TRADE FOR THE RIGHT REASONS

TRADE FOR THE RIGHT REASONS

BEFORE heading to Asia, it’s a good idea to work out exactly why your business is going there.

Businesses need to understand the markets they are entering in Asia and how their products or services fit and engage with corporate advisors and governments in each country.

That’s the advice from partners Dennis Lin and Cameron MacMillan (both pictured), from BDO consultancy. They deal with many clients doing business across the Asian region.

“Businesses need to understand what they are going to Asia for: To sell, buy or create a partnership," says MacMillan.

“You cannot treat it as a gold rush and expect opportunities to appear. You must have patience and not bet the house on Asia,” he says.

Lin believes the recent bribery convictions in China of businessmen Stern Hu and Matthew Ng highlight the importance of treading warily when doing business in a foreign country.

He says it can be a mistake to try and act like a local.

“It is easy to get into trouble if one offends a government official," he says.

MacMillan and Lin believe technology and creative industries can grow faster in some Asian markets, where there are not the capital constraints and high labour costs of operating in Australia.

As an example he cites the success enjoyed by a number of Queensland logistics and food testers who were approached by Chinese authorities following a string of tainted food scandals there.

“They were approached because Australia has one of the world’s highest standards of food safety,” he says.

“In Japan there is still talk about the fall-out from the 2011 tsunami and whether food is safe to eat. People often take for granted that our food is safe, but not everyone can.”

The Japanese Government has encouraged entrepreneurs to produce goods, such as wagyu beef and automobiles, outside of Japan for the purpose of importing back to the island.

“Australia can be used as a base to manufacture products for Japanese tastes with traditional quality controls and a perceived quality of being made by Japan. The Japanese could not otherwise create the same volume of wagyu as they do not have the same amount of land. They are now looking at [offshore] rice production,” says Lin.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

White-label buy-now pay-later (BNPL) company Limepay may have ...

Melbourne construction safety software group HammerTech receives $105m investment for growth

Melbourne construction safety software group HammerTech receives $105m investment for growth

HammerTech, a Melbourne-headquartered safety intelligence software ...

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

When discussing the creativity and ingenuity of Indigenous people, ...

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Founder-led IT consultancy Exent is set to join the growing portfol...