“Success is where preparation and opportunity meet” is a timeless quote by famous race car driver Bobby Unser – and I couldn’t agree more. Just like racing, success in the business world comes from preparation and seizing opportunities.
This moment is currently happening across the Asia Pacific (APAC) region and is a burgeoning opportunity for B2B brands.
A new report from LinkedIn, in collaboration with Accenture, titled “Going Beyond Borders – New Avenues of B2B Growth” reveals the immense potential for B2B brands in APAC, with the region primed for success to connect with global customers, bridge buyers and sellers, drive real-time intelligence and build local, trusted brands.
We know that today’s buyers are making significant purchase decisions online, and B2B brands must meet their customers where they are, on digital platforms – to connect and engage with them, and ultimately steer toward success. By harnessing the usage of digital platforms, B2B brands across APAC can tap into a previously missed opportunity and grow with sustainable international expansion and global trade.
The report has found three key insights:
- APAC is sitting on the greatest trade opportunity that can be unlocked by digital platforms, however, the region is capturing only a fraction of the potential benefits.
- Within APAC, China, Japan and India have the largest export opportunities of up to $509 billion to key trading partners in North America and Western Europe.
- Leveraging digital platforms, such as markelaces, payment services and professional and social networks, will be key for B2B sellers to capitalise on their export opportunities.
The Power of Digital Platforms in International Trade
Digital platforms hold the key to seizing this vast B2B trade opportunity to gather information and facilitate transactions, by guiding businesses through all stages. The adoption of these platforms will help businesses understand how to achieve quick wins and how they can sustain growth for the long-term. If digital platforms are used effectively, businesses globally stand to gain an astonishing $5 trillion in revenue through international trade, representing a remarkable 19% increase in global B2B exports. Within APAC alone, there is $1.9 trillion available for businesses with the adoption of such platforms.
The APAC region has witnessed unparalleled economic growth over the past half-century, positioning itself as a global leader in international trade. The region has consistently outpaced other markets and has been less impacted by current macroeconomic changes, sustaining an impressive average annual growth rate of 11% p.a. A significant contributor to this success is underpinned by a surge in digitisation and internet usage, which has risen from 48.9% to 69.2% between 2015 and 2020.
However, despite this growth, many countries, and in particular B2B segments, have yet to harness the benefits of the digital economy fully. This digitalisation wave, potentially accelerated due to pandemic lockdowns, presents an opportune moment for B2B brands to capitalise on the region’s growth and extend their reach globally by understanding local market intricacies and embracing digital platforms.
China, Japan and India lead in export potential across APAC
The report highlights that the combined export potential of China, Japan, and India amounts to a staggering $1.4 trillion globally. Collectively, these countries could capture up to $509 billion in export opportunities to key trading partners in North America and Western Europe.
China, as one of the top frontrunners in international trade, has immense potential in the electronics and machinery sectors to North America and Western Europe, constituting 45% of total exports to key partners. By leveraging digital platforms, China could facilitate an additional $344 billion in trade to its key partners in the US, Canada, France, Germany, and the UK.
On the other hand, Japan’s growth is excelled by its strength in the automotive, machinery manufacturing, electronics and chemicals & materials industries, while also seeing growth in its pharmaceutical domain over the recent years. This amalgamation of major and emerging industries creates a significant $108 billion export opportunity from Japan to North America and Western Europe.
While India, a country recognized for its dynamism, holds untapped potential in its IT services and chemical and material manufacturing industries to North America and Europe. These have the potential to generate an estimated $56 billion in additional trade with the increased use of digital platforms.
Final Thoughts
I invite all marketers and stakeholders in the APAC business ecosystem to take inspiration from the success stories of trailblazing companies like Whatfix and Infosys, who have demonstrated remarkable international growth through their strategic utilisation of digital platforms. These brands are two great examples of ones that have capitalised on the potential of digital platforms to connect with global customers and explore new markets. Clearly, we already have the tools set up to grow and flourish in the region.
For a more in-depth exploration of the report’s insights and the specific opportunities presented globally and in China, India, and Japan, as well as actionable strategies in areas such as targeted digital advertising and lead generation, have a look at the full report here.
I’m truly looking forward to a transformative journey for organisations across APAC, as we drive forward with a shared vision of growth and prosperity for the region.
About the report: Methodology
This report is based on results from an economic gravity model of trade developed by Accenture Economic Insights with input from Associate Professor Shiro Armstrong from the Crawford School of Public Policy. For each industry of interest, a gravity model was used to estimate the impact of digital platform adoption on export trade, where platform use was measured by digital platform adoption and effectiveness by country, sourced from the Global Entrepreneurship and Development Institute (GEDI). B2B transactions were assumed to represent 82% of global trade for all countries, based on research by the UNCTAD. Analysis was performed throughout 2022 and 2023 and used the most up to date and relevant data available at the time of analysis. All dollars shown are in 2022 USD, with trade estimates based on 2019 data adjusted to 2022 using historical growth rates.
