Asia legal market to double by 2017
McKenna Long’s Asia initiative could not have come at a more opportune time – as Asia’s legal market is set to double by 2017, becoming the second largest legal market in the world by that time. And Korea is not the only liberalized market in Asia American law firms can focus on. Liberalized markets, double digit growth – all beckon US law firms seeking growth. Too, America became the largest recipient of Chinese foreign direct investment in 2011 — and Japan is undergoing a renaissance in outbound foreign direct investment focused on energy and M&A. Just what McKenna Long is seeking to secure from the region.
US lawyers cautious
But as Staci Zaretsky of Above the Law outlined recently: “Due to modest attorney headcount [in Asia] at most U.S. [law] firms, it appears that [US lawyers] still view the Asian market with caution; only global giants haven taken the lead.”
It won’t be easy
Professionals in the legal services market tell me that there is a perception here that US firms are not prepared to make the long term commitment to the region, or spend the money necessary to compete with long term entrenched incumbent law firms. Incumbent law firm leaders have told me they are generally confident they can carve out domestic niches which cannot be accessed by US law firms as a result of their lack of long term commitment.
Do US law firms have the staying power?
Given the growth in the market – time will tell as to whether US law firms are prepared to work to establish themselves and remain long term in the market. A US base of operations with Asia satellite offices (as McKenna Long’s Haidet envisions) may not be sufficient for success given on-the-ground realities here.