4 Reasons to Pivot Your Business Toward Asia
The tech industry in Asia is booming, and the opportunities aren’t limited to technology. The economies in countries throughout Asia are rising, creating opportunities to grow businesses in a multitude of industries.
Recent data from the World Bank shows that GDP growth in South Asia rose to 6.9 percent in 2014 and is expected to continue to grow toward 7.5 percent in 2015. Asia is an untapped market with huge potential. Here are just a few reasons to grow or expand a business in this advancing continent:
1. Fast-developing environment
Asia has become extraordinarily tech focused and innovative. World-class tech hubs are growing in Singapore, Hong Kong, Tokyo and other Asian cities. Advancing technology, government support and tax breaks create a favorable environment to nurture businesses.
Mobile is also changing and advancing the business environment in Asia. In fact, a report from Forrester predicts that online spending in China will reach $1 trillion by 2019. This growth will be driven by mobile apps and improving logistics networks, the report suggests.
Increased access to mobile devices, increased ecommerce and apps and improved networks means more opportunities and a better environment for every type of business.
2. Enormous population and market
Asia is a gigantic market. The United Nations Economic and Social Commission for Asia and the Pacific estimated that, in 2014, 4.3 billion people lived in the Asia-Pacific region, accounting for 60 percent of the global population -- more than half of the people in the world!
Not only does the vast population represent a large market of potential customers, but also it is a market of upcoming and untapped talent. The growing population combined with the evolving tech industry means a steady supply of promising engineers, designers and entrepreneurs.
With a large talent pool and customer base, the opportunities in Asia are limitless.
3. Exciting atmosphere
Markets in Asia are still developing, and that’s exciting. Unlike established markets in the U.S. and western Europe, an emerging economy leaves more room for innovation and unique opportunities.
Startup growth in Asia is increasing at an incredible rate, and that’s inspiring. Data from CB Insights found that Beijing, Tokyo, Shanghai and Bangalore were among the top six cities in the world in terms of growth in venture-capital deals and dollars in 2014. From 2013 to 2014, deals grew by 165 percent in Beijing.
In another study conducted by National Association of Software and Service Companies, India was the fastest growing startup ecosystem in the world, with 800 new startups launching each year.
Getting in on the ground floor of rising economies means seizing new opportunities and more possibilities than are available in developed economies that are growing at a much slower rate.
4. Advanced infrastructure
Major cities in Asia have advanced infrastructure that makes setting up businesses easier. Rapid growth in Asian countries has required a larger investment in both economic and social infrastructures, and improvements in these areas are visible.
Improvements in the business sector are reducing barriers to entry and increasing opportunities. In Japan, for example, relaxed requirements now allow foreigners to start businesses in the country without a permanent residence, the Japan Times reported.
What do you think? Should businesses look to Asia for new opportunities? Let us know in the comments section below.