Thinking about capturing a slice of the Asia-Pacific (APAC) market? With 60% of the world’s population and 37% of global GDP, it’s a region brimming with opportunity.
Having had the pleasure of guiding over 30 tech companies through the complexities of scaling across APAC, The Scale Factory (TSF) has picked up some valuable insights over the past five years. Here’s our list of top do’s and don’ts.
1) One Size Doesn’t Fit All
“We’ve pinned down our APAC growth strategy and are ready to go.” We’ve heard this many times—and seen it fall short just as often, especially when companies assume a few adjustments to their Western go-to-market (GTM) strategy will suffice.
Why It Fails: APAC is massive, with highly diverse cultures, languages, business practices, and consumer behaviors. Local competition is fierce, with players you may not have even heard of. Approaching the region with a uniform strategy is a recipe for failure.
What to Do Instead: Conduct thorough local research and meet with potential customers to assess product-market fit, gain insight into your ideal customer profile (ICP), and understand local competition. Tailor your GTM strategy for each market rather than trying to cover the entire region at once. Focus on a few select markets and invest your resources there.
2) Focus on Building Trust Over Time
In most APAC markets, relationships and networks are essential, and trust-building is a gradual process. A “move fast” mentality can often backfire.
Why It Fails: Many local customers are wary of Western companies that come and go. Past experiences have left them cautious, which means decision-making can be slower and more complex, especially for initial partnerships.
What to Do Instead: Appreciate the timing involved in building trust and look for ways to accelerate it. Partner with reputable local entities or individuals to leverage their networks, and establish a local team that has the right connections to foster trust.
3) The “Fly-in, Fly-out” Tactic
It’s valuable to visit potential customers and stakeholders initially to understand the market, but don’t expect business deals from short trips.
Why It Fails: Even the best products or technologies from the West are unlikely to close deals after just a few local meetings and follow-up Zoom calls across time zones. Trust, local networks, and timing are essential here.
What to Do Instead: Consistent local engagement is key to building credibility. While you establish your local team, work with reputable local entities to represent your brand and keep your presence strong.
4) Adapt Pricing to Local Markets
Uniform pricing strategies rarely succeed in APAC, where purchasing power varies widely. Many markets also prefer starting with pilots or trials to confirm product fit before committing to longer contracts.
Why It Fails: Price data from our clients shows a range from 110 to 55 relative to their home markets (where 100 is the base). Rigid global or APAC rate cards are often a fast track to failure.
What to Do Instead: Create flexible pricing strategies, such as geo-based or value-based pricing. Be prepared to offer more pilots, especially in the early stages, to secure local clients.
5) Hire Local Talent with In-Depth Knowledge
In APAC, hiring goes beyond skill alone. Sending your top salesperson from home often isn’t enough—local networks, insights, and cultural understanding are essential for both short- and long-term success.
Why It Fails: Without local networks and an understanding of market nuances, it’s hard to engage decision-makers. Product knowledge alone only goes so far.
What to Do Instead: Prioritize hiring people with local experience, networks, and market insights over just product expertise. A combination of both local and home market experience is ideal.
6) Commit to a Long-Term Play
APAC success requires time, patience, and resources. Quick wins are rare; long-term growth needs a sustained approach.
Why It Fails: Sales cycles in APAC are often longer and more complex, with multiple stakeholders involved. Companies looking for fast returns are frequently disappointed.
What to Do Instead: Define clear success metrics and track the right KPIs throughout the sales funnel. Set realistic expectations, and be ready to scale when your go-to-market strategy gains traction. With the right approach, growth can accelerate faster than in Western markets.
Curious to learn more about how The Scale Factory can support your APAC expansion? Reach out to us directly!
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