Why do we have to target the Asian middle-class market?
Simply put, the Asian middle-class is a huge emerging market that is being underestimated by Australian companies. By 2030 Asia will represent approximately two thirds of the global middle-class population along with the consumption of goods and services they expect with their rising incomes. This middle-class in developing countries is expected to be concentrated in North East Asia, South East Asia and South Asia. This radical change will not only affect the demand patterns and industries throughout the region and the world (SCBC, 2013); there will be huge opportunities and demand for Australian firms for high-end infrastructure and construction projects, agricultural and manufactured products, high quality services such as education, tourism, healthcare, finance and many more. Success stories of Australian exporters:
Sounds promising, but how can we capture these opportunities?
Australian firms have a natural competitive edge in resources and capabilities. Now is the time to grasp these opportunities. However, it is essential to understand your company’s capabilities, the target audience, competitors and other players in the target market in order to achieve your goals. At Research by Design Asia, we can deliver not only a thorough understanding of your venture's feasibility into new markets but also recommendations for the best routes to pursue. There is also a government grant scheme, through Austrade; Export Market Development Grants (EMDG) to assist Australian businesses realise their export market potential.
Exporting means more opportunities, but also entails greater risks, what are some of those major risks?
Major political instability at your export destination can either disrupt or prevent export contracts. This can include changes in government policies, trade embargoes, political and civil unrest to natural disasters. Differences between legal systems can cause major issues when entering contractual arrangements in export business. Some include taxation and revenue laws, contract terms and their enforcement, Intellectual Property issues, product liability and consumer warranties, and OHSE requirements in certain services. There are risks of bribery and corruption, quarantine compliance, exchange rate risk and non-payment that exporters also need to consider. It is essential businesses undertake a comprehensive due diligence review to reduce their risk when reviewing their target markets. Read more about Risk Management in Export Business.
What is an EMDG and how does it assist our overseas business projects?
The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. This scheme, administrated by Austrade, reimburses up to 50% of eligible promotion expenses and provides up to eight grants to each eligible applicant.
EMDG success stories