Report also shows China remains largest single market for Australian companies looking to export
Australian businesses that are active in Asia generate about a third of their overall revenue from the region, an increase from 25% in 2016, according to new research from ANZ.
The fifth annual ANZ Opportunity Asia Report, which surveys 1,000 Australian business decision makers across a variety of industries, also found that about half of the businesses surveyed were able to realise a positive return from their Asian operations within three years.
ANZ Managing Director of Commercial Banking, Isaac Rankin said, “Several key trends have emerged from the survey since 2014, which indicate that there continue to be opportunities for growth in Asia. The appetite for quality Australian products and services in Asia continues to grow. This is creating more opportunities for organisations already doing business in Asia, with 64% of businesses surveyed saying they expect to expand their operations in the next three years. Doing business in Asia is not always easy, but the rewards are there for businesses who remain dedicated to the market.”
The report also shows that China remains the largest single market for Australian companies looking to export. However, other North Asian markets and members of the Association of Southeast Asian Nations (ASEAN) are growing as trading partners.
The Opportunity Asia Report is designed to capture sentiments around international growth to identify best practice, share insights and highlight opportunities while providing guidance to navigate challenges that may be holding some businesses back.
Other key findings
- 32% of overall revenue was generated in Asia for Australian businesses active in Asia (steady growth from 25% in 2016)
- 47% of active businesses realised positive Return on Investment (ROI) from their Asian operations within three years
- 51% of businesses surveyed generated a higher profit margin from their Asian operations than their Australian-based activities
- 64% of Australian businesses active in Asia expect to expand their operations in the next three years
- 55% of the exporters to Asia surveyed are using ecommerce, with 44% using their own website to sell products and services in Asia.
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