Asia beckons as a market, right? Yes - if you leave your Australian preconceptions at the Customs barrier.
| Entrepreneur |
Rob Godson, Managing Director & Loch Jackson, Regional Manager for South-East Asia |
| Company |
Xypex Australia |
| Business type |
Manufacture of concrete waterproofing |
| Founded |
1989 |
| Head office |
Lavington, New South Wales |
| Contact details |
+61 2 6040 2444 |
Key Learning Points |
|
Becoming an exporter
Don’t go into Asia undercapitalised. You need a strong local base and domestic market to fund the push into Asia. Don’t depend on what government can do for you. Make up your mind that you’re going to do it, have the money to do it, [and] then you may claim back some of the costs through the Export Grants Development Scheme. Godson says: “We set aside $100,000 as a minimum for our first twelve months in Asia.”
Exporter mindsets
Don’t go into Asia with any Australian preconceptions. Godson says: “Even if we think we’re part of Asia, educate yourself about Asian markets. Learn from others who have been there before you. Spend time with the local people and just watch. Don’t go thinking you’re an equal partner - you’re a new kid on the block until you’re invited in. It’s important to respect that each country in Asia has its own way of doing business which usually differs from Australian ways.”
Export relationship building
Leveraging access to existing clients’ overseas operations may get you into other countries, but it won’t produce sustained success. Godson says: “Developing other relationships in Asia is absolutely critical. We developed excellent relationships with our distributor over there. Many relationships are forged and deals are done at the golf club. It’s partnership stuff - the Asian way of doing things, not coming in saying ‘do this and do that’, with no understanding of what’s going on. Go in there and say ‘I hope you’re driving a Mercedes in 12 months time. If you are, then our business is strong and is obviously in good hands with our partners’.”
Export managers
Recruit people who accept the need to understand other cultures, who are prepared to be different, who will listen and learn about the Asian way, and who will work with people within another culture as part of that culture. Godson says: “You can’t be Australian in Thailand or Malaysia. You must be prepared to run entirely with their way of doing things. Look at the people in those countries out there marketing themselves and having good partnerships.”
Maintaining export focus
Always remain conscious of your core business. Stick with what you know and how you can expand it, modify it, or extend it.
|
The Xypex Story
Few companies supplying the South-East Asian construction industry can boast of not only surviving the Asian financial meltdown but actually growing 436% in four years. Xypex Australia makes this boast - and now forecasts a 30-40% revenue share from Asia.
Managing director Rob Godson and his regional manager for South-East Asia, Loch Jackson, happily admit that they came into concrete waterproofing in 1990 with no previous building industry experience and made lots of mistakes. Godson says: “Our ignorance was probably our best asset since we weren’t afraid to make mistakes. But we didn’t remain ignorant. We kept our eyes and ears open, learning as we went.”
From their first export contract - for $150,000 after just one month in Singapore in 1995 - to their latest $3.5-million project in Kuala Lumpur, they haven’t stopped learning.