How to invest in ASEAN markets and establish a new sales and distribution network
Our Client is a European enterprise, operating in the field of food ingredients processing and confectionery, with yearly turnover above Euros 600m. Founded approximately 50 years ago as manufacturer of food additives, over the years our Client has produced first-tier quality primary ingredients, semi-finished and finished products for all the channels in the F&B industry: industrial, retail, artisanal, and Ho.Re.Ca.
Our Client’s success is based on constant research into primary ingredients, ongoing investments in cutting-edge production technology, and a strong focus on customer demands.
Our Client has been exporting approximately 40% of its turnover; it has worldwide operations, with more than 15 foreign subsidiaries and representative offices, and extensive network of distributors and importers in over 100 countries. It has been operating in some East Asian countries as well (including China, Malaysia, and Singapore).
Nevertheless, our Client wanted to improve its Asian operations and enter new markets. For doing so, they needed to comply with each and every FDA regulation and to carefully analyse the characteristics of any market, to best match it with their products.
Further, our Client needed to be advised as regards the best legal entity to adopt in order to enter the new markets, and how to exploit corporate law and fiscal benefits for its new subsidiaries.
On top of that, our Client felt also necessary to have an entrusted advisor to develop its sales on a continuous basis. For our Client, the choice was crystal clear and straightforward – either setting up a fully-operative sales office in every ASEAN country or appoint AdvisingAsia as its business developer in South-East Asia.
As soon as AdvisingAsia got appointed, we have initially analysed and defined the best legal and business strategy for our Client.
Consequently, we have explored the upcoming opportunities of the sector of food additive and the competitiveness of our Client’s products in the countries we have been required to assess. Together with a comprehensive competitive environment analysis, we have delivered a cutting-edge new price positioning, a market entry strategy, and a marketing plan (including digital marketing plan).
In addition, we have evaluated and identified the most suitable legal entity to fit Our Client’s needs. After our research, a B.O.I. (Board of Investment) promotion appeared to equip our Client with most benefits, in terms both of corporate governance and fiscal incentives.
We have taken care of the overall project for our Client, starting from the incorporation of a limited liability company and the application with the Board of Investment to get the due promotions.
We have also submitted an application with the Food & Drug Administration, to enable our Client set up a local production facility.
On top, we have been hired to develop the new market for our Client’s products.
This implied to research and select new clients, both primary companies and SMEs. Also, we have managed our Client’s Sales & Distribution network, enhancing yearly turnover and drafting all the required commercial contracts with the newly appointed distributors.
With a dedicated District Manager for our Client, we have focused and redirected local dealer’s sales efforts.
Briefly, we have been continuously implemented the best business development strategy for our Client, with clear and consistent benefits and cost savings.