2013 – 2063: Export trends and opportunities fuelled by Asian demand

Thursday, November 07, 2013

Exports on course to satisfy Asian demand are by most economic data predictions expected to skyrocket in the next 50 years. This has been detailed in ‘Positioning for prosperity? Catching the next wave’, a preliminary release by advisory firm Deloitte analysing where Australia will find its next surge of economic growth. The release can be found here. An in-depth report will follow in early 2014 detailing the opportunities and possibilities for Australian producers, a trend that will also present itself to other economies located in the Asia-Pacific region. This high growth in demand will have a driving influence on millions of businesses that will have the capacity to capitalise on this trend.

Growth in demand is not solely expected from the highly mediatised China, but also in Indonesia, Thailand and other ASEAN nations in the region. Intra-regional trade is expected to boom due to the ease of facilitation between these key ASEAN markets due to their high integration levels. Further improvement to create a single ASEAN bloc will improve productivity further.

This predicted sales growth trend is a welcomed improvement compared with the sluggish sales and currency volatility that has plagued many exporters since the global financial crisis (GFC) of 2007-08. The Deloitte report conveyed that six sectors will outpace other industries in growth over the next 20 years being gas, tourism, agriculture, health, international education and wealth management. Notably, companies in the service sector will make up key roles in these industries and also supportive roles including those in logistics, accounting and communications.

In Asia, key regional hubs for business will benefit as firms look to globalise and expand in the region. As companies grow they may choose to strategically streamline their core business functions which they may focus in key locations that hold competitive advantages: treasury management may be concentrated in the Singapore office, the service centre could be located in Malaysia.

For commodity abundant economies, agribusiness will be an increasingly lucrative industry. To make the most of this demand exporters focusing on attaining a larger market share in Asia should work towards establishing a highly visible market presence and put in initial steps to construct a loyal brand following. Establishing an Asian responsive arm will be necessary for longer term prosperity and to capture market share in this region.

To win market share across the region: trust, the marketing of brands and reliability of product supply chains will allow companies to make the most of this demand. A focus and infallible reputation on food safety will be necessary as consumers will stay clear of products that are not deemed clean, safe and reputable. Fresh fruits and vegetables will be a commodity in particularly high demand.