Professional services providers around the world have much opportunity in the Asia-Pacific region – should they approach the market with 5 critical strategies, according to a new report by Eric Chin, Senior Analyst at Beaton Capital in Australia.
Chin first outlines 5 key opportunities for professional services providers in the region:
- “The Asia-Pacific is a US$17 trillion economy that has grown at 8% compound annual growth rate (CAGR) for the last decade. It is home to over 60% of the world’s population.” “Each of the economies in the Region is exhibiting distinctive comparative advantages enabling them to enter the world trading arena – paving the way for greater economic linkages” Chin writes.
- The countries in Asia-Pacific are more connected than ever with the establishment of trade blocs.
- “Wealth is being created in the Region at an unprecedented pace”, Chin reports. “The combined wealth in the Region totalled US$1.145 trillion in 2013”. “The injection of western capitalism will start to reshape these strong family-owned businesses in the face of influx of multinationals from the west.”
- “Increased regional “access to capital will continue to create the Region’s multinationals.”
- “Driven by strong domestic markets and endowed with richly resourced lands, Asia-Pacific’s Fortune companies are growing in numbers.”
Chin then outlines that “leaders in professional services [law] firms should adopt five critical strategies in the face the five [regional] opportunities” described above:
- “Understand the economic drivers of each of the countries are different.”
- “Integrate service offerings across the Region based on quality, breadth and depth.”
- “Assist the transformation of family-owned conglomerates from time-telling to clock-building enterprises.”
- “Scan for [companies] that are prime candidates for IPO.”
- “Assist Asia’s multinationals’ global ambitions.”
US law firms have been expanding in Asia and that trend is likely to continue. Eric Chin has outlined 5 core strategies and also counsels that “above all else, a long-term view [is key]. To read Eric Chin’s article, see: Opportunities for professional services firms in the Asian Century.