Skip to content
American ExpressAmerican ExpressAmerican ExpressAmerican ExpressAmerican Express
  • Card Accounts

    • Your Account
    • Activate a New Card
    • Register for Online Services
    • Amex Mobile App Features
    • Add Someone to Your Account
    • Moving Abroad? Transfer Your Card

    Business Owners

    • Your Account
    • Activate a New Card
    • Register for Online Services
    • Membership Rewards & Travel
    • Add Someone to Your Account

    Other Accounts

    • American Express @Work
    • Online Merchant Services
    • International Payments for Businesses

    Contact Us

    • Support 24/7
    AustraliaChange Country
  • Personal Cards

    • View All Personal Cards
    • Learn About Credit Cards

    Popular Personal Cards

    • The Platinum Card
    • The Qantas Ultimate Card
    • The Explorer Card

    Cards for Business Owners

    • View all Business Cards
    • Popular Business Cards
    • Manage Your Business

    Corporate Cards

    • View All Corporate Cards
    • Corporate Payment Solutions
    • Corporate Purchasing Card
    AustraliaChange Country
  • Online Travel

    • Book Travel Online
    • Book Fine Hotels & Resorts
    • Book The Hotel Collection

    Travel Resources

    • Destination Guides
    • Travel Insurance
    • Using Your Card Overseas
    • Card Member Benefits
    • Find a Travel Service Office

    Business Travel

    • Global Business Travel Solutions
    • Small Business Travel
    • Foreign Exchange Services

    Travel Money

    • Travelers Cheques
    • Qantas Credit Cards
    • Travel Rewards Credit Cards
    AustraliaChange Country
  • All Insurance Services

    • Insurance Home Page
    • Insurance with your card
    • Other Insurance

    Travel Insurance

    • Travel Insurance
    • Multi-Trip/Annual Policy
    • Single Trip Policy
    AustraliaChange Country
  • Membership Rewards

    • Use Points for Gift Cards
    • Use Points for Travel
    • Rewards Changes

    Rewards Programs

    • Membership Rewards Cards
    • Qantas Frequent Flyer

    Card Member Offers & Benefits

    • Explore Card Benefits
    • Amex Experiences
    • Refer Friends. Earn Rewards
    AustraliaChange Country
  • Merchants

    • Merchant Home
    • Accept the Card
    • Manage Merchant Account
    • Contact Us and FAQs

    Corporations

    • Corporate Cards
    • Purchasing Solutions
    • Customer Centre
    • Global Business Travel Solutions
    • Meetings & Events
    • International Payments for Businesses

    Business Owners

    • Popular Small Business Cards
    • View All Small Business Cards
    • Manage Your Business
    • Business Credit vs Charge
    • How to Apply for a Business Card

    Global Network

    • Home
    • Issuers
    • Acquirers
    • Service Providers
    • Developers
    AustraliaChange Country
  • Contact Us
  • Log In
      • Your Account
      • Activate a New Card
      • Register for Online Services
      • Amex Mobile App Features
      • Add Someone to Your Account
      • Moving Abroad? Transfer Your Card
      • Your Account
      • Activate a New Card
      • Register for Online Services
      • Membership Rewards & Travel
      • Add Someone to Your Account
      • American Express @Work
      • Online Merchant Services
      • International Payments for Businesses
      • Support 24/7
      • View All Personal Cards
      • Learn About Credit Cards
      • The Platinum Card
      • The Qantas Ultimate Card
      • The Explorer Card
      • View all Business Cards
      • Popular Business Cards
      • Manage Your Business
      • View All Corporate Cards
      • Corporate Payment Solutions
      • Corporate Purchasing Card
      • Book Travel Online
      • Book Fine Hotels & Resorts
      • Book The Hotel Collection
      • Destination Guides
      • Travel Insurance
      • Using Your Card Overseas
      • Card Member Benefits
      • Find a Travel Service Office
      • Global Business Travel Solutions
      • Small Business Travel
      • Foreign Exchange Services
      • Travelers Cheques
      • Qantas Credit Cards
      • Travel Rewards Credit Cards
      • Insurance Home Page
      • Insurance with your card
      • Other Insurance
      • Travel Insurance
      • Multi-Trip/Annual Policy
      • Single Trip Policy
      • Use Points for Gift Cards
      • Use Points for Travel
      • Rewards Changes
      • Membership Rewards Cards
      • Qantas Frequent Flyer
      • Explore Card Benefits
      • Amex Experiences
      • Refer Friends. Earn Rewards
      • Merchant Home
      • Accept the Card
      • Manage Merchant Account
      • Contact Us and FAQs
      • Corporate Cards
      • Purchasing Solutions
      • Customer Centre
      • Global Business Travel Solutions
      • Meetings & Events
      • International Payments for Businesses
      • Popular Small Business Cards
      • View All Small Business Cards
      • Manage Your Business
      • Business Credit vs Charge
      • How to Apply for a Business Card
      • Home
      • Issuers
      • Acquirers
      • Service Providers
      • Developers
  • Contact Us
AustraliaChange Country
  • Card Accounts

    • Your Account
    • Activate a New Card
    • Register for Online Services
    • Amex Mobile App Features
    • Add Someone to Your Account
    • Moving Abroad? Transfer Your Card

    Business Owners

    • Your Account
    • Activate a New Card
    • Register for Online Services
    • Membership Rewards & Travel
    • Add Someone to Your Account

    Other Accounts

    • American Express @Work
    • Online Merchant Services
    • International Payments for Businesses

    Contact Us

    • Support 24/7
  • Personal Cards

    • View All Personal Cards
    • Learn About Credit Cards

    Popular Personal Cards

    • The Platinum Card
    • The Qantas Ultimate Card
    • The Explorer Card

    Cards for Business Owners

    • View all Business Cards
    • Popular Business Cards
    • Manage Your Business

    Corporate Cards

    • View All Corporate Cards
    • Corporate Payment Solutions
    • Corporate Purchasing Card
  • Online Travel

    • Book Travel Online
    • Book Fine Hotels & Resorts
    • Book The Hotel Collection

    Travel Resources

    • Destination Guides
    • Travel Insurance
    • Using Your Card Overseas
    • Card Member Benefits
    • Find a Travel Service Office

    Business Travel

    • Global Business Travel Solutions
    • Small Business Travel
    • Foreign Exchange Services

    Travel Money

    • Travelers Cheques
    • Qantas Credit Cards
    • Travel Rewards Credit Cards
  • All Insurance Services

    • Insurance Home Page
    • Insurance with your card
    • Other Insurance

    Travel Insurance

    • Travel Insurance
    • Multi-Trip/Annual Policy
    • Single Trip Policy
  • Membership Rewards

    • Use Points for Gift Cards
    • Use Points for Travel
    • Rewards Changes

    Rewards Programs

    • Membership Rewards Cards
    • Qantas Frequent Flyer

    Card Member Offers & Benefits

    • Explore Card Benefits
    • Amex Experiences
    • Refer Friends. Earn Rewards
  • Merchants

    • Merchant Home
    • Accept the Card
    • Manage Merchant Account
    • Contact Us and FAQs

    Corporations

    • Corporate Cards
    • Purchasing Solutions
    • Customer Centre
    • Global Business Travel Solutions
    • Meetings & Events
    • International Payments for Businesses

    Business Owners

    • Popular Small Business Cards
    • View All Small Business Cards
    • Manage Your Business
    • Business Credit vs Charge
    • How to Apply for a Business Card

    Global Network

    • Home
    • Issuers
    • Acquirers
    • Service Providers
    • Developers

AustraliaChange Country
Small Business Cards
Cards
American Express® Platinum Business Card
American Express® Qantas Business Rewards Card
American Express Business Explorer® Credit Card
View All Cards
Compare Cards
International Payments
International Payments
American Express AccessLine™
View All International Payments
Manage Your Business
Business Benefits
Why Amex for your Business?
Business Credit vs Charge
Business Rewards
Business Cash Flow Management
Business Travel Rewards
Existing Customers
Order Cards for Employees
Corporate Card Programs
Cards
American Express® Corporate Platinum Card
American Express® Qantas Corporate Platinum Card
American Express® Corporate Gold Card
View All Corporate Cards
Compare Corporate Cards
Payment Solutions
Buyer Initiated Payments
American Express vPayment™
View All Supplier Payments
International Payments
American Express AccessLine™
View All International Payments
Trend & Insights
Business Trends & Insights
Products & Solutions
Service & Expertise
Existing Customers
Trends & Insights
Trends & Insights
Insights and Inspiration to Help Grow Your Business
Security
Managing Supply Chain
Managing Data and Trends
Managing Risks
Growth
Expanding
Adapting to Change
Future Proofing
Funding
Managing Cash Flow
Financing
Becoming More Efficient
People
Leading My Team
Managing Talent
Collaborating
  • Trends and Insights
  • Growth
  • Future Proofing
Business Class

05 December 2017

Economic Trends: Insight Into Asia

Economic Trends: Insight Into Asia

Twitter Icon
Facebook Icon
LinkedIn Icon
Alexandra Cain

Writer, Cain Creativity, Inc.

Summary

While Western firms often grapple with legacy thinking and legacy management styles, many Asian firms see it as their duty to embrace new technologies and embrace them fast.

Twitter Icon
Facebook Icon
LinkedIn Icon

Many Asian nations still demonstrate substantial economic growth in comparison to their Western counterparts – for example, China's GDP growth for 2016 of 6.7% eclipses the US figure of 1.6%[1].

“In China, the retail e-commerce market was worth some US$800bn in 2016; it is almost double the size of the US market and is growing many times faster,” according to Richard Martin, Managing Director of IMA Asia, an executive peer group forum working in the region.

“By the end of this decade, that e-commerce market in China will be larger than the combined markets of the United States, Britain, Germany, France and Japan," he says, adding that multi-national firms that understand how to run a digital business in these fast-growing nations may be able to capture some of this momentum in their own operations.

Martin told the American Express Inside Edge conference that Asian emerging markets are the fastest growing markets in the world, outpacing both mature markets and all other developing markets.

“In real terms, Asia as a whole is showing 6% economic growth," says Martin. “South-East Asia is cranking out growth at 5%," he says. According to Martin, more than 60% of all new car building capacity added in the world from now until 2021 will come from Asia.

“China dominates, but India is also important. India will be able to add more car building capacity than all of North America, which includes the United States, Canada and South America."

Legacy slowdown

Martin says his manufacturing clients remark how digitalisation is changing the way manufacturing and services firms operate. Much the same applies to resources firms.

Martin believes that part of the reason for Asia's rapid growth is that there are fewer legacy systems to hinder fast-growing businesses.

“[Western business] is knee-deep in legacy systems," Martin says, adding that the technology that firms bought in the last five years, will commit them to a certain path.

“That may not now be the right path," he says.

Local firms operating in Asia’s emerging markets are quicker to accept that, as most hadn’t bought the big IT systems prevalent in advanced markets in the 2000 decade according to Martin.  Moreover, such firms are much closer to the disruptive challenge from ecommerce giants in China.

Many Asian firms see it as a duty to keep replacing old with new systems, he says.

In a recent meeting with 80 Chief Technology Officers from around the world, Martin said many planned to launch their latest technology products in Asia, because they felt the region is more receptive and more able to embrace new ideas, than developed economies.

Says Martin: “Asia is where the fast adopters are. A company can come down to Australia, the US or Europe and say 'Here's stuff we're doing. It's bleeding edge technology'.

“And they will reply: 'Go away. Come back, we're not interested.' In China, they'll say:

'We want that stuff fast. It's the only way we're going to stay in the market.' "

Martin says many Western firms don't just have legacy systems - they also have legacy management, recruitment styles and business practices at odds with their Asian peers.

For example, many Asian businesses are moving staff out of their own buildings and into their customers' offices. Companies are no longer driven by quarterly or annual results, but rather by relationship-building and retention of existing customers.

New Recruits

The way people are being recruited is also changing, Martin says; older firms often ask for the impossible.

He cites a chemical firm looking for a new employee. The desired qualifications may include a pharmacy degree, an MBA, 15 years' experience, and transformational leadership and team building capability; or perhaps knowledge of cloud computing and artificial intelligence.

“You're not going to find these people out there. There are very few Renaissance men."

New recruits – especially millennials - now expect to be part of a digital story, he says.

“If you don't know the digital story for your company, you are in trouble. If your staff, or your customers, sees that you don't get it, you're in trouble. Hopefully your competitors won't see that's missing, because once they figure out and move on you, you're in trouble. You need to get that clarity really fast."

Asian CEOs are already on top of this, says Martin. Many now run globally significant businesses, and have great resources inside their companies.

Companies like Alibaba, Tencent and JD.com have incredible scale - and they don't have legacy systems around to hold them back.

“They can say: 'Oh, I'm going to put a team in India on this, and see what they can do.' "

Companies now realigning themselves to be part of the Asia growth story may hope to take a percentage point of global market share every year, but Martin believes that first, they may benefit by figuring out how to run digital businesses, Asia-style.

“That's going to be a big part of the agenda for all of you for the next few years," he says.

Key Takeaways

  • Western firms stand to benefit from growth opportunities in Asia.
  • Co-locating can bring firms closer to their customers' needs and wants.
  • Millennials may play a bigger part of a company's digital narrative.

 

[1] The World Bank, https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG, accessed 04/12/17

Twitter Icon
Facebook Icon
LinkedIn Icon
Want to Dig Deeper?

Get an American Express Card

  • Personal Cards
  • Credit Cards
  • Small Business Cards
  • Corporate Cards
  • Add Someone to Your Account

More Products & Services

  • Insurance
  • Accept the Card
  • Online Services
  • Book Travel
  • Business International Payments
  • Refer a Friend

Important Links

  • Frequently Asked Questions
  • Chip & PIN
  • ATM Locator
  • Accessibility
  • Safe and Secure

Company Information

  • About American Express
  • About American Express Australia
  • Careers
  • Contact Us
  • Site Map
  • Facebook
    • Personal Cards
    • Credit Cards
    • Small Business Cards
    • Corporate Cards
    • Add Someone to Your Account
    • Insurance
    • Accept the Card
    • Online Services
    • Book Travel
    • Business International Payments
    • Refer a Friend
    • Frequently Asked Questions
    • Chip & PIN
    • ATM Locator
    • Accessibility
    • Safe and Secure
    • About American Express
    • About American Express Australia
    • Careers
    • Contact Us
    • Site Map
    • Facebook

American Express
AustraliaChange Country
  • Connect with Amex on Facebook
  • Connect with Amex on Instagram
  • Tweet your questions to @AskAmex
  • Connect with Amex on LinkedIn
  • YouTube

  • Website Rules and Regulations
  • Trademarks
  • Privacy Statement
  • Security Alerts

Copyright © 2021 American Express Company