Strong revenue growth for Australian businesses in Asia
MELBOURNE - Australian businesses that are active in Asia generate about a third of their overall revenue from the region, up 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, found that about half of those surveyed were able to realise a positive return from their Asian operations within three years.
ANZ's Managing Director of Commercial Banking, Isaac Rankin, said: "Several key trends emerging from the survey since 2014 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 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 that remain dedicated to the market."
Some key findings from the 2019 report:
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; and
More than half (55%) of the exporters to Asia surveyed are using e-commerce, with 44% using their own website to sell products and services in Asia.
The report shows that China remains the largest single market for Australian companies looking to export. However, other North Asian markets and the ASEAN countries are growing as trading partners.