy which should offer invaluable opportunities for expansion and market share. Below are some tips if you are considering expansion into Asia.
Choosing the right region
Obviously, Asia is an enormous region both geographically and demographically. Directing all your efforts and investment into one or a select few countries will be your best bet. It may be a smart idea to spend some time in areas that you are considering. This way you can deploy some first-hand market research and gain some cultural experience to inform your business decisions. For example, if you want to tap into the affluent city state of Singapore, renting a serviced apartment and diving into the culture will definitely benefit your strategic outlook.
Being sensitive to cultural differences
Spending time in your target area will also allow you to understand regional business and cultural conventions. For example, business etiquette is an important consideration in Japan. Politeness, correct attire and exchanging of business cards are all elements that may be less respected in Western cultures. Each region will have its own set of customs and etiquette, so doing your research will help to create trusting and sustainable partnerships.
Understanding trade laws and regulations
This applies to both international trade agreements, tariffs and local licencing or business regulations. Anytime you are importing or exporting a product, there will substantial red tape to account for, which will impact supply chains, logistics and finances. Understanding these fully before implementing your expansion strategies is essential to avoid complications down the line. It can be very useful to employ local help to aid your understanding of local laws and regulations. Furthermore, a native language speaker will be a significant asset for establishing partnerships in your chosen region.
Asia is a very attractive region to expand your business into, but there are many barriers and pitfalls that you need to be aware of. The most important preparation you can do is research because this will give you valuable knowledge to inform strategic decisions and make your expansion a success.
