How to start exporting to Asia

Pursuing export opportunities in Asian markets means adapting to the following:

• Cultural differences—Asia’s wide diversity requires adapting to varying communication and negotiation styles.
• Geographic distance—Depending on where you are in Canada, shipping and supply chains can be more complex due to increased distance and logistical hurdles.
• Fragmented legal and regulatory systems—The region’s landscape is highly diverse, with each country maintaining its own rules and compliance requirements.
• Diversity in language and business practices—An export strategy that succeeds in one Asian country may not work in another, as language, business customs and consumer preferences can vary significantly.

Because of these factors, exporting to Asia requires flexibility and careful preparation. Tailoring your approach to each market is essential for success.

What are the key benefits and opportunities of exporting to Asia?

To succeed in Asia, businesses must understand the benefits and opportunities that make the region unique and be ready to capitalize on them. Here are three key advantages of exporting to Asia.

• Large and growing markets
  Asia is home to over 4.5 billion people, including rapidly growing middle classes in countries like Vietnam, Indonesia and India. This provides enormous potential demand for consumer goods, technology, premium products and industrial supplies. For Canadian companies looking to do business in Asia, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) allows for free trade access to five countries including Brunei, Japan, Malaysia, Singapore and Vietnam. For remaining countries, Canadian small or medium-sized enterprises (SMEs) must navigate bilateral trade agreements and country-specific regulations. 
  
  However, some countries are so large that even capturing a small share of the market can translate into substantial sales and growth opportunities. China and India, for example, each have populations of around 1.4 billion, while Indonesia, Pakistan, Bangladesh, Japan and the Philippines all exceed 100 million inhabitants, creating opportunities that dwarf most single-country markets elsewhere.
• Strong demand for premium and high-quality products
  Many Asian markets, particularly Japan, South Korea and Singapore, place a high value on quality, brand reputation and ethical production. Consumers in these countries are willing to pay a premium for products that are reliable, innovative and sustainably produced.
  
  For Canadian exporters, this creates a significant opportunity: high standards act as a natural filter, reducing competition from lower-quality producers. Even in rapidly developing markets such as Vietnam, Malaysia and Indonesia, the growing middle class is increasingly demanding branded and trustworthy products, creating niches for premium Canadian goods.
• Trust as a competitive edge
  In many Asian markets, business success depends heavily on trust and relationships. For Canadian exporters, this presents a strategic opportunity: by investing in local connections—through agents, distributors or on-the-ground representatives—SMEs can gain insights, navigate complex regulations more effectively, and streamline logistics. Once established, these relationships act as a competitive moat: shielding the business from competitors who rely only on transactional or digital interactions. For SMEs, cultivating trust is not just a necessity—it’s a way to differentiate, build long-term loyalty, and create a sustainable market advantage in fast-growing Asian markets.

What are the main risks and challenges of exporting to Asia?

Expanding into Asia can unlock huge opportunities for your business, but it also comes with a unique set of risks and challenges. Knowing what to expect, and planning for it, can make the difference between a successful market entry and costly missteps. “Asia can be an intimidating region, but with the right preparation, Canadian businesses can tackle its challenges and unlock growth on a vast scale,” says Allison Thorne, a business advisor with BDC Advisory Services.

Here are the main risks and challenges to keep in mind as you plan your expansion into Asian markets, along with practical strategies to address them.

Challenge: access to detailed market data

Knowledge is power, but finding reliable information in Asia can be challenging. Statistics, consumer insights and industry reports are often limited, scattered, or only available in local languages. “This opacity can make it tough to understand demand, consumer preferences, competition and market trends,” explains Thorne.

Solution: market research and partnerships

To succeed, businesses need to switch from an instinct-driven perspective to a data-driven approach, Thorne emphasizes. This means investing in market research, forming local partnerships or hiring specialized consultants to build a clear understanding of demand, competition and opportunities. Do not hesitate to engage local consultants or legal experts, and to find an on-the-ground sales agent or distributor to navigate the market.

Key resources for market data

Challenge: geopolitical risk

Exporting to Asia can involve a heightened geopolitical risk. From a Canadian perspective, recent events in the news have shown how quickly tensions can erupt, potentially disrupting business relationships and impacting tariffs, regulations, and market access.

Solution: stay informed and engage local partners

To mitigate geopolitical risk when exporting to Asia, make sure to stay informed. Monitor political developments, trade relations and regulatory changes often. Use local news sources, government trade advisories and industry reports to anticipate risks. Also, remember to engage local partners, by forming a joint venture or working with local distributors and agents who understand the political and regulatory landscape. This will greatly help you navigate sudden changes.

Challenge: protection of intellectual property

Protecting your intellectual property (IP) is a challenge that requires careful attention when exporting to Asia. “This point is relevant in every market, of course, but it is especially crucial in Asia compared to traditional Canadian export markets such as Europe or the United States,” underscores Thorne. Enforcement of IP rights varies widely between countries, and companies may encounter issues like counterfeiting, patent disputes or unauthorized use of trademarks.

Solution: identify the risks and hire experts

Understanding the local legal environment and the level of IP protection available is essential to assess the potential risks before entering a market. Businesses should register their patents, trademarks and copyrights in each target country, as IP registered in Canada only protects it within Canada. Working with local legal experts or IP consultants can also help you understand the local laws and enforcement mechanisms.

Challenge: cultural and language differences

Cultural differences can pose significant challenges, not only for communicating effectively with business partners but also for executing successful marketing strategies. While this is also true in Europe, the gap between Canadian and Asian business practices and norms is particularly wide. Differences in negotiation styles, approaches to decision-making, and expectations regarding hierarchy and relationship-building can all influence business outcomes.

Solution: adapt to local practices

Employ a tailored approach to avoid misunderstandings or missteps. “If you want to overcome language and cultural barriers, make sure to invest in cross-cultural training,” suggests Thorne. Also, hire multilingual or multicultural staff whenever possible, and find knowledgeable experts to translate and adapt your marketing material.

What steps should business owners take to start exporting to Asia?

When it comes to exporting to Asia, the more thorough your preparation, the greater your chances of success. Begin with these practical steps, which will help you assess the market, shape your strategy, and establish a strong foundation for your operations in the region.

1. Assess your export readiness

Begin by evaluating your organization’s internal capabilities. Are your team, financial resources and operational processes ready to handle the additional demands of exporting? Consider whether expanding into Asia could dilute your local presence or stretch your resources too thin.

2. Select your target market

Analyze which Asian market offers the most viable opportunities. Consider market size, import demand for your product category and competitive landscape. Look for trade agreements, like the CPTPP or the Canada-Korea Free Trade Agreement (CKFTA), which can improve market access for your products. Conducting market research will help you determine whether there is genuine demand and how best to reach potential customers. Tools like Trade Data Online—a public platform that generates customized reports on Canada’s trade of goods with over 200 countries—can help you focus your efforts.

3. Understand regulations and compliance requirements

With regulations varying widely from country to country, you need to zero in on the rules that may apply to your product or service. Check for necessary certifications or standards. Rules may be less stringent in Asia than in Europe, for example, but non-compliance can still lead to fines, shipment delays, or reputational damage.

4. Plan your pricing and logistics

Develop your pricing, distribution and logistics strategies. Identify potential partners and sales channel such as distributors, agents or joint ventures, and determine how you will sell in the market. Understanding customs procedures and choosing reliable brokers are also key components of a solid operational plan. When elaborating your export strategy, look for initiatives such as the Trade Accelerator Program, which offers international trade workshop sessions through world trade centers and chambers of commerce across the country.

5. Seek funding and support

Explore export grants or funding programs available through federal, provincial or industry associations. These resources can help reduce costs and provide valuable guidance. For example, through Trade Commissioner Service's CanExport SMEs program, eligible SMEs may receive up to $50,000 to support the costs of international development activities in markets where they have little or no existing sales.

6. Engage directly on the ground

After identifying a market and developing your entry strategy, try to visit the target region in person, suggests Thorne. “Trade missions are highly recommended, whether through industry events or federal and provincial business delegations,” she says. Consult the Trade Commissioner Service website for a sortable list of upcoming trade missions and events. Meeting pre-identified potential partners or buyers and discovering new opportunities in person helps build relationships, gain firsthand market insights, and refine your entry strategy. Trade shows can be another good way to meet potential partners or buyers, assess the competition and gather insights on the market firsthand.

7. Begin exporting

Once your research, planning, and preparations are complete, start small and scale gradually. Launch initial shipments or pilot projects to test the market, refine your processes, and build relationships with customers and partners before committing to larger operations. “E-commerce platforms, like WeChat, Rakuten or Alibaba can be a great way to gauge interest,” says Thorne. “They help you test demand, learn from customer feedback and refine your approach before scaling up.”

Next step

BDC’s experts in business expansion can help you shape a winning export strategy and access a world of new customers.