As Australian businesses face challenges from a sluggish domestic economy, the advice is to tap into thriving export markets in Asia.
“We are seeing a continued surge in consumer spending power across Asia thanks to the rapidly rising middle class – the growth potential is staggering,” says Asialink Business CEO Leigh Howard.
“With the right insights and strategies, Australian businesses can make informed decisions and capitalise on these opportunities by tapping into our region’s dynamic economic future,” he adds.
Mr Howard shares five tips for doing business in Asia:
- Understand the Relationships: Cultural intelligence is key to effective communication and building trust. While virtual modes of engagement increase, core cultural values remain an important factor in international business. Not understanding this can lead to missed opportunities, delays and lost engagements.
- Secure Strong Connections: Strong relationships with suppliers, distributors, clients, and other stakeholders are fundamental. The strength of business relationships can determine the ability to gain credit, procurement, and contracting.
- Understand what makes the market unique: Understand the distinct business culture and landscape. As individual markets grow, their preferences become increasingly distinct.
- Be Local: Customise your products to match local needs and preferences. Positioning, labelling, and market channels matter.
- Risk & Return: Doing business overseas involves a range of new risks from economic, political and regulatory, but lucrative returns are on offer. Do your homework to maximise outcomes.\
Asian AI market will outpace the global AI industry
The Asian artificial intelligence industry has skyrocketed over the past years, becoming the major player in the global AI landscape. Since 2020, the entire market has more than doubled, growing faster than European, North American or the global market, and there are many reasons for that.
China, South Korea, and Japan have implemented national AI strategies and invested heavily in AI research and development, helping cities like Beijing, Tokyo, Shanghai, and Seoul become global innovation hubs. Asian AI startups have also played a significant role in the industry’s growth, attracting huge attention from VC investors. This surge in interest followed heavy investments in AI research and development from tech giants like Tencent, SoftBank, Alibaba, and Samsung, which have paved the way for an AI startup ecosystem in the region.
Furthermore, Asia boasts some of the world’s top universities and research institutions producing skilled AI professionals, while its workforce is trained in AI technologies, helping it retain its position as the global AI leader by the end of a decade.
According to a Statista survey, the Asian AI industry’s revenue will skyrocket by 351% and hit $298.4 billion by 2030, outpacing even the global AI market’s growth, which is expected to surge by 349% in this period. The North American and European AI industries will also see smaller growth rates, with their revenues jumping by 346% and 349% in the next six years, respectively.
The Statista data also showed that Asia will see the biggest user growth in the AI space, with the total number of people using AI tools rising by 150% to 180 million in 2030. Still, that is nearly 60 million short compared to the North American market, which is expected to see its AI user base jump by 115% to 268 million in this period. Europe will also have more AI users by 2030 than Asia, roughly 229 million, or 134% more than this year.
As part of an initiative to support Australian businesses and kickstart exports to the region, Asialink Business will launch its ‘Doing Business Guides’ this week, an essential resource for exporting to, or investing in Asia. The series will cover 14 key Asian markets by the end of the year with the guides for Vietnam, Indonesia, Malaysia, the Philippines, Singapore and India already published.
The freely available ‘Doing Business Guides’ series provides Australian businesses with an economic overview and business culture. It maps out how to enter each Asian market and offers the practicalities of doing business in each country.
To find out more visit www.asialinkbusiness.com.au
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