Unsurprisingly, Australia’s trading profile has shifted dramatically. Australian trade is now firmly centered on sizable and growing Asian markets. The key trading partners of China, Japan and Korea accounted for $A147 billion of Australia’s exports in 2015 – in stark contrast to the relationship with the UK where exports stood at $A3.8 billion.
" Asian consumers are increasingly demanding high quality products and services."
Fred Ohlsson, ANZ Group Executive, Australia
For Australian business, the weight of numbers is obvious.
ANZ’s latest Opportunity Asia report, which surveyed 1000 companies, including ones which have succeeded in Asia, identifies some critical elements of success in what is a complex and challenging region.
Businesses with existing operations in Asia have a turnover 16 per cent higher than those who were domestically focused. Nearly three quarters of the businesses ANZ spoke to acknowledge their profit margins from the Asian region are higher or comparable to their domestic profit margins.
The lure of Asia is clear: 87 per cent of companies who are planning to embark on Asian expansion say they will do so within three years. If they act on these intentions they stand to gain $138 billion in additional revenue.
The Asian Century
Bolstered by rising disposable incomes, increasing urbanisation, improving infrastructure and consumer affluence, Asian consumers are increasingly demanding high quality products and services, with many Australian businesses capitalising on the demographic shift.