Asia Business Podcast

Tariff Turmoil and Trade Disruption with Kim KirkendallWelcome to this special episode of the Asia Business Podcast. Today, we’re joined by Kim Kirkendall from International Resource Development Inc., a seasoned consultant specializing in international operations, supply chain, and international trade. With valuable experience across multinational companies and as the host of the International Trade Resources podcast, Kim brings a wealth of knowledge to the conversation. They dive deep into the ongoing challenges of supply chain disruptions, focusing on tariffs and the hurdles businesses face in this volatile environment.Introducing Kim KirkendallConnect with KimKim Kirkendall is a distinguished consultant and advisor on international trade, supply chain, and operations, primarily for multinational corporations. With her roots in China, Kim's career journey boasts managing factories and supply chains across Asia Pacific, culminating in the establishment of her consulting firm over two decades ago. Her expertise extends to advising international companies, particularly from New Zealand and Australia, in navigating trade and manufacturing challenges.Unpacking the Impact of Tariffs on Supply ChainsArt and Kim delve into current supply chain disruptions, particularly scrutinizing the role tariffs play in today's economic climate. With 2025 witnessing heightened uncertainty, Kim emphasizes the importance of strategic planning over reactionary measures. Recent trade wars and tariff policies have introduced significant volatility, making it imperative for businesses to plan but avoid rash decisions based on fleeting news.Strategic Responses to Tariff ChallengesKim provides practical insights into how companies can strategically maneuver around these obstacles. Key strategies include reengineering products, optimizing packaging, and considering alternative shipping methods to minimize costs. Though challenging, mitigating tariff impacts often involves innovative solutions like first sale principles and careful consideration of country of origin regulations.The Role of Supplier RelationshipsA significant thread through the discussion is the need for strong supplier relationships and transparency. Kim warns against pushing cost-cutting measures onto suppliers without open communication, as this can precipitate quality issues down the line. She advocates for collaborative approaches that ensure supplier stability and uphold quality standards amidst tariff-induced pressures.Decision Fatigue and Mitigation MeasuresOver recent months, the business community has faced 'decision fatigue' with constant tariff changes. Kim underscores the importance of fatigue management, urging companies to focus on strategic decision-making rather than immediate reactions. She highlights the essential practice of scenario planning, offering businesses the ability to swiftly adapt to changes while mitigating risks efficiently.Conclusion: Navigating the Storm with ResilienceAs the conversation wraps up, Kim emphasizes that while predicting future tariff trends is nearly impossible, businesses must remain resilient and prepared for any scenario. Short-term mitigation strategies, coupled with comprehensive scenario planning, can significantly alleviate the stress of tariff uncertainties and provide a balanced approach to business continuity.Timestamps00:00 Introduction and Guest Introduction00:59 Kim Kirkendall's Background and Experience03:09 Current Supply Chain Disruptions06:34 Tariff Impacts and Company Strategies16:24 Mitigation Strategies and Practical Advice31:45 Long-term Planning and Scenario Analysis36:26 Conclusion and Contact Information ProducerJacob ThomasFollow UsLinkedInApple Podcasts

The Impact of US Tariffs on Chinese Brands with Chris PereiraIn the latest episode of the Asia Business Podcast, host Art Dicker sits down with Chris Pereira, CEO of Impact. Known for his flawless Chinese and extensive work with brands in China, Chris offers a wealth of insights into the complexities of the current trade environment, particularly focusing on the US-China relationship amidst ongoing global trade disruptions.Introducing Chris PereiraConnect with ChrisChris Pereira is a seasoned expert in facilitating business development among Chinese brands, helping them navigate Western markets, especially the US. His strategic acumen in bridging cultural gaps and understanding market dynamics has made him a respected figure in the industry. During the podcast, Chris shares his perspectives on how Chinese companies are coping with the current trade climate and potential future strategies.The Impact of Tariffs on Chinese BrandsAs tariffs continue to pose significant challenges, Chris highlights the differential impacts on companies, particularly those engaged in cross-border trade. Chinese sellers on platforms like Amazon face tightening conditions, necessitating a reevaluation of their market entries. In contrast, manufacturers with established operations in the US find themselves in a more favorable position to counter these barriers.Adapting Strategies Amid Trade TensionsChris discusses the strategic pivot many brands are considering, such as redirecting efforts towards more receptive markets like Europe. He emphasizes the importance of localization and maintaining operational agility to mitigate the effects of trade disruptions. Companies are advised to invest in strong local partnerships to better navigate these unsteady waters.Navigating Policy UncertaintyUncertainty in US trade policy is a prevailing concern for many of Chris's clients. This unpredictability has split businesses into those increasing local investments in the US and others exploring alternative markets, such as Germany. Chris points out that stability in local policy environments could encourage further foreign investments in manufacturing within the US.The Role of Chinese Expertise in Global ManufacturingAmidst these challenges, Chris sees potential for greater collaboration. He posits that Chinese technical expertise could be instrumental in reviving US manufacturing, aligning closely with incentives for foreign investment in American industries, potentially turning geopolitical friction into mutual growth opportunities.Future Outlook: Balancing Between Policy and Business RealitiesThe podcast delves into the potential consequences of prolonged trade disputes, including possible shifts in global reserve currencies. Chris suggests that current policies could inadvertently accelerate diversification strategies among Chinese businesses, ultimately impacting US influence globally.Building Resilience: Chris’s Advice to BusinessesChris advises businesses to remain adaptable and proactive in securing market positions by fostering local relationships and considering broader strategic moves into less volatile markets. His counsel underscores the critical need for businesses to stay informed and responsive to rapidly evolving market conditions.Final ThoughtsIn this insightful exchange, Chris Pereira provides a nuanced understanding of the current trade milieu, offering practical advice for navigating an increasingly complex international landscape. His company, Impact, continues to aid businesses in making strategic transitions and achieving sustainable growth in uncertain times.Timestamps00:00 Introduction and Guest Welcome00:53 Impact of Tariffs on Chinese Brands02:46 Localization vs. Export Challenges03:54 European Market Opportunities05:01 US Policy Uncertainty and Its Effects07:25 Manufacturing and Trade Dynamics09:30 Future of US-China Trade Relations12:24 Strategies for Chinese Companies22:15 Currency and Economic Speculations33:41 Closing Thoughts and OptimismBe sure to reach out to Chris and his team here: https://impact5r.com/  ProducerJacob ThomasFollow UsLinkedInApple Podcasts

Capitalizing on Digital Transformations in Emerging Markets with Kevin CarterWelcome to another of the Asia Business Podcast. In this episode, we are privileged to sit down with Kevin Carter, the founder and chief investment officer at EMQQ Global. As an expert in emerging and frontier markets, Kevin brings a wealth of knowledge on the rapid evolution of these economies, particularly focusing on the technology sector.Introduction to Kevin Carter and EMQQ GlobalKevin Carter leads EMQQ Global, an investment management firm specializing in emerging markets technology. His career trajectory, starting from an interview at a leading investment bank in the 90s to creating some of the earliest China-focused ETFs, provides a fascinating backdrop to our discussion.The Journey to Emerging MarketsKevin shares his intriguing journey, from reading a seminal book "A Random Walk Down Wall Street" to his collaborations with financial visionary Burton Malkiel. His experiences underscore the pivotal moments that shaped his focus on emerging markets and the transformative power of technology within them.Broadening Focus Beyond ChinaWhile Kevin's initial ventures primarily focused on China, he expanded his reach, driven by the realization that investors often consider emerging markets as a singular allocation. This strategic decision has allowed EMQQ to capture the broader growth potential inherent in multiple emerging economies.Analyzing the Trends: The Triple Mega Trend in Emerging MarketsKevin explains the three mega trends driving growth in emerging markets:Consumer Growth:As emerging markets like China and India continue their economic ascent, consumer demand for products and services is surging.Technological Advancements:The widespread adoption of smartphones and the internet is catalyzing growth, propelling these markets into unprecedented digital integration.Internet Expansion:With most of the world still transitioning to digital, internet companies in these regions are poised for explosive growth.Addressing Regulatory and Perception ChallengesNavigating the regulatory landscape in markets like China is complex. Kevin discusses the challenges and misconceptions around government interventions in major markets, emphasizing the nuanced dynamics that investors must consider.India on the Horizon: A New Chapter in Emerging MarketsLooking ahead, Kevin is optimistic about India’s growth trajectory. With a burgeoning middle class and rapid digital adoption, India, according to Kevin, represents the next big opportunity in emerging markets.Conclusion: A Visionary's Insight into the FutureThrough a blend of insightful analysis and personal experiences, Kevin Carter offers a comprehensive view of the vast opportunities and challenges within emerging markets. His discussion provides invaluable insights for investors and businesses looking to navigate these dynamic spaces.For a deeper dive into these discussions, listen to the full episode of the Asia Business Podcast, where Kevin Carter shares his expertise on emerging markets and the factors driving their transformation. Timestamps00:00 Introduction to the Asia Business Podcast00:35 Kevin Carter's Early Career and Influences03:58 The Birth of EMQQ and Early Ventures07:34 Expanding Beyond China: A Strategic Move12:24 Challenges and Realizations in Emerging Markets20:46 The Internet and E-commerce Revolution25:07 Global Mobile Phone-Based Orders25:48 Regulatory Risks in Emerging Markets27:03 China's Regulatory Landscape30:10 Alibaba and Tencent: Market Dynamics38:18 Impact of Global Trade Policies42:45 Investment Strategies in Emerging Markets46:39 Future Trends in Emerging Markets48:55 Conclusion and Final Thoughts  ProducerJacob ThomasFollow UsLinkedInApple Podcasts

Expanding SMEs in Europe and Asia with Kathryn ReadWelcome to another episode of the Asia Business Podcast. In this episode, we are delighted to have Kathryn Read, an accomplished consultant who aids SMEs in expanding their reach into Europe and Asia. With a rich background in the food and beverage industry and extensive experience in infant nutrition, especially concerning China, Kathryn offers invaluable insights into the evolving business climate of Asia.Introducing Kathryn ReadVisit Kathryn's WebsiteKathryn Read is a consultant specializing in guiding small to medium-sized enterprises (SMEs) through the complexities of expanding into diverse Asian markets. Her journey began in Austria, where she transitioned from being a linguist to an influential figure in the infant nutrition sector, specifically targeting China. Her wealth of experience comes not only from her professional roles but also from her firsthand navigation of cultural and business environments across Asia.The Impact of Scandals on Market DynamicsReflecting on the infamous 2008 infant formula scandal in China, Kathryn highlights how such incidents have reshaped consumer trust and market opportunities for foreign brands. This crisis created a significant opening for foreign companies, which were then perceived as more trustworthy compared to local brands. However, Kathryn notes that over the years, China has strengthened its regulations and consumer attitudes have shifted, leading to increased competition for foreign brands.Evolving Consumer Trust and Brand StrategyChina's path from skepticism toward local products to embracing "Made in China" again is a testament to the country's evolving trust landscape. Kathryn stresses the importance for foreign brands to adapt by understanding local consumer preferences and establishing a unique selling proposition (USP) that resonates locally. Success hinges not just on being a foreign brand but offering a narrative and product that aligns with the market's premium or niche tastes.Localizing for Success in Asian MarketsKathryn emphasizes that brands must carefully navigate the balance between preserving their global identity and localizing effectively to appeal to specific Asian markets. Localization can involve adjusting product packaging, altering flavors, or even adapting marketing strategies to suit regional consumer sensibilities. This strategic approach allows brands to maintain their global image while simultaneously penetrating new markets.The Role of Strategic PartnershipsBuilding robust partnerships is a critical strategy for entering Asian markets. Kathryn insists that brands should invest time in cultivating partnerships with local distributors and sales channels. Through shared resources and mutual goals, such partnerships can significantly enhance a brand's market entry and growth processes.Case Study: Crafted Success in KoreaHighlighting an Australian brand's success story, Kathryn shares how Vonderberg Brewed Drinks expertly positioned themselves within Korea by capitalizing on their authenticity and unique packaging. Their strategic entry into high-end bars and cafes, coupled with a compelling brand narrative, underscored the importance of a strong brand identity tailored to local tastes.Navigating Logistics and DistributionKathryn advises that understanding local logistics and leveraging established networks is essential for navigating the complex infrastructure of Asian markets. Working with an importer who can manage distribution nuances and align with the brand's overall strategy is often key to successful market penetration.Future Opportunities and TrendsLooking ahead, Kathryn identifies wellness, affordable luxury, and sustainability as emerging sectors with significant potential for growth in Asia. As consumer preferences towards ethical and health-conscious products grow, brands can find unique opportunities in these evolving sectors.Final Thoughts and Contact InformationKathryn Read brings her extensive expertise to businesses looking to prosper in the Asian markets. Active on LinkedIn and available through her website, kathryneread.com, Kathryn remains an accessible source of knowledge for brands aiming to expand their global footprint.Thank you to Kathryn for sharing her insights, and listeners eagerly glean from such discussions to refine their strategies in the Asian business arena. If you're looking for further engagement with Kathryn or specific insights into Asian market strategies, be sure to reach out.Timestamps00:00 Introduction and Guest Welcome00:38 Kathryn's Background and Experience02:58 Infant Formula Scandal and Market Impact05:06 Changing Consumer Trust and Brand Strategies09:40 Localization and Market Entry Strategies18:11 Sales Channels and Partnerships23:23 Success Stories and Case Studies27:13 Distribution and Logistics Challenges38:31 Future Opportunities and Trends40:33 Conclusion and Contact Information ProducerJacob ThomasFollow UsLinkedInApple Podcasts

** Exploring China's Economic Shift and Data Insights with Robert Wu**Introduction to Robert Wu and His ExpertiseConnect with RobertVisit BigOneLabRead BaiguanRead China TranslatedIn this episode of the Asia Business Podcast, we have an engaging conversation with Robert Wu, a respected figure in the field of economic analysis and business strategy. Robert is known for his insightful writings and is the author of "China Translated," a newsletter that offers a deep dive into China's economic trends and their long-term impacts. He is also the co-editor of Baiguan, which provides data-driven insights into China's business sector, and the CEO of Big One Lab, a data-centric market research company.China's Economic Transition: From Investment to ConsumptionThe episode begins with a discussion on China's economic transition towards boosting domestic consumption. Robert emphasizes a pivotal shift in policy thinking, focusing on the relationship between investment and consumption. Historically, China's economy has been heavily skewed towards investment, leading to impressive infrastructure and manufacturing capabilities. However, this model has reached a tipping point, requiring a rebalancing towards consumption to sustain growth. Robert suggests that while the government recognizes this need, the shift requires long-term structural changes and cannot be achieved overnight.Obstacles to Enhancing Domestic ConsumptionArt and Robert explore the challenges in increasing domestic consumption in China. Contrary to some perceptions, Robert asserts that China's safety nets, including healthcare and education, are relatively robust. However, he highlights issues such as child care expenses and regional disparities that need addressing to encourage consumer spending. Cultural factors also play a role, with older generations tending to save rather than spend. Robert predicts potential policy initiatives, such as birth subsidies, to incentivize higher consumption levels.The State of Entrepreneurship and Venture Capital in ChinaThe conversation shifts to the state of entrepreneurship and venture capital in China. Robert paints a picture of a changing landscape, where U.S. capital, a significant driver of China's VC scene, has withdrawn amidst geopolitical tensions. This retreat has forced local entrepreneurs to adapt, focusing more on sustainable, profitable operations rather than relying on VC funding. Although this environment poses challenges, Robert sees it as an opportunity for businesses to build solid foundations, paving the way for a resurgence in entrepreneurial activity.Government Policies and Economic BalanceArt and Robert delve into the complexities of China's government policies, particularly the balancing act between fiscal stimulus and avoiding moral hazards. Robert provides insights into how the government carefully manages domestic economic policies, recognizing the challenges posed by local government debt and the need to drive consumption. Through careful prioritization and measured interventions, Robert believes China aims to sustain growth while preventing excessive risk-taking by local governments.Navigating Regulatory Environments and Market ReactionsThe episode also touches on China's regulatory environment, where crackdowns on sectors such as online education and FinTech have sparked debates. Robert acknowledges the government's need to manage these industries while also recognizing the importance of considering broader market reactions. By learning from past experiences, the government aims to communicate more effectively and avoid unintended economic consequences.Conclusion: An Objective Look at China's Economic DynamicsIn closing, Robert emphasizes the importance of maintaining an objective perspective when analyzing China's economic dynamics. Despite facing various challenges, the country continues to present significant opportunities for businesses and investors. Through his writings, Robert aims to shed light on the complexities of China's business environment, encouraging a balanced and well-informed discussion. Timestamps00:00 Introduction and Guest Welcome01:27 Robert Wu's Background and Career Journey05:55 China's Economic Evolution and Policy Shifts14:03 Challenges in Boosting Domestic Consumption19:43 The State of Venture Capital and Entrepreneurship in China27:37 Challenges in VC Funding and Entrepreneurship29:16 VC Funding: A Double-Edged Sword30:21 Government's Fiscal Discipline and Economic Priorities31:05 Balancing Fiscal Stimulus and Moral Hazard35:40 Sector Crackdowns and Policy Implications41:21 Navigating Misinformation and Bias46:38 The Motivation Behind Writing and Sharing Insights51:02 Conclusion and Future Plans ProducerJacob ThomasFollow UsLinkedInApple Podcasts

Ivy Yang, founder of Wavelet Strategy and expert in U.S.-China business dynamics, delves into the future of TikTok amid potential bans. She discusses the shift of users to RedNote, highlighting its unique features and user experience. Ivy explores the cultural implications of moving towards a Chinese platform while addressing U.S. perceptions of Chinese apps like TikTok and Shein. She emphasizes the challenges Chinese brands face in defining their identity in the U.S. market against a backdrop of geopolitical tensions.

Manufacturing in Asia: Challenges and Opportunities Beyond China with Jeffrey GoldsteinJoin us for an insightful episode of the Asia Business Podcast where we had the pleasure of interviewing Jeffrey Goldstein, CEO of Onward Global. This episode explores the complexities of supply chain management in China and beyond, providing expert advice and identifying future trends for businesses looking to diversify their manufacturing bases.Connect with Jeffrey GoldsteinVisit Onward GlobalMeet Jeffrey GoldsteinJeffrey Goldstein is an industry leader with 15 years of experience based in China and eight years at the helm of Onward Global. His expertise in managing and scaling supply chain operations for U.S. brands across Asia provides valuable insights for businesses navigating the evolving landscape.The Current State of China's Supply ChainJeff highlights that despite changes, China's supply chain remains competitive due to its diversity, flexibility, and cost-effectiveness. However, two macro changes impacting this landscape include:Financial instability within China's economy, leading to factory bankruptcies.A labor shortage due to demographic changes and shifts in young workforce preferences.Goldstein emphasizes the significance for brands to understand the financial health of their suppliers amidst these challenges.The Geopolitical Landscape and China Plus One StrategyWith geopolitical tensions and trade policies affecting sourcing strategies, Goldstein stresses the growing trend of the "China Plus One" strategy. This approach involves maintaining China as a primary manufacturing hub while diversifying production to additional countries to mitigate risks. He notes that while some relocation has occurred, it presents strategic and operational challenges.Emerging Manufacturing HubsJeffrey points out that Vietnam, Cambodia, and India are becoming key manufacturing destinations, each with their strengths and weaknesses. He elaborates on the growing sophistication and diverse capabilities within Vietnam's supply chain, Cambodia's focus on apparel exports, and India's potential despite its domestic-market-focused factories.Risks and Challenges in New MarketsWhile sourcing in these emerging hubs presents opportunities, Goldstein warns of the risks involved, such as the complexities of unknown markets and the challenges of building new relationships. He stresses the importance of applying best sourcing practices, thorough market research, and building local relationships as companies venture into new territories.Best Practices for Successful Supply Chain DiversificationGoldstein advises businesses to practice due diligence, from verifying potential partners and understanding local legal frameworks to engaging with local experts. He emphasizes the need to be realistic in terms of time, cost, and resources required for effective diversification.The Future of Global Supply ChainsLooking forward, Jeff predicts an acceleration of the current trends: reduced capacity in China's manufacturing sector and increased interest in developing supply chains in other Asian countries. For smaller companies, he highlights the importance of starting preparations early to stay competitive amidst these shifts.ConclusionFor more information or to connect with Jeffrey Goldstein, visit Onward Global’s website or reach out via LinkedIn.Timestamps00:00 Introduction and Guest Welcome00:23 Jeffrey Goldstein's Background and Onward Global01:18 China's Supply Chain Evolution03:59 Geopolitical Tensions and Trade Policies05:08 China Plus One Strategy08:12 Challenges of Sourcing Outside China20:35 Best Practices for Sourcing24:12 Automation and Labor Costs29:29 Successful Supply Chain Diversification35:33 Future Trends and Final Thoughts38:20 Conclusion and Contact Information ProducerJacob ThomasFollow UsLinkedInApple Podcasts

Chinese Companies Going Global: Challenges and Opportunities with Guoli ChenWelcome to another exciting episode of the Asia Business Podcast! Our host, Art Dicker, invites us on a fascinating journey with esteemed guest Professor Guoli Chen from INSEAD in Singapore. Professor Chen, a strategy expert and author of the book Seeing the Unseen: Behind Chinese Tech Giants' Global Venturing, offers an in-depth look at the rapid growth and global expansion of Chinese companies.Connect with Guoli ChenUnderstanding Chinese Companies' Rapid GrowthKey Factors behind Domestic SuccessThe conversation kicks off with a discussion about why Chinese companies grow so swiftly in domestic markets, and a significant question: Is this growth due to a looser legal framework allowing for faster advancement? Professor Chen clarifies that while government policies play a role, deeper factors contribute to this phenomenon.Professor Chen provides insights into his research on corporate governance and strategic leadership, focusing on the phenomenal growth of consumer tech companies like Alibaba, JD, Tencent, and TikTok. He explains that one of the primary reasons for their rapid growth is the unique market conditions within China that foster quick adaptations and innovations.Challenges of Going GlobalWe examine whether the complexity of the Chinese market makes it easier or harder for these companies to adapt to Western standards and regulations.Professor Chen points out that the successful business models developed in China do not always translate well abroad due to different market ecosystems, supply chains, and customer behaviors. For instance, Tencent’s WeChat ecosystem is deeply integrated into Chinese daily life, which does not easily replicate in other countries.Opportunities and Constraints for Chinese Multinational CorporationsSupply Chain and Operational EfficiencyProfessor Chen emphasizes the strength of Chinese supply chains, particularly in manufacturing. Companies like Shein and Pinduoduo leverage China's powerful production capabilities and seamless integration to deliver goods to global markets efficiently. This operational efficiency is a competitive advantage that is tough for others to imitate.Data Utilization and Consumer InsightChinese tech firms excel in harnessing data to understand and predict consumer behavior. Companies like Shein and Tmall use sophisticated algorithms to adapt quickly to market demands, offering tailored solutions to consumers, which enhances their global competitiveness.Leadership Styles and Organizational CultureThe conversation takes an insightful turn as the hosts delve into the differences in leadership styles between Chinese and Western companies. Professor Chen points out that many Chinese leaders adopt a low-profile, authoritative style, setting clear directions for their teams. This contrasts with the more visible and charismatic leadership common in Western tech firms.However, this authoritative style also poses challenges, especially when expanding globally. The ability to manage diverse teams and integrate different cultural perspectives is crucial for international success. Professor Chen stresses the need for Chinese multinational corporations (MNCs) to embrace diversity and cross-cultural management practices.Adapting to Global Markets: Lessons and StrategiesIterative Market ApproachNico brings up an interesting point about Chinese companies' iterative approach to market feedback. Instead of relying heavily on focus groups, Chinese firms often launch products quickly and iterate based on real-time consumer feedback. This method allows for rapid adjustments and continuous innovation.Integrating Global TalentThe importance of integrating non-Chinese talent into Chinese MNCs is another crucial topic discussed. Professor Chen emphasizes that for Chinese firms to succeed internationally, they must attract and retain local talents who understand the specificities of foreign markets.ConclusionProfessor Chen leaves us with a thought-provoking insight: while Chinese companies have shown incredible growth and innovation, their ability to adapt and navigate the complexities of global markets will determine their long-term success. Continuous learning, adaptability, and embracing a global mindset will be essential for these enterprises as they compete on the world stage. Timestamps00:00 Introduction and Guest Welcome01:18 Understanding Chinese Business Dynamics04:00 Challenges for Chinese Companies Overseas10:24 Successful Chinese Business Models21:57 Leadership and Organizational Culture33:43 Future of Chinese Companies Globally38:13 Conclusion and Farewell ProducerJacob ThomasFollow UsLinkedInApple Podcasts

Join us as Josh Lee, Co-founder of Cathoven, shares how their AI-powered platform is revolutionizing language teaching. From discussing Cathoven's core technology to its global impact, learn how they're reshaping the language learning industry and driving change in education.Producer Jacob Thomas Follow Us LinkedIn Apple Podcasts

Navigating Cross-Border Investments and Family Offices with Danye WangIn this episode of the Asia Business Podcast, we are privileged to have Danye Wang as our special guest. Danye is the managing partner at UniGlobe Capital, an institutional advisory firm focused on international allocation and family offices, as well as cross-border investments. Your host, Art Dicker, delves into a comprehensive discussion with Danye about her professional journey and the burgeoning family office landscape in Asia.Introduction to Danye WangConnect with DanyeVisit UniGlobeDanye Wang has an illustrious career trajectory that began in China. She moved to the United States for her college education and graduated during the financial crisis of 2008. Against the odds, she secured a role at BlackRock, which has now grown to be one of the world's largest asset managers. At BlackRock, Danye held a client-facing role, dealing with central banks, sovereign wealth funds, and insurance companies.Through her career, Danye has gained profound insights into the evolving investment landscape and the myriad opportunities and challenges within it. She brings a wealth of knowledge and experience, particularly in the context of international investments and family offices.The Growth of Family Offices in AsiaAsia has witnessed substantial growth in the number of family offices over recent years. According to recent stats, about 9% of the world's 20,000 family offices are located in Asia. This number is set to surge as Asia's ultra-high-net-worth individuals (UHNWIs) grow by almost 40% from 2022 to 2027.Danye notes that family offices in Asia are relatively new, with around 40% of them being established post-2010. Several factors encourage the creation of family offices, including significant exit events, generational transitions, and the need for diversification. Family offices can handle an array of activities from investment and tax planning to philanthropy and family governance.Navigating Investment OpportunitiesThe conversation takes an insightful turn as Danye delves into why UHNWIs would set up family offices. The discussion encompasses several key aspects:Separation of Legal Entities: To ensure accountability and professionalism in their financial activities.Proactive Investment Behavior: Whether they set up single-family or multifamily offices, Danye emphasizes the proactive nature of these entities in sourcing investments.Diversification: One of the primary drivers behind setting up family offices is the diversification of investments to manage risk and explore new opportunities beyond traditional sectors like manufacturing and real estate.Art Dicker touches on a stereotype that Asian investors often want safety, liquidity, and high returns all at once. Danye confirms that while such expectations were prevalent in the past, the landscape is shifting toward more realistic and sophisticated investment strategies.Single vs. Multifamily OfficesThe debate between establishing single-family offices versus joining multifamily offices is a significant consideration. Danye explains that the choice often boils down to factors such as costs, expertise, and control. Single-family offices offer greater control and emotional attachment, but they come with higher operational costs. The general guideline suggests starting a single-family office only with assets above 50 million USD, ideally 100 million USD.Multifamily offices, on the other hand, offer economies of scale and access to diversified investment opportunities. They often attract professionals from private banking backgrounds, bringing a wealth of experience and networks.Investment Screening and Talent AcquisitionAn essential part of managing a family office is talent acquisition and the structuring of investment strategies. Danye emphasizes that screening quality investments requires understanding the team, strategy, and track record. For family offices, hiring talent from investment banks, private equity, and asset management firms is crucial for maintaining a robust investment strategy.The Singapore vs. Hong Kong DilemmaTowards the end of the discussion, Danye sheds light on the trend of family offices setting up in Singapore vs. Hong Kong. While Singapore has seen a huge influx of family offices due to its stable political climate and international connectivity, Hong Kong offers a robust financial sector with access to top global banks and asset managers. Despite recent scrutiny over asset flows into Singapore, it continues to be a preferred destination for many family offices.ConclusionThe comprehensive discussion with Danye Wang underscores the dynamic and evolving nature of family offices in Asia. From understanding the factors driving their establishment to navigating investment opportunities and talent acquisition, the episode offers a wealth of insights for anyone interested in the world of family offices.For more in-depth discussions and industry insights, make sure to subscribe to our podcast and stay updated with our latest episodes! Timestamps00:00 Introduction and Guest Welcome00:33 Danye Wang's Background and Career Journey04:53 Growth of Family Offices in Asia10:17 Setting Up and Managing Family Offices26:48 Direct Investments vs. Fund Allocations37:53 Choosing Between Single and Multi-Family Offices48:34 Hong Kong vs. Singapore for Family Offices53:37 Conclusion and Contact Information ProducerJacob ThomasFollow UsLinkedInApple Podcasts