Establishing a presence in Asia Pacific is crucial to success for multinationals

22-Oct-2012 - Last updated on 22-Oct-2012 at 10:30 GMT

With the economic slowdown hurting Western markets hard, multinationals are increasingly turning to Asia Pacific to reinvigorate growth, but it seems that key to a good start is establishing a presence there.

The shear size and diversity of the market means that there are constantly new opportunities cropping up in this market, which has led to many multi-national manufacturers and suppliers expanding their footprint in the region in recent years.

But getting a footing on the Asia Pacific market requires dedication and a physical presence, to give an impression that a company is there to do business, be accountable and while being at the ready to give support to its customers.

Northstar Lipids stresses importance of its Asia office

UK-based Northstar Lipids, a supplier of plant-based cosmetics oils, said it recognized the importance of the Asia Pacific market early on, but also said it saw that the issue of representation in the market would be crucial to the success.

“Setting up an office in Asia is important as it’s vital to keep a close eye on the business here,” said Chris Houghton, managing director for Northstar Lipids.

“Asia is a major part of our entire business. We saw a 100 percent increase in revenues from the cosmetics and toiletries market here from 2010 to 2011, which is why we chose to set up a Guangzhou office in 2011.”

Further evidence comes that building a strong physical presence in the region comes from other companies which entered the Asia Pacific region early and established buinesses premises there.

Gattfossé builds business with close Asia ties

“Asia is a huge market that is growing,” said Ségolène Moyrand-Gros, who is the group communication manager for the France-based ingredients provider Gattfossé, primarily in the area of vegetable extracts.

“Our business has increased steadily over the years. Right now, approximately 15 percent of our revenue is from sales to Asia’s pharmaceutical and personal care industries.”

As Gattfossé continues to grow its footprint in the region on the back of faster market growth, the percentage of its revenues from the Asia Pacific market is expected to grow exponentially in the coming years.

“Being in Asia allows companies to be closer to their customers’ needs. To have locals working for the company also gives management a better viow of the market”, Moyrand-Gros said.

Both Gattfossé and Northstar Lipids will be exhibiting at the forthcoming PCHi show, to be held in Guangzhou, southern China, 13 – 15 March, 2013.