- The Philippines has an attractive business environment, a young, tech-savvy workforce, and a cultural affinity for Western brands.
- The cost of doing business is significantly lower compared to other countries. Government offers fiscal incentives and tax breaks.
- It is strategically located within Asia, making it easily accessible to other countries.
- Large English-speaking population and service-oriented workforce.
- Understand the local market, build strong relationships, hire a local team, and follow local regulations.
If you’re considering expanding your business overseas, the Philippines should be on your list. It’s an emerging economy experiencing steady growth, an attractive business environment, a young, tech-savvy workforce, and a cultural affinity for Western brands, making it an ideal location for entrepreneurs and businesses to expand into Asia.
Despite the global pandemic, the Philippines has enjoyed a robust business environment, with the information technology and business process outsourcing (IT-BPO) industries playing pivotal roles in enhancing the economy. Continue reading as we delve deeper into the benefits of expanding your business to the Philippines.
Cost Advantage
The cost of doing business in the Philippines is significantly lower compared to countries like the USA, UK, and Australia. Labor costs are low, and business permits are affordable and attainable.
Additionally, the cost of living is lower than in most Western countries, meaning outsourcing to the Philippines can help businesses save significant money. Furthermore, the government offers foreign investors fiscal incentives and tax breaks, enhancing the cost advantage.
Strategic Location
The Philippines is strategically located within Asia, making it easily accessible to other countries such as China, Japan, and South Korea. It’s the perfect gateway to the rest of Southeast Asia, making it an ideal location for companies that want to establish their presence in the region. Its ports offer easy access to Asia, North America, and Europe, while its airports are well-connected to major business hubs worldwide.
Marketing Opportunities
Expanding your business to the Philippines can provide you with a world of marketing opportunities you may not have thought possible. With over 100 million people, the Philippines is quickly becoming a hub for digital marketing. 67% of Filipinos are active social media users, making it an ideal platform for advertising and promoting your products and services.
The country’s young, tech-savvy population is also a significant target market for e-commerce businesses. With low overhead costs and increasingly affordable internet access, digital marketing in the Philippines presents a lucrative opportunity for any business looking to expand its reach.
Large English-Speaking Population
The Philippines has one of the largest English-speaking populations in the world. And as a former American colony, Filipinos better understand Western culture and practices, making communication and cultural compatibility a non-issue for foreign investors.
The availability of a large pool of English-speaking talents is an asset for multilingual businesses as they can recruit suitable personnel for their diverse language requirements.
Tips for Business Expansion
The Philippines is a fast-growing economy in Southeast Asia, with a population of more than 110 million people. It is an attractive destination for foreign investors due to its strategic location, low labor costs, and young workforce. If you want to expand your business to the Philippines, here are some tips:
Understand the Local Market
Before expanding your business to the Philippines, research the local market. Look at the current demand for your products or services in the country. Use this information to adjust your business strategy to suit the local market. You also need to understand the local business landscape, including the competition, local regulations, and cultural conventions.
Build Strong Relationships
The concept of “debt of gratitude” is essential in the Philippines. It refers to building solid relationships and repaying kindness with kindness. When doing business in the Philippines, it’s important to establish trust and build relationships with your local partners, employees, and customers. Take time to know them, their culture, and their way of life. Act respectfully and show your commitment to your partnerships and businesses.
Hire a Local Team
Hiring local employees can be a significant advantage when expanding your business to the Philippines. Local employees already know the business landscape and culture. They can help you adjust your business strategy to fit the local market. They can also provide valuable insight and access to critical decision-makers like regulators, suppliers, and customers.
Follow Local Regulations
Following the local regulations when expanding your business to the Philippines is critical. The Philippine government incentivizes investors who register their businesses in the country. Depending on your industry, you might need to acquire special permits or licenses before opening your business.
Final Thoughts
The Philippines is a strategic destination for expanding businesses for many reasons. As a leading outsourcing destination, the Philippines offers a world-class workforce, high quality of life, and easy accessibility to other countries in the region. So, if you’re considering expanding your business, look no further than the Pearl of the Orient Seas.
