ASEAN is the abbreviation for The Association of Southeast Asian Nations. It is an organization of ten countries namely; Singapore, Myanmar, Brunei, Vietnam, Indonesia, Malaysia, the Philippines, Thailand, Cambodia and Laos.
The ASEAN markets potential is not hidden and it is one of the fastest growing consumer markets in the world. So much so that the ASEAN region has emerged as the powerhouse of the world economy.
The fact that the ASEAN region is the consumer hub is proven by the 67 million households, which are a part of the consuming class. It is predicted that this number could reach 125 million households by 2020. Prospective investors are eyeing this dynamic market and are eager to take advantage of the opportunities that the region presents. But market entry into the ASEAN region should not be done blindly.
Investing in the ASEAN region is not without challenges. Unfamiliarity with the cultural differences, business practices, logistical issues and initial hiccups could turn a good investment into a totally bad idea. World Banks 2015 survey shows that among the ASEAN countries that ranks quite low on the ease of doing business in a country. Singapore, however, is one of the easiest country in the world to start and do business according in that survey.
Despite the challenges the ASEAN countries are all set to replace China as the ‘world’s factory’. The youthful population and low wage rates makes this region very ideal for manufacturing ventures. The diverse range of industrial specializations in the region is suitable for a wide array of investors.
The ASEAN market potential is ideal for investments in the electronic and consumer goods industries.
Indonesia, Brunei and the Philippines has ample natural resources like palm oil, rubber, sugar cane, rice, cocoa, timber, petroleum, natural gas, coal and tin. This could prove to be very beneficial for a market entry into the food and the cosmetic industry.
Increasing disposable income and changing consumer lifestyle in ASEAN countries is driving increasing acceptance for organic cosmetic products and other luxury products.
The increased participation of females in the sales force indicates a likely increase in double income families. This is set to up the demand for properties, home appliances, motor vehicles, health care and financial services. The increased adoption of western culture will see augmented demand for processed and packaged foods.
Experts purport that the ASEAN market potential is so much that in some years it will be at par with other major economic powers of the world.
About Canvass Consulting
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At Canvass Consulting, we are your local sales team that helps discover revenue potentials in new markets while reducing your risk, time, human resources & cost in your bid for expansions beyond your shores.
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