Asia’s competitive trading landscape and how to get involved

According to the International Monetary Fund (IMF) China now has the world’s largest economy, knocking the US from the top spot. Estimated to be worth $17.6tn, China’s economy is still growing and has expanded at approximately 10% a year for the last 32 years. And it’s not just China: East Asia is the world’s fastest-growing region, with GDP growth projected to be stable at 6.1% in 2015, and this is why FedEx has had established local operations across the region for over thirty years.

The whole Asia Pacific region is becoming the driving force of the global economy because of its high growth rate and due to the diversity of industries found there. For the best part of two decades Asia was powered by electronics, and at FedEx, we still ship a large quantity of technology products today. However, the contents of our planes now also includes a huge amount of luxury goods, as well as healthcare and pharmaceutical shipments, among many others.

The importance of trade with Asia, especially China, was acknowledged in this year’s budget with the Government pledging more money to UK Trade & Investment (UKTI) to support SMEs looking to do business there. Exporting to a far-flung country can seem daunting, but it doesn't have to be with the right support and expertise, both of which are plentiful.

Here are five ways your company can get involved in the Asian economic boom:

Do your research

Research is vital when entering new markets, particularly when it's in a region that's unfamiliar to you. Check whether there are importing restrictions on products and ask your logistics provider to advise on the customs procedures you need to adhere to. On top of this, understanding customers’ needs and desires, recognising competition, and identifying what the locals are prepared to pay is an absolute must.

Technological innovation

Rapid technological innovation is enabling a smart trading world, and staying ahead of the game is vital to remain competitive, and may even determine the long-term success of your business. In the modern era the winners will be those who adapt fastest to new technology, and use it to streamline everything from in-house order processing systems to creating optimised and efficient global supply chains.

Futureproof your growth plans

It's not just the established growth markets, industry trend reports are a great way of identifying opportunities in emerging regions. China may be the biggest economy in the world, but you might find greater growth potential in Indonesia or Vietnam. Staying ahead of the game enables you to steal a march on the competition.

Think like a local

Getting to grips with a new culture isn't just an enlightening experience, it's fundamental to the success of your business. In some places, haggling can make a deal, in others it can break one. Getting to know the local business culture helps you understand what makes the people tick allowing harmonious and productive relationships to flourish.

Seek support

Developing a strong supply chain is essential to effectively distributing your product, while also choosing the most inexpensive route to bring it to market. This is where the power of logistics comes in, as there are several benefits of working with an established provider, including their insight and knowledge of Asian markets, access to their wider distributor network, and the ability to streamline your customs procedures. For example, at FedEx we have approximately 3,000 regulatory and clearance specialists globally, who are on hand to help our customers each step of the way. So even though exporting can be difficult, you don't have to do it on your own.

Ubisense: Case Study

Based in Cambridge, UK, Ubisense is an innovator of Enterprise Location Intelligence products and solutions. Its suite of products accurately captures and interprets data from mobile tags via a network of base stations, arming its customers with superior operational visibility. These enable businesses across the high value manufacturing, utility and telecommunications sectors to make significant improvements in efficiency.

Knowledge is power

Ubisense products have a vast number of applications and can improve decision making, automate processes to reduce errors, or, in certain industries, meet lean production targets. Automotive manufacturers, for example, are able to implement a tag-automated system which tracks vehicles on the production line. "This information allows the manufacturer to adjust processes that improve cost efficiency, potentially saving millions of pounds over the course of the year," adds Paul Webster VP of Hardware, Ubisense. Factories employing this technology have since been dubbed ‘smart factories’ and Paul estimates that already 4% of the world’s cars are now built with the assistance of an Ubisense solution. This represents five of the 10 largest global car manufacturers, and the number of deployments is increasing every year.

Location, Location, Location

Being located in Cambridge is hugely advantageous to the business, and indeed the four founders initially met while working at a research facility affiliated with the world-renowned Cambridge University. "As a city, Cambridge provides a unique infrastructure formed over the last 50 years by generations of entrepreneurs," explains Paul. "Offering support and expertise – as well as capital – these Angel investors are on hand to guide and develop the next generation of start-ups."

From Silicon Fen to the world…

With 500 customers across 50 countries, and with 95% of what it builds being exported, Ubisense has experienced phenomenal growth since it launched in 2002.

With a variety of blue-chip companies in fast-moving, high-value industries as customers, Ubisense must be in a position to fulfil orders as quickly as possible. "If these companies need additional hardware to support their own increased production, we need to make sure it gets there on time," says Paul. "This is especially true in the manufacturing sector where, more often than not, delays to production are so costly that they are simply not an option. That's why FedEx has played such an integral role to our global success."

Global support, local knowledge

Ubisense first approached FedEx Express in 2004 due to its global reach and reputation for reliability and the relationship has grown into an integrated partnership moving thousands of packages all across the globe. These packages range from large palletised shipments containing everything required to deploy a system across a complete manufacturing facility, down to the smaller urgent packages that ensure these systems keep running 24/7 to support ongoing production.

As Paul explains, "FedEx is extremely supportive and helpful – facilitating last minute shipments when needed. Their advanced customer technology tools and global customs expertise is central making sure this happens every time."

Coming to a location near you

Ubisense is now attracting a great deal of interest from the East, notably Japan and Korea as well as from China, the largest manufacturer of automobiles in the world. "Working with FedEx gives us the opportunity to be flexible as we develop," says Paul. "That's especially true when it comes to entering new markets that may have different customs procedures. Having local, global knowledge on tap will continue to be extremely useful as we continue to expand."