The surge in Southeast Asian COVID-19 will hurt the supply of Japanese companies …

The surge in Southeast Asian COVID-19 will hurt the supply of Japanese companies …


Increasing cases of coronavirus in Southeast Asia, such as Malaysia and Indonesia, are beginning to affect the supply chains of Japanese companies, which could make regional production disruptions more realistic.

In Malaysia, which has been closed since June 1, Toyota Motor Co., Ltd. and Honda Motor Co., Ltd.’s factories remain closed. This is mainly due to regulations that limit factory worker reports to 10% or less.

The blockade has already been extended twice, and on July 5, more stringent restrictions were imposed on the Malaysian metropolitan area, where Japanese companies operating in Malaysia are concentrated.

Mitsui Mining & Smelting Co., Ltd., which manufactures smartphone materials in Malaysia, announced that it will stop production on July 5. The government has since allowed the electronics industry to reopen, but the company’s press said production would not return to previous levels. From late July to early August.

Japanese companies have also been hit hard in Indonesia, with more than 40,000 new daily infections on Monday. According to a survey conducted by the Japan External Trade Organization, manufacturers have blamed the increase in infectious diseases and their impact on their businesses. One company reported that 18% of its employees were infected, causing business problems.

In addition, many Japanese companies operating in Indonesia are considering returning expatriates because it is difficult to operate at full capacity due to restrictions on the movement of people.

A Japanese automaker based in Southeast Asia said the difference between a coronavirus pandemic and a natural disaster was that the former had a long-term impact on the supply chain and hit multiple regions at the same time.

Officials said it would be difficult to make a one-year forecast and a much longer forecast in Southeast Asia, where vaccine deployment remains slow.

Thailand is considered the cornerstone of the production network of Japanese companies in the region, and curfew has been imposed on the Bangkok region since Monday. However, it still does not have strong restrictions on business operations. Japanese electronics companies have suggested that the effects of the curfew are expected to be limited.

Vietnam was once widely touted for its successful containment of a pandemic, but incidents are skyrocketing in Ho Chi Minh City, the largest city.

Therefore, Kitami City, a researcher at JETRO Bangkok, said that while Japanese companies are doing their best in the pandemic, “If the infection continues to spread in other countries, regulations as strong as Malaysia will be adopted. There is a possibility. “

“It can deprive you of your desire to invest,” he said.

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Canberra Vineyards Start Exporting Wine to Southeast Asia …

Canberra Vineyards Start Exporting Wine to Southeast Asia …


April 2021

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The pandemic hit just as Shaw Wines’ plans to expand Asia got off to a good start. Premium family-owned vineyards wanted to build exports across Asia when COVID-19 stopped traveling and China imposed new trade measures. The owner, Graeme Shaw, did the following remotely with Austrade:

  • Find a reputable distributor in Singapore
  • Research markets throughout Asia
  • Conclude a multilateral contract.

Shaw Wines’ Riesling, Merlot and Malbec will soon be available in luxury hotels and wine shops in Singapore, Thailand, Malaysia and Vietnam.

“I might have tried to do this myself, but it would have been difficult,” Graeme says. “It’s difficult to build trust without meeting with our export partners. In difficult situations, Singapore’s Austrade has been very helpful.

Devise an export strategy in partnership with the Australian Trade Promotion Agency

In 2019, Graeme began working with TradeStart and Austrade to devise an export strategy for Southeast Asia. Canberra-based Shaw Wines has already exported to China and has experimented with several sales models, including mini-program sales via WeChat. Graeme sought insight into what works best in Southeast Asia.

“The trade adviser understood that I wanted to go gradually,” says Graeme. “We have decided on Singapore as our first market. Singapore has a mature wine market and is the gateway to expansion into Southeast Asia.”

Graeme and his advisors considered finding an established wine dealer to be the best first step. In March 2020, when the pandemic finished its international air travel, Graeme was about to leave for Singapore.

Remote work with Singapore-based trade advisors

Instead of delaying the plan, Graeme began working closely with Ryan Solomon, an adviser to the Singapore-based Austrade Agency. With industry contacts, Ryan began identifying potential partners.

“Ryan knew the right person to talk to, and he came up with a good list of distributor candidates,” Graeme says. “He talked with many distributors on my behalf, evaluated his abilities, and shared his thoughts.

‘The trade adviser also looked up the credentials. This was very important to us. I had to make sure I had Shaw Wines at hand. The brand’s reputation is very important as our wines have won over 1000 medals and trophies at international festivals.

How to find the best distributor

TradeStart and Austrade advisors have worked together to arrange a series of WebEx calls with four potential distributors. This allowed Graeme to understand how a potential distributor suggested selling his wine and controlling his brand.

“This was an important decision for us because we trusted our brand with our new partners,” says Graeme. “All four distributors were great. It was a testament to the foundation of the Australian Trade Promotion Agency in Singapore.”

Graeme says he was familiar with the Singapore market and found it worthwhile to have Ryan attend the conference.

“Ryan had a question that I probably didn’t even think of,” Graeme says. “This meant that we were always identifying risks and making sure they were under control.”

Use high-end tourism to increase brand awareness

Shaw Wines chose Cornerstone Wines, a well-established distributor. The company is part of Hock Tong Bee (Private) Limited, one of Singapore’s oldest and largest independent wine and spirits companies and an increasingly important regional player.

With relevant commercial expertise, the Australian Trade Promotion Agency helped Shaw Wines conclude a contract in February 2021. Through the partnership, Shaw Wines will be gradually sold in Singapore, Malaysia, Indonesia, Thailand, Myanmar, Cambodia, Vietnam and Laos.

“At the beginning of 2021, I was approved for the first export without stepping into Singapore,” says Graeme. “Currently the amount is small, but our goal is to grow steadily.”

Tourism plays a major role in brand development. Some of Shaw Wines’ existing strategies include skipping visitors from Sydney to the vineyards to provide a great gourmet experience. Graeme will extend its vision to visitors from Asia when international tourism resumes.

“We are increasing brand awareness by opening the doors of vineyards and cellars to high-end tourism,” he says. “Singapore is the target of this strategy. Over time, international tourism will help us market our brand in Asia.

Why work with the Australian Trade Promotion Agency?

Graeme recommends working with the Australian Trade Promotion Agency and TradeStart for similar companies or SMEs who wish to expand into Asia and require on-site expertise. He says this is especially valuable if new exporters are unable to meet potential customers and distributors in person.

“We worked very well among the three,” he says. “Working with the Australian Trade Promotion Agency has helped us gain confidence in Singapore’s wine market, which is already crowded with hundreds of wines and many distributors.

“We were feeling our way. Austrade helped us find good distributors in difficult times. We are not the only ones to choose distributors. To choose us. Also needed them. “

Graeme reports that the Australian Trade Promotion Agency has provided multiple levels of support throughout the export process.

“Given their market knowledge, the Australian Trade Promotion Agency provides us with good insights and advice on contracts. They help us label correctly and are always very thorough.” Graeme says.

“It’s dangerous to start exporting without visiting a new country and without local expertise,” he adds. “With the help of the Australian Trade Promotion Agency and TradeStart, we took only the calculated risk, which is due to the quality of the people who work together in Singapore and Canberra.”

About the Australian Trade Promotion Agency

The Australian Trade Promotion Agency (Austrade) is the Australian Government’s international trade promotion and investment attraction agency.

We provide companies with quality trading and investment services to grow Australia’s prosperity. This is achieved by generating and providing market information and insights, facilitating Australia’s capabilities and facilitating connectivity through an extensive global network.

To discover how we can help you and your business austrade.gov.au Or contact us at [email protected] Or 1328 78 (in Australia).

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