A few reason why Small & Medium Enterprises hesitate to “go” to Asia
The European Union (EU) is a major economic partner for Asia. In South East Asia alone there are over 10’000 European Companies operating. It is possible to go to Asia and start a successful business with the right approach and investment.
Where to start
Asia has 48 countries. Which market is the most suitable market for a particular product?
Many people think about China because of the huge demographics. But China may not be the best market as it could be too big risky or simply not suitable for a particular product.
Distance / Time difference
A flight to Asia takes at least 10 hours and once arrived the time difference to home is between 4-7 hours. That also reflects when doing business with Asian companies that mails or call has to be done early morning in Europe to reach partners in Asia.
Language Barriers
For small European companies, the daily communication in English is already a challenge not to forget to have documents translated and training people.
The Cost Issue
Small and Medium Enterprises (SME) mostly do not have the funds to heavily invest in Asia (Accommodation People, Flights, etc).
Overcoming the "Asian Challenge" for Western Businesses
It could be exceedingly challenging to understand where opportunities lie within Asia. Therefore, it is crucial that a considerable amount of time is spent analysing and mapping out the location of potential customers and suppliers. Factors such as industry trends, scope and size of the market, ground sales and technical support expected by customers, and required distribution channels are integral in ensuring successful market entry.
If you want to enter the Asian Market a good approach is to start with local Partners. By choosing the right company they will have a lot of contacts in the market and will be able to get the business rolling. On the other hand they take away a lot of burdens like payment issue from local companies
Although it said that the pace in Asia is much faster then in Europe, penetrating and working with partners not always that fact. Expect to make several trips or have a liaison partner in the region to help with the communication and visits
Once a partner is found, it is important to frequently communicate and work with the Partner as otherwise the interest is lost and therefore they may feel not important. “Competitors never sleep” and while one thinks business is going well, it may already turn into competitors hand
It is always good to have a regional placed person (or local) to frequently communicate with the partner(s). Business relationship in Asia is very important and can/will help to open doors and expanding he business.
To keep good records over every visit and even phone call is important. The distances are big and the time to meet less frequent. So keeping a good rapport and sharing it with the partner is very important. This can be used to follow up on every phone call and visit.
The European way of communication may differ from the Asian way (less direct and oft faster). This is important to understand and adjust in order to have smooth communication.
