China has the second largest and fastest growing economy. Japan has the third largest economy and the second largest IT market after the US. Korea has the highest percapita broadband usage in the world. So why are you not here?
The English-speaking Asian markets such as Australia/New Zealand (ANZ), Singapore and South-east Asia (SEA) and Hong Kong typically conduct business in a way that is similar to Western countries and are relatively straightforward for our clients to enter—with or without our advice. In particular the ANZ consumers tend to be early adopters of technology and many companies find Singapore (albeit a very small national market) a convenient hub for doing business in Malaysia, Indonesia, Thailand and other countries in the SEA region. That said, even if lumped all together, these markets are still small and normally should not represent more than 15-20% of your overall Asia Pacific revenues. The real revenue opportunity for any company doing business in Asia Pacific lies in the populous markets of China, Japan and Korea. Since RTM Asia focuses on building strategically significant revenue streams for our clients, we concentrate exclusively on helping our clients build rapid success in China, Japan and Korea, while providing advice and affiliate coverage for the other Asia Pacific markets.
The sheer scale of the business opportunity in China is mind-boggling. By 2015 China will have 15 cities with more than 25 million residents and 22 cities with more than 10 million. By comparison, the US has only 10 cities with a population exceeding 1 million. China not only makes most of the world’s key goods but also consumes an increasingly large percentage of them. Every company that intends to do business on a global scale must have a China strategy in place to ensure long-term revenue growth for the future.
Japan is the second largest IT market in the world after the US and a voracious consumer of leading edge technology and products from overseas. Unlike China, which is a large country with diffused centers of decision-making, the bulk of Japan’s GDP and a large percentage of the business decision makers reside within a 100 kilometer radius of Tokyo. That means a company can efficiently cover a very wealthy and large population of 130 million consumers with a small presence in Tokyo. As a result, many of our clients decide to enter Japan first and build their Asia Pacific revenue stream before investing in their China and Korea market entry.
Korea is the heaviest user of the Internet in the world on a per capita basis. The speed and availability of Internet access whether from mobile phones or PCs is unparalleled in the world. The Korean business climate is very entrepreneurial and innovative. Especially in the tech sector you need to have a best in class product that is competitively priced to beat out the local competition and be successful in the Korean market.