Cultural Competency | Weekly Insight #3
May 13, 2026
A preview from our upcoming book, How to Start Exporting — the foundations for beginning your global expansion journey. This book has been developed from our experience building export markets and doing business across 53 countries worldwide. We share stories, case studies, and the pathways exporters must take to succeed.
Cultural Competency
Having a strong understanding of cultural competency requires you to examine the unique culture of the client in front of you first, rather than relying on your own preferences or assumptions about how business should be done. Developing this understanding will put you ahead of many domestic exporters looking to expand internationally.
Cultural competency is not always easy to recognise within our own business approaches. An Australian client who had successfully grown their export business across multiple European markets visited the Palaudin office to discuss their next diversification strategy into Asia. After announcing to their network that they were pursuing opportunities in Asia, they secured initial orders in Thailand, Singapore, and Hong Kong. They had also received interest from the Philippines, Malaysia, China, and Vietnam.
When we met with them, they first updated us on their European sales performance. They spoke about each market individually: Germany, Spain, France, the United Kingdom, and Belgium. Then they introduced their singular “Asia” strategy and outlined how they planned to launch across the region.
The team noticed Shane smile as he asked his first follow-up question:
“In doing business across multiple European countries, you’re obviously using the same approach to repeat success in every market — particularly between France and Germany?”
The business owner looked confused. It was obvious to everyone at the table that this was not the case. The Germans were strict with payment terms, business contracts, and customs, and approached customer service very differently from the French.
Shane smiled again and followed up:
“If that’s true, then there must also be similarities between Spain and Germany, especially if the Spanish market is showing strong growth?”
The client tried to hide their frustration as they replied:
“Have you forgotten how different each country is to do business in? Of course not. We take a distinct approach to Germany, Spain, Belgium, and the UK.”
Finally, after making his point, Shane smiled again and said:
“I’ve listened to you speak about Asia as though it’s one country for the last 10 minutes — as if the entire continent has one port, one language, and one way of doing business. Don’t you think there’s a danger in approaching such a diverse region with the assumption that it’s one singular group?”
The room fell silent as a major blind spot was brought to light. The business viewed Asia as one collective market, while naturally recognising Europe as a group of distinct countries with different behaviours, preferences, and beliefs.
Even though they had demonstrated cultural competency in Europe, the client was at risk of making significant mistakes in business relationships, product launches, logistics planning, packaging, and marketing because they were not culturally competent across the eight distinct Asian markets they were targeting.
We often see businesses take a singular approach to regional markets. In doing so, they fail to consider the cultural differences across the region. Failing to see culture first and region second is a common mistake. Even neighbouring countries that speak different languages can have important distinctions in how business is conducted culturally.
Cultural competency is not just about learning another culture. It also requires confronting our own assumptions and biases. To remain culturally competent is a lifelong process built through experience, relationships, and an ongoing commitment to learning from others.
How Does Cultural Competency Guide Your Export Strategy?
If we think about a region as diverse as Asia, here are 12 guideposts that should shape your approach. These have been adapted from a keynote Shane delivered to Asialink in Sydney, drawing from his experience doing business across Hong Kong, Thailand, Malaysia, the Philippines, South Korea, China, Vietnam, Japan, and Taiwan.
Asia is a diverse and rapidly growing region that offers enormous opportunities for businesses looking to expand internationally. With large and dynamic markets, increasing consumer purchasing power, and a growing middle class, Asia is an attractive destination for exporters. However, entering Asian markets requires careful planning, cultural understanding, and strategic execution.
Here’s a step-by-step framework to help navigate this complex landscape successfully.
12 Steps to Frame Your Export Approach in Asia
1. Time: Be Present
First and foremost, you have to be there. If you or your consultants are not prepared to spend time in Asia, stop now. We spend months each year in international markets supporting our clients. Being present allows you to understand market dynamics, build relationships, and respond quickly to opportunities and challenges.
2. Research: Know Your Market
The journey starts with research. Understand the market for your product, your competitors, tax and tariff implications, and other key factors. We work closely with Austrade and other government organisations, and occasionally engage external support services. Gathering accurate data and avoiding assumptions is critical to building a strategy that genuinely meets market needs.
3. Cultural Sensitivity: Understand the Nuances
The importance of cultural considerations cannot be overstated. Your approach in China will be very different from your approach in Japan. Learn the food, understand local customs, and respect the cultural approaches of your partners. They are unlikely to change for you, so adapt your own approach and step outside your comfort zone.
4. Patience: Build Trust Over Time
Doing business in Asia requires patience. Trust and time produce results. Use your ears and mouth in the proportion God gave them to you — listen more than you speak. Be prepared for a longer timeline when building trust and achieving meaningful outcomes.
5. Relationships: Go the Extra Mile
Relationships take time to develop, but the right ones are invaluable. Go the extra mile in everything you do. This level of commitment delivers results for both your local partner and your business. Strong relationships open doors and provide support as you navigate the market.
6. Work with a Local Partner: Find the Right Fit
Working with a local partner is essential. You may go through several before finding the right fit, so don’t hesitate to make changes early if needed. In some cases, we have bought out partners or transitioned into joint ventures to help clients maintain greater control.
7. Invest: Don’t Cut Corners
You cannot cut corners in Asia. Invest the necessary time, money, and resources to set your business up for success. Cutting corners can lead to misunderstandings, missed opportunities, and damaged relationships.
8. Education: Take Responsibility
Don’t assume your local partner, their clients, or the media fully understand your product. Take responsibility for educating the market. This is different from marketing or PR, but equally important. Education ensures your audience understands the unique value of your offering.
9. Marketing: Own Your Brand
Take responsibility for marketing your brand and products, because no one understands them better than you do. Often, your local partner is managing multiple products and priorities. Owning your marketing also helps protect your brand and maintain its integrity in-market.
10. Support: Leverage Available Resources
Work with Trade Commission offices and state government organisations. These groups can provide valuable resources and support, helping you avoid reinventing the wheel.
11. Financial Control: Manage Debtors Firmly
Manage debtors firmly from day one. Strong financial control ensures the excitement of market potential does not cloud your judgement. Financial discipline is critical for maintaining healthy cash flow and avoiding unnecessary risk.
12. Service Delivery: Perfect Your Distribution Channels
Ensure your distribution channels are properly tested and refined. Don’t assume things will simply work — test and test again. This allows you to deliver on your promises and helps ensure nobody loses face.
By following these 12 steps, you can build a strong foundation for your export business. Each step is designed to help you navigate market complexity, build long-term relationships, and achieve sustainable growth. Patience, cultural sensitivity, and a strategic approach are key to unlocking the region’s vast potential.
How Palaudin Consulting Can Help Your Business
We have first-hand experience for over 25 years building businesses to scale into new markets. We’ve developed sales channels, attracted investment and built the operations of clients around the world. We overcome unique global challenges time and time again.
In a world of AI, access to knowledge is no longer a barrier. The barrier for businesses to export remains the right relationships and ensuring that you are making culturally competent decisions moment by moment.
At Palaudin Consulting, we bring analysis, relationships and discernment to support your business develop international clients. We guide and mentor you to make better decisions with our experience and data in a competitive marketplace.
