Preparation advice for firms entering Asian markets

YORKSHIRE owner/managers are being encouraged to venture into lucrative Asian markets, which are still growing despite the global recession.

Business leaders received advice on how to expand into new overseas markets such as Malaysia, China, Thailand and India at the latest UK Trade & Investment (UKTI) Asia Task Force event.

But according to Mark Robinson, international trade director with UKTI’s Yorkshire team, firms need to make sure they understand cultural differences to ensure overseas sales success.

“People seems to leave their brains behind when they go overseas and forget that they still have to build business relationships,” he said.

“It’s important to understand cultural diffences, particularly in Asia, which is why UKTI offer cultural training.”

He said that India was proving a particularly popular market with UK firms as it offered opportunities within the healthcare, environmental, and financial services sectors.

“I think India is popular as it doesn’t seem quite as far as away as China. China is also perceived as over-crowded,” Mr Robinson added.

Market research prior to expansion overseas is another important factor to consider before expanding overseas – something which Richard Gilbert of the British Chambers of Commerce (BCC) claims many firms still fail to take seriously.

“Firms are often so keen to enter a new market and take advantage of a potential new revenue stream that they don’t do the research that they need to,” he said.

“Another potential put-off is cost. But market research charges are far cheaper than getting into trouble.”