The Asia Pacific (APAC) region is positioned to lead global economic growth in the next decade, and companies that learn how to tap into this powerful opportunity will be set to rise above their competition.
That’s one conclusion of a recent study by DHL Trend Research that aims to shed light on critical economic and logistics developments across the region, and the important role that trade and infrastructure development will play in APAC.
Titled “Demystifying Asia Pacific Trade Trends,” the report highlights six key Asian emerging economies— China, India, Vietnam, Thailand, Indonesia and Malaysia—and discusses how organizations can leverage trade programs such as the Trans-Pacific Partnership (TPP) to overcome barriers and begin trading and investing in the region.
What’s fueling APAC’s economic engine? Emerging manufacturing hubs, increasing domestic consumption and rapidly growing e-commerce are key factors. By 2030, intra-APAC trade lanes are projected to account for 50 percent of key global trade lanes. When it comes to e-commerce, Statista reports that Asia Pacific is the world’s biggest and fastest-growing B2C e-commerce region, recording more than $877 billion in retail e-commerce sales in 2015. By 2018, that number is expected to hit more than $1.89 trillion. Such explosive e-commerce growth means that organizations of all sizes, including small businesses, will have a clear path to reach APAC consumers and companies, an important jump-start for cross-border trade.
To get your company’s APAC trade strategy going, here are three key considerations:
1. Make sure your e-commerce strategy is international
To reach potential new customers in the Asia Pacific region, it is essential that you consider how to communicate with them, and sell to them, online. Make sure your e-commerce strategy reflects the language and customs of those in your target countries. Similarly, your social media and marketing plans should be international in scope.
2. Invest in The Asian 6
Investing in one or more of the six high -potential Asian economies can be an important way to benefit from the regional movement of goods in APAC. Much of the growth that occurs in the region will involve trade between these Asian countries, and accessing the value of these transactions could help your company substantially. Consider that, by 2030, China-India and China-Indonesia trade lanes will enter the top 15 globally. Initiatives such as TPP, ASEAN Economic Community (AED), and China’s Belt and Road can help lower barriers in intra-APAC trade and increase multimodal transportation solutions.
3. Understand the logistics equation
E-commerce logistics are changing rapidly, which means that logistics managers and leaders face new issues and opportunities. Companies should pay attention to changes, as new fulfillment solutions for B2B, B2C and now, increasingly B2B2C, are on the horizon.
Today more than ever, entering into direct trade with APAC and accessing intra-APAC trade can boost your business and your bottom line. Find out more by reading the DHL Trend Research report.
Have more questions about Asian trade trends? Let us know on Twitter at @DHLUS.