Timestamps:

01:56 Graham’s unforgettable experiences in Asia

08:30 Question why do you want to build an HQ in Asia

11:00 Best country for setting base

12:46 Cultural nuances between Asian countries

15:13 Penetrating your target market in China

22:49 How to fix poorly performing regions in Asia

26:27 De-risking a growth plan

30:30 Big takeaway

12 Winning Tactics for Tech Companies to Penetrate Markets in Asia

Scaling your startup in an unfamiliar region such as Asia may pose unexpected challenges your way. For instance, where do you begin, and which markets hold the most growth potential? We talked to Graham Sowden, a leader, and scaler of SaaS companies in APAC. He's best known for scaling Okta 10x to 100 million, Acquia 4x to 12 million, and Informatica 6x to 60 million.

In this blog post, we listed the key insights we got from Graham about expanding your startup or business in Asia:

1. Question why you’re building an HQ in Asia

Graham shares that when considering expanding your company into different countries, it's crucial to question your motivations and goals. Avoid simply replicating your existing business in another country. Instead, adapt to the local culture and market to effectively do business there.

2. Be mindful of the cultural nuances

Scaling a business in Australia is relatively easy due to similarities in business culture and language. However, in Japan, building relationships over time is crucial due to specific cultural norms. Compliance is essential for success, and technology alone isn't enough. Understanding the market and its needs should guide your decisions on expansion.

3. Invest in honing your communication skills

Communication can be a challenge when scaling in Asia due to distance and language barriers. Remote communication can weaken messages, and patience and understanding are necessary when communicating with non-native speakers.

4. Get smart about where you’re setting base

To maximize growth efficiently in the Asia Pacific region, Graham believes that Singapore is often the ideal location for a young company's base. However, different countries have their own advantages. For example, Australia offers a favourable business culture, while India has a vast community of developers. Choose your headquarters based on whether you prioritize control or appealing to the market.

5. Get the right channel

When targeting the developer market in India, Graham believes that direct sales through their networks work best. In other contexts, it's more effective to use channel partners, even for major organizations. Developing strategies with channel partners is vital for success in Asia, considering its vast territory and significant investment requirements.

6. Aim for long-term partnerships

Establishing a major presence and forging long-term partnerships are essential for success in a country like China. As Graham mentioned, China is a massive market—and to become a truly global company, a significant presence in China must be integrated into your overall business. Complex distribution channels and unforeseen layers require adaptability and rigour.

7. Test the market before scaling

Thoroughly test the market and make sales before scaling your business in Asia. Leverage local teams, relationships, and peer recommendations for marketing. Success may take longer than expected, so have a clear understanding of your expansion goals and be prepared for long-term growth.

8. Investigate if you’re using the right metrics

Focus on the right metrics and assess their applicability to the region. Investigate what product sets or approaches work well in the market. Poor execution or unsuitable measures may hinder success, so maintain rigour and control while analyzing market feedback.

9. Get the right expansion mindset

Adopt a mindset of opening your company for the first time in Asia, leveraging past learnings and applying them to the new market. Understand the culture and prioritize compliance to accelerate growth. Avoid a "wild west" mindset and maintain control and rigour.

10. Align your regional and organizational strategies

To improve poorly performing business territories in Asia, start by evaluating metrics and ensuring alignment with the overall organizational strategy. Address poor execution and communication, and provide full support from headquarters to the new regions in Asia for success.

11. Fail fast to de-risk a growth plan

Constantly review what works and what holds you back to de-risk your growth plan in Asia. Embrace a "fail fast" culture, communicate effectively, and avoid assuming poor execution. Keep in mind that regional differences may require more time for certain things to succeed.

12. Don’t just scale because you want to go “global”

Have a clear strategy and purpose for being there. Identify whether you aim to prove your global capability or develop a specific aspect of the market. Prioritize clarity to achieve victory by addressing potential obstacles and challenges.

Final thoughts

To successfully scale your startup in Asia, it's important to look inward and consider if your business expansion is for the right reasons. Since you’re venturing into new territories, invest in your communication skills and be respectful of the culture if you want to foster long-term relationships. 

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