Asia’s markets present huge opportunities for scale ups. But with growth potential comes a key question: should you establish a local presence right away, or start by managing growth remotely?
Each approach offers distinct advantages and challenges. While we look into the various options and share our take on market entry methods below, we will also introduce the concept of Commercialization as a Service (CaaS) that is on the rise.
The Benefits of a Local Presence
Setting up locally isn’t just about opening an office; it’s about immersing yourself in the culture and market dynamics that drive consumer behavior. Here’s why it can make a big difference:
Market and Cultural Insight: Being on the ground lets you pick up on the nuances of consumer preferences, trends, and buying habits. This firsthand experience makes it easier to create offerings and messages that genuinely connect. In a diverse region like Asia, this deep understanding often gives you a competitive edge.
Building Trust and Relationships: Business in Asia is relationship-driven (see our previous blog post here). Trust doesn’t happen overnight, and a local presence signals that you’re committed long term. Face-to-face interactions, networking, and being available for in-person meetings build strong, lasting connections that virtual interactions struggle to achieve.
Quick Responsiveness: With local staff, you can quickly stay on top and adapt to changes in consumer sentiment, regulations, or market shifts. This kind of agility can be vital in fast-moving markets.
However, local operations come with challenges. Setting up operations locally requires significant investment in hiring staff, securing office space, and managing administrative needs such as accounting, corporate secretarial services, and other operational tasks.
The Case for Remote Management
Not every company needs to—or can afford to—set up shop locally. For many scale ups, especially in the early stages, a remote approach offers appealing flexibility that allows you to test the market and gauge business viability before committing to a full local setup.
Cost Efficiency: Skipping the expense of setting up a local office and hiring can free up resources for other growth activities.
Multi-Market Reach: Managing remotely allows you to explore multiple Asian markets without heavy commitments. This is especially valuable for digital-first businesses, enabling broad reach with lower risk.
But distance can also slow you down. It’s harder to grasp cultural nuances, build trust, and respond swiftly to market changes. Time zone differences and language barriers will be an additional complexity early on, while the most significant drawback is the difficulty of establishing strong local networks.
How Commercialization as a Service (CaaS) Bridges the Gap
Five years ago, The Scale Factory introduced the CaaS concept across Asia, establishing Commercial Teams for our clients. These teams are employed by us but operate under our clients' brand, seamlessly integrating into their organizations and becoming an essential part of their business structure.
This approach quickly gained traction, and we've seen a growing number of our peers adopting CaaS for their clients. The advantages include:
Time to Market: Instead of dedicating significant time, resources, and funding to build a local team from scratch, more scale-ups are opting for a vetted, high-performing team managed by go-to-market (GTM) specialists. This approach allows businesses to quickly establish their presence and operations in the market.
Mitigating Risk: In a competitive talent market, new entrants often struggle to attract top-tier candidates, making hiring a risky venture—especially when starting with a small team. Partnering with a reputable CaaS provider with a proven track record helps mitigate these challenges by offering access to skilled talent and reducing hiring risks.
Local Knowledge on Demand: CaaS partners often bring deep market insights, strong networks, and cultural understanding, helping companies tailor GTM strategies effectively without the overhead of a local team.
Interested in seeing how CaaS can fuel your growth in Asia? Let’s talk!
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