The Asian market is regaining momentum and still expanding by attracting foreign investments.
Indeed, Asia offers a business-friendly environment for global expansion. It has an outstanding infrastructure, a competent talent pool, and a lucrative potential market share.
However, expanding into uncharted markets like Asia can be time-consuming and risky for most organizations.
Hence, it makes sense that many companies take the time to decide on an Asia-based location for their future operations.
Are you on the right track for your Asian market expansion?
It’s the frequently asked question of entrepreneurs and decision-makers when they deal with the diverse economies of the Asian region.
Let’s answer this vague question by discussing aspects of capturing the Asian market.
What do expanding businesses need?
We will agree that global business leaders have the motivation and skills necessary to strengthen the Asian economy. As GDP growth in many Asian countries exceeds that of Western markets today, they only need a foresight of what they truly need.
For example, if you are a manufacturer, you should focus on Asian countries that favor the manufacturing industry like China and Malaysia.
However, emerging countries like Vietnam, Thailand, and the Philippines compete for technology, talent pool, and cost-effectiveness of your expansion.
Furthermore, as you expand into Asia, you may encounter language barriers, cultural differences, and currency exchange rates.
Who is your target market?
One of the main factors influencing Asia’s fastest digital economy is the growing middle class, which is expected to number 472 million by 2030.
Companies that swiftly build a multi-market development strategy are positioned to take advantage of Asia’s sizable middle class.
Furthermore, China is one of the world’s largest and fastest-growing consumer markets. It might serve as a baseline for many foreign companies that expects slow to medium growth.
Meanwhile, operating in Shanghai, Hongkong, Singapore, and Manila would lessen the requirement for border crossings and provide faster paths to your market. Hence, it’s critical to rapidly and effectively reach your target audience in the largest continent.
What are the legalities and compliance to know?
The Asian region has different labor laws per country. After analyzing markets and geography, you may want to evaluate the legal systems of the countries you like to expand.
For instance, the local governments of Singapore, Hong Kong, Manila, and Bangkok are aggressively creating hubs for new products and high-tech skills to target foreign investors.
Familiarizing with this different legal structure involves time, care, and attention. But without a doubt, this is the single aspect that impacts your growth.
For example, the Indonesian government imposes restrictions on the percentage of foreign ownership in several industries, such as agriculture, oil and gas, and retail. Hence, there are different compliance mandates for every Asian country.
Thinking Ahead of the Asian Market Potential
If you thoughtfully addressed the question above, you are on the way to establishing your brand in the Asian market. A regional Asian strategy is essential to your long-term success.
Although there is widespread awareness of what Asia offers, there is still a sizable information gap regarding the actual situation, changing supply-chain links, and political change in the region.
Hence, trustworthy connections and local partners can help you with their expertise.
It depends on the resources you have at your disposal and how you intend to launch your company in Asia. You can decide whether to open an office or hire an Employer of Record (EOR) provider to assist you and ensure compliance while managing your teams.
Employ Global is an EOR provider based in the Asia Pacific region that offers services for expanding enterprises. We have the local expertise and the ideal partnerships to ensure total compliance for your business operations. We are a well-known market entry and corporate expansion facilitator in the Philippines, Vietnam, Thailand, Indonesia, and Singapore.
Through our alliance of carefully selected partner companies, we will help you enter, establish, and structure your business in new and diverse Asian markets.
We will assist you in managing the risks and complexities of business expansion, whether you are testing a market or growing through partnerships, investment initiatives, or M&As.
Employ Global’s end-to-end services, the global employer, international payroll, and visa & immigration, allow business leaders to focus more on the profitability aspect of the business rather than spending time on HR and admin tasks.
Let us guide you as you scale your business in the Asian region. Contact us today. We are more than happy to discuss global expansion possibilities with you.
Olivia Yu has decades of experience in the Human Resources industry. She’s the Regional Director for Asia Pacific of a famous international HR company. Olivia’s international experience inspires her to write articles about human resources and global staffing.