The inaugural ANZ Opportunity Asia survey of more than 1000 Australian businesses in August–September this year found that companies active in Asia believe they are far more likely to achieve long-term growth than their counterparts who are domestically focused.
ANZ Opportunity Asia – key findings:
- 76% of businesses surveyed who had expanded into Asia said profits had increased substantially or will increase in the future.
- 47% of businesses surveyed indicated revenue derived from Asian operations was much higher than domestic income. This was true across all market segments, including small, medium and larger sized businesses.
- 38% of small businesses surveyed who are doing business with Asia said they achieved return on investment within 12 months, while 59% of medium and 39% of larger sized businesses accomplished this within three years. 88% of the businesses not already in Asia are considering expansion in the next three years.
The report shows these companies are now reaping almost half of their revenue from outside Australia and have substantially improved profitability since expanding operations. Of those Australian businesses surveyed, 35 per cent have operations in Asia, while 20 per cent are planning their expansion strategies.
Mark Hand, ANZ Managing Director, Corporate and Commercial Banking said: “There is clearly a huge opportunity for Australian businesses to grow and prosper by trading with Asia. We found the biggest misconceptions for those looking to expand into Asia are the process is complex, they don’t have the capital and they’re unsure of short-term viability.
“Successful Australian companies said the key wasn’t overcoming cultural or language issues or navigating policy and regulation. It came down to good business practices, such as knowing demand, quality products and services and more importantly, having the right partners and support on the ground,” Mr Hand said.
“No doubt there are risks; however the findings of this report demonstrate that not considering the opportunity may be even riskier.”
For a full copy of the ANZ Opportunity Asia report visit http://anz.co/TEQ05