DOES ENTERING ASIA MEAN ESTABLISHING A JOINT VENTURE?

The best type of partnership or entity in Asia is the result of many variables, and may not be a joint venture in many instances. Often, direct technology licensing to customers or straightforward distributor partnerships are the best choice. A joint venture is a good way to establish committed partners, who deploy key resources to your business locally, and who have ready access to the appropriate customer base in-country. There are examples of successful joint ventures in Asia, e.g. Softbank Yahoo and Fuji Xerox in Japan, however, a joint venture is not always recommended. If there is compelling demand for your products from the start, no local competition, and you have the financial resources to establish a local subsidiary on your own, it offers the highest margins and highest level of control. On the other hand, the fastest entry is often through a master distributor, though this leaves you the smallest margin and the least control over local direction. APV can help you to weigh each element of your business strategy, reflecting Asia market conditions, and make a recommendation for not only entry to the market, but for sustained growth through transitions to new structures in the future.