|By ACN Newswire||
|June 27, 2014 06:40 AM EDT||
Growth healthier for exporting firms, but proximity to customers is key
Singapore, June 27, 2014 - (ACN Newswire) - Globally, more exporting businesses report growth in revenues or profits than companies focusing on solely domestic trade, finds latest survey by Regus, the flexible workspace provider. For the third year running, exporting firms globally confirm they have an advantage with 48% reporting profit growth over the last twelve months compared to only 36% of those trading only domestically.
While reaching out to a larger pool of prospects certainly plays a part in exporter's success this survey also confirms that that having a presence in the same country as clients or customers carries a number of benefits. Specifically, 90% of Southeast Asian businesses say that they can deal more effectively with customer problems by being physically near. Being close to customers also means businesses understand their customers and markets better (90%) and can improve customer satisfaction (88%).
But foreign expansion is a big step for businesses to take and a difficult one if support is lacking. In particular, Southeast Asian firms report that aside from making customer introductions, their government trade delegations can most usefully help them expand abroad by providing advice on legal and regulatory matters (59%).
Other findings from the survey show that Southeast Asian firms say that:
- Being close to customers means businesses can increase sales (88%);
- 86% of firms say a location close to their customers improves marketing effectiveness and increases customer retention rates (74%);
- Government introductions to local business organisation and associations (65%) and advice on taxation (51%) would also help businesses planning foreign expansion;
- Almost half of businesses (40%) would benefit from a directory of places to network.
John Henderson, Regional Director of Regus APAC comments: "People always talk about 'getting close to the customer', but in export markets that can be literally true. Our survey respondents told us that having a physical presence close to their customers brings about a number of benefits. In particular, businesses report that better customer retention, faster problem resolution and greater satisfaction can be achieved by setting up a location in proximity to their customers or clients.
"On the other hand, setting up a presence abroad is a challenging task if you don't have the right support from your home government. Businesses globally report that the best help they could expect from their government trade delegation when expanding (aside from client introductions) is getting legal and regulatory advice, taxation and local custom information and tips on where to network and meet local businesses. Where this information is not made available or is incomplete, businesses would do best to partner with firms that understand the world of business and that can provide local know-how and connections."
According to Mr. Archid Abad, Manager of Greenlam Asia Pacific Pte Ltd, "Having a physical presence in the international markets helps us understand the market dynamics and sentiment much better and this in turn helps us flourish. Our use of Regus enables us to maintain a presence all around the world in close proximity to our customers wherever they may be."
Regus is the global workplace provider. Its network of more than 2,000 business centres in 102 countries provides convenient, high-quality, fully serviced spaces for people to work, whether for a few minutes or a few years. Companies like Google, Toshiba and GlaxoSmithKline choose Regus so that they can work flexibly and make their businesses more successful.
The key to flexible working is convenience and so Regus is opening wherever its 1.5 million members want support - city centres, suburban districts, shopping centres and retail outlets, railway stations, motorway service stations and even community centres.
Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. For more information, please visit www.regus.com.
Julia Kim, Director Priority Consultants [email protected]
Copyright 2014 ACN Newswire. All rights reserved.
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