2019 UPS Industrial Buying Dynamics Asia Pacific Study Results
New research commissioned by UPS into industrial buyers finds that despite growth in online business purchases, traditional offline relationships, face-to-face interactions and post-sales support weigh more heavily in purchasing decisions here than in other regions.
August 9, 2019
By PLA Editor
Notwithstanding the anticipated increase in online purchases amongst Asian buyers, the report also indicates that speaking over the phone or in person happens more frequently in Asia than in the United States or Europe. Asian buyers especially value establishing a relationship in person before purchasing online – this practice is most pronounced in China, where winning trust before doing business is a key part of the deal-making process.
Sourcing Goes International
As a region, Asia is similar to the rest of the world in terms of how much its buyers source from domestic suppliers — 67 percent of all B2B purchases in Asia come from domestic suppliers, versus 73 percent in the U.S. and 64 percent in Europe. However, there is one outlier in the region: Japan, where buyers source 90 percent of all goods domestically. This may change in the near future, however, with the country having recently signed a series of free trade deals—most notably with the European Union. When asked what they considered to be the barriers to making international purchases, the top three factors listed by respondents in Asia were longer transit times (60 percent), customs delays (55 percent), and issues with returns (45 percent).
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