Breiffini Kennedy, International Markets Manager, Bord Bia – Irish Food Board

Business models in Asia can be very different to what we are used to in Europe. Large corporations in Asia are often more diverse, more complex in their structure and of such a large scale that can be a challenge to comprehend.  Culturally the key to building a business relationship can often be personal contacts. 

A notable example is Korea’s Samsung.  Samsung is now so large that its profits account for approximately one fifth of Korea’s GDP.  Whilst consumers around the world are familiar with the corporations electronics products, the company also has a large number of affiliated companies including in the Machinery & Heavy Industry, Chemical, Insurance and Financial Services sectors.  Samsung also operates ‘The Shilla’ hotel & resorts. 

In Hong Kong businesses such as Dah Chong Hong Holdings operate in the Motor, Logistics, Electrical Appliances and Food sectors, including DCH Food Mart, SIMS Trading and Bayern Gourmet Foods.  Also in Hong Kong Hutchinson Whampoa operate the AS Watson retail chain and are active in the Property & Hotels, Telecommunications, Energy, Finance and Ports sectors.

In Thailand, Central Retail Corporation, a business with a turnover in the region of €3.4bn, operates in the retail, hotels and real estate industries.  The company department stores and supermarket outlets offer discerning consumers quality foods, including a broad range of imported products.  UK brands such as Waitrose and M&S are available in CRC’s shopping malls and its chain of Tops Supermarkets.  CRC recently acquired a majority stake in SIAM Familymart.  In anticipation of strong growth in Thailand’s convenience store sector the company will double Familymart store numbers in the next 5 years. 

 It can be a challenge for suppliers to navigate their way through the complexity of Asian business models but building market knowledge and a network of contacts can lead to new business opportunities.