With the growing global demand for consumer electronics, the need for smart and effective electronics has never been greater. Your company can capitalise on this growth potential to expand overseas.
You can ride the new growth areas like artificial intelligence, autonomous vehicles, cloud computing, industrial robotics, and the Internet of Things.
Tradeshows are an important channel to reach out to overseas buyers, identify partners, study market trends, and understand competitors.
Enterprise Singapore supports tradeshows with associations such as the SGTech (formerly Singapore Infocomm Technology Federation), Singapore Manufacturing Federation (SMF) and the Singapore Precision Engineering and Technology Association (SPETA).
Major electronics tradeshows include local tradeshows like CommunicAsia, and overseas tradeshows such as Consumer Electronics Show (CES) and Internationale Funkausstellung Berlin (IFA).
Tap the International Marketing Activities Programme (iMAP) to participate in tradeshows. You can receive support for up to 70% of eligible expenses. Find out how iMAP can support your tradeshow participation.
The US is the world’s largest consumer economy, where consumer spending drives nearly 70% of the country’s GDP. E-commerce sales comprised 13% of total retail sales in the US in 2017, a figure that had grown 16% since the previous year.
This means vast business opportunities for your consumer electronics goods company. Before investing in the US market, sort out manufacturing and supply chain issues first. Make use of the e-commerce and retail channels in the US with distribution partners.
Have a marketing plan in place and communicate your brand story to US consumers. A good marketing strategy will go a long way to convince distributors and retailers to take a chance on your brand.
To scale-up your business, employ staff who are based in the US and in the same time zone who can work on leads and generate new ones at tradeshows.
Check out the potential of the US market.
China’s Shenzhen is known as the “factory to the world” due to its strong manufacturing base. The city has developed an entire network of product development enablers and intermediaries to support the high concentration of electronic manufacturers.
You can explore opportunities to bring your hardware startup to Shenzhen, which is also home to many hardware startups that deliver consumer products and services. Get easy access to small-batch prototyping and hardware solution providers. They can help transform your concepts into products quickly and with lower cost.
Due to a mature supply chain, Shenzhen has attracted prominent hardware startups like drone maker DJI; accelerators such as HAX Accelerator; and makerspaces such as Chaihuo. Makerspaces are collaborative workspaces where people with shared interests meet to develop projects and exchange ideas, equipment, and knowledge.
If you have a hardware startup and wish to collaborate with local partners in Shenzhen, Enterprise Singapore can help to identify potential partners for your company through makerspaces and accelerators in Shenzhen.
Launch your venture into the China market by working with experienced partners in China. If you are looking for manufacturing partners, pick a factory experienced in building similar products to yours. They may offer valuable advice on the best way to build your product.
Strong relationships are crucial to doing business in China, where “guan xi” (“relationship” in Chinese) drives the business culture. Make it a point to meet potential business partners and build trust. Visit the local facilities to find out more about their production and processes.
Trademark your products in China, as it has a “first to file” system. The rights to a trademark are awarded to the first party to apply, instead of the first to use it, even if the trademark is already registered in other countries. Trademarking also prevents others from attempting to buy the rights of your product.
Keen to find out more? Learn about the business potential in the growing China market.
India’s electronics industry is one of the largest and fastest growing in the world. The revenue from the consumer electronics segment is expected to be US$4.5 billion (S$6 billion) in 2018, and grow to US$8.8 billion (S$10.8 billion) by 2022.
The electronics industry is currently driven by mobile phones and consumer electronics, which comprised nearly 45% of electronic products revenues in 2015. Smartphone sales is expected to grow to reach 200 million units per year by 2020.
Automotive electronics is another growth area in India. The India government has announced plans to support the electric vehicle industry through the setting up of charging stations and the procurement of electric vehicles for government use.
Many major automotive players have also announced plans to launch electric vehicles in India. Brands like BMW, Hyundai, Mercedes, Renault, Suzuki, and Tata Motors showcased their electric vehicle line-up at the Auto Expo 2018 in New Delhi.
You can help to unlock India’s electronics potential. Be open to work with local players who have an understanding of the country’s culture and can provide a strong sales network.
It also helps to cultivate strong relations with key stakeholders. This can build a feedback channel on the issues and challenges you may face, allowing you to act quickly to resolve them. Be mindful that you may need to have a long-term commitment before your business sees fruitful returns.
Don’t miss out on the opportunities in the Indian market.
Indonesia is expected to be the fourth largest economy by 2050. Home to about 260 million people, it has a young population with a median age of 29 years old.
With a growing economy, Indonesia is currently the world’s fourth largest mobile phone market. The number of smartphones sold in Indonesia is projected to grow at a compound annual growth rate of 9.7% from 2016 to 2021. The Indonesia government’s plan to implement 4G nationwide by 2019 is a significant growth driver for the smartphone market.
Digital devices like laptops and tablets are expected to have strong growth. From 2016 to 2021, the number of laptops sold is estimated to grow 3.6% while tablets would have a projected growth of 4.2%. Ride on this growth potential in consumer electronics to enter the Indonesian market.
Consider forming strategic partnerships with local players to facilitate your entry into Indonesia. Research and stay updated on the latest regulations to ensure that your products are in compliance with the requirements of the Indonesian market.
If you plan to set up a manufacturing facility in Indonesia, Central Java is an affordable option. Consider launching your business at Kendal Industrial Park, which offers easy access to infrastructure development, land ownership and construction, as well as a large manpower pool.
Take advantage of the available tax reductions for electronics manufacturers. Indonesia offers tax exemptions for select sectors, such as the communication devices industry.
Find out how your company can enter the Indonesian market.