The Asian market’s growth is of everyone’s interest now. The largest continent in the world is diversely rich in people, culture, resources, and markets. Over the last few decades, there has been a rapid GDP growth outpacing many western markets.
The technological boom, the decline in poverty, and the rise in income levels have contributed to the steep Asian market growth. With a population of 4.5 billion, the Asian market presents a myriad of opportunities for firms to capitalize on its growth.
Top 5 Asian Markets for Business Expansion
China takes up the biggest share in the growth of the Asian market. As the world’s most populated country and second-biggest economic power, China is the best place to expand foreign businesses. Entering the Chinese market is not easy, but with the right strategies, brands can go big.
Besides low labor costs and the immense buying market, China has facilitated foreign direct investment flow through Special Economic Zones (SEZ).
Another lucrative country, South Korea, is the best destination for global companies looking for high-tech talent. The highly skilled talent pool largely negates the lack of natural resources. As the 12th largest economy, South Korea is a leader in IT, cosmetics, services, manufacturing, and more.
The South Korean Government is a strong supporter of firms wanting to boost Asian market growth further. It offers attractive tax rebates, low rents, free-trade zones, and also heavily backs startups.
Dubbed as a global business hub, Singapore is another business-friendly country with low corporate taxes. Many top companies use this country’s market as a testbed before expanding further into Asia. Besides monetary benefits for new businesses and bilingual talent, Singapore also boasts the best intellectual property protection and anti-corruption efforts.
Singapore, a sovereign island city-state, is a testbed for many western businesses wanting to enter Asia.
A leading financial market and a global city, Hong Kong is a free-trade region with low taxes. It is also the entry point to mainland China. Foreign companies enjoy full ownership, total gains exempt from taxes, and access to the best human resources. Its strategic location further adds to its charm as an alluring market for business expansion.
Malaysia is one of the most advanced economies in Southeast Asia. It shares borders with the leading and emerging markets of Singapore, Vietnam, and Indonesia, providing connectivity for companies. The Malay government is also a staunch supporter of business in biotechnology, health services, and manufacturing.
Opportunities in Asian Market
Biggest Consumer Market
Due to Asia’s mammoth-sized population, the consumption levels are at an all-time high. These diverse buyers are inclined towards luxury goods and high-quality products like electronics. Brands can cash in on the biggest market in the world while expanding their awareness.
Many countries in Asia are still developing and need technology, capital, and heavy manufacturing for infrastructure. Companies that specialize in these areas can enter these markets and promote to their target audience. Foreign firms also enjoy certain tax subsidies from the local governments.
High Skilled and Low-Cost Labor
When transitioning from west to east, brands do not have to worry or invest much in human resource training. These economies offer a wide range of skilled labor with low costs when compared to western standards. Firms can outsource manufacturing in Asia, which allows them to produce high-quality products at fewer expenses.
Asia accounts for a significant role in exacerbating climate change. Due to the lack of proper business models that support green living, the continent needs sustainable efforts. Companies that promote and provide business strategies that accommodate sustainability and efficient waste management have a bigger market to take over.
The COVID-19 pandemic further stressed digitization in Asia. With the shutdown of physical stores, factories, and organizations, digital processes have taken a hit. These countries are now in need of e-commerce, online education platforms, and digital marketing.
Today, the rapid Asian market growth presents both opportunities and challenges to expanding businesses.
Challenges in Asian Market Expansion
The demand and consumption patterns in Asian markets are difficult to predict. Companies are often wrong in their approaches because of a lack of understanding. Additionally, these markets provide a wide range of price points which further complicates demand. The supply is also unstable due to the limited infrastructure, complex tax policies, and haphazard accessibility to the talent pool.
Differential Asian Market Growth
Countries in Asia are developing at various paces, which requires firms to customize their products accordingly. This complicates designing, manufacturing, and storage processes. The development extent across various industries also narrows down the opportunities for some businesses. For instance, China boasts many e-commerce sites, making it hard for global digital commerce companies to penetrate the market.
Cultural & Language Diversity
Another characteristic that sets Asia apart is its cultural and language diversity. There are more than 1000 languages spoken on the continent. While English is the universal language, countries like China and South Korea attach great importance to their regional languages. Businesses have to make sure to tailor-make their advertising efforts to each of these languages.
Also, the concentration of religions varies from country to country. Multiple religions like Buddhism, Islam, and Hinduism dominate in Asia. Brands have to pay attention to these sensitivities before entering Asia.
Local Platforms & Competition
In developed economies like China, Japan, and Korea, foreign firms experience strong competition from the local players. In addition, local platforms like WeChat, KakaoTalk, Alibaba, Naver dominate the e-market. Companies have to adapt to these platforms and plan accordingly to face the tough competition before entering Asia.
Entering and Expanding in Asia through 3D
While opportunities look enticing, foreign companies must craft clear strategies to overcome these challenges and maximize opportunities. One such way is through 3D.
3D rendering and animations help brands build and promote customized products and services with minimum costs and efforts. Brands can incorporate elements of the Asian market’s cultures, customs, preferences, and likes into promotions and products through 3D product rendering.
Brand avatars can be personalized according to regional tastes; thereby, effectively connecting with each audience. Brands can include virtual YouTubers, augmented reality, digital signage, and 3D art to attract a huge sector of Asian buyers.
The Next Global Business Hub: Asia
Brands worldwide are now shifting their focus from the west to Asia, the next global business hub. While it offers a plethora of opportunities and challenges, companies have to carry out in-depth research before expanding. Businesses have to assess the opportunities, the consumer market, and geopolitical risks before establishing themselves in Asian countries.